6.transportation Problems

Transportation and Transshipment Problem
1
Transportation Problem
 The distribution of goods produced from a factory and various warehouses to different
markets (destination) where they required, causes problems such as ,
• Available quantities at various warehouses (location)

• Demand at each of the destination
• Cost of shipment along each route
• Non availability of certain routes
• Partial shipments
 Such problems can also be solved as linear programming problems to answer questions
like
a) What is the optimal way of shipping goods from various sources (warehouses) to different
markets to minimise the total shipping cost
b) How would optimal schedule change if some routes become cheaper

2
c) If it were possible to increase supply, which of the routes should be preferred?
Transportation Problem
d). If an item can be produced at different locations at varying cost and sold in different
markets at different prices, then what production and shipping plan will yeild maximum
profit?
e). How can production be scheduled, given the cost of production of an item and the cost of
carrying stock, so as to meet the requirements in different periods?
f). How to handle a situation if some routes are not available or when some units have to be
necessarily transported from a particular source to a particular market ?
3
Solution to the Transportation Problem
A firm owns facilities at seven places. It has manufacturing plants at A, B, and C with
daily out put of 500, 300 and 200 units of an item respectively. It has warehouses at
P,Q,R and S with daily requirement of 180, 150, 350 and 320 units respectively. The
transportation charges per unit on different routes are given below
To P Q R S
From A 12 10 12 13
From B 7 11 8 14
From C 6 16 11 7
The firm wants to send the output from various plants to warehouses involving minimum
transportation cost. How should it route the product so as to achieve its objective? 4
Solution to the Transportation Problem
From P Q R S Supply
To
From A 12 10 12 13 500
From B 7 11 8 14 300
From C 6 16 11 7 200
Demand 180 150 350 320 1000
Min. Z = 12X11 + 10X12 + 12X13 + 13X14 + 7X21 + 11X22 + 8X23 + 14X24 + 6X31 + 16X32 + 11X33 + 7X34
Subject to supply constraints Demand constraints X11 + X21 + X31 = 180

5
X11 + X12 + X13 +X14 = 500 Xij  0 X12 + X22 + X23 = 150
X21 + X22 + X23 +X24 = 300 i = 1,2,3 and j = 1,2,3,4 X13 + X23 + X33 = 350
X31 + X32 + X33 +X34 = 200 Is too complex ? X14 + X24 + X34 = 320
Problem statement
 There are 12 decision variables (Xij’s) and
 Seven constraints; 3 supply constraints and 4 demand constraints
 The aggregate supply and demand are equal to 1000
 If any of the six constraints are satisfied, the seventh would automatically be. -
Therefore, the problem may be modified by removing on constraint.
 Problem can be restated by considering any six constraints
 Transportation problems with ‘m’ sources and ‘n’ destinations, with matching aggregate
supply and demand , may be expresses as LPP with m x n decision variables and m + n
-1 constraints.
 Once a transportation problem is stated as linear programming problem it can be
solved by using simplex method
Transportation Method
 Transportation Method involves 3 Steps
1. Obtain an initial solution – obtain a basic feasible solution

2. Ascertain the whether basic feasible solution is optimal or not ? if it is not optimal
3. Revise the solution until an optimal solution is reached.
1. Obtain an initial solution – obtain a basic feasible solution
• The initial feasible solution can be obtained by three common methods

a. North West Corner (NWC) Rule
b. Least Cost Method (LCM) and
c. Vogel’s Approximation Method (VAM)
d. Linear Programming Method ( by Solver for optimal solution)
Transportation problem - Example 1 solve the problem using NWC method
A firm owns facilities at seven places. It has manufacturing plants at places A,B, C with
out-puts of 500, 300, and 200 units of an item respectively. It has warehouses at places P,
Q, R and S with daily requirements of 180, 150, 350 and 320 units respectively. Per unit
shipping charges on different routes are as follows
To P Q R S
From
A 12 10 12 13
B 7 11 8 14
C 6 16 11 7
The firm wants to send the out-put from various plants to warehouses involving minimum
transportation cost. How should it route the product so as to achieve this objective
Transportation problem - Example 1 solve the problem using NWC method
To P Q R S
From
A 12 10 12 13
B 7 11 8 14
C 6 16 11 7
Initial Feasible Solution NWC method
Origin ( i ) Destinations ( j ) Supply ai
From To (j)
P Q R S
Demand bi
10
Initial Feasible Solution NWC method
From To
P Q R S
A 180 150 170 500 320
12 10 12 13 170
B 180 120 300

