10/9/2015

Module 1 - TRANSPORTATION
MODEL AND ITS VARIANTS
TRANSPORTATION
A. The Transportation Algorithm MODEL
B. The Transshipment Model
C. The Assignment Model

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The Transportation Model: Characteristics Example 1.
Powerco has three electric power plants that supply the needs

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■ A product is transported from a number of sources to a number of four cities. See the table for the supply each power plant can
of destinations at the minimum possible cost. produce, and the demand each city needs. The costs of sending
■ Each source is able to supply a fixed number of units of the
product, and each destination has a fixed demand for the
product.
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1 unit 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.
so
■ The linear programming model has constraints for supply at each To
source and demand at each destination. From City 1 City 2 City 3 City 4 Supply
■ All constraints are equalities in a balanced transportation model Plant 1 8 6 10 9 35
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where supply equals demand. Plant 2 9 12 13 7 50

■ Constraints contain inequalities in unbalanced models where Plant 3 14 9 16 5 40
supply does not equal demand. m Demand 45 20 30 30 Electricity in million kwh
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Let xij = number of (million) kwh produced in plant i and sent to b) For Balanced Transportation Problem:
city j m n
Minimize _ Z   Cij X ij
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i 1 j 1
a) For Unbalanced Transportation Problem:
Subject to:
m n
Minimize _ Z   Cij X ij n

X  si i = 1,2,…m (supply constraints)

a

i 1 j 1
ij
Subject to: j 1
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n m

X
j 1
ij  si i = 1,2,…m (supply constraints) X ij  dj j = 1,2,…n (demand constraints)
i

X
i
ij  dj j = 1,2,…n (demand constraints) Xij > 0 and integer for all i and j

Xij > 0 and integer for all i and j

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The transportation problem is easiest to solve when arranged Three Common Methods Of Obtaining An Initial
in tabular form. Basic Solution To A Transportation Problem:

The use of the transportation solution technique requires that 1. Northwest Corner Method (NWC)
a) Starting with the northwest most corner, allocate the smaller
the problem be balanced; that is, total supply must equal
amount of either the row supply or the column demand.
total demand. b) Subtract from the row supply and from the column demand the
amount allocated.
If the Total Demand ≠ Total Supply, we have the c) If the column demand is now zero, move to the cell next on the
unbalanced transportation problem. We added either a right; if the row supply is zero, move down the cell in the next
dummy supply or a dummy demand. This is equivalent to row. If both are zero, move first to the next cell on the right, place
0, then down one cell.
adding slack or excess variables in the regular simplex.
d) Once a cell is identified as per step (c), it becomes the new
northwest cell. Allocate an amount as step (a).
e) Repeat the above steps (a) – (d) until all remaining supply and
demand is gone.

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To illustrate the NWC Method: (use Powerco example) 2. Minimum Cost Method
Initial Tableau Step 0 Step 1
Choose the cell with the minimum cost (break ties

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35 35 x
50 50
40
ur 40 arbitrarily), and allocate the amount as per (a) in
45 20 30 30 10 20 30 30
Step 2 Step 3 NWC. Choose the next minimum cost cell, while
35 x 35 x
10 40 10 20 20
abiding by column demand and row supply
so
x 20 30 30
40
x x 30 30
40 constraints. Continue until all remaining supply
35
Step 4
x 35
Step 5
x
and demand is exhausted. This method yields not
10 20 20 x 10 20 20 x only an initial feasible solution but also one that is
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40 10 30
x x 10 30 x x x 30 close to optimal in small problems. The method is
“heuristic” in nature.
Final Tableau
35 Note:
10 20 20 # entries in table = row + column – 1
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10 30 COST = $ 1180
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3. Vogel’s Approximation Method (VAM)

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Step 0 Initial Tableau Step 1

D1 D2 D3 D4 D1 D2 D3 D4
S1 | 8 | 6 | 10 | 9 35 S1 | 8 | 6 | 10 x | 9 35
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a) For each row (column), determine a penalty measure

