Determine optimal solution to the problem given below. Obtain the initial solution by VAM.

Write down the differences between PERT and CPM.

Vogels Approximation Method (VAM) Vogels approximation method yields a very good initial solution, which, sometimes may be the optimal solution. This method takes into account not only the least cost cij but also the costs that just exceed cij. Algorithm: Step 1: Enter the difference between the smallest and second smallest elements in each column below the correspond column and the difference between the smallest and second smallest elements in each row to the right of the row. Put these numbers in parentheses as shown (above table). Consider the example 2.3: In column 1, the two lowest elements are 1 and 2 and their difference (1 which is entered as [1] below column 1). Similarly, the two smallest elements in row 2 are 0 and 1, and their difference 1 (which is entered as [1] to the right of row 2). Step 2: Select the row or column with the greatest difference and allocate as much as possible within the restrictions of the rim conditions to the lowest cost cell in the row or column selected. In case a tie occurs, use any arbitrary tie breaking choice. In the given example: Since [6] is the greatest number in parentheses, we choose column 4 and allocate as much as possib1e to the cell (2, 4) as it has the lowest cost 1 in column 4. Since supply is 1 while the requirement is 2, maximum possible allocation is (1).

Basic difference between PERT and CPM Though there are no essential differences between PERT and CPM as both of them share in common the determination of a critical path and are based on the network representation of activities and their scheduling that determines the most critical activities to be controlled so as to meet the completion date of the project.

6.2.1 PERT 1. Since PERT was developed in connection with an R and D work, therefore it had to cope with the uncertainties which are associated with R and D activities. In PERT, total project duration is regarded as a random variable and therefore associated probabilities are calculated so as to characterize it. 2. It is an event-oriented network because in the analysis of network emphasis is given an important stages of completion of task rather than the activities required to be performed to reach to a particular event or task. 3. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. 4. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project. 6.2.2 CPM 1. Since CPM was developed in connection with a construction project which consisted of routine tasks whose resources requirement and duration was known with certainty, therefore it is basically deterministic. 2. CPM is suitable for establishing a trade-off for optimum balancing between schedule time and cost of the project. 3. CPM is used for projects involving activities of repetitive nature.