Transportation Models

Module 3

The Transportation Model

The transportation model is a special class of LPPs that deals with transporting(=shipping) a commodity from sources (e.g. factories) to destinations (e.g. warehouses). The objective is to determine the shipping schedule that minimizes the total shipping cost while satisfying supply and demand limits. We assume that the shipping cost is proportional to the number of units shipped on a given route.

Transportation Problem
How much should be shipped from several sources to several destinations
Sources: Factories, warehouses, etc. Destinations: Warehouses, stores, etc.

Transportation models
Find lowest cost shipping arrangement Used primarily for existing distribution systems

A Transportation Model Requires

The origin points, and the capacity or supply per period at each The destination points and the demand per period at each The cost of shipping one unit from each origin to each destination

We assume that there are m sources 1,2, , m and n destinations 1, 2, , n. The cost of shipping one unit from Source i to Destination j is cij.
We assume that the availability at source i is ai (i=1, 2, , m) and the demand at the destination j is bj (j=1, 2, , n). We make an important assumption: the problem is a balanced one. That is

a b
i 1 i j 1

That is, total availability equals total demand.

Special Case

We can always meet this condition by introducing a dummy source (if the total demand is more than the total supply) or a dummy destination (if the total supply is more than the total demand).
Let xij be the amount of commodity to be shipped from the source i to the destination j.

Destination
1 2
c12 c22

.
c1n c2n

Supply
a1 a2

S o u r c e

c11 c21

2 . .
cm1 cm2 cmn

am

Demand

b1

b2

bn

definitions
Feasible solution-any set of non negative allocations which satisfies row and column requirement Basic feasible solution-a feasible solution is called basic feasible solution if the number of non negative allocations is equal to m+n-1 where m is the no of rows and n is the number of columns

Steps involved in solution of transportation problem

To find an initial basic feasible solution (IBFS) To check the above solution for optimality To revise the solution

Methods to determine IBFS

North West corner rule Row minima method Column minima method Matrix minima method Vogels approximation method

North West corner rule

Warehouses
W1 W2 W3 W4

Capacity 7

F1 Factory

19

30 30

50

10

F2

70
F3

40 70
8 7

60 20
14

40
5

18

Requirement

Warehouses
W1 W2 W3 W4

Capacity 7

F1

5 19 30

2 50 6 3 40 4 70
8 7

10
9

Factory

F2

70
F3

30 8
5

60 14 20
14 18

40

Requirement

Steps in solving a transportation problem

1. Check whether given transportation problem is balanced 2. Find IBFS using VAM and TTC 3. To check for optimality and find out the value of Dij= Cij ( ui+vj) 4. To revise the solution if obtained solution is not optimal (i.e. if all the values of D are not positive) 5. Recheck for optimality

How to check for optimality?

Total no of allocations=m+n-1 Where m is the total no of rows n is the total no of columns

How to find out the value of Dij= Cij ( ui+vj)?

1. To find the values of ui and vj using the formula u + v = c 2. To find ui+vj for empty cells 3. To find Dij= Cij ( ui+vj ) 4. Where c is the original cost given in the problem

How to revise the solution?

Mark + in the place where there is a negative value Proceed with the loop Direction of loop can be changed at only places where there is a allotment mark + and where the loop changes its direction Observe cells and take the least allocation Add the value of where + is there and subtract the value of where is there

Model of a loop
- 5 - 3 20 11 + 70 + 7 10 9 15 - 25 + 2 35

LOOP

Different cases of transportation problem

Unbalanced transportation problem Degeneracy case (when total no of allocations m+n-1) Maximisation transportation problem

Converting unbalanced to balanced transportation problem

w1 w2 w3 capacity 9

F1

15 14

8 9

11 10

F2 requirement

Soln. - add a dummy Raw

w1 F1 w2 w3 capacity 9

15 14 0
10

8 9 0
5

11 10 0
6 8 Dummy Raw

F2

D requirement

How to resolve Degeneracy?

In order to resolve degeneracy a very small value is allocated in the least cost independent cell Independent cell-a cell from which a loop can not be formed Identify the independent cell in the matrix first and then allocate

Resolving degeneracy
(60) 3 (50) 3 (80) 3 5 9 ()
Least Cost Independent cell

(20)

Maximisation transportation problem

Always maximisation problems need to be converted into minimisation problem It can be done by subtracting all other elements in the matrix from the highest element in matrix Note: if a given transportation problem is not balanced and is of maximisation type first balancing to be done and then need to be converted into minimisation type

How to identify a maximisation problem?

Maximisation generally done for profit ..hence any questions that appear with profit has to be converted into minimisation type While writing final answer it is to be taken care that profit is written and not the cost

Maximisation to minimisation

80
70

90
50

100
60

20
30

10
50

0
40