IE 141:

OPERATIONS
RESEARCH 1
SPECIAL CASES OF LP MODELS:
THE TRANSPORTATION PROBLEM
Learning objectives:
• At the end of this module, the student should be able to:

• 1. Discuss the transportation model as special case of Linear Programming Model;

• 2. Describe the types of transportation model;
• 3. Identify basic initial feasible solution to a given transportation problem;
• 4. Solve the optimal solution for transportation problem and its variants.
Outline of the Module
• The Transportation Model
• Initial Solution to a Transportation Problem
• Northwest corner solution
• Least cost solution
• Vogel’s approximation method
• Optimal Solution to a Transportation Problem
• Stepping stone method
• Methods of multipliers
• Special Cases of Transportation Model: Transhipment and Assignment Model
Characteristics of a Transportation Model
• A product is transported from a number of sources to a number of
destinations at the minimum possible cost.
• Each source is able to supply a fixed number of units of the product, and
each destination has a fixed demand for the product.
• The linear programming model has constraints for supply at each source
and demand at each destination.
• All constraints are equalities in a balanced transportation model where
supply equals demand.
• Constraints contain inequalities in unbalanced models where supply does
not equal demand.
Example of a Transportation Model
- Problem: How many tons of wheat to transport from each grain elevator

to each mill on a monthly basis in order to minimize the total cost

of transportation ?

- Data: Grain Elevator Supply Mill Demand

1. Kansas City 150 A. Chicago 200
2. Omaha 175 B. St. Louis 100
3. Des Moines 275 C. Cincinnati 300
Total 600 tons Total 600 tons
Transport cost from Grain Elevator to Mill ($/ton)
Since Total Supply = Total Grain Elevator A. Chicago B. St. Louis C. Cincinnati
1. Kansas City $6 8 10
Demand, this is an example of
2. Omaha 7 11 11
balanced transportation model. 3. Des Moines 4 5 12
Transportation Model Example
LP Model Formulation
Minimize Z = 6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B +
12x3C

subject to x1A + x1B + x1C ≤ 150 (Supply Constraint-Kansas City)

x2A + x2B + x2C ≤ 175 (Supply Constraint-Omaha)
x3A + x3B + x3C ≤ 275 (Supply Constraint-Des Moines)
x1A + x2A + x3A ≥ 200 (Demand Constraint-Chicago)
Network of transportation routes for wheat shipments
x1B + x2B + x3B ≥ 100 (Demand Constraint-St. Louis)
x1C + x2C + x3C ≥ 300 (Demand Constraint-Cincinnati)
xij  0 As mentioned in slide 4, since this is a balanced
transportation model you may formulate all
Let xij = tons of wheat from each constraints as equalities. This is shown in the next
grain elevator, i, i = 1, 2, 3, to each
slide.
mill j, j = A, B, C
Transportation Model Example
LP Model Formulation
Minimize Z = 6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B +
12x3C

subject to x1A + x1B + x1C = 150 (Supply Constraint-Kansas City)

x2A + x2B + x2C = 175 (Supply Constraint-Omaha)
x3A + x3B + x3C = 275 (Supply Constraint-Des Moines)
x1A + x2A + x3A = 200 (Demand Constraint-Chicago)
Network of transportation routes for wheat shipments
x1B + x2B + x3B = 100 (Demand Constraint-St. Louis)
x1C + x2C + x3C = 300 (Demand Constraint-Cincinnati)
xij  0 Both model formulations are correct.
where xij = tons of wheat from each
grain elevator, i, i = 1, 2, 3, to each
mill j, j = A, B, C
Solution to a Transportation Model
Tableau Format The Transportation Tableau

• Transportation problems are solved

manually within a tableau format. X1A X1B X1C

• Each cell in a transportation tableau is

X2A X2B X2C
analogous to a decision variable that
indicates the amount allocated from a
X3A X3B X3C
source to a destination.
Solution to a Transportation Model
Tableau Format The Transportation Tableau

