3.1 TRANSPORTATION PROBLEM
The transportation problem deals with the transportation of a single product from several sources (origins or supply) to several sinks (destinations or demand). 3.2 IMPORTANT ELEMENTS: 3.21 ORIGIN The origin of a transportation problem is the location from which shipment are dispatched. 3.22 DESTINATION The destination of a transportation problem is the location to which shipments are transported. 3.23 UNIT TRANSPORTATION COST It is the cost of transporting one unit of the consignment (incoming/livraison) from an origin to a destination. Note: The transportation problem indicates the amount of consignment to be transported from various origins to different destinations so that the total transportation cost is minimized without violating the availability constraints (Supply) and the requirement constraints (Demand). In other words, demand and supply must be satisfied. Example – A manager has four factories (origins) and four warehouses (destinations). The quantities of goods available in each factory (supply), the requirements of goods in each warehouse (demand) and the cost of transportation of a product from each factory to each warehouse are given. His objective is to ascertain the quantity to be transported from various factories to different warehouses in such a way that the total transportation cost is minimized.
3.24 GENERAL TRANSPORTATION PROBLEM Minimize (total cost) m n Z = ! ! Cij Xij i=1 j = 1 Availability n ! Xij = ai j=1 m ! Xij = bj i=1 Xij " 0 i = 1, 2,………,m
j = 1, 2, …….,n
Non Negativity Restrictions for all i and j Where Cij = cost of transporting one unit of commodity from origin i to destination j. Xij = quantity transported from origin i to destination j. ai = quantity of commodity available at origin i [supply]. bj = quantity of commodity needed at destination j [demand]. M.H.Gendoo | Quantitative Methods 1
satisfying all the conditions. 3.26 BASIC FEASIBLE SOLUTION • The number of positive allocation (values of basic or decision variables) at any stage of feasible solution must be equal to the number (Rows + Columns – 1)/ (m + n – 1). that is.25 FEASIBLE SOLUTION • When the total capacity equals total requirement.Transportation Problem
The problem is to determine the transportation schedule so as to minimize the total transportation cost satisfying supply and demand conditions. number of independent constraints equation.H.Gendoo | Quantitative Methods 2
. the problem is called balanced transportation problem otherwise it is known as unbalanced transportation problem. the solution is said to be degenerate solution. otherwise nondegenerate solution.
Origin Oi O1 D1 C11 X11 Occupied Cell or Allocated Cell D2 Dn -----------C12 C1n X12 ----------X1n Availability ai a1
O2 : : : : Om Requirement bj Remarks: •
C21 X21 : : : : Cm1 Xm 1 b1
C22 X22 : : : : Cm2 Xm 2 b2 -----------: : : : ----------------------
C2n X2 n : : : : Cmn Xm n bn
a2 : : : : am m n ! ai = ! bj i=1 j=1
m n Here ! ai = ! bj (total capacity/supply = total requirement/demand). i=1 j=1
3.3 METHODS FOR FINDING INITIAL BASIC FEASIBLE SOLUTION: 1) North West Corner Method 2) Matrix Minima Method (Least Cost Method) 3) Vogel’s Approximation Method (VAM)
M. • The allocated cells in the transportation table having positive allocation are called occupied cells and empty cells are known as non occupied cells. • When the number of positive allocations at any stage of the feasible solution is less than the required number (m + n – 1). 3.
3.200. If all supply and demand values are exhausted then stop.31 NORTH WEST CORNER METHOD Procedure: Step 1 – first check whether it is a balanced problem or NOT. that is. Step 4 – adjust the supply and demand values. otherwise move one cell to the right or one cell down depending on the supply and demand values. Step 5 – check the number of positive allocation. Step 2 – select the North West (upper left hand) Corner Cell for a shipment. go to step 3. Step 3 –make as large a shipment as possible in the North West Corner or Cell. Illustration 1: W1 F1 11 W2 13 W3 17 W4 14 Supply (ai) 250 300
F2 F3 Demand (bi)
Check m n ! ai = ! bj = 950 [balanced problem] i=1 j=1 Solution 1: W1 F1 11 200 W2 13 175 F2 F3 21 Demand 200 24 225 13 275 16 18 14 150 10 250 50 W3 17 125 10 250 400 W4 14 Supply 250 300
Check (m + n – 1) = 3 + 4 – 1 = 6 occupied cells. The transportation cost. This operation will completely exhaust either the supply available at one source or the demand at one destination.Gendoo | Quantitative Methods 3
M.H. Min Z = 200 x 11 + 50 x 13 + 175 x 18 + 125 x 14 + 150 x 13 + 250 x 10 = 12. (m + n – 1) [number of occupied cells].
a dummy destination is introduced in the transportation table which absorbs the excess capacity. Case 2 (S < D): When the total capacity of the origins (supply) is less than the total requirement of destinations (demand).
