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    Chapter 4 Transportation Problem Book 1

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    Chapter 5 TRANSPORTATION PROBLEM ee] GC Intropuction The problem of transportation arises due to transportation of goods to the destination g er requirements from various sources of the origin. The transportation problem is one of te subclasses of linear programming problem (LP's) as it also inherits the objective of minimisaion of cost or maximisation of profits. In a transportation problem, there are a number of source, each with a given quantity of a product or capacity and there are a number of destinations (vith predetermined requirements) to which the product is to be transported. The transportation problem mainly deals that how the cost of transportation can be minimised or revenue of transportation can be maximised by satisfying the requirements of various destinations within the known constraints of different sources of supply. © TRANSPORTATION PROBLEM The transportation problem can be described as follows: Suppose that the m factories F; ( 1, 2, 3, ...., m), called the origins or sources produc the non-negative quantities a (i = 1, 2, ....., m) of a product and the non-negative quanti 5; G = 1, 2, ... n) of the same products are required at other n places, called the destinations: such that the total quantity produced is equal to the total quantity required, i., Sy ib i ; e Also, suppose that ¢j is the cost of transportation of an unit from the ith source to the) i : ith sour destination. Then the problem is to determine x,, the quantity transported from the ith 5 a = acted to the j* destination in such a way that the total transportation cost 3° Sc, x) is minim Seanned wiek CamScanner Transportation Problem 127 ‘The transportation problem described above can be a represented in tabular form as follows: Destination >] Wy, Capacities of th Source sources (supply) 4 Fy Cy ay FL Cy a, F, Sy 6, a fe Sm So bs Sn 3 Requirements—> Fa-> (Demand) | bo b, 2 ze The calculations are made directly on the transportation current trial solution. iven below which gives the Destination > a "W, | Capacities of the Source “A 4 ‘sources (supply). 1 Ae Fy XM oe af Xn a Fy % Xa %y aq a, F my | Xe - | % a, Xo x, Xin [oeeee b, | 4, b, Sa=S0, The above two tables can be combined together by writing the costs cj within the bracket (), as follows : Destination | W, Capacities of Source the sources 4 (supply) F xy (Cy) | X12) | Hy) |» | Xm (Crm) a, F, Xq2(Cy2) | 22 (Ca2) Xy(Co)) Xq (Coq) a Seanned wek CamScanner Perations Peta F, Xy(Gy) | Xa (Ce) xe) Xin (Cy) A Fy Xm (Crna) | Xme(Cma) |e | Xp (Sm) Pov | x, a, Requirements b, b, b b, da © MatHemaricaL FORMULATION OF A TRANSPORTATION PRrosiem Mathematically, the transportation problem can be stated as follows: | Find x; @ = 1,2, ...., m 3f = 1,2,....,n) for which total transportation cost % =), 7 “12,3, .0 a and X20, for alli = 1,2, ...,m;j = 1,2, 0.40. © Derinitions The following terms may be defined with reference to the transportation problem: Mi © Measibae Solution (FS): A set of non-negative individual allocations (sj 2 ©) “ simultaneously satisfies all demand and supply constraints is called a feasible solutioy a * 5 inatio" eae ag camttion (BES): A feasible solution to a m-origin and n-desingt problem is said to be basic if the number of Positive allocations are m + =I, i.¢-»0™ than the sum of rows and columns. (iii) Optimal Solution: A feasible solu ifit i vo iol 2 2 ’ution (non-necessarily basic) is said to be opti minimizes the total transportation cost, (iv) Non-Degenerate basic feasible Solution: problem is said to be non-degenerate baci (a) Total number of positive allocations jo A feasible solution of m by n transpor™ ic feasible solution if 18 exactly equal to (m + n-1), and t positions. (©) These allocations are in independen Seanned wiek CamScanner Transportation Problem os In other words, if a FS involves exactly : ore (m + n ~ 1) independent individual positive allocations, then it is known as non-degenerate BFS, otherwise it is said to be degenerate BFS. © SOLUTION OF A TRANSPORTATION Prosiem 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 © MetHops To Fino INITIAL FEAsiBLe SoLuTion $$ E POLUTION There are three important methods to find an initial feasible 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 of the 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 is satisfied. Step II. (@) Ifallocation made in Step 1 is equal to the supply available at first source (a,, in 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. (©) Ifallocation made in Step 1 is equal to the demand of the first destination (by, 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 (2, = b,) allocate x4, = a, or by. Step IIL. Continue the procedure step by step till an allocation is miade in the South East Corner cell of the transportation model. Though this method is simplest, It does not consider the transportation cost while making allocation in the cell. Note: Before allocation, it should be ensured that the transportation problem should be balanced ie Demand(DD) = Supply(SS) Example 1. Find the initial feasible solution of the following transportation problem by using North-West Corner Method: Seanned wek CamScanner 130 Solution. Example 2. Solution. Operation, 1 tag, — w, | Ww. Avaitabitity 4 Is Factory wy 7 70 20 14 Requirement 5 8 7 By using North-West Corner Method, the initial To 2 W, Ww, From os ; 19 30 50 *" Fe [oe 70 ] 30 40 60 ; ® ; 40 8 70 20 ; O) : Requirements 5 8 a 4 wu Total Cost of Transportation = (5 x 19) + (2 x 30) + (6 x 30) + (3 x 40) +4* 70) + (14 x 20) = 1,015 Find initial basic feasible solution of the following transportation problem with the hy 4 North-West Corner Method. Warehouse Factory Requirement Itis an than the supply. Therefore, a Seanned wek CamScanner — sransportation Problem an To 5 : ive S = | Dummy (D)] Availability 4 F, 2 16 a 4) “ F, a 17 73 j 2 ze F, 1 23 a a ©) 5 36 Requirements 18 eal 7 2 s ‘Total Cost of Transportation = (14 x 11) + (4% 7) + (22 x 17) + (6 X 23) + (25 x 21) + (0 x 5) =F 1219 Example 3. Find the initial feasible solution by NWCM: Destin s it u ss Pp 8 6 3 60 Source Q 5 10 9 50 R 6 6 4 70 DD 30 105 45 180 Solution, By using North-West Corner Method, the i From/To Ss T U ss 8 6 3 60 5 10 9 50 a 6 6 4 70 @ DD 30 105 45 180 ‘Total transportation cost = = @ 1,250 © Lowest Cost Entry MetHop (LCEM): al feasible solution is given as follows: (8 x 30) + (6 X 30) + (10 x 50) +(G x 25) + (4 x 45) This method is also called matrix minima method. Under this method, we take into consideration the transportation cost while making allocation, It involves the following steps: Step 1.-Select the cell with the lowest cost among all the rows or columns of the transportation table. Ifthe minimum cost is not unique, then select arbitrarily any cell with the lowest cost. a 132 Step 2. Allocate as much as possible to selected cell in the Step 1 and eliminate that roy in hy either the supply or demand is exhausted. If both a row and a column are ahd = i simultaneously, any one may be carried out. 4 Operations Rey Step 8. Adjust the supply and demand for all uncovered rows and columns, Step 4. Repeat the procedure for the reduced table until either the SUPPIY oF demang : exhausted. Note: If there is a tie in maximum possible quantity of allocation, then we should refer the cell with High supply/demand. Example 4. Find the inital feasible solution of the following transportation problem Py using Lowes oy Method (LCM) : Warehouse Plants Ww, w, w,, w, Supply P, 50 50 7 P, 40 60 9 P, 70 20 18 Demand 7 14 4 Solution: By using lowest cost method, the initial feasible solution Ie given as: Warehouse Plants w, w, Ww, W, — Supply P, 19 30 50 “a | 7 P “® 30 “a 60 9 P “® 8 70 aS 18 Demand 5 8 7 74 34 In this method we start wit! the cost is € 8. We allocate whit fil the w,i h cell which has the minimum cost ie (Py Wo minimum (S,, D,) = Min(18, 8) = 8 units oes ‘arehouse W,, Since the demand the wareho i WV, will not be considered any more. In ee y eel He PW.) and allocate minimum Sr cell which exhaust the supply P,. Thus row smurn oo roceeding in the same way the search for mini pply and demand conditions are satisfied. xat ‘Total transportation cost = (10 % 7) + (70 x 9) + (40 x n+aoxate (20 x7) = % 814 satisfied, therefore column table again locate the minim Min (7, 14) = 7 units to this be considered anymore. P; cell will continue till all su Seanned wek CamScanner re qransportation Problem: . simple 5. Hi the ia foe salstin of te flleaingiansprtaton prio, 9 SNE Least Cost Method: Warehouses Destination Dy | P, | 0, | Supply w, sta ; Ww, 3 3 5 Ws 3 )a | 7 ; Ww 71] 6 = vomand [7] 3 p78 [et | Solution: By using least cost method, the i al feasible solution is given as follows: Destination Warehouse D, D, D, Supply w, 2 T 4 5 Ww, 3 3 1 8 Ww; 5 4 O 7 7 w, 1 O 6 2 ® 14 Demand 7 9 18 34 “Total transportation cost = (7 x 2) + (4x 8) + (1X8) + 4X7) + (1X7) + 2X7) = 783 Example 6. Find the initial feasible solution of the following transportation problem by LCEM: Destination Source D, nn a) 8, 24 1s | 3 1 s, 7 | we | 4 | 3] 13 s, a2 | a | 1 | 4 19 DD 2 | 10 | 12 | 16 | 4643 Solution: Since the given problem is unba iced, so we add a dummy row with 3 units (46-43). The initial feasible solution by LCEM is given as: Seanned wie CamScanner 134 OPerations Re ‘Sea Destination Source D, D, D, D, SS Ss, 21 16 6 E) @ 11 Ss, 47 18 14 23 13 s, | 32 