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TheThe TransportationTransportation ModelModel

A special class of the LP problem

Deals with the situation in which commodities are shipped from sources to destinations

Objective is to determine the amounts shipped from each source to each destination

Need to minimise the total shipping cost

Need to satisfy both the supply limits and the demand requirements

TheThe TransportationTransportation ModelModel

Represent each of the m sources and each of the n destinations by a node

Link the sources to the destinations with directed edges (arcs)

This represents the routes between sources and destinations

Arc (i, j) joins source i to destination j

TheThe TransportationTransportation ModelModel

Arc (i, j) and carries two pieces of information

The transportation cost per unit, c ij

The amount shipped, x ij

The amount of supply at source i is a i

The amount of demand at destination j is b j

The objective is to determine the unknowns, x ij

Need to minimise total transportation cost

Need

all supply and demand

requirements

to

meet

TheThe TransportationTransportation ModelModel

Units of supply

sources

destinations

c 1 1 : x 1 1 1 1 b a 1 1 2 2
c 1 1 : x 1 1
1
1
b
a 1
1
2
2
b
a 2
2
m
n
b
a m
n
c m n : x m n

Units of demand

TheThe TransportationTransportation ModelModel

AUS Auto has three plants in Sydney, Perth and Melbourne

They also have two major distribution centers in Brisbane and Adelaide

The capacities of the three plants during the next quarter are 1000, 1500 and 1200 cars

The quarterly demand at the two distribution centers are 2300 and 1400 cars

TheThe TransportationTransportation ModelModel

The distances (in km) between the plants and distribution centers are (say)

Brisbane

Adelaide

Sydney

1000

2690

Perth

1250

1350

Melbourne 1275 850

TheThe TransportationTransportation ModelModel

The company that transports the cars charges 8 cents per km per car

The transportation cost per car on each route (to the nearest dollar) is then

Brisbane

(1)

Adelaide

(2)

Sydney (1)

$80

$215

Perth (2)

$100

$108

Melbourne (3) $102 $68

TheThe TransportationTransportation ModelModel

The LP model is

minimise z = 80x 11 + 215x 12 + 100x 21 + 108x 22 + 102x 31 + 68x 32 s. t.

x

x

x

x

x

11 + x 12

21 + x 22

31 + x 32

= 1000 (Sydney)

= 1500 (Perth)

= 1200 (Melbourne)

11 + x 21 + x 31 = 2300 (Brisbane)

12 + x 22 + x 32 = 1400 (Adelaide)

x

ij 0,

i

= 1, 2, 3,

j = 1, 2

TheThe TransportationTransportation ModelModel

The constraints are equations because

Total supply = 100 + 1500 + 1200 = 3700

Total demand is 2300 + 1400 = 3700

Can solve this using the simplex method !

The special structure of the constraints

allow us to solve the convenient way

problem in a more

TheThe TransportationTransportation ModelModel

The optimal solution is

1000

1500

1200

SydneyModel Model The optimal solution is 1000 1500 1200 1000 Perth 1300 200 Melbourne 1200 Brisbane

1000

Model The optimal solution is 1000 1500 1200 Sydney 1000 Perth 1300 200 Melbourne 1200 Brisbane
Model The optimal solution is 1000 1500 1200 Sydney 1000 Perth 1300 200 Melbourne 1200 Brisbane

PerthModel The optimal solution is 1000 1500 1200 Sydney 1000 1300 200 Melbourne 1200 Brisbane Adelaide

1300 200
1300
200

Melbournesolution is 1000 1500 1200 Sydney 1000 Perth 1300 200 1200 Brisbane Adelaide 2300 1400 Total

is 1000 1500 1200 Sydney 1000 Perth 1300 200 Melbourne 1200 Brisbane Adelaide 2300 1400 Total
is 1000 1500 1200 Sydney 1000 Perth 1300 200 Melbourne 1200 Brisbane Adelaide 2300 1400 Total

