Transportation Problem

Its is also known as distribution problem it arises when there are no. of sources each given with quantity of product or capacity And there are a no. of destinations to which the product is to be transported The transportation problem gives an optimum plan which results in least cost

for transportation

The Transportation Table The transportation table is set up with the following steps: Step 1: set up transportation table with m rows (for source) & n column (for destination) Step 2: Add an additional row, (m + 1)th row, as demand & an additional column, (n + 1)th column, as Supply / capacity Step 3: Enter individual figures of demand in the row titled demand & individual

figures of capacity in the column titled capacity

Step 4: Sum up the capacity figures and demand figures (which must tally) and enter their respective totals at the intersection of capacity column and demand row Step 5: Insert per unit shipping cost in the lower left hand corners of the cells

Solution Procedure for the Transportation problem

Step 1: Define the objective & constraints of the problem

Step 2: Set up a Transportation Table Step 3: Develop an initial basic feasible solution, which can be done by either of the following:

North West Corner method

Least Cost Method Vogels Approximation method Step 4: Examine the initial solution for feasibility. The solution is feasible if it has allocations in m + n - 1 cells. Step 5: test the initial basic feasible solution for OPTIMLAITY, which can be done by either of the following: - Stepping stone Method - Modified distribution method (or MODI method) Step 6: If the solution is still non optimum , modify the shipping schedule by including that non basic cell whose inclusion improve solution Step 7: Go to step 5 & repeat the procedure till an optimum solution is

reached

Eg. Daily production of Spice mobiles in terms of units produced varies from factory to factory is given below: Factory Capacity: Units / day Chandigarh 30 Gurgaon 40 Kanpur 50

Distribution centre: Demand (units/day)

Jaipur 35

Kolkata 28

Delhi 32

Chennai 25

The costs of transportation (Rs.) of each mobile is given as under:

Factory
Chandigarh Gurgaon Kanpur

Jaipur 6 5 8

Kolkata 8 11 9

Delhi 8 9 7

Chennai 5 7 13

Step 1: Objective is to minimize the costs in the transportation Step 2: Set up a Transportation Table

Capacity 6 5 8 Demand 35 8 11 9 28 8 9 7 32 5 7 13 25 30 40 50

Step 3: Develop an initial basic feasible solution 1. North West Corner Method Step 1: begin with North west corner cell (the upper left hand corner) of the

transportation table
Step 2: Allocate as many units as possible such that the minimum of demand or capacity comes in that cell & total of either is also justified Step 3: If the demand in the column is satisfied move to the right cell in the next column or if the capacity for the row is exhausted , move down to the cell in the next row. Step 5: Go to Step 2 and Repeat until the demand in the column or the capacity in the row are exhausted completely Step 6: if both demand and capacity are exhausted before , then there is a tie for the next allocation. Make the next allocation of value in the cell in either the column or the next row

Capacity 6 5 8 Demand 35 30 8 11 9 28 8 5 30 40 25 25

28

9 7

7
25 32

7 13

50

Hence total cost = 30 x 6 + 5 x 5 + 28 x 11 + 7 x 9 + 25 x 7 + 25 x 13 = 1076

2. Least Cost Method

Step 1: Determine the lowest (smallest ) cost among all the rows of the

transportation table
Step 2: Identify the row and allocate the maximum feasible quantity (minimum of the demand and capacity) in the box corresponding to the smallest

cost in the row , then eliminate that row (column) where an allocation
is made and demand column or capacity row is satisfied completely

Step 3: Repeat sets 1 & 2 for the reduced transportation table until all the
requirements are satisfied. Whenever the minimum cost is more than one than make an arbitrary choice among the minimum costs

Capacity 5 6 5 8 35 8 11 9 35 5 18 28 8 9 7 32 32 5 7 13 25 25

30
40 50

Demand

Hence total cost = 25 x 5 + 5 x 8 + 35 x 5 + 5 x 11 + 18 x 9 + 7x 32

= 781 The least cost is more economical than NWC method as it gives a lower cost.

