Transportation and Assignment Problems

The Transportation Model 7.1

Solution of a Transportation Problem 7.5
The Assignment Model 7.2
Solution of the Assignment Model 7.6

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Transportation and Assignment Problems

Overview
- Part of a larger class of linear programming problems known as
network flow models.
- Possess special mathematical features that enabled development of
very efficient, unique solution methods.
- Methods are variations of traditional simplex procedure.

The Transportation Model

Characteristics
A product is transported from a number of sources to a number of destinations
at the minimum possible cost.
Each source is able to supply a fixed number of units of the product, and each
destination has a fixed demand for the product.
The linear programming model has constraints for supply at each source and
demand at each destination.
All constraints are equalities in a balanced transportation model where supply
equals demand.
Constraints contain inequalities in unbalanced models where supply does not
equal demand.

Transportation Problem
Network Representation
c11
s1

c22

d2

d3

c13

SOURCES

d1

c12
c21

s2

c23

DESTINATIONS

Transportation Problem
LP Formulation

The linear programming formulation in terms of the

amounts shipped from the origins to the destinations, xij ,
can be written as:
Min cijxij
ij
s.t. xij < si for each origin i
j
xij = dj for each destination j
i
xij > 0 for all i and j

Transportation Problem
The transportation problem is solved in two phases:
Phase I -- Obtaining an initial feasible solution
Phase II -- Moving toward optimality

In Phase I, the Minimum-Cost Procedure can be used to

establish an initial basic feasible solution without doing
numerous iterations of the simplex method.
In Phase II, the Stepping Stone Method, using the MODI
method for evaluating the reduced costs may be used to
move from the initial feasible solution to the optimal one.

Transportation Model Example

Problem Definition and Data
- Problem:How many tons of wheat to transport from each grain elevator to each mill on a monthly
basis in order to minimize the total cost of transportation ?
- Data:

Grain Elevator Supply

Mill

Demand

1. Kansas City

150

A. Chicago

200

2. Omaha

175

B. St.Louis

100

3. Des Moines

275

C. Cincinnati 300

Total

Grain Elevator
1. Kansas City
2. Omaha
3. Des Moines

600 tons

Total

600 tons

Transport cost from Grain Elevator to Mill ($/ton)

A. Chicago
B. St. Louis
C. Cincinnati
$6
8
10
7
11
11
4
5
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Transportation Model Example

Model Formulation
minimize Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C
subject to x1A + x1B + x1C = 150
x2A + x2B + x2C = 175
x3A + x3B+ x3C = 275
x1A + x2A + x3A = 200
x1B + x2B + x3B = 100
x1C + x2C + x3C = 300
xij 0
where xij = tons of wheat
from each grain elevator, i,
i = 1, 2, 3, to each mill j, j
= A,B,C

Network of transportation routes for wheat shipments

Solution of the Transportation Model

Tableau Format
Transportation problems are solved manually within a tableau format.
Each cell in a transportation tableau is analogous to a decision variable that
indicates the amount allocated from a source to a destination.
The supply and demand values along the outside rim of a tableau are called rim
values.

The Transportation
Tableau

Solution of the Transportation Model

Solution Methods
Transportation models do not start at the origin where all decision values are zero;
they must instead be given an initial feasible solution.
Initial feasible solution determination methods include:
- northwest corner method
- minimum cell cost method
- Vogels Approximation Method
Methods for solving the transportation problem itself include:
- stepping-stone method and
- modified distribution method.

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The Minimum Cell Cost Method

(1 of 3)
- In the minimum cell cost method as much as possible is allocated to the cell with the
minimum cost followed by allocation to the feasible cell with minimum cost.

The Initial Minimum Cell Cost Allocation

The Second Minimum Cell Cost Allocation

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The Minimum Cell Cost Method

(2 of 3)
- The complete initial minimum cell cost solution; total cost = $4,550.
- The minimum cell cost method will provide a solution with a lower cost than

the northwest corner solution because it considers cost in the allocation process.

The Initial Solution

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The Minimum Cell Cost Method

Summary of Steps
(3 of 3)
1. Allocate as much as possible to the feasible cell with the
minimum transportation cost, and adjust the rim requirements.
2. Repeat step 1 until all rim requirements have been met.

