THE TRANSPORTATION MODEL

MODULE IV
Transportation Model - Vogel s approximation method - MODI method - Minimization case Maximization case Unbalanced problem

REFERENCE BOOKS
1. An Introduction to Management Science: Quantitative Approaches to decision making - Anderson, Sweeney, Williams 2. Operations Research - Kanti Swaroop 3. Operations Research - Hamdy A Taha 4. Operations Research - S.Kalavathy

THE TRANSPORTATION MODEL The transportation model is a special class of LPPs that deals with transporting(shipping) a commodity from sources (e.g. factories) to destinations(e.g. warehouses). The objective is to determine the transportation schedule that minimizes the total transportation cost while satisfying supply and demand limits.

We assume that there are m sources 1,2, , m and n destinations 1, 2, , n. The cost of transporting one unit from Source i to Destination j is cij. We assume that the availability(supply) 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

i !1

ai !

j !1

bj

That is, total availability equals total demand.

Let xij be the amount of commodity to be shipped from the source i to the destination j. We present the data in an mvn table called the transportation matrix or the cost effectiveness matrix shown below.

1 S o u r c e 1 2 . . m Demand
xm1
Cm1

Destination 2 .
x12
C11

.
x1n

n Supply
C1n

x11 x21
C21

c12 x22
C22

a1 a2

x2n
C2n

xm2
Cm2

xmn
Cmn

am

b1

b2

bn

Thus the problem becomes the LPP

m n ij

Minimize subject to

z!
n

c
i !1 j !1 ij

x ij

x
j !1 m

! a i ( i ! 1, 2 ,..., m ) ! b j ( j ! 1, 2 ,..., n )

x
i !1

ij

x ij u 0

OBJECTIVE OF THE TRANSPORTATION MODEL

To determine the amount of the commodity to be shifted from each source to each destination such that the total transportation cost is minimized and the demand at each destination (requirement centre) is met.

DEFINTIONS

A set of non-negative values (allocations) xij that satisfies the constraints (rim conditions) and also the non - negativity restrictions is called a feasible solution to the transportation problem. A feasible solution to an m x n transportation problem that has not more than (m + n 1) non negative allocations is called a basic feasible solution to the transportation problem.

DEFINTIONS (contd.)

A basic feasible solution to an m x n transportation problem is said to be non degenerate if it contains exactly (m + n 1) non negative allocations and degenerate if it contains less than (m + n 1) non negative allocations in independent positions.  A feasible solution (not necessarily basic) is said to be an optimal solution if it minimizes the total transportation cost (or maximises the profit)


CONDITION FOR A FEASIBLE SOLUTION OF THE TRANSPORTATION PROBLEM

The necessary and sufficient condition for the transportation problem to have a feasible solution is that the Total supply = Total demand That is, the problem must be balanced.

OPTIMAL SOLUTION OF THE TRANSPORTATION PROBLEM PROCEDURAL STEPS

Find the initial basic feasible solution using a) North West Corner Rule b) Least Cost Matrix c) Vogel s Approximation Method/ Penalty Method 2. Find an optimal solution by making successive improvements using MODI Method.
1.

NORTH WEST CORNER RULE

Starting with the cell at the upper left (north-west) corner of the transportation matrix, allocate as much as possible. That is, x11= min (a1, b1). 2. (i) If min (a1, b1) = a1 put x11= a1, decrease b1 by a1, and move vertically to the second row and make the second allocation x21= min (a2, b1 - x11) in the cell (2,1) . Cross out the first row. (ii)If min (a1, b1) = b1 put x11= b1, decrease a1 by b1, and move horizontally to the second row and make the second allocation x12= min (a1 - x11, b2) in the cell (1,2) . Cross out the first column.
1.

NORTH WEST CORNER RULE (contd.)

(iii) If a1 = b1 then put x11= a1 = b1. Cross out the first row and the first column and move diagonally . 3.Repeat steps 1 and 2 until rim requirements are met.

PROBLEM 1 1. MG Auto has three plants in Chennai, Fatehpur and Kolkata, and five distribution centers in Coimbatore, Hyderabad, Mumbai, Delhi and Chandigarh. The capacities of the plants (each quarter), the quarterly demands at the distribution centers and the transportation cost per car from the plants to the distribution centers are given below. Find the initial basic feasible solution to this problem using North West Corner Rule.
Distribution Centers

Supply 3 2 8 7 1 12

Chennai
Plants

2 1 3

11 4 9

10 7 4

Fatehpur Kolkata

4 8 9

Demand

PROBLEM 2

Three refineries with daily capacities of 7, 12 and 11 million gallons of petrol, respectively, supply three distribution areas with daily demands of 10 million gallons each. Petrol is distributed to the three distribution areas through a network of pipelines. The table below gives the transportation cost of transportation (in thousands of rupees) between the refineries and the distribution areas. Using the North West Corner Rule approximation find the initial solution. Distribution Centres Supply
1 Refineries 0 3 2 4 1 6 2 5 7 12 11

PROBLEM 3

Obtain an initial basic feasible solution to the following Transportation problem using the North West corner Rule.
Distribution Centers

Supply
3 11 6 15 4
7

1
Supply Centers

2 3 0 8

1 2 3

2 1 5

1 9

6 1 10

Demand

HOMEWORK 1. Three orchards supply crates of oranges to four retailers. The daily demand at the four retailers is 200, 225, 275, and 250 crates, respectively. Supply at the three orchards is estimated at 250, 300, and 400 crates daily. The transportation costs (in rupees) per crate from the orchards to the retailers are given in Table below. Find the initial basic feasible solution to this problem using the North West Corner Rule.
Retailers 11 16 21 200 13 18 24 225 17 14 13 275 14 10 10 250 Supply 250 300 400

Orchards Demand

LEAST COST METHOD

1.

