Transportation problem

Production Requirement
capacity for goods

a1 b1
a2 b2
Factories i-th factory Customers
ai

...
bj
...

delivers to j-th
customer at cost cij

an bm
necessary condition

Minimum cost of transportation satisfying the demand of customers.

 Transportation tableau
amount cost cij of delivering from
supply ai of ith factory
transported ith factory to jth customer

7 3 4 u1
x11 x12 x13 8
4 2 2 u2
x21 x22 x23 6
2 1 5 u3
x31 x32 x33 3
v1 v2 v3 shadow
4 2 3 factory price

shadow demand bj of jth customer

customers price shadow prices are relative to some baseline
 Transportation problem
Overproduction: If produced more then needed ( > )
Dummy customer at zero delivery cost
Shortage: If required more than produced ( < )
Dummy producer at market delivery cost
(what it would cost to deliver it from a third party) a1 b1
7 3 4 u01 u1
x11 x12 x13 x814 8 a2 b2
4 2 2 u02 u2
Balanced
x21 x22transportation
x23 x624 problem
6
2 1 5 u03 u3 a3 b3
x31 x32 x33
= x3
34 3

v91 v82 v3
11 v04 u4
x441 x242 x343 x844 0 a4 b4
v1 v2 v3 v4
4 2 3 8
 Transportation Simplex
Applying the Simplex method to the problem
Basic solution
7 3 4 0 u1
min-cost method x311 x12 x313 x214 680
Pivoting
4 2 2 0 u2
shadow prices
x21 x22 x23 x624 06
set u1 = 0, then ui + vj=cij
reduced cost 2 1 5 0 u3
x131 x232 x33 x34 130
pivot if ui + vj > cij
Finding a loop v1 v2 v3 v4
34
0 02 30 02
8 z = 37
cost = 37 + 34 + 20
+ 12 + 21 + 60 = 37 must mark
takeexactly
the smaller
m + nof
the
1 = 6two
cells
 Transportation Simplex
Applying the Simplex method to the problem
Basic solution
7 3 4 0 u01
min-cost method x311 x12 x313 x214 8
Pivoting
4 2 2 0 u02
shadow prices
x21 x22 x23 x624 6
set u1 = 0, then ui + vj=cij
reduced cost 2 1 5 0 -5
u3
x131 x232 x33 x34 3
pivot if ui + vj > cij
Finding a loop v71 v62 v43 v04
4 2 3 8 z = 37

ui =0 and vj must sum up to cij = 4 vj = 4

 Transportation Simplex
Applying the Simplex method to the problem
Basic solution
7 6 >3 4 0 u01
min-cost method x311 x12 x313 x214 8
Pivoting
7>4 6>2 4>2 0 u02
shadow prices
x21 x22 x23 x624 6
set u1 = 0, then ui + vj=cij
reduced cost 2 1 -1 5 -5 0 -5
u3
x131 x232 x33 x34 3
pivot if ui + vj > cij
Finding a loop v71 v62 v43 v04
4 2 3 8 z = 37

calculate ui + vj
 Transportation Simplex
Applying the Simplex method to the problem
Basic solution
7 6 >3 4 0 u01
min-cost method 3x13- x12 x313 2x4
2+ 8
11 14
Pivoting
7>4 6>2 4>2 0 u02
shadow prices
x21 x222
+ x23 6x4
6-
24 6
set u1 = 0, then ui + vj=cij
reduced cost 2 1 -1 5 -5 0 -5
u3
1x31+
31 2x2-
32 x33 x34 3
pivot if ui + vj > cij
Finding a loop v71 v62 v43 v04
4 2 3 8 z = 37
29
Largest
New basis
feasible = 2