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TRANSPORTATION MODEL (MANAGEMENT SCIENCE)

TRANSPORTATION MODEL (MANAGEMENT SCIENCE)

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Published by Muhammad Asif

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Published by: Muhammad Asif on May 28, 2010
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10/07/2013

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INTRODUCTIONTransportation models play an important role in logistics andsupply chain management for reducing cost and improvingservice. Therefore, the goal is to find the most cost effectiveway to transport the goods. Transportation problems areamong the most pressingstrategic developmentproblems inmany cities, often a major constraint for long-term urbandevelopment ingeneral, and very closely related to landdevelopment, economicstructure,energypolicies, andenvironmental quality. Since all citizens are either enjoyingthetransportation system or, and often at the same time,suffering from it, it is an important element of the urban qualityof life.The transportation problems is generally to be solved ,dealswith inefficiency of urban transportation systems andunderlying land use patterns, whichnegatively affect quality of life, economic efficiency, and the environment; the high(andoften hidden) costs of urban transportation in both socio-economic andenvironmental terms; and in particular theenvironmental consequences both in termsof physical aspectsthat include land and resource use, ecological aspects,andhuman health problems.Efficient tools for comprehensivestrategic analysis that are directly useful to cityadministrationsare lacking. New strategies for sustainable mobility requirewellbalanced combinations of measures with impacts on
improved land-use/economic development planning;
improved planning, management and use of transportinfrastructures andfacilities; incorporation of the realcosts of both infrastructure and environment ininvestment policies and decisions and also in user costs;
development of public transport and improvement of itscompetitive position ,continued technical improvement of vehicles and fuels.
incentives for the use of less polluting fuels; promotion of a more environmentally rational use of the private car,including behavioural changes.These problems can only be addressed with a consistent andcomprehensiveapproach and planning methodology that helpsto design strategies for sustainablecities. This has to include anintegration of socio-economic, environmental andtechnologicalconcepts including the development, integration,anddemonstration ofmethodologies to improve forecasting,assessment and strategic policy level decision
 
Mathematical Model of Transportation ProblemMathematically a transportation problem is nothing but aspecial linear programming problem in which the objectivefunction is to minimize the cost of transportation subjected tothe demand and supply constraints.Let a
i
= quantity of the commodity available at the origin i,b
 j
= quantity of the commodity needed at destination j,c
ij
= transportation cost of one unit of a commodity from originIto destination j,and x
ij
= quantity transported from origin I to the destination j.Mathematically, the problem isMinimize z = ΣΣ x
ij
c
ij
S.t.Σx
ij
= a
i,
i= 1,2,…..mΣx
ij
= b
 j,
 j= 1,2,…..,nand x
ij
≥ 0 for all i and j .Let us consider an example to understand the formulation of mathematical model of transportation problem of transportingsingle commodity from three sources of supply to four demanddestinations. The sources of supply can be production facilities,warehouse or supply point, characterized by available capacity.The destination are consumption facilities, warehouse ordemand point, characterized by required level of demand.FORMULATION OF TRANSPORATATION PROBLEM AS A LINEAR PROGRAMMING MODELLet P denote the plant (factory) where the goods are beingmanufactured & W denote the warehouse (godown) wherefinished products are stored by the company before shipping tovarious destinations.Further let, x
ij
= quantity (amount of goods) shipped fromplant Pi to the warehouse W
 j
, andC
ij
= transportation cost per unit of shippingfrom plant Pi to the Warehouse W
 j
.
 
Objective-function. The objection function can be representedas:Minimize Z = c
11
x
11
+ C
12
x
12
+ C
13
x
13
(i.e. cost of shipping+ c
21
x
21
+ c
22
x
22
+ c
23
x
23
from a plant+ c
31
x
31
+ c
32
x
32
+ c
33
x
33
to the ware house)Supply constraints. x
11
+ x
12
+ x
13
= S
1
x
21
+ x
22
+ x
23
= S
2
x
31
+ x
32
+ x
33
= S
3
Demand constraints. x
11
+ x
21
+ x
31
= D
1
x
21
+ x
22
+ x
23
= D
2
x
31
+ x
32
+ x
33
= D
3
Either, x
ij
≥ for all values of I and j (ie; x
11
, x
12
, … all suchvalues are ≥ 0) .It is further assumed that: S
1
+ S
2
+ S
3
= D
1
+D
2
+ D
3
The total supply available at the plants exactly matches thetotal demand at the destinations. Hence, there is neither excesssupply nor excess demand. Such type of problems wheresupply and demand are exactly equal are known as BalancedTransportation Problem. In general, if a transportation problemhas m rows an n column, then the problem is solvable if thereare exactly (m + n –1) basic variables.A transportation problem is said to be unbalanced if the supplyand demand are not equal. If Supply < demand, a dummysupply variable is introduced in the equation to make it equalto demand ,Likewise, if demand < supply, a dummy demandvariable is introduced in the equation to make it equal tosupply.
1
points to note:-1) Total supply = total demand then it is a balancedtransportation problem, otherwise it is a unbalanced problem.2) The unbalanced problem can be balanced by adding adummy supply center (row) or a dummy demand center(column) as the need arises.3) When the number of positive allocation at any stage of feasible solution is less than the required number (row+Column – 1) the solution is said to be degenerate otherwisenon-degenarete.
2
The solution algorithm to a transportation problem can besummarized into following steps:Step 1. Formulate the problem and set up in the matrix form.

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