120
7 11 8 14
C 200 200
6 16 11 7
Demand bi 180 150 350 320 1,000
11
Total Cost = (12 x180) + (10 x150) + (12 x 170) + (8 x 180) + (14 x 120) + ( 7 x 200) = Rs.10,220
Transportation problem - Example 1a. solve the problem using NWC method
Find the initial feasible solution to the following transportation problem
To P Q R S Supply
From
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 10 400
Demand 200 225 275 250 950
Example 1a -Initial Feasible Solution NWC method
From To
P Q R S
A 200 50 250
50
11 13 17 14
B 175 125 300

16 18 14 10 125
C 150 250 400

21 24 13 10 250
Demand bi 200 225 275 250 950
13
Total Cost = (11x200)+(13 x50)+(18 x 175)+(14 x 125)+(13 x 150)+(10x 250) = Rs. 12,200
Transportation problem - Example 2 solve the problem using LCM
To P Q R S
From
A 12 10 12 13
B 7 11 8 14
C 6 16 11 7
Initial Feasible Solution Least Cost Method (LCM)
From To
P Q R S
A 150 50 300 500
12 10 12 13 350
B 300 300
7 11 8 14
C 180 20 200
6 16 11 7 20
Demand bi 180 150 350 320 1,000
15
Total Cost = (6 x180) + (10 x150) + (12 x 50+ 8x300) + (13 x 300) + (7 x 20) = Rs.9,620
Transportation problem - Example 2a - solve the problem using LC method
To P Q R S Supply
From
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 10 400
Demand 200 225 275 250 950
Example 1a -Initial Feasible Solution LCM
From To
P Q R S
A 200 50 250
50
11 13 17 14
B 175 125 300

16 18 14 10 175
C 150 250 400

21 24 13 10 150
Demand bi 200 225 275 250 950
17
Example 1a -Initial Feasible Solution LCM
From To
P Q R S
A 200 50 250
50
11 13 17 14
B 50 250 300
16 18 14 10 50
C 125 275 400

21 24 13 10 125
Demand bi 200 225 275 250 950
18
Example 3 -Initial Feasible Solution Vogles’s Approximation method (VAM)
To P Q R S
From
A 12 10 12 13
B 7 11 8 14
C 6 16 11 7
Example 3 - Initial Feasible Solution Vogles’s Approximation method (VAM)
Origin ( i ) Destinations ( j ) Supply ai Iterations (penalty coloumn)
From To
P Q R S I II III IV
A 12 10 12 13 500 2
B 7 11 8 14 300 1
C 6 16 11 7 200 200 1 -
Demand bi 180 150 350 320 1,000

120
Penalty row
I 1 1 3 *6
II
III
From To
P Q R S I II III IV
A 12 10 12 13 500 2 2
B 7 180 11 8 14 300 1 1
120
C 6 16 11 7 200 200 1 -
Demand bi 180 150 350 320 1,000

230 120
Penalty row
I 1 1 3 *6
II *5 1 4 1
III
From To
P Q R S I II III IV
A 12 10 12 13 500 2 2 2
B 7 180 11 8 120 14 300 1 1 3

120
C 6 16 11 7 200 200 1 -
Demand bi 180 150 350 320 1,000

230 120
Penalty row
I 1 1 3 *6
II *5 1 4 1
III 1 *4 1
From To
P Q R S I II III IV
A 12 10 150 12 230 13 120 500 2 2 2
B 7 180 11 8 120 14 300 1 1 3

120
C 6 16 11 7 200 200 1 -
Demand bi 180 150 350 320 1,000

230 120
Penalty row
I 1 1 3 *6 Total cost = (180x7)+(150x10)+(230x12 +
II *5 1 4 1 120x8)+ (120x13+200x7) = 9,440
III 1 *4 1
Example 3a - Initial Feasible Solution Vogles’s Approximation method (VAM)
To P Q R S Supply
From
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 10 400
Demand 200 225 275 250 950
From To
P Q R S I II III IV
A 11 200 13 50 17 14 250 2 1 -
50
B 16 18 175 14 10 125 300 4 4 4 *4