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S2 | 9 | 12 | 13 | 7 50 S2 | 9 | 12 | 13 x | 7 50
S3 | 14 | 9 | 16 | 5 40 S3 | 14 | 9 | 16 30 | 5 10
45 20 30 30 45 20 30 x by subtracting the smallest unit cost element in the
Step 2 Step 3
D1 D2 D3 D4 D1 D2 D3 D4 row (column) from the next smallest unit cost element
S1 | 8 20 | 6 | 10 x | 9 15 S1 15 | 8 20 | 6 x | 10 x |9 x
in the same row (column).
a

S2 | 9 x | 12 | 13 x | 7 50 S2 | 9 x | 12 | 13 x | 7 50
S3 | 14 x | 9 | 16 30 | 5 10 S3 | 14 x | 9 | 16 30 | 5 10 b) Identify the row or column with the largest penalty.
45 x 30 x 30 x 30 x
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Step 4 Step 5 Break ties arbitrarily. Allocate as much as possible to

D1 D2 D3 D4 D1 D2 D3 D4
S1 15 | 8 20 | 6 x | 10 x |9 x S1 15 | 8 20 | 6 x | 10 x |9 x the variable with the least cost in the selected row or
S2 30 | 9 x | 12 | 13 x | 7 20 S2 30 | 9 x | 12 20 | 13 x |7 x
S3 x | 14 x | 9 | 16 30 | 5 10 S3 x | 14 x | 9 | 16 30 | 5 10
column. Adjust the supply and demand, and cross out
x x
Final Tableau
30 x x x 10 x the satisfied row or column. If a row and a column are
D1 D2 D3 D4 satisfied simultaneously, only one of the two is crossed
S1 15 | 8 20 | 6 | 10 |9
S2 30 | 9 | 12 20 | 13 |7 out, and the remaining row (column) is assigned zero
S3 | 14 | 9 10 | 16 30 | 5 COST = $ 1080
supply (demand).

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Step 0 Initial Tableau Step 1

c) c.1 If exactly one row or column with zero supply or D1 D2 D3 D4 D1 D2 D3 D4
S1 | 8 | 6 | 10 | 9 35 (2) S1 | 8 | 6 | 10 x | 9 35 (2)
demand remains uncrossed out, stop. S2 | 9 | 12 | 13 | 7 50 (2) S2 | 9 | 12 | 13 x | 7 50 (3)
S3 | 14 | 9 | 16 | 5 40 (4) S3 | 14 | 9 | 16 30 | 5 10 (5)
45 (1) 20 (3) 30 (3) 30 (2) 45 (1) 20 (3) 30 (3) x
c.2 If one row (column) with positive supply Step 2 Step 3
D1 D2 D3 D4 D1 D2 D3 D4
(demand) remains uncrossed out, determine the basic S1 | 8 | 6 | 10 x | 9 35 (2) S1 | 8 10 | 6 | 10 x | 9 25 (2)
S2 | 9 | 12 | 13 x | 7 50 (3) S2 | 9 x | 12 | 13 x | 7 50 (4)
variables in the row (column) by the least-cost S3 x | 14 10 | 9 x | 16 30 | 5 x S3 x | 14 10 | 9 x | 16 30 | 5 x
method. Stop. 45 (1) 10 (6) 30 (3) x 45 (1) x 30 (3) x
Step 4 Step 5
D1 D2 D3 D4 D1 D2 D3 D4
S1 x | 8 10 | 6 | 10 x | 9 25 S1 x | 8 10 | 6 25 | 10 x |9 x
c.3 If all the uncrossed out rows and columns have S2 45 | 9 x | 12 | 13 x |7 5 S2 45 | 9 x | 12 | 13 x |7 5
(remaining) zero supply and demand, determine the S3 x | 14 10 | 9 x | 16 30 | 5 x S3 x | 14 10 | 9 x | 16 30 | 5 x
x x 30 (3) x x x 5 x
zero basic variables by the least-cost method. Stop. Final Tableau
D1 D2 D3 D4
S1 | 8 10 | 6 25 | 10 |9
c.4 Otherwise, go to step (a). S2 45 | 9 | 12 5 | 13 |7 COST = $ 1020
S3 | 14 10 | 9 | 16 30 | 5