3. Vogels Approximation Method

Step 1: For each row of the transportation table, identify the smallest and next to smallest costs. Calculate difference between these two for

each row and column Step 2: select the row or the column with the largest difference (penalty)
Step 3: allocate the maximum feasible quantity (minimum of the demand and capacity) in the cell with the minimum cost in the selected row or column Step 4: eliminate (cross out) that row or column, where an allocation is made Step 5: re-calculate row and column difference for each row and each column of the reduced transportation table Step 6: go to step 2 and repeat the procedure until all the requirements are satisfied

Capacity

Row Diff 1 2 1

6
5 8 35

8
11 9 35
1

8
9 7 28
1

5
7 13 32
1

30 40
50 25
2

30 5 50

Demand
Column Diff

Capacity 25 30 5 50 25
2

Row Diff 3 2 2

5 5 50

8 11

8 9

5 7

9
Demand
Column Diff

7
28
1

13
32
1

Capacity 5 5 32 32
1

Row Diff

8 11

8 9

0
2 2

5 5 18

9
Demand
Column Diff

7
28
1

50

Capacity

8 11 9 Demand

5
5

5 5 18

0 0 0

18 28

Capacity 5 5 18 28 25 8 9 5 7 32 32 30 40 50 25

6 5 35

8 11

8
Demand 35

13

Hence total cost = 25 x 5 + 5 x 8 + 35 x 5 + 5 x 11 + 18 x 9 + 7x 32

= 781

Step 4: Examine the initial solution for feasibility. The solution is feasible if it has allocations in m + n - 1 cells. Here 3 + 4 1 = 6 cells are occupying the allocations hence the solutions has 6 feasible solutions, where m = rows & n = columns in transportation table. Step 5: test the initial basic feasible solution for OPTIMALITY, which can be done by either of the following: - Stepping stone Method - Modified distribution method (or MODI method)

Modified distribution method (or MODI method)

Step 1: For all the occupied cells, i.e where we have made the allocations during Vogel's Approximation method, determine a set of no.s ui for

each row and vj for each column by solving the system of equations
ui + vj = cij. We can assign value for u1 = 0 (arbitrary value) and calculate the other values based on it. Step 2: calculate the opportunity costs for all the unoccupied cells by

using the relationship :

ij = ui + vj - cij

Step 3: check the sign of each opportunity cost. If all the opportunity cost are non positive, an OPTIMUM solution has been reached.

Otherwise go to the next step.

Step 4: select the largest positive opportunity cost calculated in step 4. the unoccupied (non basic) cell corresponding to this + ve value becomes occupied in the next iteration

Step 5: Determine a closed path for the current entering cell that starts and
ends at this unoccupied cell. Take Right angle turns (90o) in this closed path only at the occupied and current entering cell Step 6: Assign alternate + & - signs at the corner points of occupied cells on the closed path starting with + sign at the current entering cell (unoccupied cell)

Step 7: Determine the least no. of units that can be allocated to the occupied cells having sign. Add this quantity to all the cells on the closed path marked with a (+) sign and subtract the same from all the cells marked with (-) sign.

Step 8: Go to step 3 & repeat the procedure until an optimum solution is reached

1 1 2 3

ui
25
0 3 1

6 5 8 35

8 11 9

5
5 18

8 9 7 32

5 7 13

vj

Unoccupied cells are: c11, c13, c23, c24, c31, c34 Occupied cells are: c12, c14, c21, c22, c32, c33 Taking u1 = 0; & putting values (costs) of occupied cells u1 + v2 = c12 ; v2 = 8 u1 + v4 = c14 ; v4 = 5 u2 +v1 = c21; v1 = 2 u2 +v2 = c22; u2 = 3 u3 +v2 = c32 ; u3 = 1

u3 +v3 = c33 ; v3 = 6

1 1 2 3

2 5 5 18 8

4 25

ui
0 3 1 5

8 35

5
8 2

11
9

9
7 32 6

7
13

vj

Finding opportunity costs for all unoccupied cells

ij = ui + vj - cij 11 = u1 + v1 - c11 = 0 + 2 6 = - 4 13 = u1 + v3 - c13 = 0 + 6 8 = - 2 23 = u2 + v3 c23 = 3 + 6 9 = 0 24 = u2 + v4 c24 = 3 + 5 7 = 1 31 = u3 + v1 c31 = 1 + 2 8 = - 5 34 = u3 + v4 c34 = 1 + 5 13 = - 7

+ ve no.

ui
+
6 5 8 35 8 11 9

5
5 18

25
8 9 7 32 5 7 13

0 3 1

vj

6 5 8 35

8 11 9

10

20
8 9 5 7 5

18

32

13

Assignment Problems

Its is a special case of transportation problems wherein the number of

resources (origins) equal no. of activities (destinations). The capacity demand value is exactly one unit, i.e. only one unit can be supplied from each origin and each destination also requires exactly one unit. The objective is to determine which origin should supply one unit to which destination so that the total cost is minimum.