125
C 21 24 13 275 10 125 400 3 3 3 3
Demand bi 200 225 275 250 950

125
Penalty row
I *5 5 1 4
II - *5 1 4 (200x11)+(13x50)+18x175)+(13x275)+(125x10)+125x10)
III *6 1 0
= 12,075
IV 1 0
Testing the optimality in Transportation problem
 There are two methods of testing the optimality

a) Stepping Stone Method
b) Modified Distribution Method (MODI)
• It is based on the concept of dual variables, opportunity cost of each of empty cell is
determined.
• Both the methods can be used only when the solution is a basic feasible solution, so
that it has m+n-1 basic values
• By applying either of the methods if an optimal solution is obtained, then process
terminates as problem is solved.
• If the solution is not seen as optimal, then a revised and improved solution is obtained
by exchanging the non-basic variables for basic variables.
• This is done by tracing a closed loop
Testing the optimality by Stepping Stone Method
From To P Q R S
A 180 150 (-) 170 (+) 500

12 10 12 13
B 7 11 (+) 8 180 (-) 14 120 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Empty cells : AS, BP, BQ, CP, CQ, and CR,

Loop1 : AS-AR+BR-BS = (13 – 12 + 8 - 14) = - 5, Implies that, the solution is not optimal
because Rs. 5 can be reduced by adopting the route AS
Check Loop 2
From To P Q R S
A (-) 180 150 (+)12 170 13 500

12 10
B 7 (+) 11 8 (-) 180 14 120 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000

Loop 2 : BP – BR + AR -AP
= 7 – 8 + 12 -12 = -1 (Opportunity cost Rs 1) -1, Implies that, the solution is not optimal
because Rs. 1 can be reduced by adopting the route AS
From To P Q R S
A (-) 180 150 (+)12 170 13 500

12 10
B 7 (+) 11(+) 8 (-) 180 14 120 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop 3 : BQ - BR – AR -AQ = 11 – 8 + 12 – 10 = 5
From To P Q R S
A (-) 180 150 (+)12 170 13 500

12 10
B 7 (+) 11 8 (-) 180 14 (+) 120 300
200
C 6 16 11 (-) 7 200
Demand bi 180 150 350 320 1,000

Loop 4 : C P : CP – CS - BS – BR - AR - AP = 6 – 7 + 14 -8+12 – 12 = 5
From To P Q R S
A (-) 180 (-) 150 (+)12 170 13 500

12 10
B 7 (+) 11 8 (-) 180 14 (+) 120 300
200
C 6 (+) 16 11 (-) 7 200
Demand bi 180 150 350 320 1,000
Loop 5 CQ : CQ – CS – BS - BR – AR- AQ - AQ = 16 – 7 +14 -8 +12 -10 = 17

From To P Q R S
A (-) 180 150 12 170 13 500

12 10
B 7 (+) 11 8 (-) 180 14 (+) 120 300
200
C 6 16 (+)11 (-) 7 200
Demand bi 180 150 350 320 1,000
Loop 6 CR : CR – CS + BS - BR = 11 – 7 +14 -8 = 10
From To P Q R S
A 180 150 (-) 170 (+) 500

12 10 12 13
B 7 11 (+) 8 180 (-) 14 120 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop1 : AS-AR+BR-BS = (13 – 12 + 8 - 14) = - 5, Implies that, the solution is not optimal because Rs. 5 can be
reduced by adopting the route AS
Opportunity cost at : AS = – 5 Move qty. from lowest negative sign quantities to positive sign cells
: BP = - 1
: BQ = 5 Total Cost = (12 x180) + (10 x150) + (12 x 170) +
: CP = 5 (8 x 180) + (14 x 120) + ( 7 x 200) = Rs.10,220
: CQ = 17 and
: CR = 10
From To P Q R S
A 180 150 (-) 50 (+) 120 500

12 10 12 13
B 7 11 (+) 8 300 (-) 14 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop1 : AS-AR+BR-BS = (13 – 12 + 8 - 14) = - 5, Implies that, the solution is not optimal because Rs. 5 can be
reduced by adopting the route AS
Opportunity cost at : AS = – 5 Move qty. from lowest negative sign quantities to positive sign cells
: BP = - 1
: BQ = 5 Total Cost = (12 x180) + (10 x150) + (12 x 50) +
: CP = 5 (8 x 300) + (13x 120) + ( 7 x 200) = Rs. 9,620
: CQ = 17 and
: CR = 10
From To P Q R S
A 180 150 12 50 - 120 500

