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Transportation Model

# Transportation Model

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1251Specially Structured Linear Programmes I : Transportation andTranshipment Problems
A typical transportation problem is like this. Suppose that a manufacturer of refrigeratorshas three plants situated at places called
A, B
, and
. Suppose further that his buyers arelocated in three regions
X, Y
and
Z
where he has to supply them the goods. Also, assumethat the demands in the three regions and the production in different plants per unit time period are known and equal in aggregate, and further that the cost of transporting onerefrigerator from each plant to each of the requirement centers is given and constant. Themanufacturer’s problem is to determine as to how he should route his product from his plants to the market places so that the total cost involved in the transportation isminimized. In other words, he has to decide as to how many refrigerators should besupplied from
A
to
X, Y
and
Z
; how many from
B
to
X, Y
, and
Z
and how many from
to
X, Y
, and
Z
, to achieve it at the least cost. This is illustrated in Figure given below:The places where the goods originate from (the plants in our example) are called the
sources or the origins
and places where they are to be supplied are the
destinations.
Inthis terminology, the problem of the manufacturer is to decide as to how many units betransported from different origins to different destinations so that the total transportationcost is the minimum.
PROBLEM STATEMENT
The classical transportation problem can be stated mathematically as follows:Let
i
a
= quantity of product available at origin
i

j
b
= quantity of product required at destination
j
ij
c

= the cost of transporting one unit of product from source/origin
i
to destination
j

ij
x
= the quantity transported from origin
i
to destination
j
Assume that
= =
=
min  j  ji
ba
1 1
which means that the total quantity available at the origins is precisely equal to the total amount required at the destinations.With these, the problem can be stated as a linear programming problem as:
ZAXBYCSupplyDemandROUTESPLANTMARKETFigure – Transportation Problem

Minimize Total Cost,
∑∑
= =
=
min  jijij
xc Z
1 1
Subject to
=
=
n  jiij
x
1
α
for
i
= 1,2….,
m
=
=
mi  jij
b x
1
for
j
= 1,2….,
n
and
0
ij
x
for all
i
=1,2…,
m
, andj =1,2,…,
n
The transportation model can also be portrayed in a tabular form by means of atransportation tableau, shown in table given below.
Table – Transportation TableauOrigin (i)Destination (j)Supply,
i
a
12
N
1
11
x

11
c

12
x

12
c

n
x
1

n
c
1

1
a
2
21
x

21
c

22
x

22
c
n
x
2
n
c
2

2
a
m

1
m
x

1
m
c

2
m
x

2
m
c
mn
x
mn
c

m
a
Demand,
j
b
1
b
2
b
n
b
=
ji
ba
This tableau can be thought of as a matrix within a matrix, of the dimension
m x n
. Theone is the per unit cost matrix which represents the unit transportation costs for each of the possible transportation routes. Its elements are given by
ij
c
, indicating the cost of shipping a unit from the
i
th origin to the
j
th destination. Superimposed on this matrix isthe matrix in which each cell contains a transportation variable-that is, the number of units shipped from the row-designated
origin
to the column designated
destination
. Eachsuch variable is represented by
ij
x
, the amount shipped from
i
th source to
j
thdestination. Right and bottom sides of the transportation tableau show, respectively, theamount of supplies
i
a
available at source
i
and the amount demanded
j
b
at eachdestination
j.
The
sa
i
'
and
sb
j
'
represent the supply and demand constraints.The aggregate transportation cost is determined by multiplying the various
s x
ij
'
withcorresponding
sc
ij
'
and then adding them up all. The solution to the transportation problem calls for determining values of
s x
ij
'
as would yield the minimum aggregatetransportation cost. When a problem is solved, some of the
s x
ij
'
would assume positivevalues indicating utilized routes. The cells containing such values are called
occupied
or
filled
cells and each of them represents the presence of a
basic
variable. For theremaining cells, called the
empty cells,
s x
ij
'
would be zero. These are the routes that

are not utilized by the transportation pattern and their corresponding variables (
s x
ij
'
)are regarded to be
non-basic.
Remember that the transportation costs are assumed to be linear in nature. Further, it isassumed here that the aggregate supply at sources (
i
a
) is equal to the aggregatedemand at destinations (
)
j
b
. We shall consider later the situation when they do notmatch.As observed earlier, the number of constraints in a transportation tableau is
m + n
(thenumber of rows plus the number of columns). The number of variables required for forming a basis is one less, i.e.,
m + n
– 1
.
This is so, because there are only
m + n
–1independent variables in the solution basis. In other words, with values of any
m + n
–1independent variables being given, the remaining would automatically be determined onthe basis of those values. Also, considering the conditions of feasibility and non-negativity, the number of basic variables representing transportation routes that areutilized equals
m + n
–1, and all other variables be non-basic, or zero, representing theunutilized routes. It means that a basic feasible solution of the transportation problem hasexactly
m + n
–1 positive components in comparison to the
m + n
positive componentsrequired for a basic feasible solution in respect of a general linear programming problemin which there are
m + n
structural constraints to satisfy.
Solution to the Transportation Problem
A transportation problem can be solved by two methods, using (a) simplex method, and(b) transportation method. We shall illustrate these with the help of an example.
Example
A firm owns facilities at six places. It has manufacturing plants at places. A, B and Cwith daily production of 50, 40 and 60 units respectively. At point
D, E
, and
F
it hasthree warehouses with daily demand of 20, 95, and 35 units respectively. Per unitshipping costs are given in the following table. If the firm wants to minimize its totaltransportation cost, how should it route its products?
Warehouse
____________________________________ DEFA641
Plant
B387C442
(a)The simplex method
- The given problem can be express as an LPP as follows:Let
ij
x
represent the number of units shipped from plant
i
to warehouse
j
. WithZ representing the total cost we can state the problem as follows.MinimizeZ =
333231232221131211
244783146
x x x x x x x x x
++++++++
Subject to
50
131211
=++
x x x

40
232221
=++
x x x
Supply constraints
60
333231
=++
x x x
20
312111
=++
x x x

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