MIBA

ESLSCA XX
Group A
Quantitative analysis
LP, Network & Stepping stones (MODI analysis)

Under supervision of Prof.

Dr. Ehab Yaseen
Presented By
Amr Ezz El Din Hamdy
Group 16A 1
Problem 6-3, page 229.

Write the linear programming models, draw

the network, and solve using the stepping
stone method (MODI analysis)
To
From 1 2 3 Supply
A $6 $7 $4 100
B 5 3 6 180
C 8 5 7 200
Demand 135 175 170

2
 To
From 1 2 3 Supply
A $6 $7 $4 100
B 5 3 6 180
C 8 5 7 200
Demand 135 175 170

We Have a balanced system, since sum of demands = sum

of supplies. Our target is to minimize the total cost of
transport (Z). The LP will be:
 Minimize Z=6XA1+ 7XA2+4XA3+5XB1+3XB2+6XB3+
8XC1+5XC2+7XC3
 S.t.
XA1 + XA2 + XA3 = 100
XB1 + XB2 + XB3 = 180
XC1 + XC2 + XC3 = 200
XA1 + XB1 + XC1 = 135
XA2 + XB2 + XC2 = 175
XA3 + XB3 + XC3 = 170
3
 The Network

Supply Demand
100 6
A 1 135
7
4

180 B 2 175
3
6

8
5
200 C 7 3 170
Total supply 480 = Total Demand 480 4
For the stepping stone / Modi analysis / Iteration, we start with the
transportation tableau as given below. Each cell represents a shipping route (An
arc on the network & a decision variable in the LP formulation). In upper right
hand box of the cell are given the unit shipping costs

1 2 3 Supply

  6   7   4 100
A  
         
  5   3   6 180
B  
         
  8   5   7 200
C  
         
Demand 135 175 170 5
We start by the lowest transport cost $3, it represent
demand 175; and the supply available is 180

1 2 3 Supply

  6   7   4 100
A  
         
175
  5   3   6 180
B  
          5
  8   5   7 200
C  
         
Demand 135 175 0 170 6
We continue by the next lowest transport cost $4, it
represent demand 170; and the supply available is
100, so we take the 100
1 2 3 Supply
100
  6   7   4 100
A  
         
0

  5   3   6 180
B  
   175       5
  8   5   7 200
C  
         
Demand 135 175 0 170 70 7
We continue with cell B1,and repeat the same
steps.

1 2 3 Supply

  6   7   4 100
A   0
       100  
  5   3   6 180
B   5
5
   175       0

  8   5   7 200
C  
         
Demand 135 130 175 0 170 70 8
We continue with cell C3,and repeat the same
steps.

1 2 3 Supply

  6   7   4 100
A   0
       100  
  5   3   6 180
B   5
 5  175       0

  8   5   7 200 70
C  
          130
Demand 135 130 175 0 170 70 0 9
We continue with cell C1,and repeat the same
steps.

1 2 3 Supply

  6   7   4 100
A   0
       100  
  5   3   6 180
B   5
 5  175       0

  8   5   7 200
C  
0
       70   130
130
Demand 135 130 175 0 170 70 0 10

0
Now we have to check if this is the optimal solution. To do so
we have to check the used route (in green color). We write
the equation for those cells; where Cij = U i + Vj
1 2 3 Supply

  6   7   4 u1
A  
       100  
  5   3   6 u2
B  
 5  175      
  8   5   7 u3
C  
 130      70  
Demand v1 v2 v3 11
 CA3 = UA + V3 = 4
CB1 = UB + V1 = 5
CB2 = UB + V2 = 3
CC1 = UC + V1 = 8
CC3 = UC + V3 = 7
We have 5 equation with 6 variable; so we set
UA = 0.
CA3 = UA + V3 = 4 => V3 = 4-0 = 4
CC3 = UC + V3 = 7 => UC = 7-4 = 3
CC1 = UC + V1 = 8 => V1 = 8-3 = 5
CB1 = UB + V1 = 5 => UB = 5-5 = 0
CB2 = UB + V2 = 3 => V2 = 3-0 = 3

