Transportation and Assignment Models

Specialized Problems
Transportation Problem
Distribution of items from several sources to several destinations. Supply capacities and destination requirements known.

Assignment Problem
One-to-one assignment of people to jobs, etc.

Specialized algorithms save time!

Transportation Problem
Goal ~To determine the delivery routes to be used & units delivered so as to minimise total transportation cost Initial sol. technique ~ North west corner rule, Vogels approx., Lowest cost, Final sol. ~ Stepping Stone, MODI,
Involves step by step process

Example of transportation problem

Factories (Sources) Retail-shops (destinations) Kuantan(A)

100units

Masjid Tanah(D)

300units

300units

Banting(E)

Johor Bahru(B) 200units

300units

Taiping(F)

Gombak(C)

200units

Capacities

routes

requirements

Transportation Problem
Des Moines (100 units) capacity Albuquerque (300 units) required
D

Cleveland (200 units) required

C E B

Evansville (300 units) capacity

F

Boston (200 units) required

Ft. Lauderdale (300 units) capacity

Transportation Costs
From (Sources) Des Moines(D) Evansville(E) FortLauderdale(F) To (Destinations)
Albuquerque(A) Boston(B) Cleveland(C)

$5 $8 $9

$4 $4 $7

$3 $3 $5

Unit Shipping Cost:1Unit, Factory to Warehouse

Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity

Total Demand and Total Supply

Albuquerque (A) Des Moines (D) Boston (B) Cleveland (C) Factory Capacity 100 300 300

Evansville (E) Fort Lauderdale (F) Warehouse Req.

300

200

200

700

Transportation Table For Executive Furniture Corp.

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 8 9 Boston (B) 4 4 7

Cleveland (C)
3 3 5

Factory Capacity

100
300 300 700

300

200

200

Initial Solution Using the Northwest Corner Rule

Start in the upper left-hand cell and allocate units to shipping routes as follows:
Exhaust the supply (factory capacity) of each row before moving down to the next row. Exhaust the demand (warehouse) requirements of each column before moving to the next column to the right. Check that all supply and demand requirements are met.

Initial Solution North West Corner Rule

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 100 200 8 9 100 100 200 4 7 3 5 Boston (B) 4

Cleveland (C)
3

Factory Capacity

100
300 300 700

200 200

300

Total Transportation cost = 100x5 + 200x8 + 100x4 + 100x7 + 200x5= $4200

Initial Solution Vogels Approximation steps (refer p 424)

1. Find the difference between the two lowest unit transportation costs for each row & column 2. Determine the row or column with the greatest difference 3. Assign as many units as possible to the cost square in the row or column selected 4. Eliminate any row or column that has just been completely satisfied by the assignment made 5. Repeat steps 1-4

Vogels Approximation
1. For each row/column of table, find difference between two lowest costs. (Opportunity cost) 2. Find greatest opportunity cost. 3. Assign as many units as possible to lowest cost square in row/column with greatest opportunity cost. 4. Eliminate row or column which has been completely satisfied. 4. Begin again, omitting eliminated rows/columns.

Initial Solution Vogels Approximation

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.
200

(refer p 427)

Boston (B) 4 4
200

Cleveland (C)
3 3
100

Factory Capacity

5
100

100
300 300 700

8 9

7
100

300

200

200

Total Transportation cost = $3900

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 8 9

Boston (B) 4 4 7

Cleveland (C)
3 3 5

Factory Capacity

100
300 300 700

300

200

200

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 8 9

Boston (B) 4 4 7

Cleveland (C)
3 3 5

Factory Capacity

100
300 300 700

300

200

200

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 8 9

Boston (B) 4 4 7

Cleveland (C)
3 3 5

Factory Capacity

100
300 300 700

300

200

200

The Stepping-Stone Method

1. Select any unused square to evaluate. 2. Begin at this square. Trace a closed path back to the original square via squares that are currently being used (only horizontal or vertical moves allowed). 3. Place + in unused square; alternate - and + on each corner square of the closed path. 4. Calculate improvement index: add together the unit cost figures found in each square containing a +; subtract the unit cost figure in each square containing a -. 5. Repeat steps 1 - 4 for each unused square. If all indices computed > = 0, optimal sol.

Stepping-Stone Method - The Des Moines-to-Cleveland Route

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. Boston (B) 4 4

Cleveland (C)
Start 3 3 5

Factory Capacity

100 200

5 8

+ 9

100 300
300 700

100
100 200 7 200

+
300

200

Stepping-Stone Method An Improved Solution

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. Boston (B) 4 4

Cleveland (C)
3 3 5

Factory Capacity

100 100 100

300

5 8

100 300
300 700

200
9 7 200 200

200

Third and Final Solution

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 100 5 8 Boston (B) 4 4 Cleveland (C) 3 3 100 7 100 200 5 Factory Capacity 100

200 200
300 9

300
300 700

200

Initial Solution Vogels Approximation

Albuquerque (A)
Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.
+1

(refer p 427)