1200

Brisbane

Adelaide

2300is 1000 1500 1200 Sydney 1000 Perth 1300 200 Melbourne 1200 Brisbane Adelaide 1400 Total transportation

1400is 1000 1500 1200 Sydney 1000 Perth 1300 200 Melbourne 1200 Brisbane Adelaide 2300 Total transportation

Total transportation cost is $313,200

TheThe TransportationTransportation ModelModel

Solve the problem using a transportation tableau

Brisbane

Adelaide

Sydney

 

80

 

215

x

11

x

12

Perth

 

100

 

108

x

21

x

22

Melbourne

 

102

 

68

x

31

x

32

Demand 2300

1400

Supply

1000

1500

1200

TheThe TransportationTransportation ModelModel

In the Aus Auto model, suppose that the Perth plant capacity is 1300 cars (instead of 1500)

This means that the total supply (3500) is less than the total demand (3700)

Part of the demand at Brisbane and Adelaide may not be filled

TheThe TransportationTransportation ModelModel

As demand exceeds supply, add a dummy source with a capacity of 200=3700-3500

This balances the transportation model

The c

is 0 because the plant does not exist

The c

may assume positive values as well

from the dummy plant to the destinations

ij

from the dummy source to the destinations

ij

e.g., to ensure that Adelaide will receive all its demand,

(penalty) to the entry from the

we assign a high c

dummy source to Adelaide

ij

TheThe TransportationTransportation ModelModel

The optimum solution of the balanced model is

Brisbane

Adelaide

   

80

 

215

Sydney

1000

 
 

100

 

108

Perth

1300

 
 

102

 

68

Melbourne

 

1200

 

0

 

0

Dummy

 

200

Demand

2300

1400

Supply

1000

1300

1200

200

The dummy plant ships 200 cars to Adelaide, which means that it will be 200 cars short !

TheThe TransportationTransportation ModelModel

Assume that the demand at Brisbane is only 1900 cars (not 2300)

Now supply exceeds the demand

In this case, we need to add a dummy distribution center to “receive” the surplus supply

Again, the c

’s to the dummy distribution center

ij

are 0, unless we wish to impose other conditions

e.g., we can require a factory to “ship out” completely

by assigning a high c the dummy destination

from the designated factory to

ij

TheThe TransportationTransportation ModelModel

The new model and its optimal solution is

Sydney

Perth

Melbourne

Demand

Brisbane Adelaide Dummy 80 215 0 1000 100 108 0 900 200 400 102 68
Brisbane
Adelaide
Dummy
80
215
0
1000
100
108
0
900
200
400
102
68
0
1200
1900
1400
400

Supply

1000

1500

1200

The Perth plant will have a surplus of 400 cars

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The application of the transportation model is not limited to transporting commodities between geographical sources and destinations

A company C manufactures product P

Demand occurs during March to June

The company estimates the demand to be

100(March), 200(April), 180(May), 300(June)

The company’s production capacity varies

It estimates that it can produce

50 (March), 180(April), 280(May), 270(June)

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The production capacity and demand for the different months do not match

A current month’s demand may be satisfied in one of three ways

1. Current month’s production

cost per unit is $40

2. Surplus production in an earlier month incurs a holding cost of $0.50/unit/month

3. Surplus production in a later month incurs a penalty cost of $2/unit/month

Determine the optimal production schedule

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

Notice the following parallels between the elements of the production-inventory problem and the transportation model:

Transportation 1. Source i

Production-inventory 1. Production period i

2.

Destination j

2. Demand period j

3.

Supply amount at source i

3. Production capacity of period i

4.

Demand at destination j

4. Demand for period j

5.