12 10 13
B 7 (+) 11 8(-) 300 14 + 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

Loop 2 : BQ-BR- AR-AP = (11 – 8 + 12 – 10) = +5
Loop 3 : BS -AS- AR-BR = (14 – 13 + 12 – 8) = +5
From To P Q R S
A 150 12 50 - 120 500

180
12 10 13
B 7 (+) 11 8(-) 300 14 + 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

Loop 2 : BQ-BR- AR-AP = (11 – 8 + 12 – 10) = +5
Loop 3 : BS -AS- AR-BR = (14 – 13 + 12 – 8) = +5
Loop 4 : CP -CS- AS-AP = (6 – 7 + 13 – 12) = 0
Loop 5 : CQ -CS- AS-AQ = (16 – 7 + 13 – 10) = +12
Loop 6 : CR -CS- AS-AR = (11 – 7+13 –12) = + 5
From To P Q R S
A (-) 180 150 (+)12 50 120 500

12 10 13
B 7 (+) 11 8(-) 300 14 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

Loop 2 : BQ-BR- AR-AP = (11 – 8 + 12 – 10) = +5
Loop 3 : BS -AS- AR-BR = (14 – 13 + 12 – 8) = +5
Loop 4 : CP -CS- AS-AP = (6 – 7 + 13 – 12) = 0
Loop 5 : CQ -CS- AS-AQ = (16 – 7 + 13 – 10) = +12
Loop 6 : CR -CS- AS-AR = (11 – 7+13 –12) = + 5
From To P Q R S
A (-) 150 (+)12 230 120 500

12 10 13
B 180 7 (+) 11 8(-) 120 14 300
C 6 16 11 7 200 200
Demand bi 180 150 350 320 1,000
Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

Total Cost = (12 x180) + (10 x150) + (12 x 50) +
Loop 2 : BQ-BR- AR-AP = (11 – 8 + 12 – 10) = +5
(8 x 300) + (13x 120) + ( 7 x 200) = Rs. 9,620
Loop 3 : BS -AS- AR-BR = (14 – 13 + 12 – 8) = +5
Loop 4 : CP -CS- AS-AP = (6 – 7 + 13 – 12) = 0
Loop 5 : CQ -CS- AS-AQ = (16 – 7 + 13 – 10) = +12 Total Cost = (7 x180) + (8 x120) + (12 x 230) +
Loop 6 : CR -CS- AS-AR = (11 – 7+13 –12) = + 5 (13 x 120) + (10x150) + ( 7 x 200) = Rs. 9,440
Optimal solution
Unbalanced Transportation Problem
there
Prohibited Routes Transportation Problem
 Some times some routes may not be available due to a variety of reasons like the
unfavourable weather conditions, strikes etc.
 To handle a situation of this type, we assign assign a very large cost represented by M
to each of such routes which are not available.
 The effect of adding a large cost element would be that such routes would
automatically be eliminated in the final solution.
Example 5a - An FMCG company has four warehouses to distribute its products in four
markets at the transport cost as given in the following table.
Warehouse Market Supply