• Transportation models do not start at the origin

where all decision values are zero; they must
instead be given an initial feasible solution.
X1A X1B X1C
• Initial feasible solution determination methods
include:
X2A X2B X2C
- Northwest corner method
- Lowest cost method X3A X3B X3C
- Vogel’s approximation method
1. Determination of Initial Feasible Solution using
Northwest Corner Method
1. Begin in the upper left (northwest) corner of the transportation tableau
and set x11 as large as possible. The limitations for setting x11 to a larger
number, will be the demand of demand point 1 and the supply of supply
point 1. Thus, your x11 value cannot be greater than the minimum of this 2
values.
2. Check the east and south cells with respect to the currently filled-up cell.
Go to the direction where the supply or demand is not yet fulfilled.
3. Set the value of that cell as large as possible. (Repeat step 2 until all the
supply and demand were exhausted/fulfilled.
Begin in the upper left (northwest) cell x1A and set the value as large as possible. Thus, we set x1A=
150, which is the minimum between 150 of supply point 1 and 200 of demand point A. This means
that Supply point 1 will be used full to satisfy partial demand to Demand point A.

X1A 150

We must also update the quantity

We put an X here indicating that the supply
demanded in A since 150 of it is already
in Supply Point 1 is already exhausted.
fulfilled by Supply Point 1 (200-150= 50).
After we check the east and south cells, we can go south (meaning demand point A still
has 50 units yet to be fulfilled) and since supply point 1 is already exhausted. Set x2A as
large as possible.

150 150

x2A 50

We must also update the Supply quantity in

We put an X here indicating that the 2 since 50 of it is already used to Demand
demand in A is already fulfilled. Point A (175-50= 125).
From x2A, we check the east and south cells. We saw that we can go east (meaning
supply point 2 still has available supply) and since demand in A is already fulfilled. Set x2B
as large as possible.

150 150

50 X2B 50 100

We must also update the Supply quantity in

We put an X here indicating that the 2 since another 100 of it is used to fulfill
demand in B is already fulfilled. demand in Point B (125-100= 25).
From x2B, we check the east and south cells. We saw that we can go east (meaning supply
point 2 still has available supply) and demand in B is already fulfilled. Set x2C as large as
possible.

150 150

50 100 X2C 50 100 25

We must also update the Demand

quantity in C since 25 units of it is We put an X here indicating that the capacity of
already fulfilled (300-25= 275). Supply point 2 is already exhausted
From x2C, we check the east and south cells. We saw that we can go south
(meaning demand point C still has unmet demand). Set x3C as large as possible.

150 150

50 100 25 50 100 25

X3C 275

We must also put an X here

indicating that the Demand in point We put an X here indicating that the capacity of
C is already fulfilled. Supply point 3 is already exhausted
Since all the demand and supply quantity is already fulfilled/exhausted, the algorithm stops. The resulting values is our
initial feasible solution for the transportation problem.

150 150

50 100 25 + 50 + 100 + 25

275 + 275

Always check if the column and row totals are correct.

Z = 150(6)+50(7)+100(11)+25(11)+275(12) = 5,925

The number of basic variables at any

iteration should always be

1 R+C-1 = 3+3-1 = 5.
150
where R = the number of rows/the number
2
of supply point
50 3 4
100 25 C = the number of columns/the
number of demand point
5 Else, you cannot proceed to the next
275
iteration in finding the optimal solution.
Degenerate solution
• A non-degenerate solution in transportation problem occurs when:
number of rows (R) + number of columns (C) – 1 = number of filled
cells. When this is not met, the solution is said to be degenerate.

