Testing Optimality: Modified

Distribution Method

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 Outline
• Finding an optimum solution to the balanced
transportation problem by using MODI
method.
• Reaching optimum solution from initial
solution.
• Solving unbalanced transportation problem.

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 Testing Optimality
• MODI Method (for obtaining reduced costs)
Associate a number, ui, with each row and
vj with each column.
– Step 1: Set u1 = 0.
– Step 2: Calculate the remaining ui's and vj's by
solving the relationship cij = ui + vj for occupied
cells.
– Step 3: For unoccupied cells (i,j), the reduced cost
= cij - ui - vj.
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Modified distribution Method

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 Unbalanced
Transportation Problem
In some situations the total supply and the total
demand are not equal. For example: if total
demand is less than total supply , a dummy
warehouse is created to absorb the excess
supply. The transportation cost to this dummy
warehouse is taken as Zero. Similarly, if total
demand is greater than total supply, a dummy
factory is added up to make a shortage in
supply. . The transportation cost from this
dummy factory is taken as Zero.
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 Summary
Student is able to answer :
How to test optimality with the help of Modified
distribution method.
How to solve unbalanced transportation
method.

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