A B C
1 10 12 7 180
2 14 11 6 100
3 9 5 13 160
4 11 7 9 120
560
Demand 240 200 220 660
It is known that currently nothing can be sent from warehouse 1 to market A and from
warehouse 3 to market C, find the initial feasible solution and optimal cost of
transportation scheme by Modified Distribution Method (MODI)
Example, given the following transportation problem
Warehouse Market Supply
A B C
1 10 12 7 180
2 14 11 6 100
3 9 5 13 160
4 11 7 9 120
5 0 0 0 100
660
Demand 240 200 220 660
Market ( j ) Supply ai Iterations (penalty)
A B C I II III IV V
1 M 12 7 180
2 14 11 6 100
3 9 5 M 160
4 11 7 9 120
5 0 0 0 100
Demand 240 200 220 660
bi
I Transportation problem
Unbalanced with prohibited routes
II
III
IV
Initial Feasible solution using VAM
V
A B C I II III IV V
1 M 12 7 180 5
2 14 11 6 100 5
3 9 5 M 160
4
4 11 7 9 120 2
5 0 100 0 0 100
0
Demand 240 200 220 660
bi 140
I *9 5 6 Transportation problem
II Unbalanced with prohibited routes
III
IV Initial Feasible solution using VAM
V
A B C I II III IV V
*5
1 M 12 7 180 5
2 14 11 6 100 100 5 *5
3 9 5 M 160 4
4
4 11 7 9 120 2 2
5 0 100 0 0 100
0
Demand 240 200 220 660
bi 140 120
I *9 5 6 Transportation problem
Unbalanced with prohibited routes
II 2 2 1
III
IV
Initial Feasible solution using VAM
V
A B C I II III IV V
5 *5
1 M 12 7 180 5
2 14 11 6 100 100 5 *5
3 9 5 M 160 4 4
4
4 11 7 9 120 2 2 2
5 0 100 0 0 100
0
Demand 240 200 220 120 660
bi 140
I *9 5 6
II 2 2 2
III 2 2 2
IV
V
A B C I II III IV V
5 *5
1 M 12 7 120 180 60 5
2 14 11 6 100 100 5 *5
3 9 5 M 160 4 4
4
4 11 7 9 120 2 2 2
5 0 100 0 0 100
0
Demand 240 200 220 120 660
bi 140
I *9 5 6
II 2 2 2
III 2 2 2
IV
V
A B C I II III IV V
5 *5
1 M 12 7 120 180 60 5
2 14 11 6 100 100 *5
5
3 9 5 160 M 160 4 4 *4
4
4 11 7 9 120 2 2 2
2
5 0 100 0 0 100 0
Demand 240 200 40 220 120 660
bi 140
I *9 5 6
II 2 2 2
III 2 2 2
IV 2 2 2
V
A B C I II III IV V
5 *5
1 M 12 7 120 180 60 5
2 14 11 6 100 100 *5
5
3 9 5 160 M 160 4 4 *4
4
4 11 7 9 120 2 2 2 4
40 2
80
5 0 100 0 0 100 0
Demand 240 200 40 220 120 660
bi 140
I *9 5 6
II
III
2
2
2
2
2
2
?
IV 2 2 2
V *5 2
A B C I II III IV V
5 *5
1 M 12 7 180 180
2 14 11 6 100 5 5
3 9 5 M 160 4 4
4 11 7 9 120 2 2
5 0 100 0 0 100 0
Demand 240 200 220 40 660

140
bi
I *9 5 6
II 2 2 1 Revised
III 2 2 3
IV
V
A B C I II III IV V
5 *5
1 M 12 7 180 180
2 14 11 6 40 100 5 5 *5
60
3 9 5 M 160 4 4 4
4 11 7 9 120 2 2 2
5 0 100 0 0 100 0
Demand 240 200 220 40 660

140
bi
I *9 5 6
II 2 2 1
III 2 2 3
IV
V
A B C I II III IV V
5 *5
1 M 12 7 180 180
2 14 11 6 40 100 5 5 *5 3
60
3 9 5 160 M 160 4 4 4 *4
4 11 7 9 120 2 2 2 4
5 0 100 0 0 100 0
Demand 240 200 40 220 40 660

140
bi
I *9 5 6
II 2 2 1
III 2 2 3
IV 2 2 3
V
A B C I II III IV V
5 *5
1 M 12 7 180 180
2 14 60 11 6 40 100 5 5 5 3 3
60
3 9 5 160 M 160 4 4 4 *4
4 11 80 7 40 9 120 2 2 2 2 4
80
5 0 100 0 0 100 0
Demand 240 200 40 220 40 660

140
bi Total cost =
I *9 5 6 (7x180+14x60)+(6x40)+(5x160)+
II 2 2 1 (11x80)+(7x40) +(0x100) = 4,300
III 2 2 3
IV 2 2 3
V 3 *4
Check for optimality by MODI – UV Method
Market ( j ) Supply ai
A B C
1 M 12 7 180 180
2 14 60 11 6 40 100
3 9 5 160 M 160
4 11 80 7 40 9 120
5 0 100 0 0 100
Demand 240 200 220 660
bi
ui +vj = cij (cij = Allocated cell ), m + n -1 = 7 (allocated cells)

Always start with u1 = 0
Pij = Ui + Vj – Cij (Pij = penalty cells or un-allocated cell)
Market ( j ) Supply ai ui
A B C
1 M 12 7 180 180 u1
2 14 60 11 6 40 100 u2
3 9 5 160 M 160 u3
4 11 80 7 40 9 120 u4
5 0 100 0 0 100 u5
Demand 240 200 220 660
bi
vj V1 V2 V3
ui +vj = cij (cij = Allocated cell ), m + n -1 = 7 (allocated cells)

