Transportation problem

Sheeba Apparels ltd has 3 warehouses across the country i.e. Ahmedabad, Surat,
and Jamnagar.The cost incurred in transporting the products from warehouses to
the retail centre located at Mumabai, Delhi, Kolkata and Chennai varies. Find the
optimum quantity to be transferred from warehouses to each retail outlets. The cost
incurred from Ahmedabad to Mumbai, Delhi, Kolkata and Chennai are 1000, 2000,
1000 and 4000 respectively. The cost incurred to transport materials from Surat to
Mumbai, Delhi, Kolkata and Chennai are Rs 3000, Rs 3000, Rs 2000 and Rs 500.
Similarly from Jamnagar the cost incurred is Rs 4000 , Rs 3000, Rs 5000 and Rs
9000 respectively. Ahmedabad can maximum supply 30 units in a day. Surat can
supply 50 units per day and Jamnagar can supply 20 units per day.Similarly the
daily demand from Mumbai, Delhi, Kolkata and ZChennai are 20, 40 30 10.Solve the
following transportation problem

transportation manufacturing.tra

X11= Amount supplied from Ahmedabad to Mumbai

X12= Amount supplied from Ahmedabad to Delhi

X13= Amount supplied from Ahmedabad to Kolkata

X14= Amount supplied from Ahmedabad to Chennai

X21= Amount supplied from Surat to Mumbai

X22= Amount supplied from Surat to Delhi

X23= Amount supplied from Surat to Kolkata

X24= Amount supplied from Surat to Chennai

X31= Amount supplied from A3 to Mumbai

X32= Amount supplied from A3 to Delhi

X33= Amount supplied from A3 to Kolkata

X34= Amount supplied from A3 to Chennai

Minimize Z=
X11+2X12+X13+4X14+3X21+3X22+2X23+X24+4X31+2X32+5X33+9X34
Constraints

X11+X12+X13+X14<=30

X21+X22+X23+X24<=50

X31+X32+X33+X34<=20

X11+X21+X31>=20

X12+X22+X32>=40

X13+X23+X33>=30

X14+X24+X34>=10

X11,X12,X13,X14,X21,X22,X23,X24,X31,X32,X33,X34>=0
Answers

X11=20, X13=10, X22=20, X23=20, X24=10, X32=10

Transportation Problem Services

MDLR Airlines can buy its jet fuel from any one of three vendors. 100000 At
Chandigarh, 180,000 gal at Delhi, and 350,000 gal at Kolkata. Each vendor can
supply fuel to each airport at a price (in cents per gallon) given by the following
schedule.

Each vendor however is limited in the total number of gallons it can provide during
any one month. These capacities are 320000 gal for vendor 1, 270000 gal for
vendor 2, 190000 gal for vendor 3. Determine a purchasing policy that will supply
the airline’s requirement at each airport at minimum total cost.

Chandig Delhi Kolka

arh ta
vendo 92 89 90 3200
r1 00
vendo 91 91 95 2700
r2 00
vendo 87 90 92 1900
r3 00
100000 1800 3500
00 00
Its unbalanced transportation problem

So by balancing it

Chandig Delhi Kolka dum

arh ta my
vendo 92 89 90 0 3200
r1 00
vendo 91 91 95 0 2700
r2 00
vendo 87 90 92 0 1900
r3 00
100000 1800 3500 1500
00 00 00

transportation services.tra

Xij= Amount of gallon given by vendor i to airport j

Minimize Z= 92
X11+89X12+90X13+91X21+91X22+95X23+87X31+90X32+92X33

Constraints

X11+X12+X13+X14<=320000

X21+X22+X23+X24<=270000

X31+X32+X33+X34<=190000

X11+X21+X31>=100000

X12+X22+X32>=180000

X13+X23+X33>=350000

X14+X24+X34+X44>=150000

X11,X12,X13,X14,X21,X22,X23,X24,X31,X32,X33,X34,X41,X42,X43,X44>=0
Linear Programming Problems:

