Transportation Problem

In other words, FS involves exactly (m + n

if a 1) independent individual
-

individual positive
allocations, then it is known as non-degenerate BFS, otherwise it is said to be degenerat
nerate BFS.
OSoLUTION OF ATRANSPORTATION PROBLEM
The optimal solution of a transportation problem consists of the following two steps:
Phase 1. To find an initial feasible solution.
Phase 2. To test the solution for optimally

METHODS TO FIND INITIAL FEASIBLE SoLUTION

There are three important methods to find an initial feas1ble solution to a transportation
problem.These are:
1. North-West Corner Method (NWCM)
2. Least Cost Method (LCM)
3. Vogel's Approximation Method (VAM)
A detailed description of these methods is given below:
1. North-West Corner Method (NwCM): It is an easiest and simplest method for obtaining
initial feasible solution. It involves the following steps:
Step I. Starts with the cell (1, 1) at the Upper left (North-West) Corner ofthe transportation
matrix and allocate as much as possible such that the either the capacity (supply)
of the first row is exhausted or the requirement (demand) of the first column s
satisfied.

Step II. (a) Ifallocation made in Step 1 is equal to the supply available at first source (a, n
the first row), then we move vertically down to the cell (2, 1) in the second row

and first column and apply Step 1 again for next allocation.
(6) Ifallocation made in Step 1 is equal to the demand of the first destination
in the first column), then we move horizontally to the cell (1, 2) in the first roW

and second column and apply Step 1 against for the next allocation.
() Ifsupply and demand at first source are equal (a, = b,) allocate x Go
East
Step III. Continue the procedure step by step till an allocation is made in the Soutn
Corner cell of the transportation model.
Though this method is simplest, It does not consider the transportation cost while la
allocation in the cell.
should be
Note: Before allocation, it should be ensured that the transportation problem su
balanced i.e Demand(DD) =
Supply(SS) - H s

Example 1. Find theinitial feasible solhution ofthe folloruwing transportation problem by using
Cormer Method:
 131
Operatiors Desearc Transportafion Prsbian

130
Warehouses Dummy(D Avaiiability
Availability From
Factory
30 50 0 14

70 30 40 3
70 20

5 14 s4
Requiremerk 36
follows
25
the initial feasible sohution is as
North-West Corner Method, given
5 76/76
Sohtion. Requirements 18 28 25
7)(22 x 17) + (6 x 23) +
Availabilit TotalCost of Transportation
(14 x I)+(4 x

(25 x 21) + (0 x 5) ? 1219=

30 Example 3. Find the initial feas1ble solutton by NWCM

F Destination
SS

30 40 60

50
Source
20 R
40
30 105 180
8 DD
14 North-West Corner Method, the initial leasible solution is given as follows:
34
Solution. By using
8 7 14
5
Requirements
(5 x 19) + (2 x 30) + (6 x 30) + (3 x 40) +(4 X
From/To SS

.P
=

Total Cost of Transportauon

70)+(14 x 20) =
R1,015
transportation problem with the hely of 30 (30
Lample2. Find intial basic feasible solution uf the follouing
North-West Corner Method. 10 50

Warehouse 50)
C Supply
A RB 16 14
70

13 26 25) 45
Factory 17
21
36 DO 30 105 45 180
23
Totaluansportation cost= (8 x 30) + (6 x 30) + (10 x 50)+(6 x 25) + (4 x 45)

18 1,250
egurement
the d e m a n d is less a LoWEST CosT ENTRY MeTHOD (LCEM):
Solution. problem. In this problem,
nbalanced transportation
column of 5 units (=
76-71) with
zero cost This method is also called matrix minima method. Under this method, we take
h e supply. Therefore,
a dummy
North-West corner method, we
into
balanced problem. Applying cousideration the uansportation cost while making allocation. It involves the following steps
ued to make it a which in given
below:
Step 1. Select the cell with the lowest cost among all the rows or columns of the transportation
n a l feasible solution of the problen
e table. If the minimum cost is uot unique, then select arbitrarily any cell with the lowest cost.
 133
Transportaton Problem
Operatns Hesearc
132
tranportaion prublem ty uvng lrut Cost
feasible solution of the following
Example 5. Find initial
which the
selected cell the Step 1 and eliminate that row in
Step 2. Allocate as much as possible
to in
are satisfiecd
Method:
exhausted. 1t both a row and a column
either the supply or demand as Destination
Warehouse0s
simultaneously, any one may be cai ned
out.

all uncovered and columns.