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The Modified Distribution Method (MODI)

(1 of 6)

- MODI is a modified version of the stepping-stone method in which math equations replace
the stepping-stone paths.
- In the table, the extra left-hand column with the ui symbols and the extra top row with the
vj symbols represent values that must be computed.
- Computed for all cells with allocations :
ui + vj = cij = unit transportation cost for cell ij.

The Minimum Cell Cost

Initial Solution

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The Modified Distribution Method (MODI)

(2 of 6)

- Formulas for cells containing allocations:

x1B: u1 + vB = 8
x1C: u1 + vC = 10
x2C: u2 + vC = 11
x3A: u3 + vA = 4
x3B: u3 + vB = 5

The Initial Solution with All ui and vj Values

- Five equations with 6 unknowns, therefore let u1 = 0 and solve to obtain:

vB = 8, vC = 10, u2 = 1, u3 = -3, vA= 7
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The Modified Distribution Method (MODI)

(3 of 6)
- Each MODI allocation replicates the stepping-stone allocation.
- Use following to evaluate all empty cells:
cij - ui - vj = kij
where kij equals the cost increase or decrease that would occur by allocating to a cell.
- For the empty cells in Table 26:
x1A: k1A = c1A - u1 - vA = 6 - 0 - 7 = -1
x2A: k2A = c2A - u2 - vA = 7 - 1 - 7 = -1
x2B: k2B = c2B - u2 - vB = 11- 1 - 8 = +2
x3C: k3C = c3C - u3 -vC = 12 - (-3) - 10 = +5

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The Modified Distribution Method (MODI)

(4 of 6)

- After each allocation to an empty cell, the u i and vj values must be recomputed.

The Second Iteration of the MODI Solution Method

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The Modified Distribution Method (MODI)

(5 of 6) ui and vj values:
- Recomputing
x1A: u1 + vA = 6, vA = 6

x1C: u1 + vC = 10, vC = 10

x3A: u3 + vA = 4, u3 = -2

x3B: u3 + vB = 5, vB = 7

x2C: u2 + vC = 11, u2 = 1

The New ui and vj Values for the Second Iteration

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The Modified Distribution Method (MODI)

(6 of 6)
- Cost changes for the empty cells, cij - ui - vj = kij;
x1B: k1B = c1B - u1 - vB = 8 - 0 - 7 = +1
x2A: k2A = c2A - u2 - vA = 7 - 1 - 6 = 0
x2B: k2B = c2B - u2 - vB = 11 - 1 -7 = +3
x3C: k2B = c2B - u3 - vC = 12 - (-2) - 10 = +4
- Since none of the values are negative, solution obtained is optimal.
- Cell 2A with a zero cost change indicates a multiple optimal solution.

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The Modified Distribution Method (MODI)

Summary of Steps
1. Develop an initial solution.
2. Compute the ui and vj values for each row and column.
3. Compute the cost change, kij, for each empty cell.
4. Allocate as much as possible to the empty cell that will
result in the greatest net decrease in cost (most negative kij)
5. Repeat steps 2 through 4 until all kij values are positive or
zero.

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The Unbalanced Transportation Model

(1 of 2)
- When demand exceeds supply a dummy row is added to the tableau.

An Unbalanced Model
(Demand . Supply)

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The Unbalanced Transportation Model

(2 of 2)
- When supply exceeds demand, a dummy column is added to the tableau.
- The dummy column (or dummy row) has no effect on the initial solution methods or the
optimal solution methods.

An Unbalanced Model (Supply . Demand)

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Prohibited Routes

- A prohibited route is assigned a large cost such as M.

- When the prohibited cell is evaluated, it will always
contain the cost M, which will keep it from being
selected as an entering variable.

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The Assignment Model

Characteristics
Special form of linear programming model similar to the
transportation model.
Supply at each source and demand at each destination limited to
one unit.
In a balanced model supply equals demand.
In an unbalanced model supply does not equal demand.

