TRANSPORTATION PROBLEM

Submitted to Prof. R K Singh

by Group 8 Sec B
Reema Arora(29NMP)
Srihari(29NMP)
Suresj J(29NMP)
Swaraj Kumar Dhar (29NMP87)
Saswat Ota(29NMP)
Kaustuv Mohapatra (EM02)

Contents
Introduction................................................................................................................ 3
History of transportation Problem............................................................................... 4
Modeling Of Transportation Problem...........................................................................4
Solution of the Transportation Problem.......................................................................6
Problem Statement..................................................................................................... 6
Problem Analysis........................................................................................................ 7
Conclusion................................................................................................................ 10

Introduction
Transportation problem is a particular class of linear programming, which is associated with day-to-day
activities in our real life and mainly deals with logistics. It helps in solving problems on distribution and
transportation of resources from one place to another. The goods are transported from a set of sources (e.g.,
factory) to a set of destinations (e.g., warehouse) to meet the specific requirements. In other words,
transportation problems deal with the transportation of a single product manufactured at different
plants (supply origins) to a number of different warehouses (demand destinations). The objective is to
satisfy the demand at destinations from the supply constraints at the minimum transportation cost possible.
To achieve this objective, we must know the quantity of available supplies and the quantities demanded. In
addition, we must also know the location, to find the cost of transporting one unit of commodity from the
place of origin to the destination. The model is useful for making strategic decisions involved in selecting
optimum transportation routes so as to allocate the production of various plants to several warehouses or
distribution centers.

Suppose there are more than one centers, called origins , from where the goods need to be transported to
more than one places called destinations and the costs of transporting or shipping from each of the origin
to each of the destination being different and known. The problem is to transport the goods from various
origins to different destinations in such a manner that the cost of shipping or transportation is minimum.
Thus, the transportation problem is to transport various amounts of a single homogenous commodity,
which are initially stored at various origins, to different destinations in such a way that the transportation
cost is minimum.
The objective of the transportation model is to determine the amount to be shipped from each source to
each destination so as to maintain the supply and demand requirements at the lowest transportation cost.
For example: A tyre manufacturing concern has m factories located in m different cities. The total supply
potential of manufactured product is absorbed by n retail dealers in n different cities of a country. Then,
transportation problem is to determine the transportation schedule that minimizes the total cost of
transporting tyres from various factory locations to various retail dealers.

The transportation model can also be used in making location decisions. The model helps in locating a new
facility, a manufacturing plant or an office when two or more number of locations is under consideration.
The total transportation cost, distribution cost or shipping cost and production costs are to be minimized by
applying the model.
History Of Transportation problem
Orden (1956) introduced the concept of Transshipment Problem. He extended the concept of original
transportation problem so as to include the possibility of transshipment. In other words, we can say that
any shipping or receiving point is also permitted to act as an intermediate point. In fact, the transshipment
technique is used to find the shortest route from one point to another point representing the network
diagram. Rhody (1963) considered Transshipment model as reduced matrix model. King and Logan (1964)
argued that the problem of determining simultaneously the flows of primary products through processor to
the market as final product has been formulated alternatively as a transshipment model. However Judge et
al. (1965) formulated the Transshipment model into general linear programming model. Garg and Prakash
(1985) studied time minimizing Transshipment model. However Herer and Tzur (2001) discussed dynamic
Transshipment Problem. In the standard form, the Transshipment problem is basically a linear minimum
cost network. For such types of optimization problems, a number of effective solutions are available in the
literature since many years. Recently Khurana and Arora (2011) discussed transshipment problem with
mixed constraints. In this chapter, we have 58 discussed a simple and alternate method for solving
Transshipment Problem which gives either an optimal solution or near to optimal solution.
Modeling of the transportation problem
The transportation problem is concerned with finding the minimum cost of transporting a single
commodity from a given number of sources (e.g. factories) to a given number of destinations (e.g.
warehouses). These types of problems can be solved by general network methods, but here we use a
specific transportation algorithm.The data of the model include
1. The level of supply at each source and the amount of demand at each destination.
2. The unit transportation cost of the commodity from each source to each destination.
Since there is only one commodity, a destination can receive its demand from more than
one source. The objective is to determine how much should be shipped from each source
to each destination so as to minimise the total transportation cost

This figure represents a transportation model with m sources and n destinations. Each source or destination
is represented by a node. The route between a source and destination is represented by an arc joining the
two nodes. The amount of supply available at source I is ai, and the demand required at destination j is bj .
The cost of transporting one unit between source i and destination j is cij .Let xij denote the quantity
transported from source i to destination j. The cost associated with this movement is cost X quantity =
cijxij . The cost of transporting the commodity from source i to all destinations is given by

Thus, the total cost of transporting the commodity from all the sources to all the destinations is