27 18 Dummy | 0 0 0 op [8 10 12 16 46 ‘Total transportation cost = (3 X 11) + (17 x 1) + (14 x 12) + 2x7) + @7 x19 + (41 x 2)+ (0 x 3) = % 794 © Vocet’s Approximation MetHop (VAM) Vogel's Approximation Method(VAM) gives better initial feasible solution as compared NWCM and LCEM. VAM gives either optimum or nearer to optimum solution. Therefore, ts method is preferred over NWCM and LCEM. The various steps in VAM are given beiow: Step I. Step IL. Step III. Step IV. Example 7. Calculate the difference between two least costs in the same row/column. Ths difference is known as unit penalty. Choose the row or column with largest unit penalty. Entering from that row column, allocate maximum units possible to the least cost cell in that row or columt so that either demand or supply is exhausted. In case there is a tie in selecting the largest unit penalty, choose the row or colums wth minimum cost. In case there is a tie in minimum cost also, select the rv column where maximum allocation can be made. Adjust demand and supply and cut the exhausted row or columi and column demand both the exhausted, eliminate both the row and col Repeat steps I to IIT till available supply and demand at various sources ® destinations are exhausted. s Find the initial feasible solution of the following transportation problem b Hoe Approximation Method (VAM) in, If row supply umn. Requirement Seanned wek CamScanner sransportation Problem solution? Example 8. Solution: ‘The Initial feasible solution by using VAM is given bel low: Total Transportation Cost = (9 x 16) + ( =@517 Find the initial feasible solution of Too Coad From i ‘i Unit Penalties ' Availability | up, UP, UP, 16 1 . [ 9 12 14 9 ® 4 4 3 22 13 19 B 16 = 6 |.68|.2 _ | 8 a c 12 ; @ ao Requirement 70 | 18 17 42 Unit up, | 2 6 4 Penalties up. [6 6 7 up, | 6 6 = 5 x 12) + (1 x 22) + (15 x 13) + (8 x 12) the following transportation problem by Vogel's Approximation Method (VAM) Destination ie Le ‘Availability 50 12 = 40 60 10 60 | 20 18 7 | 45 35 Seanned wiek CamScanner 136 Operations, Rese, ary 40 10 60 20 | 18 | 10 i] % c Requirement 5 8 7 15 35 Unit up, | 217 20 10 Wl Penalties uP, 201 10 8 up, = 10 8 uP, = 10 481 ‘Total Transportation Cost = (19 x 5) + (12 2) + (40 x 7) + (60 x 3) + (10 x 8+ (20 x 10) = % 859 Example 9. Find the initial feasible solution of the following transportation problem by : (a) North West Corner Method (b) Lowest Cost Entry Method (c) Vogel's Approximation Method Destination | Factory Der eves 88 | F, 10 7 3 6 3 F, 1 6 | 7] 3 5 F, 7 4 5 6 7 | DD 3 2fte6| 4 18 | Solution: — The initial feasible solution obtained by using (a) NWCM To From t F, F, 1 6 7 @| @ 7 F, 4 5 I | Pp 3 [2 Te 4 15 | ‘Total Transportation Cost = (10 x 3) + Gx = e102 + (7X 3)+GX3)+ 6x4) _d Seanned wek CamScanner Transportation Problem - (b) LCEM ce oe D, D, D, ee Nees 10 7 5 a I 7 F SRE F, 5 2 ® z s J S 6 ] F, ; ef of © DD 3 2 6 i aa (3 X 8) + (1X 3) +B XQ) +4 2) +X 3) + (6X 2) 53 To From D D, D, D, ay 10 7 3 6 F, ® 1 6 7 3 F, /— @ ® 7 4 5 6 F ° @} @ @ “| oD 3 2 6 4 Unit UP, 3 Penalties up, 3t UP, 3 2 oO ‘Total Transportation Cost = (3X3) + (1X3) + (3X2) + (4x2) + (5x3) + (6x2) = 853 Seanned wiek CamScanner 138 EXERCISE 1 Operations Resea teh js ving transportation problem by 1, Find the initial feasible solution of the following transp Pp y North te, Corner Method: Destination 1 Requirement help of North We: Factory! F, aon Method: - Find the initial basic feasible solution of the follow: ‘st Corner ing transportation problem with the F 2 2 Demand 3. Find the initial basic feasible solution by NWcM: From/To: A BeeG ee Availability ~ x 1" 2 16 14 Y 7 7. | 49 26 z 1" 23 | 21 36 Requirement 18 L 28 | 25 4. Find the IBFS of Factory the followin, 71 76 Dy D; | F A 2 FE 4 3 Fy 0 2 Requirement 4 8 ee | ig transportati ‘on problem using least cost method (LCM): _ Destination i a ot © Availability © Seanned wek CamScanner 139 sransportation Problem 5, Find the initial feasible solution by LCEM. 8. Find the initial feasible solution of the following transportation problem using Vogel’s Approximation Method (VAM): Warehouses EC ; sale want Factory w, |W, | Ww, | W,_| Factory Capacity F, 20 25 | 40 20 (Zz 100 FL 29 26 35, 40 (250 Fy 31 33 37_|_30 150 rf 500 Requirement 90 160 | 200 | 50 500 6. Find the initial feasible solution by From\To A B | ¢ ‘Availability, x 1 21 16 14 Y 7 17 |ea3 26 Zz 1 23 241 36 Requirements 18 28 | 25 pie 7. Find the IBFS of the following transportation problem using VAM: From\To [A B c ‘Availability | x 6 8 4 14 A 4 9 8 12 Zz 1 2.16 5 Requirement 6 10 | 15 31 | | ~ From\To es ‘Supply A 15 10 2 | B 16 13 6 | c 12 17 7 Demand 3 3 oe 15 | 9. Find the initial basic feasible solution (IBFS) of the following transportation problem with the help of VAM: Wy F, 5 F, Fy DD 75 20 50 148 105 (Hint: Unbalanced TP, create dummy row) Seanned wek CamScanner _a Operatig Re "Stay mth 140 10. Find the initial basic feasible solution (IBFS) of the following transportation Probl the help of: Hem yg (i) North West Corner Method (ii) Lowest Cost Entry Method Vogel's Approximation Method E From/To D, bd, [> | Availabilty F, 19 30 | 50 | 10 7 F, 70 30 | 40 | 60 9 F, 40 8 7o | 20 18 Demand 5 8 7 14 34 ANSWERS Le), =5, yy =2, Xyq=6, Xy9=3, Xyy=4, X= 145 Total cost = % 102 2. 