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Assignment Problem
Network Representation
1

c11

c13
2

c21

c12

c22

c23
c31
3

c33

WORKERS

c32
3

JOBS

Assignment Problem
Linear Programming Formulation
Min cijxij
ij
s.t. xij = 1
for each worker i
j
xij = 1
for each job j
i
xij = 0 or 1 for all i and j.
Note: A modification to the right-hand side of the first constraint
set can be made if a worker is permitted to work more than 1 job.

The Assignment Model

Example Problem Definition and Data
Problem: Assign four teams of officials to four games in a way that will
minimize total distance traveled by the officials. Supply is always one team of
officials, demand is for only one team of officials at each game.

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The Assignment Model

Example Problem Model Formulation
Minimize Z = 210xAR + 90xAA + 180xAD + 160xAC + 100xBR + 70xBA + 130xBD + 200xBC +
175xCR + 105xCA + 140xCD + 170xCC + 80xDR + 65xDA + 105xDD +120xDC
subject to
xAR + xAA + xAD+ xAC = 1
xBR + xBA + xBD + xBC = 1
xCR + xCA+ xCD + xCC = 1
xDR + xDA + xDD + xDC = 1
xAR + xBR + xCR + xDR = 1
xAA + xBA + xCA + xDA = 1
xAD+ xBD + xCD + xDD = 1
xAC + xBC + xCC + xDC = 1
xij 0
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Solution of the Assignment Model

(1 of 7)
- An assignment problem is a special form of the transportation problem where all supply
and demand values equal one.
- Example: assigning four teams of officials to four games in a way that will minimize
distance traveled by the officials.

The Travel Distances to Each Game for Each Team of Officials

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Solution of the Assignment Model

(2 of 7)
- An opportunity cost table is developed by first subtracting the minimum value in each
row from all other row values (row reductions) and then repeating this process for each column.

The Assignment Tableau with Row Reductions

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Solution of the Assignment Model

(3 of 7)
- The minimum value in each column is subtracted from all column values (column
reductions).
- Assignments can be made in the table wherever a zero is present.
- An optimal solution results when each of the four teams can be assigned to a different
game.
- Table 36 does not contain an optimal solution

The Tableau with Column Reductions

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Solution of the Assignment Model

(4 of 7)
- An optimal solution occurs when the number of independent unique assignments equals
the number of rows and columns.
- If the number of unique assignments is less than the number of rows (or columns) a line
test must be used.

The Opportunity Cost Table with the Line Test

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Solution of the Assignment Model

(5 of 7)
- In a line test all zeros are crossed out by horizontal and vertical lines; the minimum
uncrossed value is subtracted from all other uncrossed values and added to values where two
lines cross.

The Second Iteration

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Solution of the Assignment Model

(6 of 7)
- At least four lines are required to cross out all zeros in table 38.
- This indicates an optimal solution has been reached.
- Assignments and distances:
Assignment

Distance

Assignment

Distance

Team A Atlanta

90

Team A Clemson

160

Team B Raleigh

100

Team B Atlanta

70

Team C Durham

140

Team C Durham

140

Team D Clemson

120

Team D Raleigh

80

Total

450 miles

Total

450 miles

- If in initial assignment team A went to Clemson, result is the same; resulting

assignments represent multiple optimal solutions.

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Solution of the Assignment Model

(7 of 7)
- When supply exceeds demand, a dummy column is added to the tableau.
- When demand exceeds supply, a dummy row is added to the tableau.
- The addition of a dummy row or column does not affect the solution method.
- A prohibited assignment is given a large relative cost of M so that it will never be selected.

An Unbalanced Assignment Tableau with a Dummy Column

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Solution of the Assignment Model

Summary of Solution Steps
1. Perform row reductions.
2. Perform column reductions.
3 In the completed opportunity cost table, cross out all zeros using
the minimum number of horizontal and/or vertical lines.
4. If fewer than m lines are required, subtract the minimum uncrossed
value from all other uncrossed values, and add the same value to all cells
where two lines intersect.
5. Leave all other values unchanged and repeat step 3.
6. If m lines are required, the tableau contains the optimal solution. If
fewer than m lines are required, repeat step 4.

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