M.32 MATRIX MINIMA METHOD (LEAST COST) Procedure:
Step 1 – first check whether it is a balanced problem or NOT. Whenever the minimum cost is not unique. cross off either the ith row or the jth column but not both. The cost of shipping from the dummy origin to each destination is assumed to be zero. a dummy origin is introduced in the transportation table which absorbs the excess demand. cross off the ith row of the transportation table and decrease bj by ai . Supply " Demand. Go to step 3.Gendoo | Quantitative Methods 4
. ! ai " ! bj Procedure: Case 1 (S > D): When the total capacity of the origins (supply) exceeds the total requirement of destinations (demand).H. If xij = bj . Step 2 – determine the smallest cost matrix of the transportation table.33 UNBALANCED TRANSPORTATION PROBLEM An unbalanced transportation problem is one in which the total supply of the factories (origins) and the total demand at distribution centres (destinations) are NOT equal. The cost of shipping from each origin to this dummy destination is assumed to be zero. Step 4 – repeats steps 2 and 3 for the resulting reduced transportation table until all the requirements ! ai = ! bj are satisfied. If xij = ai = bj . Go to step 4. The introduction of a dummy origin establishes equality between the total origin capacities and total destination requirements.Transportation Problem
3. The insertion of a dummy destination establishes equality between the total origin capacities and total destination requirements. Step 3 – if xij = ai . make an arbitrary choice among the minima. cross off the jth column of the transportation table and decrease ai by bj .
Illustration 3: W1 F1 23 22 F2 F3 Demand (bi) 12 17 17 22 22 28 35 12 25 W2 27 18 20 25 32 41 51 11 W3 16 W4 18 Supply (ai) 30 30 40
7 FINDING OPTIMAL SOLUTION (UV OR MODI METHODS) Step 1: Find the initial basic feasible solution by using any of the three methods Step 2: Check the number of occupied cells.6 VOGEL’S APPROXIMATION METHOD (VAM) Procedure: Step 1 – check whether it is balanced or Not. select the unoccupied cell. then the current basic feasible solution is an optimum one. Step 3: For each occupied cell in the current solution. Identify a loop that starts and ends at the cell (r. Step 5: Examine the sign of each Zij – Cij. If at least one Zij – Cij > 0. 3. If all Zij – Cij ≤ 0. there exists degeneracy. If these are less than m + n – 1. 3. that is. Allocate an unknown quantity. Step 7 – continue the procedure until all rows and columns have been crossed out. say $. In a minimization transportation problem it is better to allocate # to unoccupied cells that have lowest transportation costs. to the cell (r.4 IN CASE OF CONTRIBUTION/PROFIT MARIX TABLE [MAXIMIZATION PROBLEM] Procedure: Deriving Loss Matrix by deducting each element from the maximum element in order to use minimization technique. solve the system of equations ui + vj = Cij starting initially with some ui = 0 or vj = 0 and entering successively the values of ui and vj in the transportation table margins. Step 6 – revise the differences again and cross out the earlier figures. s) enter the basis.
3. choose either. The value of $ can be easily seen from the allocations made in the cell of the loop. Step 6: Let the unoccupied cell (r. Step 3 – circle the largest Row Difference or column difference.Gendoo | Quantitative Methods 5
.H. Step 5 – in case the allocation is made fully to a row (or Column). Step 4: Compute the net evaluations Zij – Cij = ui + vj – Cij for all unoccupied basic cells and enter them in the upper right corners of the corresponding cells.Transportation Problem
3. The quantity # is considered to be so small that if it is transferred to an occupied cell it does not change the quantity of allocation.
M. s) and connects some of the basic cells. • Demand > Supply: Introducing a Dummy Origin/Factory with zero profit per unit (as the total demand is greater than the total supply) in order to make the problem balanced one. s). ignore that row (or column) for further consideration. distribution is complete. Go to step 3. In the event of tie. having the largest positive net evaluation to enter the basis. Step 4 – allocate as much as possible in the lowest cost cell of the row (or column) having a circled row (or column) Difference. a very small quantity ε > or ≈ 0 is allocated in an occupied cell so as to get m + n – 1 number of occupied cells. Step 2 –calculate penalties by taking differences between the minimum and next to minimum unit transportation costs in each row and column.5 IN CASE OF UNBALANCED PROBLEM IN THE PROFIT MATRIX OR MAXIMIZATION PROBLEM Procedure: • Supply > demand: Introducing a Dummy Warehouse/Destination with zero profit per unit (as the total demand is less than the total supply) in order to make the problem balanced one. by crossing it.
M. In short. in such a way that the rim requirements remain satisfied. Return to step 3 and repeat the process until an optimum basic feasible solution has been obtained. to and from the transition (basic) cells of the loop.
Note: It is advisable to use VAM for finding an Initial Basic Feasible Solution to a transportation problem. Then $ = minimum of the allocations made in the cells having a ‘–’ sign. add and subtract $ interchangeably. starting with a ‘+’ sign for the entering cells.Transportation Problem
Assign – and + signs alternately to the cells of the loop. Add this value of $ to all cells having ‘+’ sign and subtract the same from the cells having a ‘–’ sign.Gendoo | Quantitative Methods 6