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Structure:
5.1 Introduction
Learning objectives
5.2 Formulation of Transportation Problem (TP)
5.3 Transportation Algorithm (MODI Method)
5.4 The Initial Basic Feasible Solution
North west corner rule
Matrix minimum method
Vogel‟s approximation method
5.5 Moving Towards Optimality
Improving the solution
Modified distribution method / MODI method / U – V Method
Degeneracy in transportation problem
5.6 Summary
5.7 Terminal Questions
5.8 Answers to SAQs and TQs
Answers to Self Assessment Questions
Answers to Terminal Questions
5.9 References
5.1 Introduction
Welcome to the unit on transportation model in Operations Research
Management. Transportation model is an important class of linear
programs. For a given supply at each source and a given demand at each
destination, the model studies the minimisation of the cost of transporting a
commodity from a number of sources to several destinations.
The transportation problem involves m sources, each of which has available
ai (i = 1, 2… m) units of homogeneous product and n destinations, each of
which requires bj (j = 1, 2…., n) units of products. Here ai and bj are positive
integers. The cost cij of transporting one unit of the product from the ith
source to the jth destination is given for each i and j. The objective is to
develop an integral transportation schedule that meets all demands from the
inventory at a minimum total transportation cost.
It is assumed that the total supply and the total demand are equal.
m n
ai bj (1)
i 1 j 1
Solved Problem 1
Determine an initial basic feasible solution to the following transportation
problem using the north west corner rule:
D1 D2 D3 D4
01 6 4 1 5 14
02 8 9 2 7 16
Availability
03 4 3 6 2 5
6 10 15 4 35
Requirements
Where Oi and Dj represent the ith origin and the jth destination respectively.
14
16
5
6 10 15 4
Following north west corner rule, the first allocation is made in the cell
(1,1), the magnitude being x11 = min (14, 6) = 6
The second allocation is made in the 6 10 15 4 cell (1, 2) and the
magnitude of allocation is given by x12 = min (14 – 6, 10) = 8
The third allocation is made in the cell (2, 2), the magnitude being
x22 = min (16, 10 – 8) = 2.
The magnitude of fourth allocation, in the cell (2, 3) is given by x23 = min
(16 – 2, 15) = 14.
The fifth allocation is made in the cell (3, 3), the magnitude being x33 = min
(5, 15 –14) =1.
The sixth allocation in the cell (3, 4) is given by x34 = min (5 –1, 4) = 4.
Now all the rim requirements have been satisfied and hence an initial
feasible solution to the TP has been obtained. The solution is displayed as
D1 D2 D3 D4
6 8
14
01 6 4 4 5
2 14
02 8 16
9 2
1 4
03 4 5
3 6 2
6 10 15 4
Clearly, this feasible solution is non-degenerate basic feasible solution as
the allocated cells do not form a loop. The transportation cost according to
the above loop is given by.
Z = x11 c11 + x12 c12 + x22 c22 + x23 c23 + x33 c33 + x34 c34
= 6 6 + 8 4 + 2 9 + 14 2 + 1 6 4 2
= 128
Solved Problem 2
Obtain an initial basic feasible solution to the following TP using the
matrix minima method.
Table 5.3: Initial table
D1 D2 D3 D4
01 1 2 3 4 6 Capacity
02 4 3 2 0 8
03 0 6 8 6 10
4 6 8 5 24
Demand
There is again a tie for the third allocation. Arbitrarily choose the cell
(1, 2) and allocate x12 = min (6, 6) = 6. Cross the second column of the
first row. Next, choose to cross off the first row of the table. The next
allocation of magnitude x22 = 0 is made in the cell (3, 2), cross the
second column getting table(ii), as shown above
Again you choose arbitrarily to make the next allocation in cell (2, 3) of
magnitude x23 = min (2, 8) = 2, cross the second row to get table (iii) as
show above. The last allocation of magnitude x23 = min (6, 6) = 6 is made
in the cell (3, 3).
Now that all the rim requirements have been satisfied, an initial feasible
solution has been determined. This solution is shown above in table (iv).
Since the cells do not form a loop, the solution is basic and degenerate.
The transportation cost according to the above route is given by
Z=6×2+2×2+6×0+4×0+0×2+6×2=28
Remarks:
1. A row or column “difference” indicates the minimum unit penalty incurred
by failing to make an allocation to the last smallest cell in that row or
column.
2. It is clear that VAM determines an initial basic feasible solution, which is
very close to the optimum solution. But the number of iterations required
to reach the optimal solution is small.
Caselet
A company has four warehouses. Each warehouse supplies inventory to
five stores.
The company needs to develop an integral transportation schedule that
meets all demands from the inventory at a minimum total transportation
cost.
Assuming that the total supply and the total demand are equal, the
company can use the transportation model of a LPP to arrive at a basic
feasible solution.
Solved Problem 3
Obtain an initial basic feasible solution to the following TP using the
Vogel‟s approximation method:
Table 5.4: Transportation Table
Stores
Ware houses Availability
I II III IV
A 5 1 3 3 34
B 3 3 5 4 15
C 6 4 4 3 12
D 4 -1 4 2 19
Requirement 21 25 17 17 80
The minimum cost in the fourth row is C42 = –1. Accordingly, you allocate
x42 = min (19, 25) = 19 in the cell (4, 2). This exhausts the availability at
warehouse D. Cross the fourth row. The row and column differences are
now computed for the resulting reduced transportation table (ii) as shown
below:
Table 5.5: Resulting reduced transportation table
5 1 3 3 34(2)
3 3 5 5 15(0)
6 4 4 3 12(1)
4 19-1 4 2 19(3)
21 25 17 17
(1) (2) (1) (1)
(i)
minimum, add it to the positive places and subtract from the negative
places.
