Transportation Problems - Answer Key

Case study-1: Transportation Problem
Case study-1: Problem-1:

Powerco has three electric power plants that supply the needs of four cities. Each power plant
can supply the following numbers of kilowatt-hours (kwh) of electricity: plant 1—35 million;
plant 2—50 million; plant 3—40 million (see Table 1). The peak power demands in these
cities, which occur at the same time (2 P.M.), are as follows (in kwh): city 1—45 million; city
2—20 million; city 3—30 million; city 4—30 million. The costs of sending 1 million kwh of
electricity from plant to city depend on the distance the electricity must travel. Formulate an
LP to minimize the cost of meeting each city’s peak power demand.
Solution:
Xij: i = Plant; j = City
Decision Variables:
X11: Number of KWh transferred from Plant-1 to City-1
Objective function:
Min. Z = 8X11+ 6X12+ 10X13+ 9X14+9X21+12X22+13X23+7X24+14X31+9X32 +16X33+5X34
Constrains:
Supply constraints
Plant-1: X11+X12 +X13 +X14 <=35
Plant-2: X21+X22 +X23 +X24 <=50
Plant-3: X31+X32 +X33 +X34 <=40
Demand constraints
City-1: X11+ X21+ X31 >= 45
City-2: X12+ X22+ X32 >= 20
City-3: X13+ X23+ X33 >= 30
City-4: X14+ X24+ X34 >= 30
X11,X12,X13,X14,X21,X22,X23,X24,X31,X32,X33,X34 >=0
Solver answer: Z = 1020; X12=10; X13=25; X21=45; X23=5; X32=10; X34=30
can supply the following numbers of kilowatt-hours (kwh) of electricity is given below Table.
The peak power demands in these cities, which occur at the same time (2 P.M.), are shown in
below Table. The costs of sending 1 million kwh of electricity from plant to city depend on
the distance the electricity must travel. Formulate an LP to minimize the cost of meeting each
city’s peak power demand.
Table: Shipping Costs, Supply, and Demand for Powerco

From To Supply
City-1 City-2 City-3 City-4
Plant-1 8 6 10 9 35
Plant-2 9 12 13 7 50
Plant-3 14 9 16 5 40
Demand 40 20 30 30
Solution:
Supply =125; Demand = 120
Supply ≠ Demand
Add one Dummy City  City-5 (Dummy)
If total supply exceeds total demand, we can balance a transportation problem by creating a
dummy demand point that has a demand equal to the amount of excess supply. Because
shipments to the dummy demand point are not real shipments, they are assigned a cost of
zero.
Decision Variables:

Objective function:
Min. Z = 8X11+ 6X12+ 10X13+ 9X14+9X21+12X22+13X23+7X24+14X31+9X32 +16X33+5X34 +
0X15+0X25+0X35
Constrains:
Supply constraints
Plant-1: X11+X12 +X13 +X14 +X15 <=35
Plant-2: X21+X22 +X23 +X24 + X25 <=50
Plant-3: X31+X32 +X33 +X34 +X35 <=40
Demand constraints
City-1: X11+ X21+ X31 >= 40
City-2: X12+ X22+ X32 >= 20
City-3: X13+ X23+ X33 >= 30
City-4: X14+ X24+ X34 >= 30
City-5: X15+ X25+ X35 >= 5
X11,X12,X13,X14, X15,X21,X22,X23,X24, X25.X31,X32,X33,X34,X35 >=0
Solver answer: Z = 975; X13=20; X12=15; X21=40; X23=10; X32=5; X34=30; X35=5
Because X35=5  5 million Kwh of plant-3 capacity will be unused.
can supply the following numbers of kilowatt-hours (kwh) of electricity is given below Table.
The peak power demands in these cities, which occur at the same time (2 P.M.), are shown in
below Table. The costs of sending 1 million kwh of electricity from plant to city depend on
the distance the electricity must travel. Formulate an LP to minimize the cost of meeting each
city’s peak power demand.
Table: Shipping Costs, Supply, and Demand for Powerco

