B.

E MECHANICAL FINAL YEAR : 2016

TRANSPORTATION PROBLEM &

QUEUING THEORY
Prepared by :
Guided by :
Yagnesh S Mehta (130010119055)
Harsh Naik (130010119059) Prof. S.R.PANDIA
Mihir Dalwadi (130010119057)
Dr. U.A.Joshi
1. Transportation Problem (TP)
Distributing any commodity from any group of supply
centers, called sources, to any group of receiving
centers, called destinations, in such a way as to
minimize the total distribution cost (shipping cost).
The transportation problem seeks to minimize the total
shipping costs of transporting goods from m origins or
sources (each with a supply si) to n destinations (each
with a demand dj), when the unit shipping cost from
source, i, to a destination, j, is cij
 Transportation Problem
LP Formulation
The linear programming formulation in terms of the
amounts shipped from the sources to the destinations, xij ,
can be written as:

Min cijxij (total transportation cost)

ij
s.t. xij < si for each source i (supply constraints)
j
xij = dj for each destination j (demand
constraints)
i
xij > 0 for all i and j (nonnegativity constraints)
1. Transportation Problem (TP)
Total supply must equal total demand.
If total supply exceeds total demand, a dummy
destination, whose demand equals the difference
between the total supply and total demand is created.
Similarly if total supply is less than total demand, a
dummy source is created, whose supply
equals the difference.
All unit shipping costs into a dummy destination or out
of a dummy source are 0.
Example 1:
Example 2:

Destinatio Supply
n
D1 D2 D3 D4
S1 50 75 35 75 12
Source 65 80 60 65 17
S2
S3 40 70 45 55 11
(D) 0 0 0 0 10
Demand 15 10 15 10
 Transportation Problem
A transportation tableau is given below.
Each cell represents a shipping route (which
is an arc on the network and a decision
variable in the LP formulation), and the unit
shipping costs are given in an upper right
hand box in the cell.
D1 D2 D3 Supply
15 30 20
S1 50

30 40 35
S2 30

Demand 25 45 10
 Problem formulation
The LP model for this problem is as follows:
Min Z = 15 X11 + 30 X12 + 20 X13 + 30 X21 + 40X22 + 35X23
S.t.
X11 + X12 + X13 50
Supply constraints
X21 + X22 + X23 30

X11 + X21 = 25
X12 + X22 = 45
X13 + X23 = 10 demand constraints
X11, , X23 0
 Transportation Problem
The transportation problem is solved in two phases:
Phase I -- Obtaining an initial feasible solution
Phase II -- Moving toward optimality
In Phase I, the Minimum-Cost Procedure can be
used to establish an initial basic feasible solution
without doing numerous iterations of the simplex
method.
In Phase II, the Stepping Stone, by using the MODI
method for evaluating the reduced costs may be
used to move from the initial feasible solution to
the optimal one.
 Initial Tableau
There are many method for finding the initial
tableau for the transportation problem which
are:
1. Northwest corner.
2. Min. cost method (Least cost).
3. Vogles approximation method.
 Northwest corner
Northwest corner: Begin by selecting X11 (that is, start in the
northwest corner of the transportation tableau). Therefore, if Xij
was the last basic variable (occupied cell) selected, then select Xij+1
(that is, move one column to the right) if source I has any supply
remaining. Otherwise, next select Xi+1 j (that is, move one row
down).

D1 D2 D3 Supply
15 30 20
S1 25 25 50

30 40 35
S2 20 10 30

Demand 25 45 10

Total cost is $2275

 Transportation Algorithm
Phase I - Minimum-Cost Method
Step 1: Select the cell with the least cost. Assign to this cell the
minimum of its remaining row supply or remaining column demand.
Step 2: Decrease the row and column availabilities by this amount
and remove from consideration all other cells in the row or column
with zero availability/demand. (If both are simultaneously reduced
to 0, assign an allocation of 0 to any other unoccupied cell in the row
or column before deleting both.) GO TO STEP 1.

