8transportation Model

TRANSPORTAT
ION MODEL
EXAMPLE: CONSIDER A MANUFACTURER WHO OPERATES

THREE FACTORIES AND DISPATCHES HIS PRODUCTS TO FIVE
DIFFERENT RETAIL SHOPS. THE TABLE BELOW INDICATES THE
CAPACITIES OF THE THREE FACTORIES, THE QUANTITY OF
PRODUCTS REQUIRED AT THE VARIOUS RETAIL SHOPS AND
THE COST OF SHIPPING ONE UNIT OF THE PRODUCT FROM
EACH OF THREE FACTORIES TO EACH OF THE FIVE RETAIL
SHOPS.
Retail Shops
Factories
F1
F2
F3
Requirements
R2
R3
R4
R5
Capacities
1
9
24 12
14 33
100 70
13
16
1
50
36
20
23
40
51
1
36
40
50
100
150
300
R1
NORTHWEST CORNER METHOD

Retail Shops
R1
R2
R3
R4
R5
Capacities
F1
F2
F3
1
24
14
9
12
33
13
16
1
36
20
23
51
1
36
50
100
150
Requirements
100
70
50
40
40
300
Factories
The North-west Corner To be filled up

first
Retail Shops
R1
R2
R3
R4
R5
Capacities
F1
13
36
51
50
F2
24
12
16
20
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Factories
Requirement
Capacity
Retail Shops
R1
R2
R3
R4
R5
Capacities
F1
13
36
51
50
F2
24
12
16
20
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Factories
Requirement >
Capacity
Capacity
Requirement
Retail Shops
R1
R2
R3
R4
R5
Capacities
F1
13
36
51
50
F2
24
12
16
20
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Factories
Requirement >
Capacity
Capacity
Requirement
Retail Shops
R1
R2
R3
R4
R5
Capacities
F1
13
36
51
50
F2
24
12
16
20
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Factories
Requirement >
Capacity
Capacity
Requirement
Retail Shops
Factories
R1
R2
R3
R4
R5
Capacities
50
F1
13
36
51
50
F2
24
12
16
20
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Factory
Capacity
over
NEW Requirement
50
NEW Capacity
The NEW North-west

Corner
50
Other values to be
ignored.
Requireme
nt
Capacity
50
Other values to be
ignored.
Requirement <
Capacity
Requireme
nt
50
Other values to be
ignored.
Capacity
Requirement <
Capacity
Requireme
nt
50
Other values to be
ignored.
Capacity
Requirement <
Capacity
Requirement
50
50
Other values to be
ignored.
Capacity
Shop
Requireme
nt over
NEW
Requirement
50
50
Ignore
Values
Other values to be
ignored.
NEW
Capacity
The NEW North-west

Corner
50
50
Ignore
Values
Other values to be
ignored.
Requirement
Capacity
50
50
Ignore
Values
Other values to be
ignored.
Requirement >
Capacity
Requirement
50
50
Ignore
Values
Other values to be
ignored.
Capacity
Requirement >
Capacity
Requirement
50
50
Ignore
Values
Other values to be
ignored.
50
Capacity
Requirement >
Capacity
Requirement
50
50
Ignore
Values
Other values to be
ignored.
50
Other values to
be ignored.
Capacity
Factory Capacity
Over
Requirement
50
50
Ignore
Values
Other values to be
ignored.
50
Other values to
be ignored.
Capacity
The NEW North-west Corner
50
50
Ignore
Values
Other values to be
ignored.
50
Other values to
be ignored.
Requirement
Capacity
50
50
Ignore
Values
Other values to be
ignored.
50
Other values to
be ignored.
Requirement <
Capacity
Requirement
50
50
Ignore
Values
Other values to be
ignored.
50
Other values to
be ignored.
Capacity
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
Capacity
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
Capacity
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
Requirement
50
Capacity
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
Capacity
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
Capacity
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
Capacity
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
Requirement
50
Capacity
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
Capacity
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
Capacity
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
40
Capacity
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
40
Requirement <
Capacity
Requirement
50
Other values to be
ignored.
50
50
Ignore
Values
20
Other values to
be ignored.
50
40
Capacity
Requirement <
Capacity
Requirement
50
Capacity
Other values to be
ignored.
50
50
Other values to
be ignored.
Ignore
Values
20
50
40
40
Thus the assignment with respective to the values

stand as under after the northwest rule.
50
50
50
20
50
40
40
LEAST COST METHOD

Retail Shops
Least cost cells
R1
R2
R3
R4
Capacities
R5
F1
13
36
51
50
F2
24
12
16
20
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Factories
ASSIGN MAXIMUM
POSSIBLE/REQUIRED TO LEAST
Retail Shops
COST CELLS
Capacities
Factories
R1
R2
R3
R4
R5
13
36
51
50
F1
F2
1
24
12
16
50
20
40
50
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
CAPACITY OF F1 FACTORY IS OVER AND