From To Supply
City-1 City-2 City-3 City-4
Plant-1 8 6 10 9 35
Plant-2 9 12 13 7 40
Plant-3 14 9 16 5 40
Demand 45 20 30 30
Solution:
Demand ≠ Supply
Add one Dummy Plant  Plant-4 (Dummy)
If total demand exceeds total supply, we can balance a transportation problem by creating a
dummy plant -4 that has a supply equal to the amount of excess demand. Because shipments
from the dummy plant-4 are not real shipments, they are assigned a cost of zero.
Decision Variables:
X41: Number of KWh transferred from Dummy Plant-4 to City-1
Objective function:
Min. Z = 8X11+ 6X12+ 10X13+ 9X14+9X21+12X22+13X23+7X24+14X31+9X32 +16X33+5X34 +
0X41+0X42+0X43+0X44
Constrains:
Supply constraints
Plant-1: X11+X12 +X13 +X14 <=35
Plant-2: X21+X22 +X23 +X24 <=40
Plant-3: X31+X32 +X33 +X34 <=40
Plant-4: X41+X42 +X43 +X44 <=10
Demand constraints
City-1: X11+ X21+ X31 +X41 >= 45
City-2: X12+ X22+ X32+X42 >= 20
City-3: X13+ X23+ X33+X43 >= 30
City-4: X14+ X24+ X34 +X44 >= 30
X11,X12,X13,X14,X21,X22,X23,X24,X31,X32,X33,X34,X41,X42,X43,X44 >=0
Solver answer: Z = 900; X11=5; X12=10; X13=20; X14=0;
X21= 40; X22=0; X23=0 ; X24=0 ;
X31 =0 ; X32= 10; X33 =0 ; X34 = 30;
X41 = 0; X42= 0; X43= 10; X44=0;
X43=10  10 million Kwh transferred from dummy plant-4 to City-3. So City-3 power
shortage is 10 million Kwh.
Case study-2: Transportation Problem (Handling Shortages)
Two reservoirs are available to supply the water needs of three cities. Each reservoir can
supply up to 50 million gallons of water per day. Each city would like to receive 40 million
gallons per day. For each million gallons per day of unmet demand, there is a penalty. At city
1, the penalty is $20; at city 2, the penalty is $22; and at city 3, the penalty is $23. The cost of
transporting 1 million gallons of water from each reservoir to each city is shown in below
Table. Formulate a balanced transportation problem that can be used to minimize the sum of
shortage and transport costs.
Solution:
From To Supply (million

City-1 City-2 City-3 gallons)
Resorvoir-1 7 8 10 50
Resorvoir-2 9 7 8 50
Demand(million gallons) 40 40 40

Demand ≠ Supply
Add one Dummy Reservoir  Resorvoir-3 (Dummy)

If total demand exceeds total supply, we can balance a transportation problem by creating a
dummy Reservoir that has a supply equal to the amount of excess demand. Because transfer
from the dummy reservoir is not real transfer, they are assigned a cost of zero.
Decision Variables: Xij : i = Reservoir; j = City
X11: Number of million gallons transferred from Reservoir-1 to City-1

