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Transportation problems are generally concerned with the distribution of a certain product from several sources (origin) to numerous facilities (demand points) at minimum cost. Let there be m origins, n destinations Let xij be the no. of units transported from ith origin to jth destination cij be the cost of shipping one unit from ith origin to jth destination. Si and Dj be the supply capacity at origin and Demand at destination respectively.
Then the obj is to minimize the cost i.e. Minimize s.t.c z = cij xij
i=1 j=1 n m n
v i=1,.,m
n j=1
1 x11 x21
. . . . c11 c21
2 x12 x22
. . . . cm1 c12 c22
.
. .
n x1n x2n
.
. . . .
Supply
c1n c2n
s1 s2
. . . .
. . . .
m Demand
xm1
xm2 d2
cm2
xmn dn
cmn
sm
d1
A national truck rental firm, Yeh Haw trucking co., is planning for a heavy demand during the month of june. An inventory of its truck combined with projections for demand indicate that 3 areas will be short of the no. of trucks required to satisfy expected demand. To prepare for the period of heavy demand, company officials wish to relocate trucks from areas which have surplus to the areas which have shortage at minimum cost. The cost of driving trucks between two cities as well as surplus and shortages are given in the table next slide.
1 2 3
300
140
200
80
Initial Basic Feasible Solution It has (m+n) constraints with (mn) variables i.e., in this problem we will have 3+3=6 constraints and 3*3=9 variables. But basic variables will be (m+n-1) i.e 6-1=5. There are no. of ways of finding the initial basic feasible solution. i) North-west corner rule ii) Minimum-cost method (Greedy algorithm) iii) Vogels approximation method We will apply each one of these for the problem mentioned above.
2
100 300 200
3
100 200 300
130 70
80
140
200
80
2
100 300 200
3
100 200 300
80 120
80
30
140
200
80
2
100
3
100 200 300
Penalty
110
200 100
80 10
300 200
80
140
50
200
100 100 100
80
100 100 100
1) Find the intial basic feasible solution using a) North-west corner method b) Row minima method; c) Least-cost Method d) Column minima method e) VAM Vogel's Approximation Method
DESTINATION SOURCE A B C S1 2 7 14 S2 3 3 1 S3 5 4 7 S4 1 6 2 DEMAND 8 9 18 SUPPLY 5 8 7 15
2) Determine an initial basic feasible solution to the following transportation problem using a) North-west corner rule; b) Least cost method; c) Vogel's Approximation method VAM
Destination I II III 11 13 17 16 21 200 18 24 225 14 13 275
IV 14 10
A B C Demand
10 400 250
Total cost = 110*100+90*300+10*200+80*200+140*100 = rs.70,000 Check for no. of basic variables which in this case have to be 3+3-1=5. As we can see from the table that 5 cells have been filled meaning we have 5 basic variables. From here we move on to finding the optimum solution. We have mainly two methods to arrive at optimum solution: 1. Stepping-stone method 2. MODI method
Stepping-stone method
Origin (Surplus area) 1 2 3 Demand (shortage of trucks)
Cell 1,2 1,3 2,3 3,1
2
+1 -1 100 300 200
+1 200 100
130 70
80
300
140
200
80
Improvement index (Iij) -50 -150 -200 0
closed path 1,2 1,1 2,1 2,2 1,2 1,3 1,1 2,1 2,2 3,2 3,3 2,3 2,2 3,2 3,3 2,3 3,1 3,2 2,2 2,1 3,1
2
100 300 200
50 150
80
140
200
80
closed path 1,2 1,1 2,1 2,2 1,2 1,3 1,1 2,1 2,3 1,3 3,1 3,2 2,2 2,1 3,1 3,3 2,3 2,2 3,2 3,3
2 50
100 300
80
200 300
150 200
200
140
80
closed path 1,3 1,1 2,2 2,3 1,3 2,2 1,2 1,1 2,1 2,2 3,1 3,2 1,2 1,1 3,1 3,3 2,3 2,1 1,1 1,2 3,2 3,3
3
100 300 100
110
200 100
80
200 300
90 200
200
140
80
Cell closed path Iij 1,3 1,3 1,2 2,2 2,3 1,3 100 1,1 1,1 1,3 3,2 1,2 1,1 50 2,2 2,2 2,1 3,1 3,2 2,2 0 3,3 3,3 2,3 2,1 3,1 3,3 200 Since all the improvement index values are >= 0 Total cost = 110*100+80*200+60*100+90*200+80*200 = rs.67,000
MODI (Modified Distribution) method Dual problem of the transportation problem is given by: m n Maximize Z = si ui + dj vj
i=1
s.t.c
ui + vj <= cij
j=1
ui, vj unrestricted If xij is nonbasic variable (xij=0), its corresponding dual slack variable is a basic variable and >0(unequal to 0) in the dual complimentary basic solution.