Question 1:

Amalgamated has received a contract to construct steel body

frames for automobiles with strict quality control standards with
the following steel content requirement:

Material Minimum Maximum

Percentage Percentage

Manganese 2.1 2.3

Silicon 4.3 10
 Carbon 5.05 5.35

Amalgamated mixes batches of eight different available materials

to produce 1 ton of steel:

Material Mangane Silicon Carbon Pounds Cost/pou

se (%) (%) (%) availabl nd
e

Alloy1 70 15 3 Unlimite 0.12

d
Alloy2 55 30 1 300 0.13
Alloy3 12 26 0 Unlimite 0.15
d
Iron1 1 10 3 Unlimite 0.09
d
Iron2 5 2.5 0 Unlimite 0.07
d
Carbide 0 24 18 50 0.10
1
Carbide 0 25 20 200 0.12
2
Carbide 0 23 25 100 0.09
3

Formulate and solve LP model indicating how much of each

material should be blended while minimizing costs.

Solution:
 Material Manganese(%) Silicon(%) Carbon(%P
)oundsavailable Cost/pound
Alloy1 70% 15% 3% 999999999 0.12
Alloy2 55% 30% 1% 300 0.13
Alloy3 12% 26% 0% 999999999 0.15
Iron1 1% 10% 3% 999999999 0.09
Iron2 5% 2.5% 0% 999999999 0.07
Carbide1 0% 24% 18% 50 0.1
Carbide2 0% 25% 20% 200 0.12
Carbide3 0% 23% 25% 100 0.09

Material MinimumPercenM
taa
gx
eimumPercentage
Alloy1 0.0 Manganese 2.30% Manganese 2.1% 2.3%
Alloy2 0.0 Silicon 9.72% Silicon 4.3% 10.0%
Alloy3 0.0 Carbon 5.05% Carbon 5.1% 5.4%
Iron1 915.4
Iron2 736.9
Carbide1 50.0
Carbide2 197.7 Cost 171.692308
Carbide3 100.0
2000 2000

1 ton = 2000 pounds.

Material Minimum Maximu

Percentag m
e Percent
age
Alloy1 Mangan Mangan
0.0 ese 2.30% ese 2.1% 2.3%
Alloy2 0.0 Silicon 9.72% Silicon 4.3% 10.0%
Alloy3 0.0 Carbon 5.05% Carbon 5.1% 5.4%
Iron1 915.
4
Iron2 736.
 9
Carbid
e1 50.0
Carbid 197. 171.6923
e2 7 Cost 08
Carbid 100.
e3 0
2000

Question 2:

A stock broker has the options of investing in four stocks A, B, C

and D. Following is the estimated ROI:

Project Return on Investment

A 14%
B 20%
C 20%
D 10%
Total funds to be invested = Rs 3,00,000

Constraints:

I. Stock A must get at least 55% of total investments in

stock A and B. Also, stock A must get 25% of the total
investment in all stocks.

II. Sum of stock B and 5% of stock C loan cannot exceed

25% of all other investments.

III. 14% of stock A, 20% of stock B, 20% of stock C and

10% of stock D should be less than 15% of the total
investment excluding stock D to optimize the risk in the
portfolio.

Solution:

A-x1 B-x2 C-x3 D-x4

Constraints:

- Limit on amount lent

x1 + x2 + x3 + x4 <= 300

- Constraint 1:

x1 >= 0.55(x1 + x2)

x1 >= 0.25(x1 + x2 + x3 + x4)

- Constraint 2:

x2 + 0.05x3<= 0.25(x1 + x2 + x3 + x4)

- Constraint 3:
 0.14x1 + 0.20x2 + 0.20x3 + 0.10x4 <= 0.15(x1 + x2 +
x3 )

• Objective

– Maximize return on investments:

Max z = 0.14x1 + 0.20x2 + 0.20x3 + 0.10x4

The optimized allocations:

Stock Allocated amount

A 49450
B 170330
C 0
D 80220