D,D, D, Supply
and demand for rows
Step 3. Adjust the supply demand is
the procedure for the reduced table unil either the supply or

Step 4. Repeat
exhausted.
should prefen the cell wath highest
Note: 1f there is a tie m mavumum possile quantity of allocation, then ue N
14
suphy demand W,
Cost
soluthon of the follourng transportaton problem by usng Louest Demand
Example 4. Find the mithal feanble solution is given as follows:
Method (LCM): least cost method, the initial feasible
Solution: By using
Warehouse Destination
Supply
W, W W W Supply
Plants Warehouse D,
50 50
30
P 9
30 40 60 9

18
0
70
P 14 54 3 1

Demand
solution is given as:
8
method, he initial feasible
Solution: By using lowest cost
Warehouse W
W, W Supply
Plants 14
50 10 WA
19
P
Demand 8
30 40 50
70
P (7 x 2) + (4 x 3) + (1 x 8) + (4 x 7) + (1 x 7) + (2 x7)
Total transpontation cost =

40 20 18 83
P LCEM:
Example 6. Find the initial feasible solution of the follorwing transportation problem by
34
Demand 7 14 Destination
minimum cost i.e (P,,W,) in
which
with cell which has the Source D, D, SS
In this method we start 8 units to fulfil the
allocate minimum (5,, D) Min(18, 8) =
=

thecost isR 8. We warehouse W, is 15

complete requirement
of warehouse W,.
column W, will not be
Since the demand the
considered any more. In the reduced
S, 2 1 11

satisfied, therefore
minimum cost cell i.e (P,, W) and allocate minimum (8, D,)
=

1718
14 23 13
table again locate the Thus row P, will not
Min (7, 14) 7 units to
= this cell which exhaust the supply P.
the same way the search
for minimum cost
32
27 18 41 19

be considered anymore. Procceding

in
48/43
and demand conditions are satisficd. DD 10 1216
cell will continue till all supply
x 7) + (40 x 3) + (8 x 8)
+
x 7)+ (70 x 2) + (40 Solution: Since the given problem is unbalanced, so we add a dummy row with 3 units (4o13
Total ransportationcost (10
=

(20 x 7) ?814 =
The initial fcavible solution by LCEM is given as:
 135
Operabons Research Transportat n Problem

Destnato Solution: The Initial feasible solution by using VAM is given below:
SS
Soune To Unit Penalties
1 From AvailabilityUP, UPUP
4
14 23 13
2
19
B 16

12

DD 12
Tocal transportaioncos =SxI)+(17 x )+ (14x
12) +(32x7)+(27 x 10) Requirement 0 17 42

( l x + 0 x 3) = R 794 Unit UP,

Penaitess
UP 7
3 Yocs's APPRGAATHION METHOD (VAM)
UP
Voes Approim.azioa Mechod VAM) gies better initial feasible solution as compared to
MCM ad LCB VAN ghes exher opimum or nearer to optimum solution. Therefore, this Total Transportation Cost = (9 x 16) +5 x 12) + (1 x 22) + (15 x 13) +(8 x 12)

echod s preierred over NWCN and LCEM. The various seps in VAM are given below: = 7 517
east in the rowcoumn. This
SeL Caicuiase the diaerence between two costs same
Example 8. Find the initial feasible solution of the follouing transpotation problem by Vogels
rence s known 2 unit penaty.
Ohonse the row or caluma wzh largest unit penalty. Entering from that row or Approximation Method (VAM)
SpL least cost cell in that row or column
abumn. aiocate maximum unis possible to the atio
se tha echer demand or supph s exhausted.
inase there s te n selecting the
a
in minimum cost
or column
largest urat penalty, choose the row the
also, select
row or
Source o0oSAaisbilty
th manurum c o s in case there s
o u n bere mamun alocation can be made.
a tie
30

column. If row supply 40

S L Adjust demand and supply and cut the eshausted row or column.
and cakumn demand both the exhausted, eliminate both the row and C 20
and demand at various sources and
0 8
SepIRepez seps I to II al avzilable supply Requirement
destiabcs are exhausted.
e Fn se mal feaiie sotation of the foloutng transpertatiom probiem byogel Solution:

From
Unit Penalties
Availability UPUPUP UP
9 2 14

16
12
22 13 19
12
28
60 10 10 10 2020
Rerement
D15 17 42
 Operations Research Transportation Problem 137

