06IP/IM74 OPERATIONS RESEARCH

UNIT - 3: Transportation Problem

(By Dr. S.V Prakash, Asst. Prof. (Mech Dept.), MSRIT, Bangalore)

Introduction:
The objective of the transportation problem is to transport various quantities of a
single homogenous commodity, which are initially stored at various origins to various
destinations in such a way that the total transportation cost is minimum.

Definitions:
Basic Feasible solution: A feasible solution to a m-origin, n-destination problem is said to
be basic if the number of positive allocations are equal to (m+n-1).
Feasible Solution: A set of positive individual allocations which simultaneously removes
deficiencies is called a feasible solution.
Optimal Solution: A feasible solution (not basically basic) is said to be optimal if it
minimises the total transportation cost.
Mathematical Formulation of Transportation Problems

Suppose there are m ware houses (w1,w2,w3, _, _, wm),

where the commodity is stocked and n markets where it is needed.

Let the supply available in wear houses be a1, a2, a3, _,_,_ am and

The demands at the markets (m1, m2, m3, _, _, mn) be b1, b2, b3, _, _ , _ bn.

The unit cost of shipping from ware house i to a market j is Cij (C11,C12,_, _ Cn),

Let X11, X12,X13,_, _, Xmn be the distances from warehouse to the markets

we want to find an optimum shipping schedule which minimises the total cost of
transportation from all warehouses to all the markets

Ware
houses

Markets

W1

C11X11 C12X12 C13X13 - - -

C1nX1n

a1

W2

C21X21 C22X22 C23X23 - - -

C1nX1n

a2

W3

C31X31 C32X32 C33X33 - - -

C1nX1n

a3

wm

Cn1Xm1 Cn2Xm2 Cn3Xm3 - - -

Demand

b1

m1

m2

b2

Supplies
m3 - -

b3

mn

CmnXmn

----

bn

am
m
i=1

ai =

n
j=1

bj

The total minimum transportation cost is

Z = i=1 m j=1n Xij * Cij

i.e. Z = X11C11 + X12C12 + _ _ _

Types of Transportation Problems

1. Minimisation Balanced Transportation Problems
2. Minimisation Unbalanced Transportation Problems
3. Maximisation Balanced Transportation Problems
4. Maximisation unbalanced Transportation Problems
5. All the above models with degeneracy.

+ XmnCmn

Methods of solving Transportation Problems

1. North- West Corner Rule method
2. Row-minima Method
3. Column minima method
4. Matrix Minima Method or least cost method
5. Vogel's Approximation method (VAM)
Methods for checking Optimality
1. Modified Distribution Method, UV or MODI method
PROBLEMS:
1. Solve the following transportation problem by
North-West corner rule, Row Minima, Column Minima,
Matrix Minima and VAM Method:
Solution:
Factories

W1

W2

W3

W4

Supply

F1

14

F2

F3

05

Demand

10

15

35

16

This is a balanced transportation problem, since supply is equal to demand

1. North-West corner rule Method:

Factories

W1

W2

W3

W4

F1

6(6)

4(8)

F2

9(2)

2(14)

F3

Demand

06

10

Supply
14

16

6(1)

2(4)

05

15

04

35

The Total feasible transportation cost

= 6(6) + 4(8) + 9(2) + 2(14) + 6(1) + 2(4)

= Rs. 128/-

2. Row Minima Method:

Factories

W1 W2

W3

W4

Supply

F1

1(14)

14

F2

8(6) 9(5)

2(1)

7(4)

16

F3

3(5)

05

Demand

06

10

15

04

35

The Total feasible transportation cost

= 1(14)+8(6)+9(5)+2(1)+7(4)+3(5)
= Rs.152/4

3. Column-Minima Method:

Factories

W1

W2

W3

W4

F1

6(1)

4(10)

1(3)

14

F2

2(12)

7(4)

16

F3

4(5)

05

Demand

06

04

35

10

15

Supply

The Total feasible transportation cost

= 6(1)+4(10)+1(3)+2(12)+7(4)+4(5)
= Rs. 121/4. Matrix-Minima Method or Least Cost method:
Factories
F1

W1
6

F2

8(6)

W2

W3

1(14)

9(9)

2(1)
6

F3

3(1)

Demand

06

10

W4
5

Supply
14

16

2(4)