• When the test for degeneracy in transportation problem is failed to

be met, it would be impossible to trace a closed path for each unused
square in a stepping stone method, and with the methods of
multiplier it would be impossible to compute the row and column
values.
Degenerate solution
• Thus, if the largest possible value to a cell will cancel the row and
column at the same time, do not cancel both unless it is the last cell
that will complete the r+c-1 number of basic variables.
• Instead, choose to cancel either row or column then assign 0 to the
demand/supply not chosen to be crossed out.
• Or alternatively, you may choose to add a basic variable with 0 value
in any of the empty cells. Note however that it will affect the number
of iterations before you get the optimal solution.
2. Determination of Initial Feasible Solution using
Least Cost Method
• The Northwest Corner Method does not utilize shipping costs.
• It can yield an initial basic feasible solution (bfs) easily but the total
shipping cost may be very high.
• The least cost method uses shipping costs in order to come up with
a bfs that has a lower cost.
2. Determination of Initial Feasible Solution using
Least Cost Method (contd)
• 1. Find the decision variable (or cell) with the smallest shipping cost (Xij).
• 2. Assign Xij its largest possible value, which is the minimum of si and dj
• Where si is the supply quantity from point i and dj is the demand quantity for point j
• 3. After that, as in the Northwest Corner Method we should cross out row i
and column j and reduce the supply or demand of the noncrossed-out row
or column by the value of Xij.
• 4. Choose the cell with the minimum cost of shipping from the cells that do
not lie in a crossed-out row or column.
• 5. Repeat the procedure until all the rows and columns are crossed out.
An example for Minimum Cost Method
Step 1: Select the cell with minimum cost.

2 3 5 6
5

2 1 3 5
10

3 8 4 6
15

12 8 4 6
 An example for Minimum Cost Method
Step 1: Select the cell with minimum cost and set the value as
large as possible.

2 3 5 6
5

2 1 3 5
10

3 8 4 6
15

12 8 4 6
Step 2: Cross-out column 2 since the demand is already exhausted. Find
the next lowest cost.

2 3 5 6
5

2 1 3 5
2
8

3 8 4 6
15

12 X 4 6
Step 3: Find the new cell with minimum shipping cost and assign value
as large as possible. If there are ties, you may choose arbitrarily.

2 3 5 6
5

2 1 3 5
2
8
3 8 4 6
15

12 X 4 6
Step 3: Cross out row 2 since supply is already exhausted. Update the
available demand in column 1.

2 3 5 6
5

2 1 3 5
X
2 8
3 8 4 6
15

10 X 4 6
Step 4: Find the new cell with minimum shipping cost and assign value
as large as possible.

2 3 5 6
5

2 1 3 5
X
2 8
3 8 4 6
15

10 X 4 6
Step 4: Cross-out row 1 since supply is already exhausted. Update the
remaining demand to be fulfilled in column 1.

2 3 5 6
X
5

2 1 3 5
X
2 8
3 8 4 6
15

5 X 4 6
Step 4: Find the new cell with minimum shipping cost that belongs to a
column or row that hasn’t been crossed out yet. Assign the largest
possible value.

2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
15

5 X 4 6
Step 5: Cross out column 1 and update supply in row 3.

2 3 5 6
X
5

2 1 3 5
X
2 8

3 8 4 6
10
5

X X 4 6
Step 6: Find the new cell with minimum shipping cost that belongs to a
column or row that hasn’t been crossed out yet. Assign the largest
possible value.

2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
10
5

X X 4 6
Step 6: Cross out column 3 and update supply in row 3.

2 3 5 6
X
5

2 1 3 5
X
2 8

3 8 4 6
6
5 4

X X X 6
Step 7: Finally assign 6 to last cell.

2 3 5 6
X
5

2 1 3 5
X
2 8

3 8 4 6
6
5 4

X X X 6
Step 8: The bfs is found as: X11=5, X21=2, X22=8, X31=5, X33=4 and X34=6

2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
X
5 4 6

X X X X
• Check the column totals with respect to the original problem.
Check the number of basic variables if equals r+c-1 = 3+4 -1 =6.
Since it satisfies both the column totals and required number of basic variables,
the solution can be considered as initial feasible solution with Z=89.

