Transportation Problem (TP)

and Assignment Problem

(AP)
(special cases of Linear Programming)
1. Transportation Problem (TP)
Distributing any commodity from any group
of supply centers, called sources, to any group
of receiving centers, called destinations, in
such a way as to minimize the total
distribution cost (shipping cost).
1. Transportation Problem (TP)
Total supply must equal total demand.
If total supply exceeds total demand, a dummy
destination, whose demand equals the difference
between the total supply and total demand is
created. Similarly if total supply is less than total
demand, a dummy source is created, whose supply
equals the difference.
All unit shipping costs into a dummy destination or
out of a dummy source are 0.
Example 1:
Example 2:

Destinatio Supply
n
D1 D2 D3 D4
S1 50 75 35 75 12
Source 65 80 60 65 17
S2
S3 40 70 45 55 11
0 0 0 0 10
(D)
Demand 15 10 15 10
Transportation Tableau:
Initial Solution Procedure:
1. Northwest Corner Starting Procedure
1. Select the remaining variable in the upper left
(northwest) corner and note the supply remaining in
the row, s, and the demand remaining in the column,
d.
2. Allocate the minimum of s or d to this variable. If
this minimum is s, eliminate all variables in its row
from future consideration and reduce the demand in
its column by s; if the minimum is d, eliminate all
variables in the column from future consideration and
reduce the supply in its row by d.
REPEAT THESE STEPS UNTIL ALL SUPPLIES HAVE BEEN
ALLOCATED.
Total sipping cost = 2250
2. Least Cost Starting Procedure
1. For the remaining variable with the lowest unit
cost, determine the remaining supply left in its
row, s, and the remaining demand left in its
column, d (break ties arbitrarily).
2. Allocate the minimum of s or d to this variable.
If this minimum is s, eliminate all variables in its
row from future consideration and reduce the
demand in its column by s; if the minimum is d,
eliminate all variables in the column from future
consideration and reduce the supply in its row by
d.
Total sipping cost = 2065
3. Vogel’s Approximation Method Starting
Procedure
1. For each remaining row and column, determine
the difference between the lowest two remaining
costs; these are called the row and column
penalties.
2. Select the row or column with the largest penalty
found in step 1 and note the supply remaining for
its row, s, and the demand remaining in its column,
d.
3. Allocate the minimum of s or d to the variable in
the selected row or column with the lowest
remaining unit cost. If this minimum is s, eliminate
all variables in its row from future consideration and
reduce the demand in its column by s; if the
minimum is d, eliminate all variables in the column
Total sipping cost = 2030
Solving TP – Transportation Simplex Method

1. Find the current Cij–Zij values for each nonbasic v

ariable and select the one with the most negative Cij
–Zij value as the entering variable; if all Cij–Zij values
are nonnegative, the current solution is optimal.
2. Determine which basic variable reaches 0 first wh
en the entering variable is increased.
3. Determine a new basic solution and repeat the ste
ps.
Step 1: Determine the Cij–Zij Values f
or the Nonbasic Variables

1. If Ui is the dual variable associated with the i-th suppl

y constraint, and Vj is the dual variable associated with
the j-th demand constraint, then for shipments from no
de i to node j, one can find the corresponding Zij value b
y Zij = Ui - Vj. Thus the Cij–Zij value for variable Xij is fo
und by
Cij - Zij = Cij - (Ui - Vj) = Cij - Ui + Vj
2. Given that there is a redundant equation among th
e m n constraints (and any of the m n constraints ca
n be considered the redundant one), one can show th
at the Ui or Vj associated with the redundant equatio
n is 0. Thus one Ui or Vj can arbitrarily be selected an
d set to 0. Arbitrarily choose U1 = 0.

3. Since the Cij–Zij values for basic variables are 0 (i.

e., Cij - Ui + Vj = 0 for basic variables), we can easily s
olve for the remaining values of the Ui’s and Vj’s fro
m the m + n - 1 equations for the basic variables.
4. Once the Ui’s and Vj’s have been determined, the
Cij–Zij values for the nonbasic variables can be calcu
lated by
Cij - Zij = Cij - Ui + Vj
Non-basic cells:

Note: X13 is the entering variable.