4,6, y= 8, %p=2, X= 14, x,,=1, x, tal cost = F128 3. x, =14, x,,=4 x, =22 x4)=6, x =25, x,(Dummy)=5 Total cost = € 1219 : 4. X,=6, ,,=2, %9,=6, x,,=4, %5)=6, Total cost = & 32 5. %,=90, x,,=10, x,,=160, x,,=90, x,,=110, x4,= 40 Total cost = & 14580 6. x,,=14, x,,=18, x,,=8, x,.=28, x=3, x, (Dummy) = 5, Total cost = = 1161 Te X,g=14, xy) =6, Xy9=5, Xqg= 1, %4.=5, Total cost = % 143 8. 1,x,=3, x4,=4, Total cost = & 174 9. 5, x,, (Dummy) = 40, Total cost = & 515 10. +53, X,,=4%,,=14 Total cost = & 1015 @ 814 (ili) x, =5, =, %,=7, X,,=2, X4.=8,x,,= 10 Total cost = 2 779 Co Test For OPTIMALITY ; 5 Reps tation After having obtained the initial feasible solution, the next step in the transport, problem is to check whether the solution obtained is optimal or not. The following two ™ used for testing the solution: 1. Stepping Stone Method 2. Modified Distribution (MODI) Method In this chapter we shall discuss only MODI Method. _—_—d Seanned wek CamScanner > Wn Problem 141 ransportatio! co THe MopIFIED Distrisution (MODI) MetHop ee The modified distribution (MODI) method is an iterative technique from moving an iil feasible solution to an optimal solution. In order to apply MODE method, the number of ifpeated cells must always be equal to the sum of rows and columns ininus 1, i,m = 1. The cdl in the following steps: MODI method for testing the optimality can be sums Step 1: Find the initial feasible solution by any of three methods, preferably by VAM- Step 2: Determine row and column numbers 1, ( 1,2) .0.m) and 1, = 12,3 om) by using the formula C, = 1, + ¥, for the allocated (or occupied) cells. h the maximum number of allocations To start with, take u, = 0 for the row in wl are made. Step 3: The opportunity cost for all the unoccupied cells dj) are calculated by using the formula diy = ¢y— (ui + Y) Step 4: (a) Ifall d; > 0, the optimal solution is reached. (6) If dy = 0, the solution is optimal and alternative solution exists. (0) Ifdy < 0, the solution is not optimal. In this case we proceed to next. Step 5: Select and tick (V’) an unoccupied cell with largest negative opportunity cost () among all the unoccupied cells. Step 6: Construct a closed path for the unoccupied cell determined in Step 5 and assign plus (+) and minus (-) sign alternatively beginning with the plus sign for the selected unoccupied cell in clockwise or otherwise direction. Step 7: Assign as many units as possible to the unoccupied cell satisfying constraint conditions. The smallest allocation in a cell with negative sign on the closed path indicated the number of units that can be transported to the unoccupied cells. This quantity is added to all the occupied cells on the path marked with plus sign and subtracted from those occupied cells on the path marked with minus sign. Step 8: Go to Step 2 and repeat procedure until all di = 0, ic., an optimal solution is reached. Calculate the associated transportation cost. Bp Note i sme books instead of calculating the values of u, and x}, the values of R, and K, are caleulated. Answer in both the cases will be the same. Example 10. Solve the following transportation problem for minimisation: : : a Seanned wiek CamScanner 142 Operations Re stip Solution, Firstly, we find the initial feasible solution by using VAM. It is given in a C table below: 55, 20 100/100 Demand 25 UP, 3t 1 1 uP, = 1 1 UP, - 1 4 Rim requirement= m+n-1= 3+3 -1=5 Number of allocated cells Since rim requirement (5) = number of allocated cell(5), this solution is nor- degenerate. MODI Optimality Test: Now we apply MODI method to check the optimality of the solution. For Occupied Cells: Find u, (i = 1, 2, 3,) and vy, (j = 1, 2, 3) for each occupied (allocated) cell by using the formula cij = u, + v,. Assuming u, = 0(Since first row contains maximum number of allocations), the other values are calculated as. Cy = Wy + v2 Or 7 = 0+ vg 0rd, =7 C13 =u + v5 0r 8 = 0 + v,0rv, =8 C23 = Up + V3 OF 9 = Uy + Bor tty = 1 fy = uy ty 0r7 = 1 +, ory, =6 sg = Us + Uy OF 8 = Us + Torus = 1 Thus, u,= 1, = 6,0, = 7,0, For Unoccupied Cells: Find the values of d, for all unoccupied (or unallocated) cells Y using the formula d, = c, - (u, + v) dy = Cy - (uy +4) = 10-0 + 6) = 4 ay = 644 ~ (Uy + v,) = 15 (14.6) = 8 Seanned