Transportation problems are special case of LPP where the objective is to minimize the transportation

cost involved in distribution of goods and products.

Unbalanced Transportation problem: A transportation problem which does not have demand and
supply equal.

Feasible solution it is any solution which satisfy the requirement of demand and supply.

Basic Feasible Solution : Any solution where the total number of occupies cells is ≥ m+n-1 where m is
number of rows and n is number of columns.

Optimum solution: A solution which is most favourable out of all IFS under the given set of
circumstances.

Degeneracy : A situation where the number of allocated cells is less than m+n-1 where m is number of
rows and n is number of columns. To remove this problem we use the sigh of € or ∆ in an unoccupied
cell With lowest Transportation cost.

Any transportation problem can be solved by using NWCM , LCM or Vogel’s Approximation Methods
for finding out an Initial Feasible Solution . After that optimum solution is obtained by either Stepping
Stone Method or MODI method .( TC means Transportation Cost). Mostly MODI method is in use now
a days

NWCM OR MORTH WEST CORNER METHOD In this method first assignment is made in top left
hand corner cell without any consideration of Transportation Cost. Maximum allotment is minimum of
demand or supply as per the question conditions. In the process either demand will exhaust or supply will.
Whichever is left . next move will be in the same direction. And thus final stage is reached by moving
ahead till all demand and supply are exhausted. Then total cost is found out by summation of the product
of Transportation cost and total allotment for the individual cells

LCM OR LEAST COST METHOD In this method first of all least cost cell is searched. Then
minimum of demand and supply is allotted and necessary corrections are made in the demand and supply.
Then next higher TC cell is selected for assignment. Thus process goes on till all demand and supplies are
zero. Then the TC is calculated as calculated in NWCM .

VOGEL’S METHOD In this method for each row and column Penalty is calculated first. Penalty is
nothing but is a difference in value of TC if one unit is not transported in the least cost cell but next
higher cost cell i.e. difference of lowest and next higher TC. The row or column with highest Penalty is
picked and assignment is made in the cell with least TC in the respective row or column. Allotment is
made in the cell by minimum of demand and supply values. This goes on till all demand and supply
becomes zero. One thing which is taken care of, is that the cells of rows and columns are not considered
for calculation of penaly whose demand or supply is zero.
For optimum solution we use MODI Method but firstly it is ensured that there is no degeneracy in the IFS
that means that the total numbers of occupied or assigned cells are not less than m+n-1 where m is
number of rows and n is number of columns in the matrix.

MODI Method in this method we assign U1 U2 ……Un values to rows and V1V2 V3 …..Vn to all
columns. Then for all occupied cell we make equations with respective U and V as under

TC of cell= U+V

thus we get as many equations as the numbers of occupied cells

Now any of the variable (U1, U2….or V1, V2 ….) is assigned a 0 value ( here we prefer to assign 0
value to the variable which is used for the maximum times in the equations)

Now with the help of this 0 value, value of all other variables U1,U2, U3….or V1, V2….. etc. are
calculated

Now change in transportation cost is calculated for each unoccupied cell with the help of equation

Transport cost of unoccupied cell - U-V

Here Value for respective U and V as calculated earlier is used.

For any cell if transportation cost change is negative then that cell indicates for more assignment to the
cell from some other cell. For transferring any assignment we need minimum 4 and then even numbers of
cell like 6, 8 etc. the transfer may in vertical or horizontal but never diagonally. The transfer of
assignment is alternately + and – in adjoining cells. The transfer is made in such a way that the conditions
of demand and supply are maintained. Then once again new equations are made for all occupied cells and
then change in Transportation cost for vacant cells are calculated . If all the values are + then the solution
is said to be optimum .

Treatment of Degeneracy Degeneracy is removed by using sign ∆ or € in any of the unoccupied cells.
The value of ∆ or € is infinitely small but not Zero. Thus by using it there is no significant change in
demand or supply and it makes the calculation easy

MODI method can not be used if the feasible solution is degenerated. This situation may occur in two
ways:

In the beginning i.e. the IFS is degenerated. Under the situation, we use a symbol of ∆ or € in any
unoccupied cell whose TC is least and it is independent also. Independent means that it does not make a
part of any loop

In Second case the degeneracy is created during the use of MODI method and in this situation only those
two cells are considered which were earlier occupied and now are unoccupied. The cell with least TC is
allotted ∆ or € and normal procedure is used
Find out Basic feasible solutions by all three methods and then find out Optimal solution for following
questions. If any of the problems is unbalanced or has degeneracy , calculate accordingly

1.

W1 W2 W3 SUPLY
P1 19 15 30 6
P2 14 16 25 10
P3 23 12 16 12
P4 11 21 39 15
DEMAND 11 13 19 43

2.

W1 W2 W3 SUPLY
P1 2 7 4 5
P2 3 3 1 8
P3 5 4 7 7
P4 1 6 2 14
DEMAND 7 9 18 34
3

W1 W2 W3 SUPPLY
P1 10 8 9 15
P2 5 2 3 20
P3 6 7 4 30
P4 7 6 8 35
DEMAND 25 26 49 100
3.

W1 W2 W3 W4 W5 W6 SUPPLY
P1 9 12 9 6 9 10 5
P2 7 3 7 7 5 5 6
P3 6 5 9 11 3 11 2
P4 6 8 11 2 2 10 9
DEMAND 4 4 6 2 4 2 22
4

W1 W2 W3 W4 W5 SUPPLY
P1 4 2 3 2 6 8
P2 5 4 5 2 1 12
P3 6 5 4 7 3 14
DEMAND 4 4 6 8 8 30/34

5.

W1 W2 W3 W4 SUPPLY
P1 7 3 4 9 12
P2 4 2 4 7 8
P3 3 7 3 5 35
P4 4 5 7 3 25
DEMAND 15 25 20 40 100/80

W1 W2 W3 W4 SUPPLY
P1 3 1 7 4 300
P2 2 6 5 9 400
P3 8 3 3 2 500
DEMAND 250 350 400 200 1200
7

W1 W2 W3 W4 SUPPLY
P1 1 2 1 4 30
P2 3 3 2 1 50
P3 4 2 5 9 20
DEMAND 20 40 30 10 100

8.

W1 W2 W3 W4 SUPPLY
P1 48 60 56 58 140
P2 45 55 53 60 260
P3 50 65 60 62 360
P4 52 64 55 61 220
DEMAND 200 320 250 210 980