The first constraint says that the sum of all shipments from a source cannot exceed the
available supply. The second constraint specifies that the sum of all shipments to a
destination must be at least as large as the demand.
The above implies that the total supply
is greater than or equal to the total demand
When the total supply is equal to the total demand (i.e.

then the transportation model is said to be balanced. In a balanced transportation model, each of the
constraints is an equation

Solution of the Transshipment Problem

The following are steps for solving a Transshipment problem so far available in the literature.
Step1 If necessary, add a dummy demand point (with a supply of 0 and a demand equal to the problems
excess supply) to balance the problem. Shipments to the dummy and from a point to itself will be zero.
Let s= total available supply.
Step2 Construct a transportation table as follows: A row in the table will be needed for each supply
point and transshipment point, while a column will be needed for each demand point and transshipment
point.
In transshipment problem we consider the following concept. Let each supply point will have a supply
equal to its original supply, and each demand point will have a demand to its original demand. Let s=
total available supply. Then each transshipment point will have a supply which is equal to points
original supply + s and a demand which is equal to points original demand + s. This ensures that any
transshipment point that is, a net supplier will have a net outflow equal to points original supply and a
net demander will have a net inflow equal to points original demand. Although we dont know how

much will be shipped through each transshipment point. However, we can be sure that the total amount
will not exceed s.
Problem Statement
Consumption of nuts and dried fruits is steadily increasing, and is being driven by changing lifestyles
and rising health consciousness, which is reflected in growing focus on preventive healthcare against
the backdrop of rising healthcare expenditures.
The per capita consumption of nuts in India is very low at 150 gm per annum; this includes direct
consumption on health grounds and as snacks; as ingredients in cakes, desserts, namkeen, etc; and
during Diwali and other festivals. In fact, Diwali consumption alone accounts for almost 40 per cent of
the annual consumption. This is mostly due to gifting, which leads to more of forced
consumption.Keeping aside the demand during festivals, per capita consumption is only 100 gm per
person, per year. So growth is increasing in volume terms is 10 percent per year.
Keeping demand on eye india imports dryfruits from USA,Spain and Australia etc.
In the present project work, a trans-shipment problem of increasing demand of drufruits has been taken
up. The dryfruit imported is collected from various ports in source cities Kolkata,kandla Mumbai and
cochin etc.Here we have considered the demand of north part of india in our project work.
In the present project work, Kolkata And kandla are considered the originating cities.The shipments
of dry fruits go to the stockiest in Ahemdabad, Bhopal and Patna. These stockiest supply the
shipments as per the requirements of distributors in various destination cities including
Delhi,Jaipur,Chandigarh. The costs of transportation are in terms of rupees per tonnes
The transportation costs of shipment are as follows:
Kandla to Ahemdabad Rs. 18/tonnes

Kandla to Bhopal Rs. 12/tonnes

Kandla to Patna Rs. 14/tonnes

Kolkata to Ahemdabad Rs. 17/tonnes

Kolkata to Bhopal Rs. 16/tonnes

Kolkata to Patna Rs. 19/tonnes

Ahemdabad to Delhi - Rs. 8/tonnes

Ahemdabad to Jaipur - Rs. 10/tonnes

Ahemdabad to Chandigarh - Rs. 12/tonnes

Bhopal to Delhi Rs. 9/tonnes

Bhopal to Jaipur - Rs. 13/tonnes

Bhopal to Chandigarh - Rs. 13/tonnes

Patna to Delhi - Rs. 6/tonnes

Patna to Jaipur - Rs. 7/tonnes

Patna to Chandigarh - Rs. 14/tonnes

In addition to this, it is also assumed that the maximum possible supply of wheat from both the
suppliers (i.e. from kandla & Kolkata) is 120 tons/ year. It is also considered that the distributors in
destination cities have the following requirements:
Delhi: 50 tonnes/ yr. Jaipur : 30 tonnes/yr.
Chandigarh: 40tonnes/yr.
Problem Analysis

KandlaPor
tt

Kolkata

Ahemdabad

1
8
1
4
2 3
1 10 0
7 6
1 4
9 0 1
8

3
0

5
0
Bhopal
3
0
Patna
4
0

Input I

Delhi

8
1
10
9 21
1 3
3
6 7

5
0
Jaipur

1
4

3
0
Chandigarh

4
0

Output I

Input II

Output II

Conclusion

KandlaPor
tt

Kolkata

1
8
3
1
0
4
2 3
1 10 0
7 6
1 4
9 0 1
8

Ahemdabad

5
0
Bhopal
3
0
Patna

1
0
1 4
10 0

9 2 11
0
1 3
3
3
04
6 7
0
1
4

Delhi

5
0
Jaipur
3
0
Chandigarh

Problem has been solved for cost optimization using TORA software.

Optimal Cost of Transportation= Rs. 1100/year.