wek CamScanner sronsportation Problem 143 dy = 22 = Cop (Uy + ve) = 12-(1 +N=4 yy = C59 ~ (ty + 04) = 12-1 ane The calculated uj, v, i ¥ and dy done above are shown in the following table: w, W; 10 F, ee u,=0 (Let) gy=4 © 48 15 5 fe) ai doy ® 15 Z | 12 F, : dy3= 40 u=1 Demand | 25 55 20 40 y | yj=6 | w=7 | 4=8 Since, all d;; > 0, therefore the solution we tested is optimum. The optimal solution is given below: Minimum TC = (7 x 40) + (8 x 5) + (9X 15) + (7 x 25) + (8 x 15 2750 Example 11. Solve the following transportation problem by VAM and use MODI Method to check optimality: olution Using VAM which is given in the y, we find the initial feasible s Solution, Step I: First! table below: Seanned wek CamScanner Operation, Ry a ——J , ss uP, I, 7 5 = F, 70 1 8 6 : 7 A @ 80 3 9 5 S Fs 60 1 DD 20 120 40 180 UP, 1 0 1 uP, 1 0 = UP, iE 1 1 = Rim requirement = m-+n-1=3+3-1=5 Number of allocated cells = 5 Since rim requirement (5) = number of allocated cell (5), this solution is non- degenerate MODI Optimality Test : Now we apply MODI method to check the optimality of the solution. For Occupied Cells : Find u, (i = 1, 2, 3,) and u, G = 1, 2, 3) for each occupied (allocated) cell by using the formula cj = u, +, Assuming u, = O(Since first row contains maximum number of allocations), the other values are calculated as : Sy = +4, 0r7=0+4,0rv, =7 “2=% +H 0r5 = 0+ vy, ory, =5 Sq = Uy +4, 0r8 =u, + Toru, = 1 fy = Uy +0, oF « Thus, u, 1+ ‘U,; or =u; + 5oru,=0 1,u, = 0, 0, = Tv, = 5,0, =2 For Unoccupied Cells: Find th, cells by using the formula dij d dy = Cy ~ , +0,) = dy, =u, +u,or5 ais 0, ty ‘d) © values of d, for all unoccupied (or unallocat 76 Fy) Ss +0) = 4-49) 29 6-(1+5)=0 F140) = 9-047) a5 Seanned wek CamScanner ion Problem 145 | sronsportat ds, = Cy — (Uy + 0.) = 6-(0 + 2) = 4 The calculated values of u,, yy and d, are shown in the following table : Step IL : Now, we apply MODI method to check the optimality. Ww, L 7 u, = 0 (Let) F, 8 FR L-a + L 9 5 [6 . ; dyy= 4 60 0 Demand 20 120 40 180 y v27 | yes [ee Since, all dy > 0, the solution is optimal. The optimal solution is given below: Minimum TC = 7 x 10 +5 x 60 + 8 x 10 +3 x 40 + 5 x 60 =%870 Example 12. A company has three plants and four warehouses. The supply and demand in units and the corresponding transportation costs are given. The table has been taken from the solution procedure of the transportation problem: Warehouse ss Plants Seanned wiek CamScanner 146 Operatio, ns Reser Answer the following questions giving brief reasons: (@ Is this solution feasible? (i) Is this solution degenerate? Git) Is this solution optimum? Solution. ‘The given solution is reproduced in the following table and tested for ony For this we compute u, ¥, and d,, by using the formulae ¢, = w, + xj ant pl (u, + 0) oe f OO] ® 33> 7 a (Let) DD 25 10 15 5 55 % @) Yes, the solution is feasible because it meets all the demand and supply constraints. (ii) No, the solution is non-degenerate as the number of occupied cells (6) is equal to required number of m +n—1,ie,3+4-1=6 (iti) Yes, the solution is optimal because all dj > 0. TC = 235 CExercise 2 ) 1. Solve the following transportation problem by VAM and Use MODI method to ch optimality. eck the supply S, [Ans. Seanned wiek CamScanner transportation Problem . 2, Solve the following transportation problem by VAM and Use MODI method to check the optimality. D, D, Deen ab: Supply Si 1 13 17 14 250 8, 16 18 14 10 300 Ss, 2 24 13 10 400 Demand 200 225 275 250 950 [Ans. TC = & 12075] 3, Solve the following transportation problem by VAM and Use MODI method to check the optimality. From/To D, D, D, Supply 1 16 20 12 200 2 4 8 18 160 3 26 24 16 100 a 130 150 460 [Ans. TC = & 6060] 4, The following is an initial basic solution of the transportation problem by VAM. D, D, oD, OD, Ss, 1 2 1 4 @ 8, 3 3 2 1 s. 4 2 5 9 @ | Use MODI method to check the optimality [Ans. TC = 7180] Close-Loop in a Transportation Problem In a transportation problem, sometimes we find d, (opportunity cost) value for some unoccupied cells as negative. In such cases, the solution is not optimal and we iterate towards optimality. In order to improve the solution, we draw a loop (closed path) from the most negative Values. The loop can be a four corner loop or six corner loop. The loop must have its corners at the occupied cells. It can be drawn in clockwise or other directions. Signs at the corner of the loop are positive (+) sign at the starting point and other alternate negative (-) and positive (+) Signs at the other corners. Seanned wiek Cam Scanner Operati 148 OS Resa, allocate + sign at the starting point and other alternate ~ + a4 3 s, we select the minimum of the allocation and subtract from the cell with -signs, py Along this closed loop t