Unit transportation cost from source i to destination j

5. Unit cost (production+inventory +penalty) in period i for period j

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The unit “transportation” cost from period i to period j is computed as

c ij =

cost from period i to period j is computed as c i j = Production cost

Production cost in i, i =j

Production cost in i + holding cost from i to j, i < j Production cost in i + penalty cost from i to j, i > j

e.g.

c 11 = $40.00

c 24 = $40.00 + ($0.50 + $0.50) = $41.00

c 42 = $40.00 + ($2.00 + $2.00) = $44.00

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The resulting transportation model is

 

1

2

3

4

Capacity

1

$40

$40.5

$41

$41.5

50

2

$42

$40

$40.5

$41

180

3

$44

$42

$40

$40.5

280

4

$46

$44

$42

$40

270

Demand

100

200

180

300

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

supply

Supply

Demand

period period 50 50 1 1 50 130 180 2 2 70 180 280 3
period
period
50
50
1
1
50
130
180
2
2
70
180
280
3
4
30
270
270
3
4

100

200

180

300

demand

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

A saw mill prepares different types of wood

that range from soft pine to hard oak according

to a weekly schedule

Depending on the type of wood being milled, the demand for sharp blades varies from day to day according to the following 1-week (7-day) data:

Day

Mon Tues Wed Thur Fri

Sat

Sun

Demand

24

12

14

20

18

14

22

(blades)

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The mill can satisfy the daily demand in the following manner:

1.

Buy new blades at the cost of $12 a blade

2. Use an overnight sharpening service at the cost of $6 a blade, or a slow 2-day service at the cost of $3 a blade.

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The

transportation model

The 7 destinations represent the 7 days of the week

The 8 sources are defined as follows:

a

situation

be

represented

can

as

Source 1: buying new blades,

Sources 2 to 8: the 7 days of the week

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

The amount of supply for each of these sources equals the number of used blades at the end of the associated day

For example, source 2 (i.e., Monday) will have a supply of used blades equal to the demand for Monday

The unit transportation cost for the model could be $12, $6, or $3, depending on whether the blade is supplied from new blades, overnight sharpening, or 2-day sharpening

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

Notice that the overnight service means that used blades sent at the end of day i will be in use at the start of day i + 1 or day i + 2.

The 2-day service means that used blades sent at the end of day i will be in use at the start of day i + 3 or any day thereafter

The “disposal” column is a dummy destination that receives the blades left unsharpened at the end of a day

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

1 New

2 Mo

3 Tu

4 We

5 Th

6 Fr

7 Sa

8 Su

1

2

3

4

5

6

7

8

Mo

Tu

We

Th

Fr

Sa

Su

Dis

$12

$12

$12

$12

$12

$12

$12

$0

24

2

98

M

$6

$6

$3

$3

$3

$3

$0

10

8

6

M

M

$6

$6

$3

$3

$3

$0

6

6

M

M

M

$6

$6

$3

$3

$0

14

M

 

MMM

 

$6

$6

$3

$0

12

8

M

M

M

M

M

$6

$6

$0

14

4

M

 

MM

M

 

MM

$6

$0

14

M

M

M

M

M

M

M

$0

22

24

12

14

20

18

14

22

124

124

24

12

14

20

18

14

22

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

SharpeningService

Period

New

Overnight

2-Day

Disp

Mo

24(Mo)

10(Tu)+8(W)

6(Th)

0

Tu

2(Tu)

6(We)

6(Fr)

0

We

0

14(Th)

0

0

Th

0

12(Fr)

8(Su)

0

Fr

0

14(Sa)

0

4

Sa

0

14(Su)

0

0

Su

0

0

0

22

NonNon--TraditionalTraditional TransportationTransportation ModelsModels

At the start of Monday, the company buys 24 new blades

At the end of Mon, they will have 24 used blades

18 sent to overnight service, 6 to 2-day service

Of the 18 overnight blades,

10 will be used on Tuesday, and 8 on Wednesday

The six 2-day blades will be used on Thursday etc.

