Outline

Phase II

Foster Generators

References

IFC6503C - Operations Research

Session 9: Transportation Problem (Part 3)

Daniel Febrian Sengkey

Undergraduate Program in Informatics Engineering
Department of Electrical Engineering
Faculty of Engineering
Universitas Sam Ratulangi

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Outline

Phase II

Foster Generators

References

Outline

Outline
Phase II: Iterating to the Optimal Solution
Introduction
Illustration: The Foster Generators Problem
Applying Phase II to The Foster Generators Problem
MODI Method
The Stepping-Stone Method
References

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Phase II

Foster Generators

References

Acknowledgement

The contents of this presentation are adapted

from [1].

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Phase II

Foster Generators

References

Introduction

Phase II: Iterating to the Optimal Solution

Introduction
I
I

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Iterating from the initial feasible solution to the optimal

solution.
Phase II starts with identifying an incoming arc.
Incoming arc is the currently unused route where making a
flow allocation will cause the largest per-unit reduction in
total cost.
The flow then allocated to the incoming arc while the other
values are adjusted to maintain feasibility.
While adjusting the table, we also identify and drop an
outgoing arc from the solutions.
To identify the incoming arc, we must compute for each
unused arc the amount by which total cost will be reduced by
shipping a unit over it.
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Phase II

Foster Generators

References

Introduction

Introduction
MODI Method

Modified Distribution is a method to compute the cost

reduction.
MODI method requires:
I
I

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ui as the index for each row of the tableau.

vj as the index for each column of the tableau.

Cost efficient for each occupied cell equal ui + vj .

If cij is per-unit cost from origin i to destination j then for

each occupied cell ui + vj = cij

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Phase II

Foster Generators

References

Illustration

Phase II: Iterating to the Optimal Solution

Illustration: The Foster Generators Problem

Table 1 : Total cost of the initial feasible solution obtained using the Minimum
Cost method.

Route
From
To
Cleveland Boston
Cleveland Chicago
Bedford
Boston
Bedford
St. Louis
Bedford
Lexington
York
Boston

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Units
Shipped
1000
4000
2500
2000
1500
2500

Cost
per Unit ($)
3
2
7
2
3
2

Total
Cost ($)
3,000
8,000
17,500
4,000
4,500
5,000
$ 42,000

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Phase II

Foster Generators

References

Illustration

Phase II: Iterating to the Optimal Solution

Illustration: The Foster Generators Problem

Table 2 : Initial feasible solution for the Foster Generators Problem.

Cleveland

Boston
3

Chicago
2

1000

4000
7

Bedford

Demand

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Lexington
6

2
2000

3
6000

1500
4

5
2500

2500
6000

Supply
5000

2500
2

York

St. Louis
7

4000

2000

1500

13,500

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Phase II

Foster Generators

References

MODI Method

Applying Phase II to The Foster Generators Problem

MODI Method

Requiring that ui + vj = cij for all occupied cells in the initial

feasible solution leads to a system of six equations and seven
indexes, or variables:
Table 3 : System of equations with seven indexes of the initial feasible solution.

Occupied Cell
Cleveland-Boston
Cleveland-Chicago
Bedford-Boston
Bedford-St. Louis
Bedford-Lexington
York-Lexington
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ui + vj = cij
u1 + v1 = 3
u2 + v2 = 2
u2 + v1 = 7
u2 + v3 = 2
u2 + v4 = 3
u3 + v1 = 2
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Phase II

Foster Generators

References

MODI Method

Applying Phase II to The Foster Generators Problem

MODI Method
I

With one more index (variable) than equation in this system, we can
freely pick a value for one of the indexes and then solve for the
others.