D1 D2 D3 Supply
15 30 20
S1 25 15 10 50
Total
cost is
$2225 30 40 35
S2 30 30

Demand 25 45 10
3. Vogels Approximation Method Starting
Procedure
1. For each remaining row and column, determine the difference
between the lowest two remaining costs; these are called the row and
column penalties.
2. Select the row or column with the largest penalty found in step 1
and note the supply remaining for its row, s, and the demand
remaining in its column, d.
3. Allocate the minimum of s or d to the variable in the selected row or
column with the lowest remaining unit cost. If this minimum is s,
eliminate all variables in its row from future consideration and reduce
the demand in its column by s; if the minimum is d, eliminate all
variables in the column from future consideration and reduce the
supply in its row by d.
REPEAT THESE STEPS UNTIL ALL SUPPLIES HAVE BEEN ALLOCATED.
Total sipping cost = 2030
 Transportation Algorithm
MODI Method (for obtaining reduced costs)
Associate a number, ui, with each row and
vj with each column.
Step 1: Set u1 = 0.
Step 2: Calculate the remaining ui's and vj's by
solving the relationship cij = ui + vj for occupied
cells.
Step 3: For unoccupied cells (i,j), the reduced cost
= cij - ui - vj.
 Queuing Theory
Queues (waiting line) are a part of everyday
life.
Providing too much service involves excessive
costs. And not providing enough service
capacity causes the waiting line to become
excessively long.
The ultimate goal is to achieve an economic
balance between the cost of service and the
cost associated with the waiting for that
service.
 Queuing theory is mathematics of waiting
lines.
It is extremely useful in predicting and
evaluating system performance.
Characteristics Of Queuing System
Key elements of queuing system
Customer refers to anything that arrives at facility
and requires service, e.g., people, machines, trucks,
emails.
Server - refers to any source that provides the
requested service, e.g., repairperson, retrieval
machines, runways at airport.
Queue length the average number of customers in
the queue waiting to get service
System length the average number of customers in
the system, those waiting to be and those being
serviced.
 Count
Waiting time in the queue the avg. time that a
customer has to wait in the queue to get service.
Total time in the system the avg. time that a
customer spends in the system, from entry in the
queue to completion of service.
Server idle time the relative frequency with
which the service is idle. It is directly related to
cost.
Parts Of Waiting Line
 1. Arrival Process
According to source
According to numbers
According to time

2. Queue Structure
First Come First Served (FCFS)
Last-Come-Last-Served (LCLS)
Service in random order (SIRO)
Priority Service
 3. Service System
1. Single Service System

e.g., Library Counter, Dentists Office

 2. Multiple, Parallel Server, Single Queue Model

e.g., Booking at service station

 3. Multiple, Parallel Facilities With Multiple
Queues Model

e.g., Different cash counters in electricity office

 4. Service Facilities In A Series

e.g., Cutting, Knurling, Drilling, Grinding,

Packaging Operation Of Steel
 Queuing Models
1. Deterministic queuing model
2. Probabilistic queuing model

1. Deterministic Queuing model

Assumptions
 2. Probabilistic Queuing Model
Probability that n customers will arrive in the
system in time interval T is
Suggestions For Managing Queues
Determine an acceptable waiting time for your
customers
Try to divert your customers attention when
waiting
Inform your customer of what to expect
Keep employees not serving the customer out
of sight
Segment customers
 Applications Of Queuing Theory
Telecommunications
Traffic Control
Determining the sequence of computer
operations
Predicting computer performance
Health Services
Airport traffic, airline tickets sales
Layout of manufacturing systems
 Queuing Analysis
Mathematical analysis of queues and waiting times
in stochastic systems.
Used extensively to analyze production and
service processes exhibiting random variability in
market demand (arrival times) and service times.
Queues arise when the short term demand for
service exceeds the capacity
Most often caused by random variation in service
times and the times between customer arrivals.
If long term demand for service > capacity the
queue will explode!
 Importance Of Queuing Analysis
Capacity problems are very common in industry and
one of the main drivers of process redesign
Need to balance the cost of increased capacity
against the gains of increased productivity and
service
Queuing and waiting time analysis is particularly
important in service systems
Large costs of waiting and of lost sales due to
waiting