2 3 5 6
5
5
2 1 3 5
10
2 8
3 8 4 6
15
5 4 6

12 8 4 6
3. Determination of Initial Feasible Solution using
Vogel’s Approximation Method (VAM)
• The least cost method uses shipping costs in order to come up with a bfs that has
a lower cost.
• However, it is an example of greedy algorithm.
• The VAM accounts not just the lowest cost but considers the two lowest cost in a
specific row and column or lowest costs associated with each alternative route.
• Among the three methods in determining initial feasible solution, the Vogel’s
Approximation Method yields the closest to optimal solution. This means fewer
to no iteration towards the optimal solution.
3. Determination of Initial Feasible Solution using
Vogel’s Approximation Method (VAM)
1. Begin with computing the penalty for each row and column. The penalty
will be equal to the difference between the two smallest shipping costs
in the row or column.
2. Identify the row or column with the largest penalty.
3. Find the first basic variable which has the smallest shipping cost in that
row or column.
4. Assign the highest possible value to that variable, and cross-out the row
or column like the previous methods.
5. Compute new penalties and repeat the same procedure.
An example for Vogel’s Method
Step 1: Compute the penalties. The penalty will be equal to the difference
between the two smallest shipping costs in the row or column.

Supply Row Penalty

6 7 8
10 7-6=1

15 80 78
15 78-15=63

Demand 15 5 5

Column Penalty 15-6=9 80-7=73 78-8=70

Step 2: Identify the row or column with the largest penalty.

Supply Row Penalty

6 7 8
10 7-6=1

15 80 78
15 78-15=63

Demand 15 5 5

Column Penalty 15-6=9 80-7=73 78-8=70

Step 3: Find the first basic variable which has the smallest shipping cost
in that row or column. Assign the highest possible value to that variable

Supply Row Penalty

6 7 8
10 7-6=1

15 80 78
15 78-15=63

Demand 15 5 5

Column Penalty 15-6=9 80-7=73 78-8=70

Step 4: Cross-out the row or column and update the supply amount like the
previous methods. Update the row and column penalties.

Supply Row Penalty

6 7 8
5 8-6=2
5
15 80 78
15 78-15=63

Demand 15 x 5

Column Penalty 15-6=9 - 78-8=70

Step 2: Identify the largest penalty. Find the basic variable which has the smallest
shipping cost in that row or column. Assign the highest possible value to that
variable

Supply Row Penalty

6 7 8
5 8-6=2
5

15 80 78
15 78-15=63

Demand 15 X 5

Column Penalty 15-6=9 _ 78-8=70

Step 3: Identify the largest penalty. Find the basic variable which has the smallest
shipping cost in that row or column. Assign the highest possible value to that
variable
Supply Row Penalty

6 7 8
5 8-6=2
5
15 80 78
15 78-15=63

Demand 15 X 5

Column Penalty 15-6=9 _ 78-8=70

Note: Since the largest possible value that can be assign to the cell here is 5, both row and column will
be crossed out. This, later, will result to degeneracy. As added guideline, if it’s not the last basic
variable and both the column and row will be crossed out, choose to cancel either column or row only.
Assign a supply/demand amount of 0 to the row or column not chosen to be crossed out.
Step 4: Cross-out the row or column and update the supply/demand
amount like the previous methods. Update the row and column
penalties.
Supply Row Penalty

6 7 8
0 _
5 5
15 80 78
15 _

Demand 15 X X

Column Penalty 15-6=9 _ _

Note: Since the largest possible value that can be assign to the cell here is 5, both row and column will
be crossed out. This, later, will result to degeneracy. As added guideline, if it’s not the last basic
variable and both the column and row will be crossed out, choose to cancel either column or row only.
Assign a supply/demand amount of 0 to the row or column not chosen to be crossed out.
Step 2: Identify the largest penalty. Find the basic variable which has the
smallest shipping cost in that row or column. Assign the highest possible
value to that variable
Supply Row Penalty

