(4) Transportation Method

Special method.

Transportation Problems and Method to solve such problems

Transportation Problem
Destination (Warehouse) 1 2 . . n

Cases

1 2 . . m

C11 C21 . . Cm1

C12 C22 . . .

. . . . .

. . . . .

C1n C2n . . Cmn

a1 a2
. am

ai bj ai bj
Cij Pij

Origin (Plant)

bj from ith Cij = Cost of shipping unit item

Origin to jth Destination

b1 b2

. bn

ai

Categories of Transportation Problems

A. Balanced Minimization ai bj with Cij B. Unbalanced Minimization ai bj with Cij

C. Balanced Maximization ai bj with Pij

D. Unbalanced Maximization ai bj with Pij

A. Balanced Minimization Problem

Destinations(Warehouses) 1 2 . . n 1 2 . . m
C11 C21 . . Cm1 C12 C22 . . . . . . . . . . . . . C1n C2n . . Cmn

a1 a2

Origins(Plants )

.
am

b1 b2

. bn

ai bj

Xij = No. of items shipped from ith Origin to jth Destination

Formulation of Transportation Problem

as LPP

Min Z Cij. Xij

i 1 j 1 n

s/t

Xij
j 1

ai, for all i bj for all j

( I ) ( II )

Xij
i 1

All Xij 0

for all i & j.

Methods to get IBFS :

1. NWCM: North West Corner Method

2. RMM: Row Minima Method

3. CMM: Column Minima Method 4. MMM: Matrix Minima Method

(Least Cost Entry Method) 5. VAM: Vogels Approximate Method

NWCM
1 1
2

2 2 2 4 2
2 4 5

3
3

4
2

5
6 1

4 5 6

5 4

2 7

13 11 5
12 10

3 3

2 7 2

10 10

30

Z = 148

Therefore NWCM solution is :

1
1 2 3

2 2 2 4
2 4 5

3
3

4
2

5
6 1

4 5 6

5 4

2 7

13
12

2 7

10 10

30

Z = 148

RMM
1
1 2 3
4 5

2
2

3
3 5

4 5
2
2 2 7

5
6

3 3

1 3

4 5

10

1 7

13 3 1
12 6 3

6 6

4 3

7 2

10

30

Z = 85

Therefore RMM solution is :

1
1 2 3
4 5

2
2

3
3 5

4 5
2
2 2 7

5
6

4 5

10

1 7

13
12

3 3

3 4

6 6

10

30

Z = 85

CMM
1
1 2 3

2
2 2
2 4 5

3
3 5

4
2

5
6

4 5 6

2 7

1 7

13 11 4
12 6

6 6

6 10
6

4 2

30

Z = 108

Therefore CMM solution is :

1
1 2 3

2
2 2
2 4 5

3
3 5

4
2

5
6

4 5 6

2 7

1 7

13
12

6 6

6 10

30

Z = 108

MMM
1
1 2 3
4 5

2
2 4 5

3
3 5

4
5 2
2 2 7
10

5
6 1 7

13 3 1
12 6 3

3 3

3 4 3

7 2

10

30

Z = 85

Therefore MMM solution is :

1
1 2 3
4 5

2
2 4 5

3
3 5

4
5 2
2 2 7
10

5
6 1 7

13
12

3 3

3 4

10

30

Z = 85

VAM
1
1 2 3
4 5 6

Penalty Number

2
2 4 5

3
3 5 4

4
2 2 7
10

5
6 1 7

0
1 1

13 3
12

3 Penalty Number1

4 2

6
1

7
0

10 5

30

VAM
1 1
2
4 5 6

2
4
2 4 5

3
3 5 4

4
2 2 7

5 1

3
12

2
1

3 3 1

4 2

6 1

7
0

20

VAM
1 1
2
4 5 6

3
3 5 4

4
2

1 3 2

3 7 4 0

2 7

3
12

3 3
1

6
1

16

VAM
1 1 3
4

3
3

4
1 3 4 3 5
2

3 3 2

6 6 1

12 6 3 2

13 12 6 3

VAM solution is :
1
1 2 3
4 5

2
4 2
4 5

3
3 5

4
1 2 3 2
10

5
6 1 7

13
12

3 6

6 4 3 7

10

30

Z = 89

Optimality Test on IBFS

Methods : 1. Stepping Stone Method 2. MODI Method MODI Method Of Checking Optimality Condition To Be Satisfied : Filled Cells = m + n - 1

