Operations Research
MSU6502
Introduction
❑ Transportation Problem in
Operational Research is Transport
various quantities of a single
homogeneous commodity to
different destinations in such a way
that total transportation cost is
minimum.
Transportation problem as Linear
programming
Minimize Z=σ𝑛𝑖=1 σ𝑚
𝑗=1 𝐶𝑖𝑗 ∗ 𝑄𝑖j (Total cost of Transport)
Subject to;
σ𝑛𝑖=1 𝑄𝑖j ≥ Dj (Demand)
𝑗=1 𝑄𝑖j ≤ Si (Supply)
σ𝑚
Transportation problem
Balanced Transportation problems
Total Supply = Total Demand
Unbalanced Transportation problems
Total Supply ≠ Total Demand
Balanced Transportation problems can be solved
through this method.
What to do with Unbalanced Transportation problems
Add dummy variable to make them Balanced Transportation
problems
Transportation problem
Unbalanced Transport problem
D1 D2 D3 D4 Supply
S1 3 2 5 3 20
S2 4 6 8 2 35
S3 7 4 1 7 40
S4 2 9 6 8 30
S5 1 3 5 10 60
Deman
d 30 20 40 60 150Total demand
185Total supply
D1 D2 D3 D4 Dummy Supply
S1 3 2 5 3 0 20
S2 4 6 8 2 0 35
S3 7 4 1 7 0 40
S4 2 9 6 8 0 30
S5 1 3 5 10 0 60
Deman
d 30 20 40 60 35 185Total demand
185Total supply
Transportation problem
Unbalanced Transport problem
D1 D2 D3 D4 Supply
S1 3 2 5 3 20
S2 4 6 8 2 35
S3 7 4 1 7 40
S4 2 9 6 8 30
Deman
d 30 20 40 60 150Total demand
125Total supply
D1 D2 D3 D4 Supply
S1 3 2 5 3 20
S2 4 6 8 2 35
S3 7 4 1 7 40
S4 2 9 6 8 30
Dummy 0 0 0 0 25
Deman
d 30 20 40 60 150Total demand
150Total supply
Transportation problem
Step 1
Initial feasible solution
North west corner method
Least cost method
Step 2
Optimal solution
MODI Method (Modified Distribution Method)
Transportation problem: Initial Solution
North west Corner method
The Northwest Corner Method starts in the cell (route) corresponding to
the northeast corner, or the upper left, of the tableau (variable ).
Step 1: Allocate the maximum amount available to the selected
cell and adjust the associated supply and demand quantities by
subtracting the allocated quantity.
Step 2: Exit the row or the column when the supply or demand
reaches zero and cross it out, to show that you cannot make any
more allocations to that row or column. If a row or a column
simultaneously reach zero, only cross out one (the row or the
column) and leave a zero supply (demand) in the row (column)
that is not crossed out.
Step 3: If exactly one row or column is left that is not crossed out,
stop. Otherwise, advance to the cell to the right if a column has just
been crossed out, or to the cell below if a row was crossed out.
Continue with Step 1.
Transportation problem
Least cost method (LCM)
In this method, allocations are made on the basis of unit transportation
costs.
Step 1: Select the cell with the least unit transportation cost and
allocate as many units as possible to that cell.
Step 2: If the minimum cost exists in several cells, select a cell
arbitrarily and assign the possible number of goods. Then consider
the remaining cells of the same unit transportation cost.
Step 3: Select a cell with the next higher unit transportation cost and
continue the process till all requirements are met.
Transportation problem
Optimal Solution (Modified Distribution Method)
The MODI (modified distribution) method allows us to compute
improvement indices quickly for each unused square without drawing
all of the closed paths. Because of this, it can often provide
considerable time savings over other methods for solving
transportation problems.
MODI provides a new means of finding the unused route with the
largest negative improvement index. Once the largest index is
identified, we are required to trace only one closed path. This path
helps determine the maximum number of units that can be shipped
via the best unused route.