X31: Number of million gallons transferred from dummy reservoir-3 to City-1

Objective function:
Min.Z = Total cost
Min.Z = (Transfer cost + Penalty Cost)
Min.Z = 7X11 +8X12 +10X13 +9X21 +7X22 +8X23 +0X31 +0X32+0X33+20X31 +22X32+23X33
Constraints:
Supply constraints
Reservoir -1: X11+X12 +X13 <=50
Reservoir -2: X21+X22 +X23 <=50
Reservoir -3: X31+X32 +X33 <=20
Demand constraints
City-1: X11+ X21+ X31 >= 40
City-2: X12+ X22+ X32 >= 40
City-3: X13+ X23+ X33 >= 40
X11,X12,X13,X21,X22,X23,X31,X32,X33 >=0
Solver answer: Z = 1170 (including penalty);
X11=20; X12=30; X13=0 ; X21=0; X22=10; X23= 40; X31=20; X32=0; X33= 0
Foster Generators involves the transportation of a product from three plants to four
distribution centers. Foster Generators operates plants in Cleveland, Ohio; Bedford, Indiana;
and York, Pennsylvania. Production capacities over the next three-month planning period for
one particular type of generator are as follows:
The firm distributes its generators through four regional distribution centers located in
Boston, Chicago, St. Louis, and Lexington; the three-month forecast of demand for the
distribution centers is as follows:
Management would like to determine how much of its production should be shipped from
each plant to each distribution center.
Solution:
A company is to subcontract work on four assemblies. The five subcontractors have agreed to
submit a bid price on each assembly type and a limit on the total number of assemblies (if any
combination) for which they are willing to contract. These bids, the contract times, and time
requirements for assemblies are given in the following matrix.
Formulate the LP model to minimize the total assembly cost.
Solution:
Let x11 be Assembly 1 to Subcontractor A, x12 be assembly to Subcontractor B and so on.
It is a minimization problem since the objective is to minimize the cost of subcontract price of the
assembly. Hence, objective function is given by —
Minimum Z =10x11 + 11x12 + 12x13 + 13x14 + 14x15 + 11x21 + 12x22 + 11x23 + 10x24 + 9x25
+ 12x31 + 13x32 + 8x33 + 9x34 + 10x35+ 13x41 + 8x42 + 9x43 + 10x44 + 11x45
Subject to the following constraints:

x11 + x21 + x31 + x41 ≤ 250 (No. of Contract limits)
x11 + x12 + x13 + x14 + x15 ≤ 500 (No. of Assemblies required)
xij ≥ 0 for all i and j (Non-Negativity constraint)
North-East Aircraft Company, which operates out of a central terminal, has 8 aircraft of Type
I, 15 aircraft of Type II, and 12 aircraft of Type III available for today’s flights. The tonnage
material capacities are 4.5 ton/aircraft for Type I; 7 ton/aircraft for Type II and 4 ton/aircraft
for Type III.
The company dispatches it’s through aircraft to cities A and B. Tonnage requirements are 75
at city A and 55 at city B; excess tonnage capacity supplied to a city has no value. A plane
can fly once only during the day (From Central Terminus to city-A or city-B).
The cost of sending per ton material from the terminal to each city using type-I/II/III aircrafts
are given by the following table:
Type-I Type-II Type-III
City-A 230$ 500$ 140$
City-B 580$ 100$ 380$
Formulate the LP model to minimise the air-transportation cost.
Solution:
Central Terminus
Aircraft Type-I City-A
Aircraft Type-II
City-B
Aircraft Type-III
Decision Variables:
Xij: i=Type of aircraft; j= City
X11: No. of tons transferred from central terminus to City-A using Aircraft Type-I
X12: No. of tons transferred from central terminus to City-B using Aircraft Type-I
X21: No. of tons transferred from central terminus to City-A using Aircraft Type-II
X22: No. of tons transferred from central terminus to City-B using Aircraft Type-II
X31: No. of tons transferred from central terminus to City-A using Aircraft Type-III
X32: No. of tons transferred from central terminus to City-B using Aircraft Type-III
Objective:
Min.Z = 230X11+500X21+140X31+580X12+100X22+380X32
Constraints
Demand:
City-A: X11+X21+X31 =75
City-B: X12+X22+X32 =55
Capacity:
Aircraft Type-I: X11 + X12 <= (8*4.5)
Aircraft Type-II: X21 + X22 <= (15*7)
Aircraft Type-III: X31 + X32 <= (12*4)
xij ≥ 0
A Plastic manufacturer has 1200 boxes of transparent wrap in stock at one factory and
another 1000 boxes at its second factory. The manufacturer has orders for this product from
three different retailers, in quantities of 1000, 700 and 500 boxes, respectively. The unit
shipping costs (in rupees/per box) from the factories to the retailers are as follows:
Determine a minimum cost shipping schedule for satisfying all demands current inventory.
Formulate the problem as a linear programming problem.
Solution:
Decision Variables:
Xij: i =Factory-A; j= Retailer
X11: No. of units transferred from Factory-A to Retialer-1
X21: No. of units transferred from Factory-B to Retialer-1