6 7 8
0 _
5 5
15 80 78
15 _

Demand 15 X X

Column Penalty 15-6=9 _ _

Step 3: Identify the largest penalty. Find the basic variable which has the
smallest shipping cost in that row or column. Assign the highest possible
value to that variable
Supply Row Penalty

6 7 8
x _
0 5 5
15 80 78
15 _

Demand 15 X X

Column Penalty - _ _
Step 4: Identify the largest penalty. Find the basic variable which has the
smallest shipping cost in that row or column. Assign the highest possible
value to that variable

Supply Row Penalty

6 7 8
X _
0 5 5
15 80 78
X _
15

Demand X X X

Column Penalty _ _ _

Note: Check the total number of filled cells

Step 5: Finally the bfs is found as X11=0, X12=5, X13=5, and X21=15
Z=225
Supply Row Penalty

6 7 8
10 _
0 5 5
15 80 78
15 _
15

Demand 15 5 5

Column Penalty _ _ _

• Check the column totals with respect to the original problem.

Check the number of basic variables if equals r+c-1 = 2+3 -1 =4.
Since it satisfies both the column totals and required number of basic variables,
the solution can be considered as initial feasible solution with Z=89.
Exercise: Consider the transportation model

To Factory
Find the initial basic
From Albuquerque Boston Cleveland capacity feasible solution using:
Des Moines
$5 $4 $3 1. Northwest corner
100
method
$8 $4 $3 2. Least cost method
Evansville 300
3. Vogel’s
Fort $9 $7 $5 approximation
300
Lauderdale method
Warehouse
requirement 300 200 200 700
Finding the Optimal Solution using
Stepping Stone Method
 An iterative technique for moving from an initial
feasible solution to an optimal one
1. Select any unused/unfilled square to evaluate
2. Beginning at this square, trace a closed path back to the original
square via squares that are currently being used/filled (may step over
empty/occupied square).
3. Beginning with a plus (+) sign at the unused corner, place alternate
minus and plus signs at each corner of the path just traced
Finding the Optimal Solution using
Stepping Stone Method
 An iterative technique for moving from an initial
feasible solution to an optimal one
4. Calculate an improvement index by first adding the unit-
cost figures found in each square containing a plus sign
and subtracting the unit costs in each square containing a
minus sign
5. Repeat steps 1 though 4 until you have calculated an
improvement index for all unused squares. If all indices are
≥ 0, you have reached an optimal solution. If not, current
solution can be further improved to decrease shipping costs
Finding the Optimal Solution using
Stepping Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity

$5 $4 $3
(D) Des Moines 100
- +
100 Des Moines-
(E) Evansville 200
$8
100
$4 $3
300 Boston index
+ -
(F) Fort Lauderdale
$9
100
$7
200
$5
300 = $4 - $5 + $8 - $4
Warehouse
requirement 300 200 200 700 = +$3

$5 $4
100
- +

+ -
$8 $4
200 100
Finding the Optimal Solution using
Stepping Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity

$5 $4 Start $3
(D) Des Moines 100 100
+
$8 $4 $3
(E) Evansville 200 100 300
+ -
$9 $7 $5
(F) Fort Lauderdale 100 200 300
+ -
Warehouse
requirement 300 200 200 700

Des Moines-Cleveland index

= $3 - $5 + $8 - $4 + $7 - $5 = +$4
Finding the Optimal Solution using
Stepping Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity

$5 $4 $3
(D) Des Moines 100 100
Evansville-Cleveland index
$8 $4 $3
(E) Evansville 200 =100
$3 - $4 + $7 - $5 = +$1
300

