By Mr.Mohd.

Najib
Purpose: The transportation problem
involves determining a minimum-cost plan
for shipping from multiple sources to
multiple destination.
Thursday, September 26,
2013 Industrial Engineering 2
Demand Demand Demand Demand
Demand Demand Demand Demand
Supply Supply Supply Supply
Thursday, September 26,
2013 Industrial Engineering 3
Demand Demand Demand Demand
Supply Supply Supply Supply
Demand Demand Demand Demand
Supply Supply Supply Supply
100
A AA A B BB B C CC C D DD D
Warehouse Warehouse Warehouse Warehouse
1 11 11 11 1
Supply Supply Supply Supply
4 44 4 7 77 7 7 77 7 1 11 1
Factory 2 can
supply 200
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
Cost to ship one
unit from factory
1 to warehouse A
200
150
80 90 120 160
Thursday, September 26,
2013 Industrial Engineering 4
2 22 22 22 2
3 33 33 33 3
Demand Demand Demand Demand
12 12 12 12 3 33 3 8 88 8 8 88 8
8 88 8 10 10 10 10 16 16 16 16 5 55 5
supply 200
units per
period
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
F
a
c
t
o
r
y
450 450 450 450
450 450 450 450
Total supply
capacity per
period
Total demand
per period
exec
e.g
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Create a row for each plant and a column for each warehouse Create a row for each plant and a column for each warehouse
Plant
Warehouse
1 2 3 1 2 3
Phoenix
Atlanta
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Add a column for plant capacities and a row for warehouse demand Add a column for plant capacities and a row for warehouse demand
Plant
Warehouse
Capacity
1 2 3 1 2 3
Requirements
Phoenix
Atlanta
400
500
900
900
200 400 300
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Plant
Warehouse
Capacity
1 2 3
Insert costs into the shipping route option cells Insert costs into the shipping route option cells
1 2 3
Requirements
Phoenix
Atlanta
$5.00 $6.00 $5.40
$7.00 $4.60 $6.60
400
500
900
900
200 400 300
Figure 10.3 Figure 10.3
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Plant
Warehouse
Capacity
1 2 3
Insert costs into the shipping route option cells Insert costs into the shipping route option cells
1 2 3
Requirements
Phoenix
Atlanta
$5.00 $6.00 $5.40
$7.00 $4.60 $6.60
400
500
(100)
900
900
200 400 300
(0)
Figure 10.3 Figure 10.3
400 400
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Plant
Warehouse
Capacity
1 2 3
Insert costs into the shipping route option cells Insert costs into the shipping route option cells
1 2 3
Requirements
Phoenix
Atlanta
$5.00 $6.00 $5.40
$7.00 $4.60 $6.60
400
(200)
500
(100)
900
900
200 400 300
(0) (0)
Figure 10.3 Figure 10.3
400 400
200 200
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Plant
Warehouse
Capacity
1 2 3
Insert costs into the shipping route option cells Insert costs into the shipping route option cells
1 2 3
Requirements
Phoenix
Atlanta
$5.00 $6.00 $5.40
$7.00 $4.60 $6.60
400
(200)(0)
500
(100)
900
900
200 400 300
(0) (0) (100)
Figure 10.3 Figure 10.3
400 400
200 200 200 200
Transportation Method Transportation Method
Setting up the Initial Tableau Setting up the Initial Tableau
Plant
Warehouse
Capacity
1 2 3
Insert costs into the shipping route option cells Insert costs into the shipping route option cells
1 2 3
Requirements
Phoenix
Atlanta
$5.00 $6.00 $5.40
$7.00 $4.60 $6.60
400
(200)(0)
500
(100)(0)
900
900
200 400 300
(0) (0) (100)(0)
Figure 10.3 Figure 10.3
400 400
20 20
0 0
200 200
100 100
Total Cost = 200(5) + 200(5.4) + 400(4.6) + 100(6.6) = $ 4580 Total Cost = 200(5) + 200(5.4) + 400(4.6) + 100(6.6) = $ 4580