The disposal column shows the # of used blades that will be left unsharpened at the end of a given day

TheThe TransportationTransportation AlgorithmAlgorithm

The algorithm follows the exact steps of the simplex method

instead of using the regular simplex tableau, we take advantage of the special structure of the transportation model to present the algorithm in a more convenient form

We use the following numeric example to present the details of the algorithm

TheThe TransportationTransportation AlgorithmAlgorithm

A transport company ships truckloads of grain from three silos to four mills

The supply and demand is in #truckloads The c ij ’s (top-right corner of each box) are in $’00s

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
x
x
x
11
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

TheThe TransportationTransportation AlgorithmAlgorithm

The purpose of the model is to determine the minimum cost shipping schedule between the silos and the mills

This is equivalent to determining the quantity x ij shipped from silo i to mill j

(i = 1, 2, 3; j = 1, 2, 3, 4)

TheThe TransportationTransportation AlgorithmAlgorithm

The steps of the transportation algorithm are exact parallels of the simplex algorithm

1. Determine a starting basic feasible solution

2. If the optimality condition is satisfied, stop. Otherwise, use the optimality condition of the simplex method to determine the entering variable from amongst all the non-basic variables Go to step 3

3. Use the feasibility condition of the simplex method to determine the leaving variable from among all the current basic variables and find the new basic solution Return to step 2

TheThe TransportationTransportation AlgorithmAlgorithm

The special structure of the transportation problem allows securing a non-artificial starting basic solution using one of three methods:

1. Northwest-corner method 2. Least-cost method 3. Vogel approximation method

The difference the methods is the “quality” of the starting basic solution they produce

In general, 3. yields the best and 1. yields the worst

However 1. involves the least computations.

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Step 1.

Step 2.

Step 3.

, the northwest corner of the (remaining) tableau Adjust the associated amounts of supply and demand by subtracting the allocated amount If all units have been allocated stop; else ifthe supply in row i is satisfied AND the demand in column j is satisfied, remove EITHER row i OR row j (but not BOTH)

Allocate as much as possible to the variable, x ij

in

else if

the supply in row i is satisfied

else if

remove row i the demand in column j is satisfied remove column j

Go to Step 1.

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
x
x
x
11
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

Update variable x 11 (NW corner)

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
x
x
x
11
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

Allocate as much as possible

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
x
x
x
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

Update supply and demand

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
x
x
x
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
15
15
15

Remove column 1

Supply

10

25

10

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
x
x
x
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
15
15
15

Supply

10

25

10

Update variable x 12 (NW corner)

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
x
x
x
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
15
15
15

Supply

10

25

10

Allocate as much as possible

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
15
15
15

Supply

10

25

10

Update supply and demand

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
5
15
15

Remove row 1

Supply

0

25

10

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
5
15
15

Supply

0

25

10

Update variable x 22 (NW corner)

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
0
5
15
15

Supply

0

25

10

Allocate as much as possible

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
5
x
x
21
23
24
4
14
16
18
x
x
x
31
x 32
33
34
0
5
15
15

Supply

0

25

10

Update supply and demand

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
5
x
x
21
23
24
4
14
16
18
x
x
x
31
x 32
33
34
0
0
15
15

Remove column 2

Supply

0

20

10

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
5
x
x
21
23
24
4
14
16
18
x
x
x
31
x 32
33
34
0
0
15
15

Supply

0

20

10

Update variable x 23 (NW corner)

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x
13
14
12
7
9
20
x
5
x
x
21
23
24
4
14
16
18
x
x
x
31
x 32
33
34
0
0
15
15

Supply

0

20

10

Allocate as much as possible

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
x
21
24
4
14
16
18
x
x
31
x 32
x 33
34
0
0
15
15

Supply

0

20

10

Update supply and demand

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
x
21
24
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
15

Remove column 3

Supply

0

5

10

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
x
21
24
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
15

Supply

0

5

10

Update variable x 24 (NW corner)

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
x
21
24
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
15

Supply

0

5

10

Allocate as much as possible

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
5
21
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
15

Supply

0

5

10

Update supply and demand

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
5
21
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
10

Remove row 2

Supply

0

0

10

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
5
21
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
10

Supply

0

0

10

Update variable x 34 (NW corner)

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x
x 13
14
12
7
9
20
x
5
15
5
21
4
14
16
18
x
x
31
x 32
x 33
34
0
0
0
10

Supply

0

0

10

Allocate as much as possible

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x 13
x 14
12
7
9
20
x
5
15
5
21
4
14
16
18
x
10
31
x 32
x 33
0
0
0
10

Supply

0

0

10

Update supply and demand

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
x 13
x 14
12
7
9
20
x
5
15
5
21
4
14
16
18
x
10
31
x 32
x 33
0
0
0
0

Supply

0

0

0

All units have been allocated; stop.