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Note: The number of basic variables (occupied cells or stones) What do you think happens when the problem is a maximization
must be equal to the formula: row + column – 1. If this falls below, instead of a minimization problem?
we have what is called the degenerate tableau. To correct this you

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can add zero to any unused cell to comply with this requirement. a) Identify the largest value in the tableau and subtract all the other
cell “profits” from that value.
Of the three methods above, the Northwest Corner Method
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requires the least effort (but does not consider costs) and VAM
requires the most effort.
b) Then replace the original cell profits with the resulting values.
These values reflect the opportunity costs that would be incurred
by using routes with unit profits that are less than the largest unit
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profit.
Extensive research has shown, however, that when VAM is used to c) Then solve the tableau in the usual way for the minimum cost
find an initial basic feasible solution (bfs), it usually takes solution.
substantially fewer pivots to find the optimal solution than if the
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Minimizing lost opportunity costs is the same as maximizing the

other two methods had been used.
total profit.
For this reason, the Northwest Corner Method and minimum cost
m The optimal solution would have to be transformed to the original
methods are rarely used to find a bfs in a large transportation
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“profits” so as to find the optimal value in the original problem.

problem.
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Iterative Computations of the Transportation Iterative Computations of the Transportation

Algorithm (to determine the optimal solution) Algorithm (to determine the optimal solution)
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A. Stepping-Stone Method
A procedure for solving a transportation problem B. Method of Multipliers or also known as
based on a simplification of the simplex method as Modified Distribution Method (MODI)
a

applied to the constraint structure that defines a The MODI (modified distribution) method allows
transportation problem. It starts with an initial basic improvement indices quickly to be computed for
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feasible solution and then evaluates, for every
nonbasic variable, whether an improved solution can
be obtained by introducing one of the nonbasic
variables into the basis.
each unused square without drawing all of the
closed paths.
Because of this, it can often provide considerable
time savings over the stepping-stone method for
solving transportation problems.

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A. Steps in Using the Stepping - Stone Method

A. Steps in Using the Stepping - Stone Method
6. Check the sign of each of the net change in the unit transportation costs.
1. Make sure that the number of occupied cells is exactly equal to m+n-1,
If all the net changes computed are greater than or equal to zero, an
where m is the number of rows and n is the number of columns.
optimal solution has been reached. Stop
2. Select an unoccupied cell. Beginning at this cell, trace a closed path,
If not, it is possible to improve the current solution and decrease the total
starting from the selected unoccupied cell until finally returning to that
transportation cost, so move to step 7.
same unoccupied cell
7. Select the unoccupied cell having the most negative net cost change
The cells at the turning points are called "Stepping Stones" on the path.
(entering variable) and determine the maximum number of units that can
be assigned to this cell. The smallest value with a negative position
3. Assign plus (+) and minus (-) signs alternatively on each corner cell of the
(leaving variable) on the closed path indicates the number of units that
closed path just traced, beginning with the plus sign at unoccupied cell to
can be shipped to the entering cell. Add this number to the unoccupied cell
be evaluated.
and to all other cells on the path marked with a plus sign. Subtract this
number from cells on the closed path marked with a minus sign.
4. Add the unit transportation costs associated with each of the cell traced in
the closed path. This will give net change in terms of cost.
8. Repeat Steps 2 to 7.
5. Repeat steps 2 to 4 until all unoccupied cells are evaluated.

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B. Algorithm Used in the Method of Steps in Using the Method of Multipliers or
Multipliers (Modified Distribution (MODI) MODI

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Method) 1. Compute the values for each row and column:
1) Use the simplex optimality condition to determine the
entering variable as the current nonbasic variable that
can improve the solution. If the optimality condition
ur set Ui + Vj = Cij for those squares currently used or occupied.
2. After writing all equations, set U1 = 0.
3. Solve the system of equations for Ui and Vj values.
4. Compute the improvement index for each unused square by the
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is satisfied, stop. Otherwise, go to step 2. formula improvement index:
Cij - Ui – Vj
2) Determine the leaving variable using the simplex 5. If all the improvement indeces computed are greater than or
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feasibility condition. Change the basis and return to equal to zero, an optimal solution has been reached. Stop
step 1. Otherwise proceed to Step 6.
6. Select the largest negative index (entering variable) and
proceed to solve the problem as you did using the stepping-
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stone method (leaving variable).