$9
(Closed
$7
path =$5
EC - EB + FB - FC)
(F) Fort Lauderdale 100 200 300
Fort Lauderdale-Albuquerque index
Warehouse
requirement 300 = $9
200 - $7 +200
$4 - $8 = -$2
700
(Closed path = FA - FB + EB - EA)
Finding the Optimal Solution using
Stepping Stone Method
1. If an improvement is possible, choose the route
(unused square) with the largest negative improvement
index (i.e. choose the most negative improvement
index). In this case, Fort Lauderdale-Albuquerque
index=-2, thus, this will be the entering variable.
2. On the closed path for that route, select the smallest
number found in the squares containing minus signs
3. Add this number to all squares on the closed path with
plus signs and subtract it from all squares with a minus
sign
Finding the Optimal Solution using
Stepping Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity

$5 $4 $3
(D) Des Moines 100 100

$8 $4 $3
(E) Evansville 200 100 300
- +
$9 $7 $5
(F) Fort Lauderdale 100 200 300
+ -
Warehouse
requirement 300 200 200 700
1. Add 100 units on route FA
2. Subtract 100 from routes FB
3. Add 100 to route EB
4. Subtract 100 from route EA
 Finding the Optimal Solution using
Stepping Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity

$5 $4 $3
(D) Des Moines 100 100

$8 $4 $3
(E) Evansville 100 200 300
The procedure is
then repeated $9 $7 $5
starting from step 1. (F) Fort Lauderdale 100 200 300

Warehouse
requirement 300 200 200 700

Total Cost = $5(100) + $8(100) + $4(200) + $9(100) + $5(200)

= $4,000
The optimal solution is Z=3,900

A B C
5 4 3
100
D 100
8 4 3
300
E 200 100
9 7 5
300
F 200 100
300 200 200 700
Finding the Optimal Solution using
Modified Distribution Method (MODI)/ METHODS
OF MULTIPLIERS
1. Find the initial basic feasible solution.
2. The number of filled cell should be equal to R + C -1 (where R
is the number of row and C is the number of column). If not,
the solution is degenerate.
3. Obtain the row (vj) and column (ui) index. For each filled cell or
basic variable, use the formula below to obtain the row and
column indices.
a) Let u1 = 0.
b) Column index (ui) = cell cost (cij) – row index (vj)
c) Row index (vj) = cell cost (cij)– column index ui)
Finding the Optimal Solution using
METHODS OF MULTIPLIERS
4. Evaluate the empty cells using: Pij = Ui +Vj - Cij. If all Pij < 0, then the
solution is optimal and unique. If Pij ≤ 0, then the solution is optimal
and alternative solutions exist. Otherwise, the solution is not optimal.
5. If the solution is not optimal, identify the cell with the most positive
penalty.
6. Construct a closed loop starting from this cell and passing through
filled cells (similar with the stepping stone method with alternating +
and - sign).
7. Find the lowest cell value with a (-) sign in the loop.
8. Add or subtract this value in each cell within the loop.
9. Repeat steps 3-8 until an optimal solution is achieved.
Set u1=0. Then, from the basic variable in that
column, get the corresponding row indices, v1, v2.
u1=0 u2 u3
A B C
5 4 3
100
v1 D 100
8 4 3
300
v2 E 200 100
9 7 5
300
v3 F 100 200
300 200 200 700
Set u1=0. Then, from the basic variable in that
column, get the corresponding row indices, v1, v2.