05

04

35

15

The Total feasible transportation cost

= 1(14)+8(6)+9(9)+2(1)+3(1)+2(4)
= 156/5

5. VAM- Vogels approximation method:

Step-I: Against each row and column of the matrix, denote the difference between the two
least cost in that particular row and column.
Step-II: Select the maximum value noted as per step-I, in this row or column select the cell
which has the least cost
Step-III: Allocate the maximum possible quantity
Step-IV: After fulfilling the requirements of that particular row or column, Ignore that
particular row or column and recalculate the difference by the two lowest cost for each of
the remaining rows or columns, Again select the maximum of these differences and allocate
the maximum possible quantity in the cell with the lowest cost in that particular /
corresponding row or column.
Step-V: Repeat the procedure till the initial allocation is completed

5. VAM- Vogels approximation method:

Factories

W1

W2

W3

W4

Supply

F1

6 (4)

4(10)

14

F2

8(1)

2(15)

16

2(4)

05

04

35

F3

4(1)

Demand

06

10

15

The Total feasible transportation cost

= 6(4) + 4(10) + 8(1) + 2(15) + 4 (1) + 2(4)
= 114/II- Check for degeneracy:
If (m+n-1) is not equal to the number of allocated cells, then it is called degeneracy in
transportation problems,
Where m= number of rows, n= number of columns.
This will occur if the source and destination is satisfied simultaneously.
The degeneracy can be avoided by introducing a dummy allocation cell. To equate the
number of allocated cells equal to (m+n-1)
For the above problem (m+n-1) = (3+4-1) =6 = Number of allocations = 6
Hence there is no degeneracy.
III- Checking optimality using MODI method:

For allocated cells

Cij (Ui +Vj) = 0

For unallocated cells Cij (Uij) +Vj) 0

V1=0

V2=-2

V3 =-6

V4= -2

6(4)

4(10)

U1=6

8(1)

2(15)

U2=8

4(1)

2(4)

U3= 4

The Total feasible transportation cost

= 6(4)+4(10)+8(1)+2(15)+4(1)+2(4)
= 114/7

Problem.2
There are 3 Parties who supply the following quantity of coal P1= 14t, P2=12t, P3= 5t.
There are 3 consumers who require the coal as follows C1=6t, C2=10t, C3=15t. The cost
matrix in Rs. Per ton is as follows. Find the schedule of transportation policy which
minimises the cost:

Solution:

Factories

W1

W2

W3

Supply

F1

8(5)

4(9)

14

F2

4(6)

3(6)

12

F3

2(5)

05

Demand

10

15

31

Therefore the total feasible transportation cost

= 8(5)+ 4(9) + 4(6) +3 (6) + 2(5)
= Rs. 128/II. Check for Degeneracy:
(m+n-1) = (3+3-1) = 5 = Number of allocations
Hence there is no degeneracy
III- Checking optimality using MODI method:
Cij (Ui +Vj) = 0

For allocated cells

For unallocated cells Cij (Uij) +Vj) 0

V1=5

V2=8

V3=4

8(5)

4(9)

U1= 0

4(6)

3(6)

U2=-1

2(5)

U3=-6

Since all the marginal costs for the unallocated cells are positive, it gives an optimal
solution and the total minimum transportation cost = Rs. 128/-

Factories

W1

W2

W3

W4

Supply

F1

300

F2

500

F3

200

300

400

100

1000

Demand

200

Since the unit cost of production is Rs.4, 3 and 5

at the three factories, therefore Total cost = Production cost + cost
Factories

F1
F2
F3
Demand

W1

W2

11

7(100)
7(100)
200

9(300)
11
300

W3

W4

Supply

7(300)

12

300

8(100)

500

12
9(100)
400

10

200

100

1000

Therefore the total feasible solution = 7(300) + 7(100) +9(300) + 8(100) +7(100) + 9(100)
= Rs. 7900/10

Factories

W1

F1

W2

F2

7(100)

F3

7(100)

Demand

200

W3

11

7(300)

9(300)
11

12
9(100)

300

400

W4

Supply

12

300

8(100)

500

10

200

100

1000

Therefore the total feasible transportation solution

= 7(300) + 7(100) + 9(300) + 8(100) + 7(100) + 9(100)
= Rs.7900/II. Check for Degeneracy:
(m+n-1) = (3+4-1) = 6 = Number of allocations
Hence there is no degeneracy
III- Checking optimality using MODI method:
For allocated cells Cij (Ui +Vj) = 0
For unallocated cells Cij (Uij) +Vj) 0
V1

V2

9
7(100)
7(100)

