Transportation Problems (Cont.

)
The problem: M in z =
n m XX i=1 j=1

cij xij

s.t.

n X j=1 m X i=1

xij = si i = 1, ..., m xij = dj j = 1, ..., n xij 0 for all i and j. (*)

Problems that can be formulated as a transportation problem

There are problems that do not appear to be a transportation problem but can be formulated as one: Example 1 Production scheduling: Sailco Corporation must determine how many sailboats should be produced during each of the next three months. Demand is as follows: rst month, 25 sailboats; second month, 60 sailboats; third month, 50 sailboats. Sailco must meet demand on time. At the beginning of the rst month, Sailco has an inventory of 10 sailboats. For simplicity, we assume that sailboats manufactured during a month can be used to meet demand for the current month. During each month, Sailco can produce up to 40 sailboats at a cost of $400 per sailboat. By having employees work overtime during a month, Sailco can produce additional sailboats at a cost of $450 per sailboat. At the end of each month (after production has occurred and the current quarters demand has been satised), a carrying or holding cost of $30 per sailboat is incurred. Formulate a transportation problem to minimize the total of production and inventory costs during the next three months. Supply points: point 1 initial inventory 10 point 2 month 1 regular-time (RT) production 40 point 3 month 1 overtime (OT) production 85 poin 4 month 2 RT production 40 poin 5 month 2 OT production 85 poin 6 month 3 RT production 40 poin 7 month 3 OT production 85 Demand points: point 1 month 1 demand 25 point 2 month 2 demand 60 point 3 month 3 demand 50 point 4 dummy demand 385 135 = 250 1

Destination 2 3 4

1 2 3 Source 4 5 6 7 Demand 25 60 50 250 Destination 1 2 3 1 0 30 60 2 400 430 460 3 450 480 510 Source 4 M 400 430 5 M 450 480 6 M M 400 7 M M 450 Demand 25 60 50

Supply 10 40 85 40 85 40 85

4 0 0 0 0 0 0 0 250

Supply 10 40 85 40 85 40 85

Example 2 Resource distribution (p. 313) Cost (Tens of Dollars) per Acre Foot Berdoo Los Devils San Go Hollyglass Supply Colombo River 16 13 22 17 50 Sacron River 14 13 19 15 60 Calorie River 19 20 23 50 Minimum needed 30 70 0 10 Requested 50 70 30 Goal: Allocate all the available water; Meet all the essential needs; Minimize the total cost. Supply points: supply point 1 Colombo River 50 supply point 2 Sacron River 60 supply point 3 Calorie River 50 supply point 4 Dummy supply * *50 + 70 + 30 + 60 (50 + 60 + 50) = 50 Demand points: 2

demand point 1 minimum for Berdoo 30 demand point 2 extra for Berdoo 20 demand point 3 minimum for Los Devils 70 demand point 4 extra for San Go 30 demand point 5 minimum for Hollyglass 10 demand point 6 extra for Hollyglass 50 Minimum needs can not be met by dummy supply but extras can. Cost per Unit B-Min B-extra LD SG H-Min H-extra Supply Col 16 16 13 22 17 17 50 Sourse S 14 14 13 19 15 15 60 Cal 19 19 20 23 M M 50 Dummy M 0 M 0 M 0 50 Demand 50 20 70 30 10 50

Ways to nd a better initial solution

Vogels approximation method (VAM) The row dierence of the ith row = second smallest cij smallest cij . The column dierence of the jth column is dened similarly. In the row or column that has the largest dierence, select the one square with the smallest cij (make xij a basic variable) and cross one row or column. 3 4 Example 3 1 80 Northwest corner 3 2 6 4 1 80 3 80 4 1 80 5 80 6 100 9 200 2 20 4 200 6 200 200 220 3 3 20 300 5 6 100 6 4 9 200 6 100 6 100 6 100 3 300 6 200 220 9 200 6 200 220 2 5 6 4 6 100 3 300

z = 3 80 + 2 30 + 5 80 + 4 200 + 3 20 + 6 200 = 2740 VAM: 3 2 6 6 100 4 5 4 3 300 1 6 9 6 200 80 100 200 220 3 4 1 2 100 5 4 80 6 0 3 220 300 6 100

6 9 6 80 120 200 80 100 200 220 z = 2 100 + 6 0 + 4 80 + 3 220 + 1 80 + 9 120 = 2340. Russells approximation method: (RAM) Let ui = max cij in row i, vj = max cij in column j, ij = cij ui vj .

Each time we select xij that has the largest (in absolute value) negative ij . RAM: 3 2 6 6 100 4 5 4 3 300 1 6 9 6 200 80 100 200 220 3 4 1 2 100 5 6 4 200 9 6 6 0 3 100 300 6 100

80 120 200 80 100 200 220 z = 2 100 + 6 0 + 4 200 + 3 100 + 1 80 + 6 120 = 2100.

3 4 1 80 3 4 1 80 3 4 1 80

2 5 6 100 2 5 6 100 2 5 6 100

6 4 9 200 6 4 9 200 6 4 9 200

6 100 3 300 6 200 220 6 100 3 300 6 200 220 6 100 3 300 6 200 220

Integer solution property of the transportation problem

If every si and dj has an integer value, then all basic variables in every basic feasible solution (including the optimal solution) have integer values. All the initial solutions have integer values. In each iteration, the amont changed is an integer.