Step 2: Determine Which Current Basic Variable
Reaches 0 First

Note: 1. Cycle property

2. X12 is the leaving variable
Step 3: Determine the Next
Transportation Tableau

Total shipping cost = 2020

{Improvement = 2 (-5) = 10 }
Transportation Simplex Method
Find an initial basic feasible solution by some startin
g procedure. Then,
1. Set U1 0. Solve for the other Ui’s and Vj’s by:
Cij – Ui + Vj = 0 for basic variables.
Then calculate the Cij–Zij values for nonbasic variables
by:
Cij – Zij = Cij – Ui + Vj
Choose the nonbasic variable with the most negative
Cij–Zij value as the entering variable. If all Cij–Zij values
are nonnegative, STOP; the current solution is optim
al.
2. Find the cycle that includes the entering variable a
nd some of the BASIC variables. Alternating positive
and negative changes on the cycle, determine the “c
hange amount” as the smallest allocation on the cycl
e at which a subtraction will be made.
Note: there must be m + n - 1 basic variables for the
transportation simplex method to work!
=> Add dummy source or dummy destination, if necessary
(m=# of sources and n=# of destinations)
2. The Assignment Problem (AP) —
a special case of TP with m=n and si=dj for all
i, and j.

The Hungarian Algorithm

=> solving the assignment problem of a least
cost assignment of m workers to m jobs
Assumptions:
1. There is a cost assignment matrix for the m
“people” to be assigned to m “tasks.” (If necessary
dummy rows or columns consisting of all 0’s are
added so that the numbers of people and tasks are
the same.)
2. All costs are nonnegative.
3. The problem is a minimization problem.
The Hungarian Algorithm
Initialization
1. For each row, subtract the minimum number from
all numbers in that row.
2. In the resulting matrix, subtract the minimum
number in each column from all numbers in the
column.
Iterative Steps
1. Make as many 0 cost assignments as possible. If
all workers are assigned, STOP; this is the minimum
cost assignment. Otherwise draw the minimum
number of horizontal and vertical lines necessary to
cover all 0’s in the matrix. (A method for making the
maximum number of 0 cost assignments and
drawing the minimum number of lines to cover all
0’s follows.)
2. Find the smallest value not covered by the lines;
this number is the reduction value.
3. Subtract the reduction value from all numbers not
covered by any lines. Add the reduction value to any
number covered by both a horizontal and vertical
line.
For small problems, one can usually determine the maximum
number of zero cost assignments by observation. For larger
problems, the following procedure can be used:
Determining the Maximum Number of Zero-Cost Assignments
1. For each row, if only one 0 remains in the row, make that
assignment and eliminate the row and column from consideration in
the steps below.
2. For each column, if only one 0 remains, make that assignment
and eliminate that row and column from consideration.
3. Repeat steps 1 and 2 until no more assignments can be made. (If
0’s remain, this means that there are at least two 0’s in each
remaining row and column. Make an arbitrary assignment to one of
these 0’s and repeat steps 1 and 2.)
Again, for small problems, the minimum number of lines required
to cover all the 0’s can usually be determined by observation. The
following procedure, based on network flow arguments, can be
used for larger problems:
Drawing the Minimum Number of Lines to Cover All 0’s
1. Mark all rows with no assignments (with a “‧”).
2. For each row just marked, mark each column that has a 0 in
that row (with a “‧”).
3. For each column just marked, mark each row that has an
assignment in that column (with a “‧”).
4. Repeat steps 2 and 3 until no more marks can be made.
5. Draw lines through unmarked rows and marked columns.
Example:
Minimum uncovered
number
Minimum uncovered
number
CONVERSION OF A MAXIMIZATION
PROBLEM TO A MINIMIZATION
PROBLEM

The Hungarian algorithm works only if the matrix is a

cost matrix. A maximization assignment problem can be
converted to a minimization problem by creating a lost
opportunity matrix. The problem then is to minimize the
total lost opportunity.
Profit Matrix:
J1 J2 J3 J4
W1 67 58 90 55
W2 58 88 89 56
W3 74 99 80 22
(D) 0 0 0 0
The lost opportunity matrix given below is derived by
subtracting each number in the J1 column from 74, each
number in the J2 column from 99, each number in the J3
column from 90, and each number in the J4 from 56.

J1 J2 J3 J4
W1 7 41 0 1
W2 16 11 1 0
W3 0 0 10 34
(D) 74 99 90 56

The Hungarian algorithm can now be applied to this lost

opportunity matrix to determine the maximum profit set of
assignments.