REQUIREMENT OF R3 AND R5 ARE FULFILLED,
SO WE CROSS THEM.
Retail Shops
Factories
R1
R2
R3
R4
R5
Capacities
13
36
51
50
50
F1
F2
1
24
12
16
50
20
40
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
Next least cost cell
NOW AMONG REMAINING CELLS --
Retail Shops
Factories
R1
R2
R3
R4
R5
Capacities
13
36
51
50
50
F1
F2
1
24
12
16
50
20
40
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
ASSIGN MAXIMUM
POSSIBLE/REQUIRED TO LEAST
Retail
Shops CELL
COST
Factories
R1
R2
R3
R4
R5
Capacities
13
36
51
50
50
F1
F2
1
24
12
60
16
50
20
40
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
CAPACITY OF FACTORY F2 IS OVER SO

WE CROSS IT ALSO.
Retail Shops
Factories
R1
R2
R3
R4
R5
Capacities
13
36
51
50
50
F1
F2
1
24
12
60
16
50
20
40
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
NOW THE ONLY OPTION LEFT FOR

FULFILLING REMAINING REQUIREMENTS IS
ALLOCATING FROM FACTORY 3
Retail Shops
Factories
R1
R2
R3
R4
R5
Capacities
13
36
51
50
50
F1
F2
1
24
50
12
60
10
16
50
20
40
40
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
THUS, ALL REQUIREMENTS HAVE BEEN

FULFILLED BY THE GIVEN CAPACITIES.
Retail Shops
Factories
R1
R2
R3
R4
R5
Capacities
13
36
51
50
50
F1
F2
1
24
50
12
60
10
16
50
20
40
40
100
F3
14
33
23
36
150
Requirements
100
70
50
40
40
300
VOGEL APPROXIMATION
Vogel
Approximation(VAM)
method for finding a basic feasible solution involves
METHOD
the following steps.
i)
From the transportation Table we determine the penalty
for each row and column. The penalties are calculated for each row
(column) by subtracting the lowest cost
element in that row (column)
from the next lowest cost element in the same row
(column).
ii)
We identify the row or column with the largest penalty
among all the rows and
columns. If the penalties corresponding to two or
more rows or columns are equal
we select the topmost row and the
extreme left column.
iii)
We select Xij as a basic variable if Cij is the minimum cost
in the row or column with largest penalty. We choose the numerical value of
xij as high as possible subject to
the row and the column constraints.
Depending upon whether ai or bj is the smaller
of the two, ith row or
jth column is eliminated.
iv)
The step (ii) is now performed on the reduced matrix until
all the basic variables
have been identified.
STEP 1: DETERMINATION OF PENALTY
Least cost
element in row
Second least cost

element in row
Penalty = 17-4
= 13
Des.:
Ori.:
C:
Penalt
y (P)
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
Penalty
(P)
STEP 1: DETERMINATION OF PENALTY

AS SHOWN IN THE PREVIOUS SLIDE, WE CALCULATE THE
PENALTY FOR ALL ROWS AND ALL COLUMNS.
Des.:
1
2
3
4
C:
Penalt
TABLE
Ori.: : COMPUTATION OF PENALTY FOR VAM: y (P)
1
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
15
Penalty 4
(P)
STEP 2: IDENTIFYING THE LARGEST PENALTY
Des.:
Ori.:
C:
Penalt
y (P)
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
15
Penalty 4
(P)
Largest Penalty
STEP 3: IDENTIFYING THE LEAST COST