We will always choose u1 = 0 and then solve for the values of the
other indexes.
For u1 = 0 then:

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u1 + v1 = 3

0 + v1 = 3

v1 = 3

u1 + v2 = 2

0 + v2 = 2

v2 = 2

u2 + v1 = 7

u2 + 3 = 7

u2 = 4

u2 + v3 = 2

4 + v3 = 2

v3 = 2

u2 + v4 = 3

4 + v4 = 3

v4 = 1

u3 + v1 = 2

u3 + 3 = 2

u3 = 1
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Phase II

Foster Generators

References

MODI Method

Applying Phase II to The Foster Generators Problem

MODI Method
I

From the previous solution to the system of equations we get:

u1 = 0

v1 = 3

u2 = 4

v2 = 2

u3 = 1

v3 = 2
v4 = 1

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The net evaluation index is eij = cij ui vi .

Management scientists have shown that for each unoccupied
cell, eij provides the change in total cost per unit that will be
obtained by allocating one unit of flow to the corresponding
arc.
Because of the way ui and vj are computed, then eij = 0 for
each occupied cell.
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Phase II

Foster Generators

References

MODI Method

Applying Phase II to The Foster Generators Problem

MODI Method

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By rewriting the tableau that contains the initial feasible

solution for the Foster Generators problem and replacing the
previous marginal information with the values of ui and vj we
obtain Table 4.

The circled numbers in Table 4 are the computed net

evaluation index for each unoccupied cell.

It means, shipping one unit over the route from origin 1

(Cleveland) to destination 3 (St. Louis) will increase total
cost by $9.

On the other hand, shipping one unit from origin 2 (Bedford)

to destination 2 (Chicago) will decrease total cost by $1, and
so on.
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Phase II

Foster Generators

References

MODI Method

Applying Phase II to The Foster Generators Problem

MODI Method

Table 4 : Net evaluation indexes for the

initial feasible solution.
ui
0

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Based on the net evaluation

indexes, the best arc is
associated with the
Bedford-Chicago route (e22 ).

By shipping via this arc, the

total cost will be reduced by
$1 for each unit of flow.

How much flow should we

allocate to this arc?

vj
3

-2

1000

4000

2500
2

-1

2500

-1

5
4

-1
7

6
7

2000

1500

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Phase II

Foster Generators

References

MODI Method

Applying Phase II to The Foster Generators Problem

MODI Method

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Since the Bedford-Chicago arc gives the best cost reduction

then we want to allocate as much as possible flow to this arc.

However, we must keep in mind that the new solution has to

be feasible too.

Therefore we need to adjust the table while assigning unit

flow to this arc.

To determine the necessary adjustment and identify the

outgoing arc, we can use the stepping-stone method.

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

Suppose that we allocate one unit of flow to the incoming arc

(Bedford-Chicago).

We need to maintain the feasibility so we do not ship too

much flow1 to Chicago.

But then we should increase the flow on Cleveland-Boston arc

to 1001, so that the total Cleveland supply of 5000 units
could be shipped.

In the end, we should reduce the flow on the Bedford-Boston

arc by 1 to satisfy the Boston demand.

Table 5 shows the summary of this cycle of adjustments.

1
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Ship units more than the demand

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

Table 5 : Cycle of adjustments in occupied cells necessary to maintain

feasibility when shipping on unit from Bedford to Chicago.

Cleveland

Bedford
York
Demand

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Boston
3



1000
1001
7



2500
2499
2
2500
6000

Chicago
2



4000
3999
5

St. Louis
7

2000

Supply
5000

5
4000

Lexington
6

4
2000

6000

1500
5

2500

1500

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

The cycle of adjustments needed in making an allocation to

the Bedford-Chicago cell require changes in four cells:
I
I
I
I

2
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Bedford-Chicago2
Cleveland-Chicago
Cleveland-Boston
Bedford-Boston

These cells can be seen as stepping-stone path in the tableau.

The incoming cell itself.

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

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The idea behind the name is to view the tableau as a pond,

with the currently occupied cells as stones.

To identify the stepping-stone path for an incoming cell, start

at the incoming cell and move horizontally and vertically using
occupied cells as the stones at the corners of the path.

The objective is to step from stone to stone and return to the

incoming cell.

Figure 1 depicts the stepping-stone path associated with the

incoming arc of Bedford-Chicago route.