2.

Identify the cell with the smallest cost and allocate as much as possible. That is, xij= min (ai, bj). (i) If min (ai, bj) = ai put xij= ai, decrease bj by ai. Cross out the ith row. (ii)If min (ai, bj) = bj put xij= bj, decrease ai by bj. Cross out the jth column. (iii)If min (ai, bj) = ai = bj then put xij = ai = bj. Cross out either the ith row or the jth column (but not both).

LEAST COST METHOD (contd.)

3. Repeat step 1 for the resulting reduced transportation matrix until all rim requirements are met.

PROBLEM 1 Mangoes have to be transported from farms in Tamil Nadu, Andhra Pradesh and Maharashtra to 4 factories of Tasty Squash Ltd. located elsewhere in India. Determine using the Least Cost Method, how many tons of mangoes must be transported from each farm to each factory so that the total cost of transportation is minimized given the following data pertaining to the transportation cost (in thousands of rupees).
FACTORIES 1 F TAMIL NADU A ANDHRA PRADESH R M MAHARASHTRA S 1 3 4 2 2 3 2 3 1 2 5 4 4 1 9

Supply 30 50 20

Demand

20

40

30

10

PROBLEM 2

The following table gives the cost of transportation per ton (in thousands of rupees) of wheat from the distribution centers to the supply centers of a Public Distribution System. Obtain an initial basic feasible solution to the following Transportation problem using the Least Cost Method.
Distribution Centers

Supply
3 7 1 3 4
2

1
Supply Centers

2 3 2 2

1 2 3

5 8 6

5 2

30 70 50

Demand

20

40

40

50

PROBLEM 3

Obtain an initial basic feasible solution to the following Transportation problem using the Least Cost Method.
Distribution Centers

Supply
3 11 6 15 4
7

1
Supply Centers

2 3 0 8

1 2 3

2 1 5

1 9

6 1 10

Demand

HOMEWORK

Obtain an initial basic feasible solution to the following Transportation problem using the Least Cost Method.
Distribution Centers

Supply
3 6 2 5

1
Supply Centers

2 2 4 1

1 2 3

1 0 3

7 12 11

Demand

10

10

10

VOGEL S APPROXIMATION METHOD

Find the difference (penalty) between the smallest and the next smallest element in each row(column) and write them in brackets beside each row(column). 2. Identify the row/column with largest penalty (if tie occurs break it arbitrarily). Choose the cell with the smallest cost in the selected row/column and allocate as much as possible to this cell. Cross out the satisfied row/column. 3. Compute the row and column penalties for the reduced transportation matrix and go to step 2. Repeat till rim requirements are satisfied.
1.

PROBLEM 1 1. Three orchards supply crates of oranges to four retailers. The daily demand at the four retailers is 200, 225, 275, and 250 crates, respectively. Supply at the three orchards is estimated at 250, 300, and 400 crates daily. The transportation costs (in rupees) per crate from the orchards to the retailers are given in Table below. Find the initial basic feasible solution using Vogels approximation method.
Retailers 11 16 21 200 13 18 24 225 17 14 13 275 14 10 10 250 Supply 250 300 400

Orchards Demand

PROBLEM 2

Three refineries with daily capacities of 7, 12 and 11 million gallons of petrol, respectively, supply three distribution areas with daily demands of 10 million gallons each. Petrol is distributed to the three distribution areas through a network of pipelines. The table below gives the transportation cost of transportation (in thousands of rupees) between the refineries and the distribution areas. Using Vogels approximation find the initial solution.
Distribution Centres 1 2 Refineries Demand 0 3 10 4 1 10 6 2 5 10 Supply 7 12 11

PROBLEM 3
Determine how many tons of wheat must be transported from each grain elevator to each mill on a monthly basis in order to minimize the total cost of transportation given the following data? Grain Elevator 1. Amritsar 2. Coimbatore 3. Kalahandi
Amritsar Coimbatore Kalahanadi Demand 6 7 4 200

Supply 150 175 275 A. B. C.

Mysore 8 11 5 100

Mill Jaipur Mysore Puri

Puri 10 11 12 300

Demand 200 100 300

Supply 150 175 275

Jaipur

HOMEWORK

Obtain an initial basic feasible solution to the following Transportation problem using the Vogels approximation Method.
Distribution Centers Supply

1
Supply Centers

2 3 0 8 5

3 11 6 15 3

4
7

1 2 3

2 1 5 7

6 1 10

1 9 2

Demand