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# TRANSPORTATION PROBLEMS

Transportation problems are generally concerned with the distribution of a certain product from several sources (origin) to numerous facilities (demand points) at minimum cost. Let there be m origins, n destinations Let xij be the no. of units transported from ith origin to jth destination cij be the cost of shipping one unit from ith origin to jth destination. Si and Dj be the supply capacity at origin and Demand at destination respectively.

Then the obj is to minimize the cost i.e. Minimize s.t.c z = cij xij
i=1 j=1 n m n

j=1 m

v i=1,.,m

n j=1

## Generalized transportation table

Destination Origin 1 2
. . . .

1 x11 x21
. . . . c11 c21

2 x12 x22
. . . . cm1 c12 c22
.
. .

n x1n x2n
.
. . . .

Supply
c1n c2n

s1 s2
. . . .

. . . .

m Demand

xm1

xm2 d2

cm2

xmn dn

cmn

sm

d1

A national truck rental firm, Yeh Haw trucking co., is planning for a heavy demand during the month of june. An inventory of its truck combined with projections for demand indicate that 3 areas will be short of the no. of trucks required to satisfy expected demand. To prepare for the period of heavy demand, company officials wish to relocate trucks from areas which have surplus to the areas which have shortage at minimum cost. The cost of driving trucks between two cities as well as surplus and shortages are given in the table next slide.

## Destination (Shortage area) 1 2

50 200 100 100 300 200

100 200

420 420

1 2 3

300

## Demand (shortage of trucks)

140

200

80

Initial Basic Feasible Solution It has (m+n) constraints with (mn) variables i.e., in this problem we will have 3+3=6 constraints and 3*3=9 variables. But basic variables will be (m+n-1) i.e 6-1=5. There are no. of ways of finding the initial basic feasible solution. i) North-west corner rule ii) Minimum-cost method (Greedy algorithm) iii) Vogels approximation method We will apply each one of these for the problem mentioned above.

## Northwest corner rule

Origin (Surplus area) Destination (Shortage area) 1 1 2 3 110 30
50 200 100

2
100 300 200

3
100 200 300

130 70

80

140

200

80

## Minimum-cost method (greedy algorithm)

Origin (Surplus area) Destination (Shortage area) 1 1 2 3
50 110 200 100

2
100 300 200

3
100 200 300

80 120

80

30

140

200

80

## Vogels Approximation Method

Origin (Surplus area) Destination (Shortage area) 1 1 2 3 Demand (shortage of trucks)
140 50

2
100

3
100 200 300

50 0 100

Penalty

110
200 100

## 0 100 100 100 100

80 10

300 200

80

140
50

200
100 100 100

80
100 100 100

1) Find the intial basic feasible solution using a) North-west corner method b) Row minima method; c) Least-cost Method d) Column minima method e) VAM Vogel's Approximation Method
DESTINATION SOURCE A B C S1 2 7 14 S2 3 3 1 S3 5 4 7 S4 1 6 2 DEMAND 8 9 18 SUPPLY 5 8 7 15

2) Determine an initial basic feasible solution to the following transportation problem using a) North-west corner rule; b) Least cost method; c) Vogel's Approximation method VAM
Destination I II III 11 13 17 16 21 200 18 24 225 14 13 275

IV 14 10

## Supply 250 300

A B C Demand

10 400 250

Total cost = 110*100+90*300+10*200+80*200+140*100 = rs.70,000 Check for no. of basic variables which in this case have to be 3+3-1=5. As we can see from the table that 5 cells have been filled meaning we have 5 basic variables. From here we move on to finding the optimum solution. We have mainly two methods to arrive at optimum solution: 1. Stepping-stone method 2. MODI method

Stepping-stone method
Origin (Surplus area) 1 2 3 Demand (shortage of trucks)
Cell 1,2 1,3 2,3 3,1

-1 50

## Supply (surplus of trucks)

100 200

2
+1 -1 100 300 200

## 3 110 160 150

+1 200 100

130 70

80

300

140

200

80
Improvement index (Iij) -50 -150 -200 0

closed path 1,2 1,1 2,1 2,2 1,2 1,3 1,1 2,1 2,2 3,2 3,3 2,3 2,2 3,2 3,3 2,3 3,1 3,2 2,2 2,1 3,1

50 200 100

100 200 300

2
100 300 200

50 150

80

140

200

80

## cell 1,2 1,3 3,1 3,3

closed path 1,2 1,1 2,1 2,2 1,2 1,3 1,1 2,1 2,3 1,3 3,1 3,2 2,2 2,1 3,1 3,3 2,3 2,2 3,2 3,3

50 200 100

100

2 50
100 300

80

200 300

150 200

200

140

80

## Cell 1,3 2,2 3,1 3,3

closed path 1,3 1,1 2,2 2,3 1,3 2,2 1,2 1,1 2,1 2,2 3,1 3,2 1,2 1,1 3,1 3,3 2,3 2,1 1,1 1,2 3,2 3,3

50

3
100 300 100

## 1 2 3 Demand (shortage of trucks) 80

60

110

200 100

80

200 300

90 200

200

140

80

Cell closed path Iij 1,3 1,3 1,2 2,2 2,3 1,3 100 1,1 1,1 1,3 3,2 1,2 1,1 50 2,2 2,2 2,1 3,1 3,2 2,2 0 3,3 3,3 2,3 2,1 3,1 3,3 200 Since all the improvement index values are >= 0 Total cost = 110*100+80*200+60*100+90*200+80*200 = rs.67,000

MODI (Modified Distribution) method Dual problem of the transportation problem is given by: m n Maximize Z = si ui + dj vj
i=1

s.t.c

ui + vj <= cij

j=1

ui, vj unrestricted If xij is nonbasic variable (xij=0), its corresponding dual slack variable is a basic variable and >0(unequal to 0) in the dual complimentary basic solution.