Always start with u1 = 0
Pij = Ui + Vj – Cij (Pij = penalty cells or un-allocated cell)
A B C
1 M 12 7 180 180 u1 = 0
2 14 60 11 6 40 100 u2 =
3 9 5 160 M 160 u3 =
4 11 80 7 40 9 120 u4 =
5 0 100 0 0 100 u5 =
Demand 240 200 220 660
bi
vj v1 = v2 = v3 = 7
ui +vj = cij C13 = (U1 + V3 =7), (0+ V3 ) = 7, V3 = 7 C23 = U2+V3 = 6, U2+7 = 6, U2 = - 1

A B C
1 M 12 7 180 180 u1 = 0
2 14 60 11 6 40 100 u2 = -1
3 9 5 160 M 160 u3 = - 6
4 11 80 7 40 9 120 u4 = - 4
5 0 100 0 0 100 u5 = - 15
Demand 240 200 220 660
bi
vj v1 = 15 v2 =11 v3 = 7
ui +vj = cij C13 = (U1 + V3 =7), (0+ V3 ) = 7, V3 = 7 C42 = (U4 + V2 =7), (-4+ V2 ) = V2 = 11
C23 = U2+V3 = 6, U2+7 = 6, U2 = - 1
C21= U2+V1=14, -1+V1 = 14, V1 = 15 C32 = U3+V2 = 5, U3+11 = 5, U3 = - 6
C41 = U4+V1 = 11, ( U4+15 = 11), U4 = - 4 C51= U5+V1= 0, (U5+15) = -15
C13 = (U1 + V3 =7), (0+ V3 ) = 7, V3 = 7

C23 = U2+V3 = 6, U2+7 = 6, U2 = - 1
C21= U2+V1=14, -1+V1 = 14, V1 = 15
C41 = U4+V1 = 11, ( U4+15 = 11), U4 = - 4
C42 = (U4 + V2 =7), (-4+ V2 ) = V2 = 11

C32 = U3+V2 = 5, U3+11 = 5, U3 = - 6
C51= U5+V1= 0, (U5+15) = -15
ui +vj = cij
A B C
1 M 12 (-1) 7 180 180 u1 = 0
2 14 60 11 (-1) 6 40 100 u2 = -1
3 9 (0) 5 160 M 160 u3 = - 6
4 11 80 7 40 9 (-6) 120 u4 = - 4
5 0 100 0 (-4) 0 (-8) 100 u5 = - 15
Demand 240 200 220 660
bi
vj v1 = 15 v2 =11 v3 = 7
Pij = Ui + Vj – Cij
P12 = 0+11 -12 = -1
P22 = -1 +11-11 = -1
A B C
1 M 12 (-1) 7 180 180 u1 = 0
2 14 60 11 (-1) 6 40 100 u2 = -1
3 9 (0) 5 160 M 160 u3 = - 6
4 11 80 7 40 9 (-6) 120 u4 = - 4
5 0 100 0 (-4) 0 (-8) 100 u5 = - 15
Demand 240 200 220 660
bi
vj v1 = 15 v2 =11 v3 = 7
Pij = Ui + Vj – Cij P31 = -6 +15 -9 = 0 P53= -15 +7 -0 = -8

P12 = 0+11 -12 = -1 P43 = -4 +7 -9 = - 6
P22 = -1 +11-11 = -1 P52 = -15+11-0 = -4
Pij = Ui + Vj – Cij P31 = -6 +15 -9 = 0