Step 8: Form new table and repeat steps 5 to 7 till ij 0
Balanced TP
Solved Problem 4
Solve the following transportation problem with cost coefficients demands
and supplies as given in the following table:
Destinations
A B C Supply
Sources I 6 8 4 14
II 4 9 8 12
III 1 2 6 5
Demand 6 10 15
6 8 4
14 14
4 9 8
6 5 1 12
1 2 6
5 5
Demand 6 10 15
Destination
Sources Supply
D1 D2 D3
1 6 8 4 14
14
2 4 9 8 12
6 5 1
3 1 2 6 5
5
6 10 15
The optimum allocations are
x13 = 14, x21 = 6, x22 = 5, x23 = 1, x32 = 5
The minimum transportation cost is
144+64+59+18+52 = 143
For allocated cells
u1 + v3 = 4 u1 = -4
Set u2 = 0
u1 + v3 = 4 u1 = -4
u2 + v2 = 9 v1 = 4
u2 + v3 = 8 v2 = 9
u3 + v2 = 5 v3 = 8
Note: Select that variable ui / vi is repeated very often for easy calculation.
Here u2 is repeated often.
For unallocated cells
ij = cij – ui – vj
11 = 6 – (-4) – 4 = 6
12 = 8 – (-4) – 9 = 3
31 = 1 – (-4) – 4 = 1
33 = 6 – (-4) – 8 = 2
Since all ij 0, the optimum solution is
X13 = 14 x 4 = 56
X21 = 6 x 4 = 24
X22 = 5 x 9 = 45
X23 = 1 x 8 = 8
X32 = 5 x 2 = 10
Total cost = 143
Unbalanced T.P
Solution: Since the supply and requirements are not equal it is called an
unbalanced TP. In general, if ai bj then it is called an unbalanced TP.
We introduce either a dummy row or a column with cost zero quantities
and bi aj respectively. Applying Vogel‟s approximation method we find
the basic feasible solution.
Destinations
S1 D1 D2 D3 D4 P1 P2 P3
P4
Sources 17 21 4 4 4 11
45 30
S2 6 3 6 15/9/6
S3 4 4 4 12
14 18 19 31
9 4 13/4
st
4
1 0---
0 0 0 0
Cancel 3 3
Demand 9/0 6 7/3 9/6
P1 14 17 19 30
P2 31 1 2 1
P3 – 1 2 1
P4 – – 2 1
617+321+630+914+419+3.0 = 470.
This is achieved by transporting x12 = 6 cars from source 1 to destination
2, x13 = 3, x14 = 6 cars from sources 1 to destinations 3 and 4
respectively; x21 = 9 and x33 = 4 cars from sources 2 to destinations 1
and 3 respectively.
Solved Problem 5
Obtain an optimum basic feasible solution to the following degenerate T.P.
Table 5.7: Initial table
7 3 4 2
From 2 1 3 3 Available
3 4 6 5
4 1 5 10
Demand
Notice that even after the inclusion of cell (2, 3) in the basis; the basic
cells do not form a loop, that is, the augmented solution remains basic.
The net evaluations can now be computed and the solution is tested for
optimality.
Starting table:
Since all the net evaluations for the non-basic variables are not non-
positive, the initial solution is not optimum. The non basic cell (1, 3) must
enter the basis. The exit criterion removes the basic cell (2, 3) from the
basis max .
– (3) 2 - (3)
6 +
2
7 3 5 7 3 4 0
(4) 2 (– 4) -
4 2 1 3
- (4) – 2
+ 1 3 0 1
4
(6) 6
2
2 (2) 1 (0)
3 4 6 8
Vi 2 1 3 Vj 7 6 4
Starting table First iterated table
First iteration: Introduce the cell (1, 3) into the basis and drop the cell (2,
3) from it. Determine the current net evaluations. Since all of them are
not non-positive the current solution can be improved.
Second iteration: Introduce the cell (3, 1) and drop the cell (1, 1) from the
basis. Since some of the current net evaluations are still positive, the
current solution can further be improved.
Ui
(-6) (-3) 2
–1
7 3 4
– 1
2 2 1 (2) 0
3
+ (–2) 3 –
2 4 1
3 6
vj 2 1 5
Table 5.12: Optimum table
ui
(– 6) (–1) 2
7 3 4 4
(–2) 1 2 3
2 1 3
4 (0) 1
3 4 6 6
Vj –3 –2 0
Third iteration: Introduce the cell (2, 3) and drop the cell (2, 1) from the
basis. Since all the current net evaluations are non positive, the current
solution is an optimum one. The transportation cost according to the
above route is given by
z 2 4 1 1 2 3 4 3 1 6 = 33
5.6 Summary
The transportation problem is a special type of linear programming problem
in which the objective is to transport a homogeneous product manufactured
at several plants (origins) to a number of different destinations at a minimum
total cost. In this unit, you have learnt several different techniques for
computing an initial basic feasible solution to a transportation problem, such
as north-west corner rule, matrix minimum method and Vogel‟s
approximation method. Further, you studied the degeneracy in
transportation problem with examples on obtaining an optimum basic
feasible solution.
1 2 3 11 7
2 1 0 6 1
Factories
3 5 8 15 9
9 12 9 6 9 10 5
7 3 7 7 5 5 6
6 5 9 11 3 11 2
6 8 11 2 2 10 9
4 4 6 2 4 2 22
5.9 References
No external sources have been referred for this unit.