If we use the symbol Iij for this dual slack variable and add it to the dual constraint we get Iij = cij ui vj The value of Iij dual slack variable is the marginal effect on the value of the primal objective function from introducing an additional unit of nonbasic xij. ui are row indexes and vj are column indexes and the values are filled by assuming u1 = 0 and we know that ui + vj = cij. So we will make use of cost coeff to get other values.

50 200 100

3
100 300 200
100

## Supply (sur plus of truc ks) 110 160 150

u1 = 0 u2 = 200 u3 = 100

50 0 140

110 80 10

## 100 200 300

80
200

140
v1 = 0

200
V2 = 100

80
v3 = 0

Since all the Iij values are +ve, it means that the optimal solution has been reached

A CPU mfger wants to ship the products to warehouses in 5 different cities A,B,C,D&E from plants I, II, III. The quantity at plant, requirements at warehouses and shipping costs/unit shipped are given in the table. Determine the amt that should be shipped from each plant to each warehouse to minimize the shipping costs.

cont

warehouses Plant I
2 10 8 30 6

A
10

B
20

C
5

D
9

E
10

II
1 20 7 10 4

## III Deman 3000 5000 d 4000 6000 3000

Assignment Model
Five jobs are assigned to five people; each person will do one job only. The expected times (in hrs) required for each person to complete each job have been estimated & are shown in the following table. Use the Hungarian method to determine the optimal soln. cont

Job 1 2 3 4 5

1 12 16 18 15 26

2 15 18 18 20 15

Person 3 4 13 14 15 14 15 18 18 17 18 14

5 15 16 20 19 15

A distributor has four sales territories which have to be assigned to four sales person. From the past sales experience the firms sales manager has estimated the annual sales vol (000s) for each sales representative in each sales territory. Find the territory assignments that maximize sales. sales territory Sales rep A B C D Washington 44 80 52 60 Benson 60 56 40 72 Fredricks 36 60 48 48

A company produces certain product from three plants 1,2,3 which are distributed to distribution centres A,B,C,D,E. Capacities, Demand & cost of shipping/unit from various plants to destinations are given in table. Find the shipment plan to minimize costs A 1 2 3 Demand 400
1.45 1.10 1.20

B
1.60 2.25 1.20

C
1.40 0.60 1.80

## Supply 400 600 300

1300 1200

400

400

A company produces certain product from three plants 1,2,3 and shipped to three warehouses A,B,C. Transportation costs/unit are shown in the table below. Solve the model to determine the minimum cost solution. A 1 2 3 Demand 200
20 10 12

B
16 10 18

C
24 8 10

## Supply 300 500 100

900 900

400

300

Premier consulting has three consultants C1, C2, C3 who have to handle 4 different clients ClientA, ClientB, ClientC, ClientD. The time availability with consultants and the time required by each client is given in the table. Hourly rates vary for the consultant-client combination and are based on several factors The rates/hr for each consultant-client combo is given in the table. Find the optimal solution providing the hours each consultant should be scheduled for each client in order to maximize the firms billing. What is the schedule and what is the billing?

hrs

C1 C2 C3
Hrs 180 required

100

125

115

100

## 160 160 140

460 440

120

135

115

120

155

150

140

130

75

100

85

Degenerate Problems
Solve the following transportation problem
Destination A B C D Supply 6 1 2 3 4 10 4 3 2 0 0 2 2 1 8 4 6 8 6

1 Origin 2 3 Demand

Goods have to be transported from S1, S2, S3 to destinations D1, D2, D3. The transportation costs per unit, capacities of the sources and demand are shown in the table. Determine a transportation schedule to minimize the cost.
D1 D2 D3 Supply 6 120 80 12 80 10 50

S1 8 5 S2 15 10 S3 3 9 Demand 150 80

A product is manufactured by 4 factories. Unit production cost in them are Rs.2, Rs.3, Re.1 & Rs.5 respectively. Their production capacities and the demand from 4 stores and the transportation cost from each factory to each store is shown in the table below. Allocate to minimize the total cost.
1 A B Factories C D Demand
2 10 13 4

## Unbalanced Transportation Problems

Stores 2 3
4 8 3 6 6 7 9 8

25

35

105

Supply 50 11 70 5 30 12 50 3 20

A company has factories at A,B,C & D which supply to warehouses at P,Q,R & S. The factory capacities are 230, 280, 180 resp. for regular production. If overtime production is utilized, the capacities can be increased to 300, 360 & 190 respectively. Increment unit costs are Rs.5, Rs.4 and Rs.6 resp. The current warehouse requirements are 165, 175, 205, 165 resp.Unit shipping costs in Rs. is shown in the table. Find the optimum distribution to minimize the cost.
P A B C 6 4 3 Q 7 10 22 R S 8 10 7 6 2 11

Transshipment
2

5 Delhi
4 6 4

200

600

1 Pune
3

3 Bhopal

6 Calcutta

150

400

2 Nagpur

4 Bangalore
5