12
UA = 0 V1 = 5
UB = 0 V2 = 3
UC = 3 V3 = 4
Now we calculate the reduced costs (circled numbers
on the next slide) By:
Kij = Cij - Ui – Vj; for non occupied cells (violet color).
We have the following equation
KA1 = CA1 - UA - V1 = 6-0-5 = 1
KA2 = CA2 - UA - V2 = 7-0-3 = 4
KB3 = CB3 - UB - V3 = 6-0-4 = 2
KC2 = CC2 - UC - V2 = 5-3-3 =-1

13
Our target is to make all reduced cost (number in
circle) equal or greater than zero. We start with the
most negative number (-1).
1 2 3 Supply

  6   7   4 0
A   1 4
       100  
  5   3   6 0
B   2
 5  175      
  8   5   7 3
C   -1
 130      70  
Demand 5 3 4 14
The most negative reduced cost is = -1
determined by XC2. The stepping stone path
for this cell is (C,2),(B,2),(B,1),(C,1). These
points should be in the occupied cells Green
cells. The allocations in the subtraction cells
are 175 and 130 respectively. Thus the new
solution is obtained by reallocating the
smallest of them130 on the stepping stone
path.

15
These reallocation gives us a new situation to
solve
1 2 3 Supply

  6   7   4
A   1 4
       100  
  5   3   6
B   2
  5 + 130 = 135   175 – 130=
  45    
  8   -1 5   7
C  
  130 – 130 = 0   0 +130=  130  70  
Demand 16
Now we have to check if this is the optimal solution. To do so
we have to check the used route (in green color). We write
the equation for those cells; where Cij = U i + Vj
1 2 3 Supply

  6   7   4 u1
A  
       100  
  5   3   6 u2
B  
 135  45      
  8   5   7 u3
C  
 0  130    70  
Demand v1 v2 v3 17
 CA3 = UA + V3 = 4
CB1 = UB + V1 = 5
CB2 = UB + V2 = 3
CC2 = UC + V2 = 5
CC3 = UC + V3 = 7
We have 5 equation with 6 variable; so we set
UA = 0.
CA3 = UA + V3 = 4 => V3 = 4-0 = 4
CC3 = UC + V3 = 7 => UC = 7-4 = 3
CC2 = UC + V2 = 5 => V2 = 5-3 = 2
CB2 = UB + V2 = 3 => UB = 3-2 = 1
CB1 = UB + V1 = 5 => V1 = 5-1 = 4

18
UA = 0 V1 = 4
UB = 1 V2 = 2
UC = 3 V3 = 4
Now we calculate the reduced costs (circled
numbers on the next slide) By:

Kij = Cij - Ui – Vj; for non occupied cells (violet

color). We have the following equation
KA1 = CA1 - UA - V1 = 6-0-4 = 2
KA2 = CA2 - UA - V2 = 7-0-2 = 5
KB3 = CB3 - UB - V3 = 6-1-4 = 1
KC1 = CC1 - UC - V1 = 8-3-4 =1

19
Since all the reduced costs are non-negative; then
this is the optimal solution. The Transportation
Tableau becomes as follow:
1 2 3 Supply

  6   7   4
A   2 5
       100  
  5   3   6
B   1
 135  45      
  8   5   7
C  
1
   130    70  
Demand 20
 Optimal Solution

From To Amount Cost Total

Plant A 3 100 4 400
Plant B 1 135 5 675
Plant B 2 45 3 135
Plant C 2 130 5 650
Plant C 3 70 7 490
Total Cost = $2,350

21
Thank You
for your
Attention
22
MIBA
ESLSCA XX
Group A
Quantitative analysis
LP, Network & Stepping stones (MODI analysis)

Under supervision of Prof.

Dr. Ehab Yaseen
Presented By
Amr Ezz El Din Hamdy
Group 16A 23