Transportation problem
InapplyingtheMODImethod,webeginwithaninitialsolutionobtainedbyusingthenor
thwestcornerruleoranyotherrule.Butnowwemustcomputeavalueforeachrow(callt
hevaluesR1,R2,R3 if there are three rows) and for each column (K1,K2,K3 ) in the
transportation table. In general, we let
The MODI method then requires five steps: 1. To compute the values for each
row and column, set
Ri + Kj = Cij
but only for those squares that are currently used or occupied. For example, if
the square at the intersection of row 2 and column 1 is occupied, we set R2 + K1
= C21. 2. After all equations have been written, set R1 = 0. 3. Solve the system of
equations for all R and K values. 4. Compute the improvement index for each
unused square by the formula improvement index (Iij) = Cij Ri Kj. 5. Select the
largest negative index and proceed to solve the problem as you did using the
stepping-stone method.
Transportation problem
The MODI method then requires five steps:
Step 1. To compute the values for each row and column, set
Ri + Kj = Cij
but only for those squares that are currently used or occupied. For
example, if the square at the intersection of row 2 and column 1 is
occupied, we set R2 + K1 = C21.
Step 2. After all equations have been written, set R1 = 0.
Step 3. Solve the system of equations for all R and K values.
Step 4. Compute the improvement index for each unused square
by the formula improvement index (Iij) = Cij - Ri - Kj.
Step 5. Select the largest negative index and proceed to solve the
problem
Transportation problem
The steps we follow to develop an improved solution after the
improvement indices have been computed are outlined briefly:
Step 1. Beginning at the square with the best improvement index,
trace a closed path back to the original square via squares that are
currently being used.
Step 2. Beginning with a plus (+) sign at the unused square, place
alternate minus (-) signs and plus signs on each corner square of the
closed path just traced.
Step 3. Select the smallest quantity found in those squares
containing minus signs. Add that number to all squares on the
closed path with plus signs; subtract the number from all squares
assigned minus signs.
Step 4. Compute new improvement indices for this new solution
using the MODI method.
Transportation problem
Example.
C1 C2 C3 C4 C5
P1 50 0 25 0 0 75
P2 50 60 15 0 25 150
P3 0 0 0 75 0 75
100 60 40 75 25 300
Transportation problem
Initial Solution (north west corner)
C1 C2 C3 C4 C5
P1 3 75 2 0 3 0 4 0 1 0 75
P2 4 25 1 60 2 40 4 25 2 0 150
P3 1 0 0 0 5 0 3 50 2 25 75
100 60 40 75 25 300
Transportation problem
MODI Method
u1=3 u2=0 u3=1 u4=3 u5=2
C1 C2 C3 C4 C5
(-1)
v1=0 P1 3 75(2) 2 0(2) 3 0(1) 4 01 0 75
(-1)
v2=1 P2 4 25 1 60 2 40 4 25 2 0 150
(-2)
v3=0 P3 1 0(0) 0 0 (4) 5 0 3 50 2 25 75
100 60 40 75 25 300
Transportation problem
Assign values to the cell getting negative values.
u1=3 u2=0 u3=1 u4=3 u5=2
C1 C2 C3 C4 C5
v1=0 P1 3 75(2) 2 0(2) 3 0(1) 4 0(-1) 1 0 75
v2=1 P2 425-α 1 60 2 40 425+α (-1) 2 0 150
v3=0 P3 (-2) 1 0 + α (0) 0 0 (4) 5 0 350-α 2 25 75
100 60 40 75 25 300
Transportation problem
25-α >0
25+α>0
50-α>0
0 + α>
So α<25 and α<50.
Therefore maximum value ” α” can take is 25.