Solution procedure for assignment problem (Hungarian Method)

Step 1: determine the cost matrix from the given problem i) if the no. of jobs equal to no. of facilities, go to step 3 ii) if the no. of jobs does not equal the no. of facilities go to step 2

Step 2: Add a dummy job or dummy facility so that the cost matrix becomes a square matrix. The cost entries of the dummy job / facility are always zero.
Step 3: select the smallest element in each row of the given cost matrix and then subtract the same from each element to that row.

Step 4: in the reduced matrix obtained in step 3, locate the smallest value of
each column & then subtract the same from each element of that column. Each column & row now have at least one zero.

Step 5: in the modified matrix obtained in step 4, search for an optimal assignment as follows: i) examine the rows successively until a row with a single zero is found. Make an assignment indicated by to this zero and cross out X all other zeros in the column. ii) Repeat the procedure for each column of the reduced matrix. iii) If a row / column has two or more zeroes & one cant be chosen by inspection then assign arbitrarily any of these zeroes & cross off all other zeroes of that row / column iv) Repeat step i) to iii) above successively until the chin of assigning or cross X ends Step 6: if the no. of assignments are equal to n (the order of the cost matrix), an optimum solution is reached But if the assignments are less than n (the order of the matrix), go to step 7. Step 7: draw the minimum no. of horizontals & / or verticals lines to cover all the zeroes of the reduced matrix Step 8: develop the new revised cost matrix as follows: i) find the smallest value of the reduced matrix not covered by any of the lines ii) subtract this value from all the uncovered values and add the same to all the values lying at the intersection of any two lines. Step 9: go to step 5 and repeat the procedure until an optimum solution is obtained

Bids from Contractors (in lacs Rs.)

Hangars
1 2 40 30 20 30 20

Contractors
3 60 40 30 20 10 4 20 30 20 30 30

A B C D E

50 40 60 30 10

Its a matrix of 5 x 4 order so we will add a dummy to it

Dummy

50 40 60 30 10

40 30 20 30 20

60 40 30 20 10

20 30 20 30 30

0 0 0 0 0

First looking in the rows that have single zero

40

20

50

30
50

10
0

30
20

10
0

0
0

20
0

10
0

10
0

10
10

0
0

Now no row left behind which has any single zero in itself then go for column

To draw the minimum no. of horizontals & or verticals lines to cover all the zeroes of the reduced matrix 1. Mark () rows that do not have any assigned zeroes 2. Then Mark () columns that have zeroes in the marked rows 3. And in that marked column finally mark () rows that have assigned zeroes. 4. Draw lines through all the marked columns & unmarked rows.

40 30 50

20 10 0

50 30 20

0 10 0

0 0 0

20
0

10
0

10
0

10
10

0
0

Subtracting the least uncovered value (10 ) from all the values which are NOT cross off by lines & adding it at the intersection of the lines

Again going to Step 5 & repeating the procedure First looking in the rows that have single zero

40

20

50

10

20
50

0
0

20
20

0
0

0
10

10
0

0
0

0
0

0
10

0
10

Now since the no. of assignments are 5 and the order is also 5 , the optimal solution has been reached

Hangars 1 2 20 0

Contractors
3 50 20 0 0 4 10 0 5

40 20

B C D
E

50
10

0
0

20
0

0
0

10
0

10

10

Hence the hangar A will be assigned to Contractor 4, hangar B to contractor 5, hangar C to contractor 2 , hangar D to contractor 3 and hangar E to contractor 1 so that costs will come MINIMUM

Eg.

Gantt Charts

Co. planned to start the production of their 3 chemicals A, B & C on August 6 2007 but it started the operations at the following date

Chemicals
Chemical C

Start Date
February 1, 2008 January 5, 2008

End Date
September 1, 2008

Days Completed
151

Days Remaining
62

213

Chemical B

August 15, 2008

178

45

223

Chemical A

Dec 15, 2007

July 31, 2008

199

30

229

idle Time

days completed

days remaining

Chemical C

151

62

Chemical B

178

45

Chemical A

199

30

August Septe Octob Novem Decem Januar Februa March April 2, May 2, June 6, mber er 5, ber 4, ber 4, y 3, ry 2, 3, 2008 2008 1, 2007 5, 2007 2007 2007 2008 2008 2008 2008 2007

July 1, 2008

July August Septe 31, 30, mber 2008 2008 29, 2008