Where m = No. of Rows n = No. of columns

MODI Method for Optimality Test

Get all ui & vj starting with any ui or vj as zero,

such that ui + vj = cij in filled cells.

Get vacant cell Evaluation of all vacant cells. (VCE)ij = cij (ui + vj)

VAM Solution
Z = 89
ui

4 4 2 4 5 3
vj
6

3 1 5 3
4

2 2 7

2 2 7

10 -1

-2 5 6

-1

-3

As (VCE)32 = -2, the solution under test is not optimal.

For modification of existing solution :

ui

4 4 2 5 4 3
vj 4
6

3 1 5 3
4

2 2 7

2 2

10 -1
1

-2 5 6

3 0

7 7
4

-1

-3
1

Hence, improved solution will be :

1
3
6 2

4 3
4

2 2

10

3 5 6

Z = 89 (2) (3) Z = 83

This solution is to be checked by MODI Method for optimality.

Improved solution :
4 5 3
vj
6

ui

4 3 5 6

3 4 5 3
4

2 2

6 10
1

-3 -3 0

As all vacant cell evaluations are positive, the solution is optimal, giving Z = 83.

MMM Solution
Z = 85
ui

-3 2 0 3 5 2 4 5 2 2 10 1 7 3 6 3 5 6 4
vj

-1 4 05

6 -1 1 -1 7 0

For modification of existing solution :

ui

4 -3 2 0 3 5 -1 5 4 5 2 0 1 6 3 5 4 3 6
vj

2 2 7

6 -1

10
2
1

-1

0
4

4
5

Hence, improved solution will be :

1
3
6 2

4 3
4

2 2

10

3 5 6

Z = 85 2 Z = 83

This solution is to be checked by MODI Method for optimality.

Improved solution :
4 5 3
vj
6

ui

4 3 5 6

3 4 5 3
4

2 2

6 10
1

-3 -3 0

As all vacant cell evaluations are positive, the solution is optimal, giving Z = 83.

For cases when closed figure is not Equal or Rectangle : 1 7 3 4 4 5

Problem :
The following table gives minimization transportation problem with given allocation, check whether given solution is optimal. If not, get the optimal solution. X Y Z Supply 20 10 22 25 A 25 10 24 28 10 10 B C
D 27 10 25 15 18 15 15

20

20

20

Demand

25

20

25

25 -1 -6 -20 15

20

10

22

24
27 10 20 5

28
25 20

10
15 0

10
18 15

10
18 15

Z = 1270

25

20

20

20

Hence, improved solution will be :

20

20

10

-3

22

25

24
27 10 20 -5

28
25 20

10
15

10
18 15

10
18 15

-15 0 Z = 1270 (20 X 20) = 870

20

20

Hence, improved solution will be :

Z = 870 (3) () = 870 5 20 20 10 22 22

24
27 10 20 -2 -12

28
25 20

10
15

10
18 15

10
18 12

Hence, this solution is Optimal.

Problem : 120 28 -32 160 12 20 12

32
30 16 16

12
32 135 4

8
4

-20
0

25
32

Z = 7100

120

95

25

30

25

55

Hence, improved solution will be :

95

28

25

12

20

12

32
55 16 16

160

12
32

-8
135 4

8
4

12
0

Z = 7100 (32) (25) = 6300

95

25

120
95

160
55 135 150

65
40

Hence, improved solution will be :

28

120

12

20

32
16 150 16

65

12
32

95
40 4

8
4

4
0

Z = 6300 (8) (95) = 5540

Hence, this solution is Optimal.