Objective:
Min. Z = 14X11+13X12+11X13+13X21+13X22+12X23
Constraints
Supply:
Factory-A: X11+X12+X13 <=1200
Factory-B: X21+X22+X23 <=1000
Demand:
Retailer-1: X11+X21 <=1000
Retailer-2: X12+X22 <=700
Retailer-3: X13+X23 <=500
Xij >=0
Case study-7: Transshipment Problem
Ryan Electronics is an electronics company with production facilities in Denver and Atlanta.
Components produced at either facility may be shipped to either of the firm’s regional
warehouses, which are located in Kansas City and Louisville. From the regional warehouses,
the firm supplies retail outlets in Detroit, Miami, Dallas, and New Orleans. The key features
of the problem are shown in the network model depicted in Figure 6.6. Note that the supply at
each origin and demand at each destination are shown in the left and right margins,
respectively. Nodes 1 and 2 are the origin nodes; nodes 3 and 4 are the transhipment nodes;
and nodes 5, 6, 7, and 8 are the destination nodes. The transportation cost per unit for each
distribution route is shown in Table 6.5 and on the arcs of the network model in Figure 6.6.
Formulate a linear programming model of this transshipment problem.

Solution:
Case Study-8: Transshipment Problem
Ryan Electronics is an electronics company with production facilities in Denver and Atlanta.
Components produced at either facility may be shipped to either of the firm’s regional
warehouses, which are located in Kansas City and Louisville. From the regional warehouses,
the firm supplies retail outlets in Detroit, Miami, Dallas, and New Orleans. The key features
of the problem are shown in the network model and the transportation cost per unit for each
distribution route also shown in Figure 6.9.
Formulate a linear programming model of this transshipment problem.
Solutions:
Case Study-9: Production & Inventory Problem (LP_Transportation method)
Contois Carpets is a small manufacturer of carpeting for home and office installations.
Production capacity, demand, production cost per square yard, and inventory holding cost per
square yard for the next four quarters are shown in Table 6.7.
Note that production capacity, demand, and production costs vary by quarter, whereas the
cost of carrying inventory from one quarter to the next is constant at $0.25 per yard.
Contois wants to determine how many yards of carpeting to manufacture each quarter to
minimize the total production and inventory cost for the four-quarter period.
Solution:
Contois should manufacture 600 square yards of carpet in quarter 1, 300 square yards in
quarter 2, 400 square yards in quarter 3, and 400 square yards in quarter 4. Note also that 200
square yards will be carried over from quarter 1 to quarter 2. The total production and
inventory cost is $5150.

Transportation Problems - Answer Key

Uploaded by

Document Information

Original Title

Copyright

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Transportation Problems - Answer Key

Uploaded by

Copyright:

Case study-1: Transportation Problem

Case study-1: Problem-1:

Table: Shipping Costs, Supply, and Demand for Powerco

X31: Number of KWh transferred from Plant-3 to City-1

Table: Shipping Costs, Supply, and Demand for Powerco

From To Supply (million

Supply =100; Demand = 120

Add one Dummy Reservoir  Resorvoir-3 (Dummy)

X21: Number of million gallons transferred from Reservoir-2 to City-1

X31: Number of million gallons transferred from dummy reservoir-3 to City-1

Formulate the LP model to minimize the total assembly cost.

Subject to the following constraints:

Formulate the LP model to minimise the air-transportation cost.

Aircraft Type-I City-A

X21: No. of units transferred from Factory-B to Retialer-1

Formulate a linear programming model of this transshipment problem.

You might also like