Transportation Problem
Transportation Problem
Mansi joshi
Neetika varshney
rahul kumar
Veshnavi
Kamaljeet
shalu
To find out optimum transportation schedule
keeping in mind cost of transportation to be
mininimize.
• The transportation problem is a special
type of LPP where the object is to minimize
the cost of distributing a product from a
number of sources to the number of
destinations.
• Because of its complex structure the
simplex method is not suitable for solving it.
These problems require special method of
solution.
Source Destination
• Balance transportation problem where the total
supply is equal to demand.
• Unbalance transportation problem where the total
supply is not equal to demand.
phase I – obtains the initial basic feasible
solution.
phase II – obtain the optimal solution.
North West Corner Rule (NWCR)
Least Cost Method
vogle approximation method (VAM)
Modified Distribution Method
Now lets take a example for understanding these
method
A company has three production facilities p1, p2, p3
with production capicity of 11, 13 and 19 units per
week of a product , respectively. These units are to be
shipped to four warehouses D1 , D2 , D3 and D4 with
requirement of 6, 10, 12 and 15 units per week ,
respectively. The transportation cost per unit beetween
factories to warehouse are given in the table below.
Destination D1 D2 D3 D4 Capacity
Source
P1 21 16 25 13 11
P2 17 18 14 23 13
P3 32 27 18 41 19
Demand 6 10 12 15 43
IN THIS METHOD –
1) We start from the cell (1,1) at the north-west
corner (at the top most left corner) and allocate
its maximum possible amount.
2) Then we move to the right hand cell (1,2) if
there is any available quantity remained
otherwise we move to down cell (2,1) and
allocate its maximum possible amount.
3) Repeat the step (2) again and proceed untill all
available quantity is distributed and demand is
full field.
Destination D1 D2 D3 D4 Capacity
source
P1 6 21 5 16 25 13 11
P2 17 5 18 8 14 23 13
P3 32 27 4 18 15 41 19
Demand 6 10 12 15 43
No. of allocation = 6
Hence No. of total allocation = m+n-1
Demand 6 10 12 15 43
No. of allocation = 6
Hence No. of total allocation = m+n-1
Source
P1 (21) (16) (25) 11(13) 11 3
Demand 6 10 12 15 43
[15– 11=4]
penalties 4 2 4 10
Destination D1 D2 D3 D4 Supply Penalties
Source
P2 (17) (18) (14) 4(23) 13 4
[13 – 4 = 9]
P3 (32) (27) (18) (41) 19 9
Demand 6 10 12 4
penalties 15 9 4 18
Destination D1 D2 D3 Supply Penalties
Source
P2 6(17) (18) (14) 9 3
[9 – 6 = 3]
Demand 6 10 12
penalties 15 9 4
Destination D2 D3 Supply Penalties
Source
P2 (18) (14) 3 4
P3 (27) 12(18) 19 9
[ 19 -12 =7]
Demand 10 12
penalties 9 4
Destination D2 Supply Penalties
Source
P2 3(18) 3 0
P3 (27) 7 0
Demand 10
[10 –3=7]
penalties 9
Destination D1 D2 D3 D4 Supply Penalties
Source
P1 (21) (16) (25) 11 (13) 11 3
Demand 6 10 12 15 43
[15-11=4]
penalties 4 2 4 10
No. of allocation = 6
Hence No. of total allocation = m+n-1
P2 70 30 40 60 10
P3 40 10 60 20 18
Requirement 5 8 7 15
An initial basic feasible solution is obtained by least cost
method and is shown in table 1.
Distribution D1 D2 D3 D4 supply
center
Plant
P1 19 30 50 7 12 7
P2 70 8 30 2 40 60 10
P3 5 40 10 5 60 8 20 18
Requirement 5 8 7 15
Minimum cost :
= 7* 12 + 8* 30 + 2 * 40 + 5 *40 + 5* 60 + 8* 20
= 84 + 240 + 80 + 200 + 300 + 160
= 1064
Calculating ui and vj using ui + vj = Cij
Substituting u1 = 0 , we get
u1 + v4 = 12 0+v 4 = 12 or v4 =12
u3 + v4 = 20 u3+12 = 20 or u3 = 8
u3 + v3 = 60 8+v3 = 60 or v3 = 52
u3 + v1 = 40 8+v1 = 40 or v1 = 32
u 2+ v3 = 30 u2+52 = 40 or u2 = -12
u2 + v2 = 30 -12+v2 = 30 or v2 = 42
Distribution D1 D2 D3 D4 supply
center
ui
Plant
P1 19 30 50 7 12 7 0
P2 70 8 30 2 40 60 10 -12
P3 5 40 10 5 60 8 20 18 8
Requirement 5 8 7 15
vj 32 42 52 12
Calculate opportunity cost using Cij – ( ui + vj )
P2 70 8 30 2 40 60 10 -12
50 48
P3 5 40 10 5 60 8 20 18 8
-40
Requirement 5 8 7 15
vj 32 42 52 12