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VAM MODI Transportation

# VAM MODI Transportation

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10/13/2014

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CD Tutorial
4
The MODI and VAMMethods of SolvingTransportation Problems
TutorialOutline
MODI METHOD
How to Use the MODI MethodSolvingtheArizonaPlumbingProblemwithMODI
VOGEL’S APPROXIMATION METHOD:ANOTHER WAY TO FIND AN INITIALSOLUTION
D
ISCUSSION
Q
UESTIONS
P
ROBLEMS

T4-2CD T
UTORIAL
4T
HE
MODI
AND
VAM M
ETHODSOF
S
OLVING
T
RANSPORTATION
P
ROBLEMS
This tutorial deals with two techniques for solving transportation problems:the MODI method andVogel’s Approximation Method (VAM).
MODI METHOD
The MODI (
modified distribution
) method allows us to compute improvement indices quickly foreach unused square without drawing all of the closed paths. Because of this,it can often provideconsiderable time savings over other methods for solving transportation problems.MODIprovidesanewmeansoffindingtheunusedroutewiththelargestnegativeimprovementindex.Oncethelargestindexisidentified,wearerequiredtotraceonlyoneclosedpath.Thispathhelpsdeterminethemaximumnumberofunitsthatcanbeshippedviathebestunusedroute.
How to Use the MODI Method
InapplyingtheMODImethod,webeginwithaninitialsolutionobtainedbyusingthenorthwestcor-nerruleoranyotherrule.Butnowwemustcomputeavalueforeachrow(callthevalues
R
1
,
R
2
,
R
3
if therearethreerows)andforeachcolumn(
1
,
2
,
3
)inthetransportationtable.Ingeneral,weletThe MODI method then requires five steps:
1.
To compute the values for each row and column,set
R
i
+
j
=
ij
but
only for those squares that are currently used or occupied
. For example,if the square atthe intersection of row 2 and column 1 is occupied,we set
R
2
+
1
=
21
.
2.
After all equations have been written,set
R
1
= 0.
3.
Solve the system of equations for all
R
and
values.
4.
Compute the improvement index for each unused square by the formula improvementindex (
I
ij
) =
ij
R
i
j
.
5.
Select the largest negative index and proceed to solve the problem as you did using thestepping-stone method.
Solving the Arizona Plumbing Problem with MODI
Let us try out these rules on the Arizona Plumbing problem. The initial northwest corner solution isshown in Table T4.1. MODI will be used to compute an improvement index for each unused square.Note that the only change in the transportation table is the border labeling the
R
i
s
(rows) and
j
s
(columns).We first set up an equation for each occupied square:
1.
R
1
+
1
= 5
2.
R
2
+
1
= 8
3.
R
2
+
2
= 4
4.
R
3
+
2
= 7
5.
R
3
+
3
= 5Letting
R
1
= 0,we can easily solve,step by step,for
1
,
R
2
,
2
,
R
3
,and
3
.
1.
R
1
+
1
= 50 +
1
= 5
1
= 5
2.
R
2
+
1
= 8
R
2
+ 5 = 8
R
2
= 3
3.
R
2
+
2
= 43 +
2
= 4
2
= 1
R iK jC ij i j
i jij
===
value assigned to rowvalue assigned to columncost in square (cost of shipping from source to destination )

MODI M
ETHOD
T4-3
TABLE T4.1
Initial Solution to ArizonaPlumbing Problem in theMODI Format
FROMTOALBUQUERQUE BOSTON CLEVELANDFACTORYCAPACITYDES MOINESEVANSVILLEFORTLAUDERDALEWAREHOUSEREQUIREMENTS
5843100
j
R
i
R
1
R
2
R
3
1
2
3
20020030010010030010043975700200300200
4.
R
3
+
2
= 7
R
2
+ 1 = 7
R
3
= 6
5.
R
3
+
3
= 56 +
3
= 5
3
=
1You can observe that these
R
and
values will not always be positive; it is common for zero and neg-ative values to occur as well. After solving for the
R
s and
s in a few practice problems,you may becomeso proficient that the calculations can be done in your head instead of by writing the equations out.The next step is to compute the improvement index for each unused cell. That formula isimprovement index =
I
ij
=
ij
R
i
j
We have:Because one of the indices is negative,the current solution is not optimal. Now it is necessary totrace only the one closed path,for Fort Lauderdale–Albuquerque,in order to proceed with the solu-tion procedures.The steps we follow to develop an improved solution after the improvement indices have beencomputed are outlined briefly:
1.
Beginning at the square with the best improvement index (Fort Lauderdale–Albuquerque),trace a closed path back to the original square via squares that are currently being used.
2.
Beginning with a plus (+) sign at the unused square,place alternate minus (
) signs andplus signs on each corner square of the closed path just traced.
3.
Select the smallest quantity found in those squares containing minus signs.
that num-ber to all squares on the closed path with plus signs;
subtract
the number from all squaresassigned minus signs.
4.
Compute new improvement indices for this new solution using the MODI method.Des Moines–Boston index (orDes Moines–Cleveland index (orEvansville–Cleveland index (orFort Lauderdale–Albuquerque index (or
= = = = += = = = += = = = += =
I I C R  I I C R  I I C R  I I C R
DB DC  EC FA
12121213131323232331313
401330143311)\$)()\$)()\$)
1
9652
= =
\$