7. Repeat Steps 1 to 6.
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Example 2: Consider the transportation tableau below:

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Important Notes:
From \ To A B C Supply
1 6 8 10
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Just like in the simplex method, it is possible that a

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150
degenerate iteration will be followed by a 2 7 11 11
nondegenerate iteration. i.e., a degenerate iteration 175
does not always mean that the whole problem is 3 4 5 12
a

degenerate. 275
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Demand 200 100 300 600

A multiple optimal solution is determined if the a) Formulate the transportation problem as an LP problem.
improvement index equals to zero in the optimal b) Determine the starting (initial) solution using:
b.1 Northwest Cornerstone Method
solution. b.2 Least Cost Method
b.3 VAM Method
A prohibited route is assigned a large cost (M) so that c) Determine the optimal solution using:
c.1 Stepping Stone Method
it will never receive an allocation. c.2 Method of Multipliers (or Modified Distribution Method)

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The transshipment model recognizes that it may be

cheaper to ship through intermediate or transient nodes
before reaching the final destination. This concept is
more general than that of the regular transportation
TRANSSHIPMENT model, where direct shipments only are allowed between
a source and a destination.
MODEL
In effect, the transshipment algorithm combines both the
regular transportation algorithm and the shortest route
algorithm into one procedure.

This will show how a transshipment model can be

converted to (and solved as ) a regular transportation
model using the idea of a buffer.

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The Transshipment Model Transshipment Model Example
Characteristics Transshipment Network Routes
■ Extension of the transportation model.

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■ Intermediate transshipment points are added between the
sources and destinations.
■ Items may be transported from:
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 Sources through transshipment points to destinations
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 One source to another
 One transshipment point to another T1
S1
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 One destination to another D1

 Directly from sources to destinations S T2
2
 Some combination of these m
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Network of Transshipment Routes

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Transshipment Model Example

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Example 1:
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Model Formulation Two automobile plants are linked to three dealers by way of two
distribution centers. According to the network shown below:
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Minimize Z = $16x13 + 10x14 + 12x15 + 15x23 + 14x24 800

+ 17x25 + 6x36 + 8x37 + 10x38 + 7x46 + 11x47 5
+ 11x48 + 4x56 + 5x57 + 12x58
1000
subject to: 1 3
a

x13 + x14 + x15 = 300 900

6
x23 + x24 + x25 = 300
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x36 + x46 + x56 = 200

x37 + x47 + x57 = 100 1200
2 4
x38 + x48 + x58 = 300 500
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x13 + x23 - x36 - x37 - x38 = 0 The supply amounts at the two plants, nodes 1 and 2, are 1000 and
x14 + x24 - x46 - x47 - x48 = 0 1200, respectively. Cars are shipped to dealers 5, 6, and 7 through
x15 + x25 - x56 - x57 - x58 = 0 distribution centers 3 and 4. The demands at the three dealers are
xij  0 800, 900, and 500, respectively.

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The amount of supply and demand at the different nodes are

Nodes 1 and 2 are characterized by outgoing arcs only, computed as:
whereas node 7 is characterized by incoming arcs only.
Supply at a pure supply node = Original supply
All the remaining nodes (nodes 3, 4, 5, and 6) have both
incoming and outgoing arcs. In this respect, Demand at a pure demand node = Original demand

Nodes 1 and 2 are pure supply nodes; Supply at a transshipment node = Original supply +
Node 7 is a pure demand node; Buffer amount
All remaining nodes (nodes 3, 4, 5, and 6) are
Demand at a transshipment node = Original demand +
transshipment nodes.
Buffer amount

Buffer = Total Supply (or Demand)

