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ON

Transportation Problem

As any good work is incomplete without acknowledging the people who

made it possible, this acknowledgement is incomplete without thanking our

family, friends, and our faculty, without whose support this project wouldn't

have taken shape.

have gained so much knowledge, which has been possible due to the well-

managed education imparted to us under conditions, which are quite

conducive to learning, at our college.

“Operations Research” , who has helped us clarify our concepts by sharing

his valued experiences in his teaching, research and training which have

thereby become an unconscious part of our ideas and thoughts while

analyzing the Operations Research project work on Management of

Kaiserbagh Bus Depot.

Without his sincere help and guidance the project report would have not

been a possible.

We thank all our team members who had worked hard to make the report to

its present form.

Lastly we would like to thank our families for their continuing support,

blessings and encouragement.

Introduction

Linear Programming

a linear objective function, subject to linear equality and linear inequality

constraints. Informally, linear programming determines the way to achieve

the best outcome (such as maximum profit or lowest cost) in a given

mathematical model and given some list of requirements represented as

linear equations.

and a real-valued affine function

the polytope where this function has the smallest (or largest) value. Such

points may not exist, but if they do, searching through the polytope vertices

is guaranteed to find at least one of them.

Maximize: ctx

Subject to: Ax<=b

vectors of (known) coefficients and is a (known) matrix of coefficients.

The expression to be maximized or minimized is called the objective

function ( in this case). The equations are the constraints which

specify a convex polyhedron over which the objective function is to be

optimized.

extensively it is used in business and economic situations, but can also be

utilized for some engineering problems. Some industries that use linear

programming models include transportation, energy, telecommunications,

and manufacturing. It has proved useful in modeling diverse types of

problems in planning, routing, scheduling, assignment, and design.

Linear Programming Assumptions

above structure. In a linear equation, each decision variable is multiplied by

a constant coefficient with no multiplying between decision variables and no

nonlinear functions such as logarithms. Linearity requires the following

assumptions:

in that variable's contribution to the value of the function.

term.

values, taking on fractional values. Integer programming techniques can be

used if the divisibility assumption does not hold.

certainty; that is, that the coefficients are known and constant.

possible values. A constraint is considered to be binding if changing it also

changes the optimal solution. Less severe constraints that do not affect the

optimal solution are non-binding.

value, and loosening a binding constraint can only improve the objective

function value. As such, once an optimal solution is found, managers can

seek to improve that solution by finding ways to relax binding constraints.

Route planning

electrical networks pervade our daily lives. Many network optimization

models are special types of linear programming models. Route planning or

the shortest path problem is one of them. In this problem we consider an

undirected and connected network with 2 special nodes, called source and

destination. Associated with each link is nonnegative distance. The objective

is to find the shortest path from the source to the destination. A relatively

straightforward algorithm is available for this problem. The essence of this

procedure is that it fans out from the origin, identifying the shortest path to

each node of the network in the ascending order of their shortest distances

from the origin, thereby solving the problem when destination node is

reached.

simplified version of the simplex technique called transportation method.

Because of its major application in solving problems involving several

product sources and several destinations of products, this type of problem is

frequently called the transportation problem. It gets its name from its

application to problems involving transporting products from several sources

to several destinations. Although the formation can be used to represent

more general assignment and scheduling problems as well as transportation

and distribution problems. The two common objectives of such problems are

either (1) minimize the cost of shipping m units to n destinations or (2)

maximize the profit of shipping m units to n destinations.

capacities, destinations requirements and costs of material shipping from

each source to each destination are given constantly. The transportation

problem can be described using following linear programming mathematical

model and usually it appears in a transportation tableau.

We will now discuss each one in the context of a simple example. Suppose

one company has four factories supplying four warehouses and its

management wants to determine the minimum-cost shipping schedule for its

weekly output of chests. Factory supply, warehouse demands, and shipping

costs per one chest (unit) are shown below.

done in several different ways; the only requirement is that the destination

needs be met within the constraints of source supply.

shown in the far right column and the warehouse demands are shown in the

bottom row. The unit shipping costs are shown in the small boxes within the

cells. It is important at this step to make sure that the total supply

availabilities and total demand requirements are equal. Often there is an

excess supply or demand. In such situations, for the transportation method to

work, a dummy warehouse or factory must be added. Procedurally, this

involves inserting an extra row (for an additional factory) or an extra column

(for an ad warehouse). The amount of supply or demand required by the

”dummy” equals the difference between the row and column totals.

destinations where the commodity is demanded. The classic statement of the

transportation problem uses a matrix with the rows representing sources and

columns representing destinations. The algorithms for solving the problem

are based on this matrix representation. The costs of shipping from sources

to destinations are indicated by the entries in the matrix. If shipment is

impossible between a given source and destination, a large cost of M is

entered. This discourages the solution from using such cells. Supplies and

demands are shown along the margins of the matrix. As in the example, the

classic transportation problem has total supply equal to total demand.