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

Cleveland

Bedford

Boston Chicago St. Louis Lexington Supply

3 2
7
6
5000
1000
4000

+
-

7
2500
2

York
Demand

2
2000

3
6000

1500
4

5
2500

2500
6000

4000

2000

1500

An unoccupied cell
An occupied cell
not in the stepping-stone path
An occupied cell
in the stepping-stone path

13,500

Figure 1 : Stepping-stone path with Bedford-Chicago as the incoming route.

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method
I
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I

I
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In Figure 1, the occupied cells in the stepping-stone path were

given a plus sign (+) or a minus sign(-).
The plus sign indicates that the allocation to that cell will
increase by the same amount we allocate to the incoming cell.
The minus sign indicates that the allocation to that cell will
decrease by the same amount by the amount we allocate to
the incoming cell.
To determine the maximum amount, pay attention to the cells
with a minus sign.
Since the solution is constrained to positive amount of flow,
then the minus-sign cell with the smallest amount allocated to
it will determine the maximum amount can be allocated to
the incoming cell.
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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

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After allocating this maximum amount to the incoming cell,

we then make all the adjustments necessary on the
stepping-stone path to maintain feasibility.

The incoming cell becomes an occupied cell, and the outgoing

cell is dropped from the current solution.

In our case, Bedford-Boston arc is the arc with smallest

amount. Then we obtain new solution by dropping the
Bedford-Boston arc and allocating 2500 units to
Bedford-Chicago arc.

The new solution is shown in Table 6

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

Table 6 : New solution after one iteration in phase II of the transportation

simplex method.

Cleveland

Boston
3

Chicago
2

3500

1500
7

Bedford
York
Demand

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2
2000

5
4000

Lexington
6

Supply
5000

2500
2500
6000

St. Louis
7

4
2000

6000

1500
5

2500

1500

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method
I

As the earlier solution3 was evaluated, then we need to evaluate the

new solution.

Remember that the objective of the evaluation is to seek the better

solution (improvement).

We apply the MODI method to find the best incoming arc, so we

recompute the row and column indexes by requiring that
ui + vj = cij for all occupied cells.

By setting u1 = 0 then we got:

u1 = 0

v1 = 3

u2 = 3

v2 = 2

u3 = 1

v3 = 1
v4 = 0

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Table 7 shows the new row and column indexes.

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

Table 7 : MODI evaluation of each cell in solution.

ui
0

vj
3

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1000

4000

2500

2000

1500

1

2

-1

-1

2500

7
8

6
6

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Phase II

Foster Generators

References

The Stepping-Stone Method

Applying Phase II to The Foster Generators Problem

The Stepping-Stone Method

Table 7 also shows the net changes4 in the value of the

solution that will result from allocating one unit to each
unoccupied cell.

The net evaluation index for every unoccupied cell is now

greater than or equal to zero.

This condition indicates that if we allocate flow to the

unoccupied cell then the total cost will increase.

Without an arc to which flow can be assigned to decrease the

total cost, then we have reached the optimal solution.

The optimal solution is concluded in Table 8.

4
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the circled numbers

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Phase II

Foster Generators

References

The Stepping-Stone Method

Conclusion
The Optimal Solution

Table 8 : Optimal solution of Foster Generators transportation problem.

Route
From
Cleveland
Cleveland
Bedford
Bedford
Bedford
York

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To
Boston
Chicago
Chicago
St. Louis
Lexington
Boston

Units
Shipped
3500
1500
2500
2000
1500
2500

Cost
per Unit ($)
3
2
5
2
3
2
Total

Total Cost ($)

10,500
3,000
12,500
4,000
4,500
5,000
39,500
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Phase II

Foster Generators

References

References I

[1] D. R. Anderson, D. J. Sweeney, T. A. Williams, J. D. Camm, and

K. Martin, An Introduction to Management Science: Quantitative
Approaches to Decision Making, revised 13th ed. OH:
South-Western/Cengage Learning, 2012.

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