Decision Science

Operations Research- Transportation Problem

Transportation Problem (TP) is one of the subclasses of LPP in which objective is
to transport various quantities of a single homogeneous commodity that are
initially stored at various origins to different destinations in such a way that the
transportation cost is minimum

1) A dairy farm has 3 plants located in a state. The daily milk production at
each plant is as follows
Plant 1 : 6 mn litres
Plant 2 : 1 mn litres
Plant 3 : 10 mn litres
Each day, the firm must fulfil the needs of its 4 distribution centres.
Minimum requirements at each centre are as follows:

Distribution Centre 1 : 7 mn litres

Distribution centre 2 : 5 mn litres
Distribution centre 3 : 3 mn litres
Distribution centre 4 : 2 mn litres
Cost in hundreds of Rs of shipping 1 mn litre from each plant to each
distribution centre is given in the following table

D1
P1
P2
P3

D2

2
1
5

3
0
8

Find IBFS using

D3
11
6
15

D4
7
1
9

i) NWCR

ii) LCM
iii) VAM

Compiled by...Rajesh Devasia | [Type the company address]

2) Determine the IBFS for the following TP using i) NWCR ii) LCM and iii)
Vogels Approximation methods where Di represents the demand centre
and Si represents the supply centre.The numbers in cell SiDi indicates the
cost ( 00 Rs ) of transporting 1 unit of a product/commodity from Si to Di.
a)

b)

3) Find

S1
S2
S3
Dema
nd

S1
S2
S3
Dema
nd

D1
21
17
32
6

D1
1
3
4
20

D2
16
18
27

D3
15
14
18

10

D2
2
3
2

12

D3
1
2
5

40

30

D4
3
23
41

Suppl
y
11
13
19

15

D4
4
1
9

Suppl
y
30
50
20
the Optimal
solution to

10

the following TP using MODI method

a)

S1
S2
S3
Dema
nd

D1
19
70
40

D2
30
30
8

D3
50
40
70

W1
16
14
26

W2
20
8
24

W3
12
18
16

D4
10
60
20

Suppl
y
7
9
18

14

b)

F1
F2
F3
Dema
nd

180

120

Suppl
y
200
160
90

150
1

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Compiled by...Rajesh Devasia | [Type the company address]