the other corners. From the cells having - sign this minimum allocation to the cells with + signs ee ee eee doin this, we get new values for the next transportation matrix, Only Wiles Ht tne ¢ EFS ofthe change, other values in the matrix remain the same. We again check the optimality of this 0 improved solution, Continue the above process till the optimal solution is reached. Example 13. Solve the following transportation problem: ‘Warehouses Fata Ww, w, Ws Supply F 7 10 | 10 35 F 20 30 | 20 40 5 5 8 12 40 Demand 45 son |i 20 ue Solution. Firstly, we find the initial feasible solution by using VAM. It is given in the table below : w, Ww, ss Py) UP: | UPS 5 10 10 F. = 1 @ 35 5 is = al 7 20 30 20 : 40 o oe a + 5 8 12 Fy @ 40 3 3 a Demand 45 50 20 115 UP, 0 2 2 UP, 15 22t 8 UP, 20 301 20 Rim requirement= m-+n-1=343-1 Number of allocated cells=5 Since rim requirement (5)= i jon is now ed (5)= number of allocated cell(5), this solution is MODI Optimality Test: i malty the solo ty Teste Now we apply MODI method to check the optimal! For Occupied Cells : Find u, (j : (= 1,2, 3,) andy, G = i (allocated) cell by using the formula ¢ =. nee niet GU. Seanned wek CamScanner 49 ransportation Problem 1 Assuming u, = 0(Since second row contains maximum number of allocations), the other values are calculated as. cy =, FY, 0r 5 =u, + 20 or u, = -15 Gy =U, $Y, 0r 20 =0+y, ory, Cq =U, + ¥, 0r 30 = 0 + v, or v, Cy = Uy + ¥, OF 20 = 0 + y, ory, = 20 yg = Uy + Vp OF 8 =u, + 80 or u, = -22 Thus,u, = -15, u, 22, 20,v, 20 For Unoccupied Cells: Find the values of d, for all unoccupied (or unallocated) cells by using the formula d, = ¢,~(u, + ¥) dy, = Cy, (tt, + v,) = 10-15 + 30) = -5 dy, = Cy, — (Uy + ¥,) = 10-15 + 20) = 5 7 Wy + ¥) = 5 - (20-22) = 7 5 + ¥,) = 12-20-22) = 14 The calculated value of u,, v, and dj, are shown in the following table: Ge ee a v ns = Sy CU fr 35 -15 =O ey) 40 40 DD | y i Since d,, is having a negative value i.e. dy, = -18, the solution ob optimal. ained is not Draw Close-Loop: We draw a closed loop from the cell d,, . The closed loop must hi Comers at the occupied cells. Marks the positive and negative sign begging with d,, the closed loop, we find the minimum allocation among negative signs. This minimum uantity is 10. Transfer this 10 units to the unoccupied cells (d,,) With positive sign and subtract 10 from those occupied cells wi loop, ve its -5. On allocated and add 10 to all occupied cells ith negative sign within the closed Bee Seanned wek CamScanner 150 ‘The resultant improved solution is shown below and now we again check by MODI method. Solution. oN Operatioy Ons Re “ean - °Ptimay, Improved Solution and Optimality Check Again fe wal Ww | ss fa 5 10 10 | : ® +5] 35 uso | 20 30 20 i @ | © 40 5 8 12 DD 45 50 20 y y=5 Since, are dj = 0, the solution is optimal. ‘The optimal solution is given below: Minimum TC = (5 x 25) + (10 X 10) + (20 x 20) + (20 x 20) + (40 x 8) = 71,345 Example 14. Solve the following transportation problem for minimisation by VAM and use MODI meliod to check the optimality: 0, D, D, D, ‘Supply Ss, 19 30 50 10 7 s, 70 30 40 60 9 s, 40 8 70 20 18 ana u Demand 5 8 7 14 the able Firstly, we find the initial feasible solution by using VAM. It is given im below: 30 50 | 30 ao] [eo] | 1 OT ® Seanned wek CamScanner seansportat tion Problem 151 40 10 : ls 5 8 Unit Penalities UP, {211 en uP, |= 20 up, | — 7 up, — - Rim requirement = m+n-1=3+4-1=6 Number of allocated cells=6 uirement (6)= number of allocated cell (6), this solution is non-degenerate MODI Optimality Test: Now we apply MODI method to check the optimality of the solution. For this we compute ui(i=1,2,3) & vjG =1,2,3,4) using the formula ¢,=u,+y, for each occupied cell and dij using the formula dij=¢,-(u,+v) for each unoccupied cell. The calculated of u, v; and d, are shown in the following table: Since rim reqi D, Supply | _4, s, 19 7 s, | 70 8 Ga Ss, 40 18 Demand 34 Mi Since d,, is having a negative value i.e. d,, = ~18, the solution obtained is not optimal, ___ Draw Close-Loop : We draw a closed loop from the cell dy its comers at the occupied cells. Marks the positive and negative sign be : the dosed loop, we find the minimum allocation among negative signs. This minimum located quantity is 2, Transfer this 2 units to the unoccupied cells (d,,) and add 2 to all ‘xeupied cells with positive sign and subtract 2 from those occupied cells with negative sign Within the closed loop. . The closed loop must have nning h d, Seanned wiek CamScanner 4 Oeratio, "sey The resultant improved solution is shown below and now we again check the optim, "i ! aly 152 MODI method. Improved solution and optimality check again Dd bo, Dy D, Supply | u, 8, 19 30 50 10 7 al ® [22 42 ®@ . 