u1=0 u2 u3
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 F 100 200
300 200 200 700
Next, from the basic variable EB, compute for
the corresponding column index u2.
u1=0 u2 u3
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 F 100 200
300 200 200 700
Next, from the basic variable EB, compute for
the corresponding column index u2.
u1=0 u2 = 4-v2 = 4-8 = -4 u3
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 F 100 200
300 200 200 700
Next, from the basic variable FB, compute for
the corresponding row index v3.
u1=0 u2 = 4-v2 = 4-8 = -4 u3
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 F 100 200
300 200 200 700
 Next, from the basic variable FB, compute for
the corresponding row index v3.
u1=0 u2 = 4-v2 = 4-8 = -4 u3
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 = 7-u2 = 7-(-4)=11 F 100 200
300 200 200 700
Next, from the basic variable FC, compute for
the corresponding column index u3.
u1=0 u2 = 4-v2 = 4-8 = -4 u3
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 = 7-(-4)=11 F 100 200
300 200 200 700
Next, from the basic variable FC, compute for
the corresponding column index u3.
u1=0 u2 = 4-v2 = 4-8 = -4 u3 = 5-v3 = 5-11 = -6
A B C
5 4 3
100
v1 = 5-u1 = 5-0 = 5 D 100
8 4 3
300
v2= 8-u1 = 8-0= 8 E 200 100
9 7 5
300
v3 = 7-(-4)=11 F 100 200
300 200 200 700
Using the indices, compute for the coefficient of
the Non-Basic Variables (NBVs)/unfilled cells using
the formula Pij =ui+vi-cij.
u1=0 u2 = -4 u3 = -6
A B C
5 4 3
100
v1 = 5 D 100
8 4 3
300
v2= 8 E 200 100
9 7 5
300
v3 =11 F 100 200
300 200 200 700
Using the indices, compute for the coefficient of
the Non-Basic Variables (NBVs)/unfilled cells using
the formula Pij =ui+vi-cij.
u1=0 u2 = -4 u3 = -6
A B C
5 4 3
100
v1 = 5 D 100 -4+5-4=-3 -6+5-3=-4
8 4 3
300
v2= 8 E 200 100 -6+8-3=-1
9 7 5
300
v3 =11 F 0+11-9=2 100 200
300 200 200 700
Since not all Pij < 0, then the solution is not optimal.
We will choose FA to be the entering variable.
u1=0 u2 = -4 u3 = -6
A B C
5 4 3
100
v1 = 5 D 100 -3 -4
8 4 3
300
v2= 8 E 200 100 -1
9 7 5
300
v3 =11 F 2 100 200
300 200 200 700
Construct a closed loop starting from this cell (as +)
and passing through filled cells (similar with the
stepping stone method with alternating + and - sign).
u1=0 u2 = -4 u3 = -6
A B C
5 4 3
100
v1 = 5 D 100
8 4 3
300
v2= 8 E 200 - 100 +
9 7 5
300
v3 =11 F + 100 - 200
300 200 200 700
Find the lowest cell value with a (-) sign in the
loop.
u1=0 u2 = -4 u3 = -6
A B C
5 4 3
100
v1 = 5 D 100
8 4 3
300
v2= 8 E 200 - 100 +
9 7 5
300
v3 =11 F + 100 - 200
300 200 200 700
Add or subtract this value (100) in each cell
within the loop.
u1=0 u2 = -4 u3 = -6
A B C
5 4 3
100
v1 = 5 D 100
8 4 3
300
v2= 8 E 200 - 100 100 + 100
9 7 5
300
v3 =11 F + 100 100 - 100 200
300 200 200 700
Add or subtract this value (100 units) in each cell
within the loop.
u1 u2 u3
A B C
5 4 3
100
v1 D 100
8 4 3
300
v2 E 100 200
9 7 5
300
v3 F 100 200
300 200 200 700
Since there is entering variable (FA), there’s also one leaving variable. It is
the cell that will have a zero value after the subtraction of 100 units. If
there are ties, please choose to leave only 1 variable, the other one should
have a 0 value (degenerate solution).
This is iteration 1. The procedure is then repeated
starting from step 3 or the computation of row and
column indices.
u1 u2 u3
A B C
5 4 3
100
v1 D 100
8 4 3
300
V2 E 100 200
9 7 5
300
v3 F 100 200
300 200 200 700
The optimal solution is Z=3,900

A B C
5 4 3
100
D 100
8 4 3
300
E 200 100
9 7 5
300
F 200 100
300 200 200 700