11
9(300)
11

V3

7(300)
12
9(100)

V4

12

U1= -2

8(100)
10

U2=0
U3=0

Since all the marginal costs for the unallocated cells are positive, it gives an optimal
solution and the total minimum cost = Rs. 7900/-

11

Problem-4
A company has three plants supplying the same product to the five distribution centers.
Due to peculiarities inherent in the set of cost of manufacturing, the cost/ unit will vary
from plant to plant. Which is given below. There are restrictions in the monthly capacity
of each plant, each distribution center has a specific sales requirement, capacity
requirement and the cost of transportation is given below.
Factories

W1

W2

W3

W4

W5

Supply

F1

200

F2

125

F3

175

Demand

60

80

85

105

70

400

500

The cost of manufacturing a product at the different plants is Fixed cost is Rs 7x105, 4x 105
and 5x 105. Whereas the variable cost per unit is Rs 13/-, 15/- and 14/- respectively.
Determine the quantity to be dispatched from each plant to different distribution centers,
satisfying the requirements at minimum cost.
Solution:
Factories

W1

W2

W3

W4

W5

Supply

F1

18

16

16

19

17

200

F2

19

20

21

18

22

125

F3

16

17

19

16

17

175

80

85

105

70

100

500

Demand

60

12

Factories

W1

W2

F1

18

16(55) 16(85) 19

F2

19

W3

20(25) 21

F3

16

17

Demand

60

80

19
85

W4

18

W5

Supply

17(60)

200

22

0(100)

6(105) 17(10)
105

70

125

175

100

500

Therefore the total feasible transportation cost =

= 16(55) + 16(85) + 17(60) + 20(25) + 0(100) +16(60) + 16(105) +17(10) = Rs6570/II. Check for Degeneracy:
(m+n-1) = (6+3-1) = 8 = Number of allocations
Hence there is no degeneracy

13

14

15

16

Therefore total feasible solution

= 1(15) +4(10)+4(35)+2(5)+0+3(22)+2(20)+4(3)= Rs. 323/Therefore total feasible solution
= 1(15) +4(10)+4(35)+2(5)+0+3(22)+2(20)+4(3)= Rs. 323/II. Check for degeneracy:
(m+n-1) = (3+6-1) = 8 = Number of allocations
Hence there is no degeneracy
III. Check for optimality:
V1=3 V2=1 V3=2

V4=4

V5=4

V6=2

1(15)

4(10)

4(35)

0(-2)

U1=0

2(5)

0(30)

U2=-2

2(20)

4(3)

0(-2)

U3=0

3(22) 5

17

V1=3 V2=1 V3=2 V4=4

4

1(15)

2(5+x)

3(22)

2(20)

4(3)

10-x=0

V5=4

4(10-x)

30-x=0

4(35)

V6=2
0(x)

U1=0

0(30-x)

U2=-2

0(-2)

U3=0

Min. value of

x=10

V1=1 V2=1 V3=0 V4=2

V5=4 V6=0

1(15)

4(35) 0(10)

U1=0

3(22) 5

2(15)

3(-1)

0(20)

U2=0

2(20)

4(3)

0(-2)

U3=2

20-X = 0: 3-x=0: therefore x=3

V1=3 V2=1 V3=2 V4=3
4
2

1(15)
3

3(22) 5

V5=4

V6=0

4(35)

0(10)

U1=0

2(18)

3(-1)

0(17)

U2=-1

0(3)

U3=0

3
2
2(20)

18

35-x=0 and 17-x = 0, therefore x= 17

V1=3 V2=1 V3=2 V4=3
4

1(15)

V6=0

4(18)

0(27)

2(18)

3(17)

3
2

3(22) 5

V5=4

2(20)

U1=0

U2=-1

0(3)

U3=0

27-x=0 : 22-X= 0: 17-X=0: therefore X=17

V1=3 V2=1 V3=2 V4=3
4
2(17)
3(5)

1(15)
3
5

4
2

2(20)

2(18)
4

V5=4

V6=0

4(35)

0(10)

U1=0

U2=-1

19

0(20)

U3=0

Factories

M1

139140

137

160

M2

209207

210

120

255

140

120

420

M3

254

Demand

90

255
210

20

Supply

Factories

Supply

M1

116115

118

160

M2

46 48

45

120

M3

140

Demand

90

210

120

420

Factories

M1

116115(70)

M2

4(90)

48

M3

0(140)

Demand

90

210

21

Supply

118(90)

160

45(30)