70 30 40 60 9 u,=32 19 ® OQ] fel 8, 40 8 78 | uno L 11 ®| 70 [e2| 2 @| = Demand | 5 8 7 14 34 iz y v=19 va v=8 v=10 Since all d, 2 0, the solution is optimal. The optimal solution is given below: Minimum TC = (19 x 5) + (10 x 2) + (30 x 2) + (40 x 7) + (8 X 6) + (20 x 12) =% 743 EXERCISE 3 1. Solve the following transportation problem by VAM and Use MODI method to check the optimality. [_ D, D, D, ss Ss, z 7 5 Ss, 3 3 4 8 Ss, 5 4 7, 7 Sy 1 6 2 14 DD 7 9 18 34 [Ans. TC = €76] 2. Solve the following transportation problem by VAM and use MODI method to check he optimality. [> D, D, D, ss s, 6 1 ° 3 SF n 5 2 8 s, 10 12 4 o t—— Seanned wek CamScanner | | 153 | 1 nsportation Problem fn 4, Solve the following transportation problem by VAM and Use MODI method to check the * optimality. L , , , | s, 6 8 4 14 Ss, 4 9 3 12 s, 1 2 6 7 5 aa) 6 10 15 34 {Ans. TC = 128] 4, Solve the following transportation problem for minimisation: D, D, | ‘Supply 8, 6 5 8 5 30 eS 5 " 9 7 40 s, 8 9 7 8 50 Demand 35 28 32 25 120 [Ans. TC = € 746) GI Speciat Cases IN TRANSPORTATION PROBLEM Following are the special cases of transportation problem: (1) Degeneracy in Transportation Problem When the number of allocated cells is less than m + n — 1, the solution degenerate. To remove the degeneracy, we assign a small positive value ‘e’ (epsilon) to as many non-allocated cells as may be necessary to complete 'm + n I’ cell. The cells containing ‘e’ are then treated like other allocated cells and the problem is solved in the usual way. The ‘e’ is kept till the optimum solution is attained. Then we let s — 0. | Example 15. At the beginning of a sowing season, there will be surplus of 6, 9, 7 and 5 tractors in four f F villages A, B, C and D while three other villages X, ¥ and Z will require 8, 7 and 12 tractors respectively for farming purpose. The cost of moving tractor is directly proportioned to the distance between the surplus and deficit villages and these distances (in kilometers) are given below: ‘Surplus Deficit villages villages x Y Zz A 26 22 28 B 19 27 16 c 39 2 32 o 18 24 23 Determine the optimal scheme for delivery of tractors from surplus villages to deficit villages Seanned wek CamScanner 3 154 Operations Re, ar Solution. Firstly, we find the initial feasible solution by using VAM. It is given j below: the tat le To-» ror x Y z SS) UP, UP, UP, Up t te | : 26 22 28 6 —T A ® 3 414 |alu 19 27 16 : 9 9 3 = fase cE "| 2a es © @ 11 Wl] 18 24 D ® 5 |5]s5]5 DD 8 i. up,| 1 1 7 up, | 181 1 5 uP, 13t 1 4 up;| t . a Since the number of allocations made is 5 which is less than m + n - 1 = 6, the initial basic solution degenerates. In order to remove degeneracy, we require only one more positive allocation. We select the least cost independent cell. There is one cell (2,1) which bas the minimum transportation cost of 19. If we allocate to this cell a small positive quantitiy © (epsilon), it results in a closed loop and hence no allocation will be made in this cell. The "&* minimum cost cell is (1,2) which has the minimum cost of 22. We allocate a positive quanti ‘e' to cell (1, 2) so that the number of allocated cell become 6. The ¢ (epsilon) can be allocated !° this cell so that the number of allocated cell become 6, This solution beomes non-degene™ MODI Optimality Test: Now we apply MODI method to check the optimality of - solution. For this we compute ui(i= 1, 2, 3, 4) & vjj=1, 2, 3) using the formula cij=uit yj fr occupied cell and dij using the formula 'ui+vj) for each unoccupied cell. Seanned wiek CamScanner 155 a portation Problem to ane calculated values of ty vjand dy are shown in the following table + To-» From x Y Zz Supply u, 1 26 22 28 6 [ u= a ®@| ©} © 19 27 16 9 12 B — 5 17 ® 39 24 32 7 1 : ® 14 5 18 24 23 5 8 ' ® 10 3 Demand 8 7 12 27 | v,=26 | V,=22 | V,=28 vy 1 2 3 | Since all d, 2 0, the solution is optimal. The optimal solution is given below : Minimum TC = 26 x 3+ 220+ 28x34 16X9+21x7+18X5 = 7543 Example 16. Find the optimum solution to the following transportation problem in which the cells indicate the transportation cost in rupees. From/To w, w, wy qT w, wy Supply iy z 6 4 5 9 40 FS 5 7 7 8 6 10 Fs 6 8 9 6 5 20 F, 8 5 6 7 8 30 Demand 30 ac 30 15 20 5 | 100 | Seanned wiek CamScanner : | | 156 Operations Rese ny Solution. Using VAM, the initial feasible solution of the given tr; AMSPOrtAtiON prop shown below: mi Wy, Ww, Ws we ™. ] Sippy | {& | "o| * | *@l Fo = | og} Fy. 5 7 7 8 6 19 5 6 7 8 20 Demand 30 30 15 20 5 100 Since the number of allocations made is 7 which is less than m + n-1 = & the inital bade solution degenerates. In order to remove degeneracy, we require only one more positive allocation We select the least cost independent cell. There are four cells (1, 2), (2, 5), (3, 4) and (4, 3), each of which has the same minimum