IN THE ROW OR COLUMN WITH
LARGEST PENALTY
Least cost element

in that column
Des.:
Ori.:
C:
Penalt
y (P)
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
15
Penalty 4
(P)
Largest Penalty
Capacity
Requirement
Des.:
Ori.:
C:
Penalt
y (P)
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
15
Penalty 4
(P)
Requirement
Requirement
Capacity
< Capacity
Des.:
Ori.:
C:
Penalt
y (P)
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
15
Penalty 4
(P)
Requirement<
Capacity
Requirement
Capacity
Des.:
Ori.:
C:
Penalt
y (P)
20
22
17
120
13
24
37
70
32
37
20
15
50
Req.:
60
40
30
110 240
15
Penalty 4
(P)
Requirement
Requirement
< Capacity
Des.:
Ori.:
20
24
22
37
32
Req.:
60
Penalty 4
(P)
Capacity
C:
Penalt
y (P)
17
120
13
70
37
20
15
50
40
30
110 240
15
4
0
Retail Shop 2
Requirement
exhausted
New
Requirement
4
0
New Capacity
Retail Shop 2
Requirement
exhausted
4
0
New
Highest
Penalty
STEP 3: IDENTIFYING THE LEAST COST IN THE ROW OR

COLUMN WITH LARGEST PENALTY
Least cost element

in that row
4
0
Other values to be
ignored
Largest Penalty
Capacity
Requirement
Des.:
Ori.:
20
C:
Penalt
y (P)
22 4 17
80
13
24
37
70
32
37
20
15
50
Req.:
60
30
110 240
15
Penalty 4
(P)
Requirement
Requirement
Capacity
> Capacity
Des.:
Ori.:
20
C:
Penalt
y (P)
22 4 17
80
13
24
37
70
32
37
20
15
50
Req.:
60
30
110 240
15
Penalty 4
(P)
Requirement
Requirement
> Capacity
Des.:
Ori.:
20
22 40 17
24
37
4
7
32
37
20
15
Req.:
60
30
110 240
15
Penalty 4
(P)
Capacity
4
8
0
C:
Penalt
y (P)
80
70
13
50
Factory 1
Capacity
exhausted
New Requirement
4
0
8
0
New Capacity
4
0
8
0
New Largest
Penalty
AS SHOWN IN THE PREVIOUS SLIDES, THE ITERATIVE

PROCEDURE IS FOLLOWED UNTIL ALL THE BASIC
VARIABLES HAVE BEEN IDENTIFIED
Des.:
1
2BASIC FEASIBLE
3
4 SOLUTION
C:
Penalty
TABLE : INITIAL
(P)
Ori.:
1
20
24
32
Req.:
60
Penalt 4
y (P)
22
1
0
5
0
4
0
17
3
0
8
0
120
13
3
0
70
2
5
37
37
20
15
50
40
30
110
240
15
THE TRANSPORTATION COST CORRESPONDING TO

THIS CHOICE OF BASIC VARIABLES IS:
22 X 40 + 4 X 80 + 9 X 30 + 7 X 30 + 24 X 10 + 32 X 50 =
3520.
THE VAM PROVIDES A BASIC FEASIBLE SOLUTION
WHOSE COST IS QUITE CLOSE TO THE MINIMUM
TRANSPORTATION COST AND HENCE IS A POPULAR
TECHNIQUE.

8transportation Model

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8transportation Model

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TRANSPORTAT

EXAMPLE: CONSIDER A MANUFACTURER WHO OPERATES

NORTHWEST CORNER METHOD

The North-west Corner To be filled up

The NEW North-west

The NEW North-west

The NEW North-west Corner

The NEW North-west Corner

The NEW North-west Corner

The NEW North-west Corner

Thus the assignment with respective to the values

LEAST COST METHOD

Least cost cells

CAPACITY OF F1 FACTORY IS OVER AND

Next least cost cell

NOW AMONG REMAINING CELLS --

CAPACITY OF FACTORY F2 IS OVER SO

NOW THE ONLY OPTION LEFT FOR

THUS, ALL REQUIREMENTS HAVE BEEN

STEP 1: DETERMINATION OF PENALTY

Second least cost

STEP 1: DETERMINATION OF PENALTY

STEP 2: IDENTIFYING THE LARGEST PENALTY

STEP 3: IDENTIFYING THE LEAST COST

Least cost element

STEP 3: IDENTIFYING THE LEAST COST IN THE ROW OR

Least cost element

AS SHOWN IN THE PREVIOUS SLIDES, THE ITERATIVE

THE TRANSPORTATION COST CORRESPONDING TO

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