Boston (B) 4
+2

Cleveland (C)
3
+2

Factory Capacity

5
100

100
300 300 700

8
200

4
100

3 5
100

9
200 +1

300

200

200

Using stepping stone: Each improvement index in the unoccupied cell >=0, Total Transportation cost = $3900

optimal solution

MODI Method: 5 Steps

1. Compute the values for each row and column: set Ri + Kj = Cij for those squares currently used or occupied. 2. After writing all equations, set R1 = 0. 3. Solve the system of equations for Ri and Kj values. 4. Compute the improvement index for each unused square by the formula improvement index:

Iij =

Cij - Ri - Kj

5. Select the largest negative index and proceed to solve the problem as you did using the stepping-stone method.
1. Set up equation for each occupied cell let R1=0 then solve for K1=5, R2=3, K2=1, R3=6, and K3= -1 2. Compute improvement index for each unoccupied cell I_EA = 8 - 3 - 5 = 0 I_DB = 4 - 0 - 1 = 3 I_DC = 3 - 0 - (-1) = 4 I_FB = 7 - 6 - 1 = 0

Stepping-Stone Method - The Des Moines-to-Cleveland Route

Kj Ri To K1 K2 K3 From

Albuquerque (A) 100 200

-

Boston (B)

Cleveland (C)

Factory Capacity 100 300 300 700

Des Moines R1 (D)

5
3

4
4

3 3
1

Evansville R2 (E) Fort R3 Lauderdale (F) Warehouse Req.

8
100
+

4 7
-

9
-2 +

100 200

200 200

300

Each improvement index Iij in the unoccupied cell >=0, optimal solution I_FA is ve (not optimal yet). Total Transportation cost = $4200

Special Problems in Transportation Method

Unbalanced Problem
Demand Less than Supply Demand Greater than Supply

Degeneracy (one or more Iij =0) More Than One Optimal Solution

Unbalanced Problem Demand Less than Supply

Customer 1 Factory 1 8 Customer 2 5 Dummy 0 Factory Capacity 170 130 80

Factory 2 Factory 3
Customer Requirements

15
3

10
9

0
0

150

80

150

380

Unbalanced Problem Supply Less than Demand

Customer 1
Factory 1 Factory 2 Dummy Customer Requirements 8 15 0

Customer 2
5 10 0

Customer 3
16 7 0

Factory Capacity 170 130

80 380

150

80

150

Degeneracy
Customer 1
Factory 1 Factory 2 Factory 3 Customer Requirements

Customer 2
4 4

Customer 3
3 3 20 7 80 100 5

Factory Capacity 100 120

80 300

100

5 8

100
9

100

100

Degeneracy - Coming Up!

Customer 1
Factory 1 Factory 2 Factory 3 Customer Requirements

Customer 2
8 5 10

Customer 3
16 7 10

Factory Capacity 70 130

80 280

70
50

15

80
3 9 50 50

30 150 80

Stepping-Stone Method - The Des Moines-to-Cleveland Route

Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. Boston (B) 4 4 Cleveland (C) Start 3 3 Factory Capacity 100 300 300 700 5 8 200

100

+ 9
100 100 200

+
300

200

200

The Assignment Method

1. subtract the smallest number in each row from every number in that row subtract the smallest number in each column from every number in that column 2. draw the minimum number of vertical and horizontal straight lines necessary to cover zeros in the table if the number of lines equals the number of rows or columns, then one can make an optimal assignment (step 4)

The Assignment Method - continued

3. if the number of lines does not equal the number of rows or columns subtract the smallest number not covered by a line from every other uncovered number add the same number to any number lying at the intersection of any two lines return to step 2 4. make optimal assignments at locations of zeros within the table

The Assignment Problem

Project 1 2 3 $11 $14 $6 $8 $10 $11 $9 $12 $7

Person Adams Brown Cooper

Hungarian Method
Initial Table

Person Adams
Brown Cooper

Project 1 2
11 8 9 14 10 12

3 6 11 7

Hungarian Method
Row Reduction

Person Adams Brown Cooper

Project 1 2 5 0 2 8 2 5

3 0 3 0

Hungarian Method
Column Reduction

Person
Adams

1 5 0
2

Project 2 6 0
3

3 0 3
0

Brown
Cooper

Hungarian Method
Testing

Person

1
Adams Brown

Project 2

Covering Line 2

0 2

0 3

3 0

Covering Line 1

Cooper

Hungarian Method
Revised Opportunity Cost Table
Person Adams Brown 1 3 0 Project 2 4 0 3 0 5

Cooper

Hungarian Method
Person Adams Brown
Covering Line Project 1

Testing
2 4 0 1

Covering Line 3

1 3 0 0

3 0 5 0
Covering Line 2

Cooper

Hungarian Method
Assignments

Person Adams Brown

Project 1 2

6
10

Cooper

Maximization Assignment Problem

Adams Brown Cooper Davis

1 $11 $8 $9 $10

Project 2 3 $14 $6 $10 $11 $12 $7 $13 $8

Dummy $0 $0 $0 $0

Maximization Assignment Problem

Adams Brown Cooper Davis

1 $32 $6 $5 $4

2 $0 $4 $2 $1

Project 3 $8 $3 $7 $6

Dummy $14 $14 $14 $14

Part A ~ 14 October 2004