If we use the symbol Iij for this dual slack variable and add it to the dual constraint we get Iij = cij ui vj The value of Iij dual slack variable is the marginal effect on the value of the primal objective function from introducing an additional unit of nonbasic xij. ui are row indexes and vj are column indexes and the values are filled by assuming u1 = 0 and we know that ui + vj = cij. So we will make use of cost coeff to get other values.
3
100 300 200
100
50 0 140
110 80 10
80
200
140
v1 = 0
200
V2 = 100
80
v3 = 0
Since all the Iij values are +ve, it means that the optimal solution has been reached
A CPU mfger wants to ship the products to warehouses in 5 different cities A,B,C,D&E from plants I, II, III. The quantity at plant, requirements at warehouses and shipping costs/unit shipped are given in the table. Determine the amt that should be shipped from each plant to each warehouse to minimize the shipping costs.
cont
warehouses Plant I
2 10 8 30 6
A
10
B
20
C
5
D
9
E
10
II
1 20 7 10 4
Assignment Model
Five jobs are assigned to five people; each person will do one job only. The expected times (in hrs) required for each person to complete each job have been estimated & are shown in the following table. Use the Hungarian method to determine the optimal soln. cont
Job 1 2 3 4 5
1 12 16 18 15 26
2 15 18 18 20 15
Person 3 4 13 14 15 14 15 18 18 17 18 14
5 15 16 20 19 15
A distributor has four sales territories which have to be assigned to four sales person. From the past sales experience the firms sales manager has estimated the annual sales vol (000s) for each sales representative in each sales territory. Find the territory assignments that maximize sales. sales territory Sales rep A B C D Washington 44 80 52 60 Benson 60 56 40 72 Fredricks 36 60 48 48
A company produces certain product from three plants 1,2,3 which are distributed to distribution centres A,B,C,D,E. Capacities, Demand & cost of shipping/unit from various plants to destinations are given in table. Find the shipment plan to minimize costs A 1 2 3 Demand 400
1.45 1.10 1.20
B
1.60 2.25 1.20
C
1.40 0.60 1.80
400
400
A company produces certain product from three plants 1,2,3 and shipped to three warehouses A,B,C. Transportation costs/unit are shown in the table below. Solve the model to determine the minimum cost solution. A 1 2 3 Demand 200
20 10 12
B
16 10 18
C
24 8 10
400
300
Premier consulting has three consultants C1, C2, C3 who have to handle 4 different clients ClientA, ClientB, ClientC, ClientD. The time availability with consultants and the time required by each client is given in the table. Hourly rates vary for the consultant-client combination and are based on several factors The rates/hr for each consultant-client combo is given in the table. Find the optimal solution providing the hours each consultant should be scheduled for each client in order to maximize the firms billing. What is the schedule and what is the billing?
C1 C2 C3
Hrs 180 required
100
125
115
100
120
135
115
120
155
150
140
130
75
100
85
Degenerate Problems
Solve the following transportation problem
Destination A B C D Supply 6 1 2 3 4 10 4 3 2 0 0 2 2 1 8 4 6 8 6
1 Origin 2 3 Demand
Goods have to be transported from S1, S2, S3 to destinations D1, D2, D3. The transportation costs per unit, capacities of the sources and demand are shown in the table. Determine a transportation schedule to minimize the cost.
D1 D2 D3 Supply 6 120 80 12 80 10 50
S1 8 5 S2 15 10 S3 3 9 Demand 150 80
A product is manufactured by 4 factories. Unit production cost in them are Rs.2, Rs.3, Re.1 & Rs.5 respectively. Their production capacities and the demand from 4 stores and the transportation cost from each factory to each store is shown in the table below. Allocate to minimize the total cost.
1 A B Factories C D Demand
2 10 13 4
Stores 2 3
4 8 3 6 6 7 9 8
25
35
105
Supply 50 11 70 5 30 12 50 3 20
A company has factories at A,B,C & D which supply to warehouses at P,Q,R & S. The factory capacities are 230, 280, 180 resp. for regular production. If overtime production is utilized, the capacities can be increased to 300, 360 & 190 respectively. Increment unit costs are Rs.5, Rs.4 and Rs.6 resp. The current warehouse requirements are 165, 175, 205, 165 resp.Unit shipping costs in Rs. is shown in the table. Find the optimum distribution to minimize the cost.
P A B C 6 4 3 Q 7 10 22 R S 8 10 7 6 2 11
Transshipment
2
5 Delhi
4 6 4
200
600
1 Pune
3
3 Bhopal
6 Calcutta
150
400
2 Nagpur
4 Bangalore
5
7 Hyderabad
6
350
8 Chennai
300