Update the table by substituting α=25
Transportation problem
C1 C2 C3 C4 C5
P1 3 75 2 0 3 0 4 0 1 0 75
P2 4 0 1 60 2 40 4 50 2 0 150
P3 1 25 0 0 5 0 3 25 2 25 75
100 60 40 75 25 300
Transportation problem
Calculate penalty again for new table
u1=3 u2=2 u3=3 u4=5 u5=4
C1 C2 C3 C4 C5
v1=0 P1 3 75 2 0 3 0 4 0 1 0 75
v2=-1 P2 4 0 1 60 2 40 4 50 2 0 150
v3=-2 P3 1 25 0 0 5 0 3 25 2 25 75
100 60 40 75 25 300
Transportation problem
u1=3 u2=2 u3=3 u4=5 u5=4
C1 C2 C3 C4 C5
v1=0 P1 3 75(0) 2 0(0) 3 0(-1) 4 0(-3) 1 0 75
v2=-1 P2 (2) 4 0 1 60 2 40 4 50(-1) 2 0 150
v3=-2 P3 1 25(0) 0 0(4) 5 0 3 25 2 25 75
100 60 40 75 25 300
Transportation problem
u1=3 u2=2 u3=3 u4=5 u5=4
C1 C2 C3 C4 C5
v1=0 P1 375-ε (0) 2 0(0) 3 0(-1) 4 0(-3) 1 0+ε 75
v2=-1 P2 (2) 4 0 1 60 2 40 4 50(-1) 2 0 150
v3=-2 P3 125+ε (0) 0 0(4) 5 0 3 25 225-ε 75
100 60 40 75 25 300
Transportation problem
75-ε>0
25+ε>0
0+ε>0
25-ε>0
So ε<25 and ε<75.
Therefore maximum value ” ε” can take is 25.
Update the table by substituting ε=25
Transportation problem
Update the table
C1 C2 C3 C4 C5
P1 3 502 03 04 01 25 75
P2 4 0 1 60 2 40 4 502 0 150
P3 1 500 05 0 3 25 2 0 75
100 60 40 75 25 300
Transportation problem
Calculate penalty again for new table
u1=3 u2=2 u3=3 u4=5 u5=-2
C1 C2 C3 C4 C5
v1=0 P1 3 50(0) 2 0(0) 3 0(-1) 4 0 1 50 75
v2=-1 P2 (2) 4 0 1 60 2 40 4 50(5) 2 0 150
v3=-2 P3 1 50(0) 0 0(4) 5 0 3 25(6) 2 0 75
100 60 40 75 25 300
Transportation problem
u5=-
u1=3 u2=2 u3=3 u4=5 2
C1 C2 C3 C4 C5
v1=0 P1 350-ε (0) 2 0(0) 3 0(-1) 4 0+ε 1 50 75
v2=-1 P2 (2) 4 0 1 60 2 40 4 50(5) 2 0 150
v3=-2 P3 150+ε (0) 0 0(4) 5 0 325-ε (6) 2 0 75
100 60 40 75 25 300
Transportation problem
50-ε>0
50+ε>0
0+ε>0
25-ε>0
So ε<25 and ε<50.
Therefore maximum value ” ε” can take is 25.
Update the table by substituting ε=25
Transportation problem
C1 C2 C3 C4 C5
P1 3 25 2 0 3 0 4 25 1 50 75
P2 4 0 1 60 2 40 4 50 2 0 150
P3 1 75 0 0 5 0 3 0 2 0 75
100 60 40 75 25 300
Transportation problem
Calculate penalty again for new table
u1=3 u2=1 u3=2 u4=4 u5=1
C1 C2 C3 C4 C5
v1=0 P1 3 25(1) 2 0(1) 3 0 4 25 1 50 75
v2=0 P2 (1) 4 0 1 60 2 40 4 50(1) 2 0 150
v3=-2 P3 1 75(1) 0 0(5) 5 0(1) 3 0(3) 2 0 75
100 60 40 75 25 300
Optimum Table
Transportation problem
If penalty >0 optimum solution
If penalty = 0, there exist an alternate solution.