Matrix model of a transportation problem.

Sources are identified as the nodes on the left and destinations on the right.

Allowable shipping links are shown as arcs, while disallowed links are not

included.

Only arc costs are shown in the network model, as these are the only

relevant parameters. All other parameters are set to the default values. The

network has a special form important in graph theory; it is called a bipartite

network since the nodes can be divided into two parts with all arcs going

from one part to the other.

On each supply node the positive external flow indicates supply flow

entering the network. On each destination node a demand is a negative fixed

external flow indicating that this amount must leave the network.

Optimum solution, z = 46.

modifications of the network model. If links have finite capacity, the arc

upper bounds can be made finite. If supplies represent raw materials that are

transformed into products at the sources and the demands are in units of

product, the gain factors can be used to represent transformation efficiency

at each source. If some minimal flow is required in certain links, arc lower

bounds can be set to nonzero values.

Problems faced by Kaiserbagh Bus Depot

1). The Director of Roadways, Uttar Pradesh, Knows that the problem of existing

temporary bus stand in Kaiserbagh is the increased waiting cost on behalf of the

customers. It is known that customers arrive at a Poisson process at the rate of 100 per

hour. The time required to deal with a customer has an exponential distribution with a

mean service time of 30 seconds. The director feels that the cost of loss in customer

goodwill due to waiting in queue is Rs. 10 per minute.

The diector has been approached with the following two alternatives:-

• Proposal 1 is to shift the entire operations to a new location i.e. Old Kaiserbagh

Bus Depot. The cost of transfer and designing a new facility is Rs. 4.56 crores. Its

been assumed that the new facility will be operatatble with an estimated life of 10

years. The new facility will reduce the average service time to 15 seconds.

• Proposal 2 is to shift the entire operations to a less populated area and designing a

new facility with an estimated cost of Rs. 6.25 crores. The new facility will result

in reduction in average service time to 10 seconds.

The director wants to evaluate the best proposal he should undertake so as to reduce the

total cost of operations.

(The Bus-Stand is operatable for 12 hours in a day for 360 days in a year).

Solution

Mean service time (µ) = 30 seconds=120 per hour

Cost of waiting(Cw) = 10 per minute =600 per hour

Model used --- (M/M/1):(∞/GD)

= 100²/120(120-100)

= 4.167

Total cost of waiting = Lq×Cw

= 4.167 ×600

= 2500.2

Proposal 1.

Inter arrival time(λ) = 100 per hour

Mean service time (µ) = 15 seconds=240 per hour

Cost of waiting(Cw) = 10 per minute =600 per hour

Model used --- (M/M/1):(∞/GD)

= 100²/240(240-100)

= .297

Total cost of waiting = Lq×Cw

= .297 ×600

= 178.57

Initial cost =initial investment/10yrs×360×12=45600000/43200=1055.55

=1055.55 + 178.57=1234.12

Proposal 1.

Inter arrival time(λ) = 100 per hour

Mean service time (µ) = 10 seconds=360 per hour

Cost of waiting(Cw) = 10 per minute =600 per hour

Model used --- (M/M/1):(∞/GD)

= 100²/360(360-100)

= .107

= .107 ×600

= 64.10

Initial cost =initial investment/10yrs×360×12=62500000/43200=1446.75

=1446.75 + 64.10=1510.85

2). The management of the Kaiserbagh Bus Stand is thinking of inaugurating a new

“Superfast” bus service consisting of three new buses from Kaiserbagh Bus Stand. The

buses are of three categories namely Marcopolo, Tata SE202, Echier Super105.The

locations are Barabanki, Sitapur and Gonda. The cost structur is as follows:-

Distance 30 85 105

Proposed Ticket 20 50 70

Charge

The Capacity of buses and the running cost per kilometer is as follows:-

Capacity 60 70 80

Cost of Running 10 15 17

Marcopolo 900 2150 3150

Tata SE202 950 2225 3625

Echier Super105 1090 2555 3815

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