120

140

120

420

V1=4
116
4(90)
1

V2=42

V3=45

115(70+x)

18(90-x)

U1=73

48

45(30)

U2=0

0(x)

U3=-42

0(140-x)

90-X=0 and 140-X=0, therefore X=90

V1=4
116

V2=45

V3=45

115(160)

4(90)

48

0(50)

18

U1=70

45(30)

U2=0

0(90)

U3=-45

22

Factories

Supply

M1

139

140

137

90

M2

209

207

210

210

M3

254

255

255

120

Demand

160

120

140

420

23

Factories

Supply

M1

116

115

118

90

M2

46

48

45

210

M3

120

140

420

Demand

Factories

160

120

M1

116(90) 115

M2

46(70)

M3
Demand

48

Supply

118

90

45(140)

210

0(120)

160

120

24

120

140

420

V1=0

V2=-1

116(90) 115
46(70)
1()

Factories
M1

V3= -1
U1=116

118

48

45(140)

0(120)

U2=46
U3=1

116(90) 115

M2

46(70)

48

M3

1()

0(120)

Demand

160

120

25

118

45(140)

Supply
90
210

120

140

420

Factories

Supply

22 26

20

21

450

II

21 24

20

19

300

19

20

150

III

18

20

Demand

200

300 150

Factories

270

920

900

Supply

21 26

20

21

450

II

22 24

20

19

300

III

18

20

19

20

150

00

00

00

00

020

Demand

200

300 150

270

920

A
4(150)

B
0(300)

5(50)
8

2
6

0
200

C
6

Supply
5

6(130) 7(120)
7

6(150)

450
300
150

0(20)

020

300

150

270

920

26

V1= 5
4(150)

V2=1
0(300)

5(50)
8

2
6

V2=1

4(150-X) 0(300)
5(50+X)
8

5(-1)

U1=-1

6(130) 7(120)

U2=0

6(150)

0(20)

V3= 6

V4=7

5(X)

6(130) 7(120-X)

6
0

V4=7

7
0

V1= 5

V3= 6

7
0

6(150)

0(20)

U3=-1
U4=-6

U1=-1
U2=0
U3=-1
U4=-6

150-X= 0, 120-X= 0, therefore X=120

27

V1= 5

V2=1

V3= 6

V4=7

5(X)

4(150-X) 0(300)
5(50+X)

6
0

V1= 4
4(30)

V2=0
0(300)
2
6

7
0

5(170)
8

6(130) 7(120-X)

0(20)

V3=5

V4=5

5(120)

6(130)
7

6(150)

U1=-1
U2=0
U3=-1
U4=-6

U1=0

U2=1

6(150)

U3=1

0(20)

28

U4=-5

29

30

III. CHECK FOR OPTIMALITY

31

Factories

11(200) 13(50) 17

D1

14

0()

250

16

21

24

OT.A

15

17

21

18

0(50)

50

OT.B

21

23

19

15

0(75)

75

Factories

18(175) 14

Supply

10(175) 0

350

13(275) 10(125) 0

400

Supply

11 13

17

14

250

16 18

14

10

350

21 24

13

10

400

OT.A

15

17

21

18

50

OT.B

21

23

19

15

75

Demand

200

225 275 300

32

1125

Factories

11(200) 13(50) 17

D1

14

Supply

250

16

21

24

OT.A

15

17

21

18

0(50)

50

OT.B

21

23

19

15

0(75)

75

200

225

275

300

125

1125

Demand

18(175) 14

10(175) 0

350

13(275) 10(125) 0

400

33

V1=16

V2=18 V3=13 V4=10

11(200) 13(50+) 17
16
21
15
21

18(175-) 14
24
17(-1)
23

V5=0

14
10(175)

13(275) 10(125)

U1=-5

0()

U2=5

U3=5

21

18

0(50)

U4=0

19

15

0(75)

U5=0

34

11(200) 13(50+) 17
16
21

18(175--x) 14
24

15

17(x)

21

23

14

10(175) 0(+x)

13(275) 10(125)
21
19

35

18

0(50-x)

15

0(75)

36

37

38

Reference Books:

1. Taha H A, Operation Research - An Introduction, Prentice Hall of India, 7th edition, 2003
2. Ravindran, Phillips and Solberg, Operations Research : Principles and Practice, John
Wiely & Sons, 2nd Edition
3. D.S.Hira, Operation Research, S.Chand & Company Ltd., New Delhi, 2004
4.

39