(b) LCEM

Requirement
C
4010 T P
5
35
T From

3
10
Unit UP, 21 20 F
Penalties
201 10
UP 7 5
10 F

lotal
UP,
UP
'Transportation Cost
E =
0

(19 x 5) (l12 2) + x
481
+ (40 x 7) + (60 x 3) + (10 x 8) +
F
7

(20 x 10) 7 859

=

Find the mital feasible soluthon of thefollounng transportatron

problem by : DD 2 4 15
Example 9. Total Transportation Cost = (3 x 3) + (1 x 3) + (3 x 2) + (4 x 2) +(5 x*3) + (6 x
Mathod
(a) North West Corner
Method = 53
(b) Louwest Cost Entry
Method
(c) Togel's Approxmaton (c) VAM
Destination

10
ron
ssuPU
10
7

15
DD

The initial feasible solution

obtained by using
Solution:
(a) NWCM

F
D
From DD
15

3 UP, 6 3
10 Unit
F |Penalties
UP, 3
F UP,
Total Transportation Cost =
(3x3) + (Ix3) + (3x2) + (4x2) + (6x3)+ (0x
= 53
F
DD3 2 15

3) (6 x 2) + (7 x 3) + (5 x 3) + (6 x 4) =
102
Total Tansportation Cost
=
(10 x +
 139
138 Oper ations Research Transportation Prablem

(ExERCISE 1 5. Find the initial feasible solution by LCEM.

Warehousas
Find the initial feas1ble sohution of the
tollowing transportation problem
Corner Method
by North-West
Factor W W w WFactony Capacity
20 25 40 20 100
Destination Availabilityy 29 26 35 40 250
F2
Factor 31 33 37 30 150
F 9
Requirement 90 160 200 50
500
500
6. Find the initial feasible solution by LCEM.
F
14
FromTo EG Avallabli
Requirement 7 9 18 21 16 14
34
7 17 13 26
2. Find the initial basic feas1ble solution ot the following
transportation problem with the
36
help of North West Corner Method: 23 21
11
WWWWSUpply 6 5 14
Requirements 18 28

7. Find the IBFS of the following transportation problem using VAM:

71

2 16 From To C AvallabilityS
2 6 14
4 12
35
Demand 6
10 154 35
Requirement 10 31
3. Find the iniüal basic feasible solution by NWCM:
8. Find the initial feasible solution of the following transportation problem using Vogel's
Frnn AHSA1KAlabliy Approximation Method (VAM):
X 1 21 16 4
From To SuppY
Y 7 17 13 26 15 18

Z 11
23 |21 36 16 3 12 13

Requirement 18 28 25 71 20 1

Demand 3 3 5 15
4. Find the IBFS of the following transportation problem using least cost method (LCM):
9. Find the initial basic teas1ble solution (IBFS) of the
tollowing transportation problem withh
Destination the help of VAM:
Factony 0D,D Avallablity w W W
0
80
10
15
24 DD 105
Requirement 75
145
(Hint: Unbalanced TP create dumm
row
 Operations Research
140

10. Find the initial basic feasible solution (IBFS) of the following transportation problem with
the help of:
) North West Corner Method
(i) Lowest Cost Entry Method
(ii) Vogel's Approximation Method

From/ ToDDDD D, Availabilty

19 30 50 10 7
F, 70 30 40 60 9
F 40 8 70 20 18
Demand 8 7 14 34

ANSWERS
1.
x=5, x2, x=6, x=3, x=4,x=14; Total cost R 102
2. X,6, x=8, x=2, *=14, x=1,x=4, Total cost =
{ 128
3.
x14,=4x =22 x,=6,
x,=25, x,(Dummy)=5 Total cost R
4.
=6, x=2, x,=6,x,=4, x,=6, Total cost 1219
5.
32 =

x,=90, x,=10,x160, x=90,

6. x,=110, x,= 40 Total cost 14580
x-14, *=18,X2=8, x=28, x,=3, =

1.
=14,x=6, X=5, *=1, *=5, Total*,,Dummy) 5, Total cost 1161 =
=

8. cost 7 143 =

9.
X2,=1,x=4,x=1, x,=3, x,=4, Total cost 174
=10, x=60, x=10, =

x=10,
10.
)=5, *,,=2, X=6, x=3, x,-15, x, (Dummy) 40, Total cost =R 515 =

*=4x,=14 Total cost

(i)-7,*-2,*,=7,x=3, x,=8,x=7 Total
(n)x,=5, cost
=

=
1015
R 814
OTEST FOR
x,=2,*7,,2,A=8x,=10 Total
OPTIMALITY
cost =
779
After having obtained the initial
problem is to check
whether the solutionfeasible solution, the next
used for obtained is
testing the solution: optümal step in the
followingtransportation
or not.
1. The
Stepping Stone Method two
methods
2. Modified Distribution
(MODI)
In this
chapter we shall discuss onlyMethod
MODI Method.