= 1000 + 1200 ( or 800 + 900 + 500)
= 2200 cars

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Least Cost Method

From/To Node 3 Node 4 Node 5 Node 6 Node 7 Total

From/To Node 3 Node 4 Node 5 Node 6 Node 7 Total Supply
Supply

c
Node 1 3 4 M M M 3 4 M M M
Node 1 1000
1000 1000

Node 2

Node 3
2

0
5

7
M

8
M

6
ur M

M
1200
Node 2

Node 3
1200

0
2

0
1400
5

7
800
M

8
M

6
M

M
1200

2200
so
B (2200)
M 0 M 4 9
Node 4 M 0 M 4 9 Node 4 2200
800 0 1400
B (2200)
M M 0 5 M
Node 5 M M 0 5 M Node 5
2200
2200
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B (2200) M M M 0 3
Node 6 M M M 0 3 Node 6 2200
1700 500
B (2200)
11000
Total Total Demand 2200 2200 3000 3100 500
Demand B B 800+B 900+B 500 2200+4B 11000
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(2200) (2200) (3000) (3100) (11000)

Total Cost = 28700
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v1 = v2 = v3 = v4 = v5 =
v1 = v2 = v3 = v4 = v5 =
-3 4 5 8 11
3 10 11 14 17

From/To Node 3 Node 4 Node 5 Node 6 Node 7 Total Supply

From/To Node 3 Node 4 Node 5 Node 6 Node 7 Total Supply
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3 4 M M M
3 4 M M M
u1 = 0 Node 1 1000 N1N3 = 6
u1 = 0 Node 1 1000 N1N4 = -6 1000
1000 N2N4 = -4
N2N4 = -4
2 5 M M M N3N6 = -5
2 5 M M M N3N6 = -5
u2 = 5 Node 2 1200 N4N7 = 2
u2 = -1 Node 2 1200 N4N7 = 2 1200
1200 N5N6 = 2
N5N6 = 2
0 7 8 6 M
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0 7 8 6 M
u3 = 3 Node 3 2200
u3 = -3 Node 3 2200 1000 400 800
0 1400 800
M 0 M 4 9
M 0 M 4 9
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u4 = -4 Node 4 2200
u4 = -10 Node 4 2200 800 1400
800 1400
M M 0 5 M
M M 0 5 M
u5 = -5 Node 5 2200
u5 = -11 Node 5 2200 2200
2200
M M M 0 3
M M M 0 3
u6 = -8 Node 6 2200
u6 = -14 Node 6 2200 1700 500
1700 500

11000
11000
Total Demand 2200 2200 3000 3100 500
Total Demand 2200 2200 3000 3100 500
11000
11000

Total Cost = 22700

Total Cost = 28700

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2 4 10 8 11

From/To Node 3 Node 4 Node 5 Node 6 Node 7 Total Supply

3 4 M M M
Optimal Transshipment Network
u1 = 0 Node 1 1000 N1N3 = 1
1000
N2N4 = 1
2 5 M M M N3N4 = 5
u2 = 0 Node 2 1200 N4N7 = 2 800
1200
N5N6 = 7 5
u3 = -2 Node 3
0 7 8 6 M
2200 OPTIMAL
800
1000 800 400
SOLUTION
M 0 M 4 9 1000
u4 = -4 Node 4
1200 1000
2200
1 3
M M 0 5 M 1000 400
u5 = -10 Node 5
2200
2200 900
M M M 0 3
6
u6 = -8 Node 6 2200
1700 500

11000 500
Total Demand 2200 2200 3000 3100 500 1200 1200 1000
11000
2 4
Total Cost = 20700
500
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ALLOCATION:
FROM TO QTY COST
Node 1 Node 4 1000 4000
Node 2 Node 3 1200 2400
Node 3 Node 5 800 6400
Node 3 Node 6 400 2400
Node 4 Node 6 1000 4000
Node 6 Node 7 500 1500

Total 20700

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An assignment problem is a special form of the Transportation
Problem where the supply at each source and the demand at each
destination are each limited to one unit.

