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Module 3

• How much should be shipped from several


sources to several destinations
– Sources: Factories, warehouses, etc.
– Destinations: Warehouses, stores, etc.
• Transportation models
– Find lowest cost shipping arrangement
– Used primarily for existing distribution systems
• The origin points, and the capacity or supply
per period at each
• The destination points and the demand per
period at each
• The cost of shipping one unit from each
origin to each destination
We assume that there are m sources 1,2, …, m and n destinations 1,
2, …, n. The cost of shipping one unit from Source i to Destination
j is cij .
We assume that the availability at source i is ai (i=1, 2, …, m) and
the demand at the destination j is bj (j=1, 2, …, n). We make an
important assumption: the problem is a balanced one. That is
m n

∑ a = ∑b
i =1
i
j =1
j

That is, total availability equals total demand.


We can always meet this condition by introducing
a dummy source (if the total demand is more than
the total supply) or a dummy destination (if the
total supply is more than the total demand).
Let xij be the amount of commodity to be shipped
from the source i to the destination j.
Destination
1 2 . . n Supply
1 c11 c12 c1n a1
S
o c21 c22 c2n a2
2
u
r
c .
e . cm1 cm2 cmn am

b1 b2 bn
Demand
m
Definitions
• Feasible solution -any set of non negative
allocations which satisfies row and column
requirement
• Basic feasible solution -a feasible solution is
called basic feasible solution if the number of non
negative allocations is equal to m+n-1 where m is
the no of rows and n is the number of columns
Steps involved in solution of
transportation problem
• To find an initial basic feasible solution
(IBFS)
• To check the above solution for optimality
• To revise the solution
Methods to determine IBFS
• North West corner rule
• Row minima method
• Column minima method
• Matrix minima method
• Vogel’s approximation method
Warehouses
W1 W2 W3 W4 Capacity

F1 19 30 50 10 7
Factory

F2 30
70 40 60 9

F3
40 8 70 20 18

Requirement 5 8 7 14
Warehouses
W1 W2 W3 W4
Capacity

F1
5 2
7
19 30 50 10
Factory

F2 9
6 3
70 30 40 60
F3 18

Requirement
4 14
5 8 7 14
1. Check whether given transportation problem is
balanced
2. Find IBFS using VAM and TTC
3. To check for optimality and find out the value of
Dij= Cij – ( ui+vj)
4. To revise the solution if obtained solution is not
optimal (i.e. if all the values of D are not positive)
5. Recheck for optimality
• Total no of allocations=m+n-1
• Where m is the total no of rows
• n is the total no of columns
How to find out the value of Dij = Cij – ( ui+vj)?
Model of a loop

-θ 25 +θ 35
5 2
-θ 11
LOOP
3 +θ
70 10 15
20 +θ 7 9 -θ
• Unbalanced transportation problem
• Degeneracy case (when total no of
allocations ≠ m+n-1)
• Maximisation transportation problem
Converting unbalanced to
balanced transportation problem

w1 w2 w3 capacity

15 8 11
F1 9 Capac
itydoe
snot ta
lly
14 9 10 withre
quirem
ent
requirement
F2 8
Soln. - add a dummy Raw
w1 w2 w3 capacity

9
15 8 11
F1

14 9 10

DummyRaw
F2
D
0 0 0 8

requirement 10 5 6
• In order to resolve degeneracy a very small
value Δ is allocated in the least cost
independent cell
• Independent cell-a cell from which a loop
can not be formed
• Identify the independent cell in the matrix
first and then allocate Δ
Resolving degeneracy

(60)
3
(50) (20)
3 9
(80) (Δ) Least

3 5 Cost
Maximisation transportation problem
• Maximisation generally done for profit
..hence any questions that appear with profit
has to be converted into minimisation type
• While writing final answer it is to be taken
care that profit is written and not the cost
Maximisation to minimisation

80 90 100 20 10 0

70 50 60 30 50 40

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