Home Assignments :

[ 1 ] Mr XYZ has suggested the following feasible solution for a minimizing transportation problem as given below. Check whether the solution is optimal. If not, get optimal solution. A B C D 1 10 15 2 20 11

12

15

10

20

3 5

14

16

18

[ 2 ] For following transportation (minimization) problem, present total cost of transportation is Rs. 3100. Is it possible to reduce this by proper scheduling ? What can be the saving ? Centres A B C X 25 35 10

Supply 150

Factories Y
Demand

20
50

5
50

80
150

100

[3] A manufacturer wants to ship 8 loads of his product as shown in table below. The matrix gives km from origin O to destination D. The shipping costs are Rs. 10 per load per km. Find the optimal solution. D1 O1 50 D2 30 D3 220 1

O2
O3

90
250 4

45
200 2

170
50 2

3
4

[ 4 ] Solve the following minimization Transportation problem. D1 O1 O2 O3 2 1 5 D2 3 1 8 D3 11 6 15 D4 7 1 10 Supply 6 1 10

Demand

[5] In following transportation problem X, Y, Z are warehouses and P, Q, R, S are customers. The capacity at the warehouses and the demand from customers are shown around the perimeter. Per unit transportation costs are shown in the cells. P Q R S X Y Z 7 10 6 20 8 12 10 28 11 5 11 17 10 4 9 33 30 45 35

( i ) Find VAM solution. Is this solution optimal ? If not, get optimal solution. ( ii ) By how much should YP cost need to be reduced in order to make shipments along this route worth while ?

[ 6 ] Using NWC rule method, get initial feasible solution for following minimization transportation problem. Is this solution optimal ? If not, get optimal solution and corresponding optimal value of objective function. A W X 4 16 B 8 24 C 8 16 Plant capacity 55 25

Y
Project Requirement

8
35

16
45

24
35

35

[7] A company has three plants at P1, P2, P3 which supply to warehouses W1, W2, W3, W4 and W5. Monthly plant capacities are 800, 500 and 900 units respectively. Monthly warehouse requirements are 100, 400, 500, 400 and 800 units respectively. The unit transportation costs in rupees are given in table below.

W1
P1 P2 P3 5 4 8

W2
8 7 4

W3
6 7 6

W4
5 3 4

W5
3 6 2

(i) Determine the optimal allocation for the company. ( ii ) If the warehouse W1 is closed because of reduced demand and the corresponding units are shipped to warehouse W3 by raising its capacity find the total cost of shipment. Is it optimal schedule ? If not, get optimal schedule.

Transshipment Problems :

Transportation Problem :
D1 D2

7 O1 3 9
O2 5

3 3 3
5 6

Z = 45

Transshipment Problem :
O1 O1 O2 D1 D2 11 11 O2 D1 D2

0 2 7 2

2 0 8 2

7 9 0 2

6 5

3 3 4 0

11 + 6 11 + 5 11 11

11

11 3 11 + 3

8 11 + 8

11

Z = 39

O1

O2

D1
3

D2

Home Assignments :

[1]
O1 O1 O2 D1 D2 O2 D1 D2

0 1 3 4

1 0 2 4
20

3 2 0 1
10

4 4 1 0

5 25

[2]
O1 O1 O2 D1 D2 O2 D1 D2

0 1 2 1

2 0 2 3
7

2 2 0 2
4

1 3 2 0

8 3

[3]
O1
O1 O2 O3 O4 0 10 15

O2
4 0 10

O3 20 6 0

O4
5 10 8

D1
25 5 45

D2
12 20 7

20 20 10

25 18 25

10 60 30

0 15 23

30 0 4

6 10 0

D1
D2

Thank you
For any Query or suggestion : Contact : Dr. D. B. Naik Professor, Training & Placement Section Sardar Vallabhbhai National Institute of Technology, Surat Ichchhanath, Surat 395007, Gujarat.
Email: dbnaik_svr@yahoo.com Phone no. 0261-2255225 (Direct)