TheThe NorthNorth--WestWest--CornerCorner MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 5 10 12
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
5
10
12
7
9
20
5
15
5
4
14
16
18
10
5
15
15
15

Supply

15

25

10

The starting basic solution is given as

x 11 = 5, x 12 = 10, x 22 = 5, x 23 = 15, x 24 = 5, x 34 = 10

The associated cost of the schedule is

z = 5x10 + 10x2 + 5x7 + 15x9 + 5x20 +10x18 = $520

TheThe LeastLeast--CostCost MethodMethod

Concentrate on the “cheapest” cells

Start by assigning as much as possible to the cell with the smallest unit cost (ties are broken arbitrarily)

We then adjust the amounts of supply and demand and remove the satisfied row or column accordingly

If both a row and a column are satisfied simultaneously, only one is removed

Repeat until all units have been allocated

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
x
x
x
11
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

Update variable x 12 (cheapest = 2)

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x x x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
x
x
x
11
12
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

Allocate as much as possible

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
15
15
15

Supply

15

25

10

Update supply and demand

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
0
15
15

Supply

0

25

10

Arbitrarily remove column 2

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
0
15
15

Supply

0

25

10

Update variable x 31 (cheapest = 4)

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
x
x
x
x
31
32
33
34
5
0
15
15

Supply

0

25

10

Allocate as much as possible

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
5
x
x
x
32
33
34
5
0
15
15

Supply

0

25

10

Update supply and demand

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
5
x
x
x
32
33
34
0
0
15
15

Remove column 1

Supply

0

25

5

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
5
x
x
x
32
33
34
0
0
15
15

Supply

0

25

5

Update variable x 23 (cheapest = 9)

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
x
11
13
14
12
7
9
20
x
x
x
x
21
22
23
24
4
14
16
18
5
x
x
x
32
33
34
0
0
15
15

Supply

0

25

5

Allocate as much as possible

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
11
x 13
14
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
15
15

Supply

0

25

5

Update supply and demand

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
11
x 13
14
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Remove column 3

Supply

0

10

5

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
11
x 13
14
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Supply

0

10

5

Update variable x 14 (cheapest = 11)

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 x
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
x
11
x 13
14
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Supply

0

10

5

Allocate as much as possible

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Supply

0

10

5

Update supply and demand

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Remove row 1

Supply

0

10

5

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Supply

0

10

5

Update variable x 34 (cheapest = 18)

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x
x 21
x 22
24
4
14
16
18
5
x
x
32
x 33
34
0
0
0
15

Supply

0

10

5

Allocate as much as possible

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x 21
x 22
x 24
4
14
16
18
5
x
5
32
x 33
0
0
0
15

Supply

0

10

5

Update supply and demand

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x 21
x 22
x 24
4
14
16
18
5
x
5
32
x 33
0
0
0
10

Remove row 3

Supply

0

10

0

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2

Silo 3

Demand

Mill 1 Mill 2 Mill 3 Mill 4 10 2 20 11 x 15 0
Mill 1
Mill 2
Mill 3
Mill 4
10
2
20
11
x
15
0
11
x 13
12
7
9
20
15
x 21
x 22
x 24
4
14
16
18
5
x
5
32
x 33
0
0
0
10

Supply

0

10

0

Update variable x 24 (cheapest = 20)

TheThe LeastLeast--CostCost MethodMethod

Silo 1

Silo 2