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ASSIGNMENT MODEL
ur The general assignment model with n workers and n jobs is
represented below:
Jobs
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1 2 ... n
Total
Supply
1 1
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2 1
Workers
... 1
n 1
m Total
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1 1 1 1
Demand
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The assignment model is actually a special case of the Requirements in Solving Assignment Problems
transportation model in which the workers represent the
sources, and the jobs represent the destinations. The
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1) Like a transportation problem, an assignment model can be unbalanced

H

when supply exceeds demand or demand exceeds supply. In either case, a

supply amount at each source and the demand amount at dummy column or a dummy row will be added to the table to balance the
each destination exactly equal 1. model (as was done in the transportation problem).
a

2) Prohibited assignments are also possible in an assignment problem. In a

The cost of “transporting” worker i to job j is cij. In effect, transportation problem, an M value was assigned as the cost for the cell
the assignment model can be solved directly as a regular
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representing the prohibited route. This same method is used for the
assignment problem. A value of M is placed in the cell representing the
transportation model. Nevertheless, the fact that all the prohibited assignment.
supply and demand amounts equal 1 has led to the
development of a simple solution algorithm called the 3) For maximization, the easiest technique is to put a (–) on all the values,
and proceed as for minimization. Remember that you cannot make
Hungarian method. Although the new method appears assignments unless the you have a zero entry. Or you can proceed as the
totally unrelated to the transportation model, the algorithm maximization in the transportation problem (finding the largest value and
subtracting all from this).
is actually rooted in the simplex method, just as the
transportation model is.

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Step 4. If no feasible assignment (with all zero entries)

Steps in Hungarian Method
Step 1. For the original cost matrix, identify each row’s
minimum, and subtract it from all the entries of
the row. (Row Reduction)
Step 2. For the matrix resulting from step 1, identify
each column’s minimum, and subtract it from
all the entries of the column. (Column
Reduction)
can be secured from step 3, draw the minimum
number of horizontal and vertical lines in the last
reduced matrix that will cover all the zero entries.
If the number of lines equal to number of row or
column, an optimal solution is reached, go to Step
3. Otherwise go to Step 5.
Step 5. Select the smallest uncovered element, subtract
it from every uncovered element, and then add it
to every element at the intersection of two lines.

Step 3. Identify the optimal solutions as the feasible Step 6. If no feasible assignment can be found among
assignment associated with the zero elements of the resulting zero entries, repeat step 4.
the matrix obtained in Step 2. Otherwise, go to step 3 to determine the optimal
assignment.

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Example: Column Reduction:
The National Athletic Association of the Philippines (NAAP) has four basketball
games on a particular night. The conference office wants to assign 4 teams of Table 1 Game Sites

c
officials to the 4 games in a way that will minimize the total distance traveled by Officials Baguio Pampanga Pangasinan Quezon
the officials. The distances (in km.) are shown below: A 120 0 90 70

Officials
A
Baguio
210
Game Sites
Pampanga Pangasinan
90 180
Quezon
160
ur B
C
D
30
70
( 15 )
0
0
0
60
( 35 )
40
130
65
( 55 )
so
B 100 70 130 200
C 175 105 140 170
D 80 65 105 120 Table 2 Game Sites
Row Reduction: Officials Baguio Pampanga Pangasinan Quezon
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Table 0 Game Sites A 105 0 55 15

Officials Baguio Pampanga Pangasinan Quezon B 15 0 25 75
A 210 ( 90 ) 180 160 C 55 0 0 10
B 100 ( 70 ) 130 200
m D 0 0 5 0
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C 175 ( 105 ) 140 170

D 80 ( 65 ) 105 120
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Table 3 Game Sites Case #1 Case #2

Officials Baguio Pampanga Pangasinan Quezon
Distance Distance
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A 105 0 55 ( 15 )
B ( 15 ) 0 25 75 Team A to Pam panga 90 Team A to Quezon 160
C 55 0 0 10
D 0 0 5 0 Team B to Baguio 100 Team B to Pampanga 70
a

Team C to Pangasinan 140 Team C to Pangasinan 140

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Table 4 Game Sites Team D to Quezon 120 Team D to Baguio 80

Officials Baguio Pampanga Pangasinan Quezon
A 90 0 40 0 450 km. 450 km.
B 0 0 10 60
C 55 15 0 10
D 0 15 5 0

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