P12 = 0+11 -12 = -1 P43 = -4 +7 -9 = - 6
P22 = -1 +11-11 = -1 P52 = -15+11-0 = -4
P53= -15 +7 -0 = -8
A B C
1 M 12 (-1) 7 180 180 u1 = 0
2 14 60 11 (-1) 6 40 100 u2 = -1
3 9 (0) 5 160 M 160 u3 = - 6
4 11 80 7 40 9 (-6) 120 u4 = - 4
5 0 100 0 (-4) 0 (-8) 100 u5 = - 15
Demand 240 200 220 660
bi
vj v1 = 15 v2 =11 v3 = 7
A B C
1 M 12 (-1) 7 180 180 u1 = 0
2 14 60 11 (-1) 6 40 100 u2 = -1
3 + 9 (0) - 5 160 M 160 u3 = - 6
4 - 11 80 + 7 40 9 (-6) 120 u4 = - 4
5 0 100 0 (-4) 0 (-8) 100 u5 = - 15
Demand 240 200 220 660
bi
vj v1 = 15 v2 =11 v3 = 7
A B C
1 M 12 7 180 180 u1 = 0
2 14 60 11 6 40 100 u2 = -1
3 9 80 5 80 M 160 u3 = - 6
4 11 7 120 9 120 u4 = - 4
5 0 100 0 0 100 u5 = - 15
Demand 240 200 220 660
bi
vj v1 = 15 v2 =11 v3 = 7
Total Cost = (14 x60) + (9 x80) + (0x 100) + (5 x 80) + (7 x120) + ( 7 x 180) +(6X40) = Rs. 4,300
Total Cost = 840 + 720 + 0 + 400 + 840 + 1,260 + 240 = Rs. 4,300
Total cost by VAM = (7x180+14x60)+(6x40)+(5x160)+ (11x80)+(7x40) +(0x100) = 4,300
Assignment Q.No – 10 Find the initial feasible solution by VAM method and Test
the optimality by MODI method to minimise the transport cost
To P Q R S Supply
From
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 10 400
Demand 200 225 275 250 950
From To
P Q R S
A 11 200 13 50 17 14 250
B 16 18 175 14 10 125 300
C 21 24 13 275 10 125 400
Demand bi 200 225 275 250 950
m + n -1 = 7 (allocated cells)
(200x11)+(13x50)+18x175)+(13x275)+(125x10)+125x10) = 12,075

6.transportation Problems

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6.transportation Problems

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Transportation and Transshipment Problem

• Available quantities at various warehouses (location)

b) How would optimal schedule change if some routes become cheaper

Subject to supply constraints Demand constraints X11 + X21 + X31 = 180

1. Obtain an initial solution – obtain a basic feasible solution

1. Obtain an initial solution – obtain a basic feasible solution

• The initial feasible solution can be obtained by three common methods

A 180 150 170 500 320

B 180 120 300

B 175 125 300

C 150 250 400

A 150 50 300 500

B 175 125 300

C 150 250 400

C 125 275 400

Demand bi 180 150 350 320 1,000

Demand bi 180 150 350 320 1,000

B 7 180 11 8 120 14 300 1 1 3

Demand bi 180 150 350 320 1,000

A 12 10 150 12 230 13 120 500 2 2 2

B 7 180 11 8 120 14 300 1 1 3

Demand bi 180 150 350 320 1,000

Find the initial feasible solution to the following transportation problem

B 16 18 175 14 10 125 300 4 4 4 *4

Demand bi 200 225 275 250 950

 There are two methods of testing the optimality

A 180 150 (-) 170 (+) 500

Demand bi 180 150 350 320 1,000

Empty cells : AS, BP, BQ, CP, CQ, and CR,

A (-) 180 150 (+)12 170 13 500

Demand bi 180 150 350 320 1,000

Empty cells : AS, BP, BQ, CP, CQ, and CR,

A (-) 180 150 (+)12 170 13 500

Demand bi 180 150 350 320 1,000

A (-) 180 150 (+)12 170 13 500

Demand bi 180 150 350 320 1,000

Empty cells : AS, BP, BQ, CP, CQ, and CR,

A (-) 180 (-) 150 (+)12 170 13 500

Demand bi 180 150 350 320 1,000

Loop 5 CQ : CQ – CS – BS - BR – AR- AQ - AQ = 16 – 7 +14 -8 +12 -10 = 17

A (-) 180 150 12 170 13 500

Demand bi 180 150 350 320 1,000

A 180 150 (-) 170 (+) 500

Demand bi 180 150 350 320 1,000

A 180 150 (-) 50 (+) 120 500

Demand bi 180 150 350 320 1,000

A 180 150 12 50 - 120 500

Demand bi 180 150 350 320 1,000

Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

A 150 12 50 - 120 500

Demand bi 180 150 350 320 1,000

Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

A (-) 180 150 (+)12 50 120 500

Demand bi 180 150 350 320 1,000

Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

A (-) 150 (+)12 230 120 500

Demand bi 180 150 350 320 1,000

Loop 1 : BP-BR- AR-AP = (7 – 8 + 12 – 12) = - 1

Warehouse Market Supply

Demand 240 200 220 40 660

Demand 240 200 220 40 660

Demand 240 200 40 220 40 660

Demand 240 200 40 220 40 660