transportation cost of & 6 (out of the unoccupied cells) Allocationta sither (2, 5) and (8, 4) results in a closed loop and hence no allocation will be made in these ale ‘Thus a small quantity ¢ (epsilon) can be allocated to either cell (1, 2) and (4, 3). Let us allocates (epsilon) to the cell (1, 2) so that the number of allocated cells become 8 and the solution became non-degenerate. MODI Optimality Test: Now we apply MODI method to check the optimality of solution. For this we compute ui(i=1, 2, 3, 4) & vj 1, 2, 3) using the formula cij=uityj for occupied cell and dij using the formula cij= ui+-v, ij=cij-(ui+yj) for each unoccupied cell: The caleulated values of u,v, and d, are shown in the following table : w, Wy w, Supply 4.200 © S@ 9 40 Seanned wek CamScanner transportation Problem 157 ace all d, 2 i ' Se “ 6 * vs Solution is optimal. The optimal solution is given below: Minimum poe ) + (4 x 15) + % 20) + x 10) + Gx 15) + 6 X 5) +5 X 30) 5 EXERCISE 4 ) 1. Amanufacturer wants to ship 8 loads of his product as shown below. The matrix gives the kilometers from origin to the destination. Destination Origin A B iC Availabilty x 50 30 220 1 Y 90 45 170 3 Z 50 200 50 4 Requirement 3 3 2 8 load per kilometer. What shipping schedule should be used? Shipping costs are 10 per {Ans. Minimum TC = 385 x 10 = 73,850] [Hint : Assign ‘e’ to ¢,] 2, Solve the following transportation problem for minimisation: Fromto | 0, | D, | 0, | % | Suppy 8, 4=|23) || -tlF2 80 S, eee eae 60 8, 3}5|s6|3 40 Demand | 30 | 30 | 15 | 20 100 [Hint : Assign ‘to ¢,] [Ans. Minimum TC = %400] (2) Unbalanced Transportation Problem (2) Unbalanced Transportation "7" — oblem is that where the total quantity of supply available more or less than the quantity required (demand) by Neves. In such a case to get an optimum solution of ‘a dummy variable either for the source of An unbalanced transportation pr at various sources of supply are either different destinations or distribution cer unbalanced ‘TP, first we balance it by introducing u u supply or for destination offdemand 25 te 28° SY be. The cost of transporting a unit from dummy source or to the dummy destination is taken be zero. After converting the unbalanced y o 4 - transportation problem to balanced transportation problem, the problem is solved in usual way. Seanned wek CamScanner 158 Example 17. Find the optimum solution Solution. Operatioy 8 Ry tary of the following transportation problem: Distribution Centres c (ax: 7 10 4 6 80 Production a 8 Centres Zz 3 2 5 15 405 Demand | 75 | 20 | 8 [igs Tn the above problem, total demand is more than the supply: Therefore, a, additional row will be introduced for dummy supply. The dummy supply willbe 145 — 105 = 40 units to balance the total demand and total supply. The dumm source of supply has been shown as T and the transportation cost from this orig, to distribution centres A, B, and Cis taken as zero. FromiTo AL] 8 | ¢ | Supply xfs 1 7 10 Y 6 4 6 80 Z 3 sf 2 5 15 Dummy (T) 0 0 0 40 Demand 5 20 50 lags Gs Now we find the initial feasible solution by using VAM. It is given in the table below: Teo] ae A B c ss up, | uP, | UP, x 10 4 4 Y 80 — 2 2 z 15 1 1 | (Dummy) 40 oD i 7 Penalties UP, = uP. up| 3t leecealece| Seanned wek CamScanner transportation Problem l 159 Rim requirement= m+n-1=344-1=6 Number of allocated cells=6 Since rim requirement (6)= number of allocated cell (6), this solution is non-dege DI Optimali : | this solution is non-dege MOBY Cpdmailty Test : Now we apply MODI metheul ia check the opdmalty of the solution. For this we compute uiti= 1,2, 3,4) & 4 occupied cell and dij using the formula dij= ‘j-(ui i+ vj for cach using the formula jj i ¥p) for each unoccupied cell. The calculated of u, ¥, and d, are shown in the following table : Since, all dj = 0, the solution is optimal. The optimal solution is given below: Minimum TC = 10 x 1 + 60% 6 +10 % 4.410% 6+ 1534040 =%515 Example 18. A product is manufactured by four factories A, B, C and D. The unit production costs them are 82, 73,2 Land 5 respectively. Their production capacities are 50, 70, 30 and 50 units respectively. These factories supply the product to four stores, demands of which are 25, 35, 105 and 20 units respectively. Unit transportation cost in rupees from each factory to each store is given in the table belaw: Delermine the transportation plan to minimize the total production cum transportation cost Seanned wk Camscanner 160 Solution. We construct a transportatio production cost and transport ation cost. Operatic ions se, n table with new transportation costs ¢h, at i Mad The given problem is an unbal: problem, we add a dummy co cost matrix will be as follow. anced problem since DD

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