Transportation
Models
I INTRODUCTION
the transportation problems are one of the types of the LPP, in which objective is to
satsport various quantities of a single homogeneous commodity, to different destinations in
such a way that the total transportation cost is minimum, stration problems gave
ea of distribution policy’ making, where the objective is
ninimisation of transportation cost. \The various features of linear programming can be
spserved in these problems. Here the #ailability as well as requirements of the various centres
tne finite and constitute the limited resources. It is also assumed!that cost of shipping is”
near, Thus these problems could also be solved by “Simplex Method”.
direct relevance to decisions in the
{TERMINOLOGY USED IN TRANSPORTATION MODEL
1. Feasible Solution (FS). Non negative values of xij wherei = 1,2, ......m andj =1,
2, ..... n which satisfy the constraints of availability (supply) and requirement
(demand) is called the feasible solution to the transportation problem.
2. Basie feasible solution (BFS). A feasible solution to a m-origin, n-destination
problem is said to be basic if the number of positive allocations are m +n-1ie. one
less than the sum of rows and columns. }
3. Optimal solution. A feasible solution is said to be optithal if it minimizes the total
transportation cost. The optimal solution itself may or lay not be a basic solution.
This is done through successive improvements to the i itial basic feasible solution
until no further decrease in transportation cost is possible.
Balanced transportation problem. A transportation problem in whicl the total
supply from all the sources equals the total demand in all the destinations.
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INHOAL 3AUWLUNYNO ANY HOHVES3H SNO!SI. OPTIMAL SOLUTION OF THE TRANSPORTATION PROBL
There are two steps to find the optimal solution of the transportation prob
(A) Find an initial basic feasible solution.
(B) Obtain an optimal solution by making successive improvements to initial b:
feasible solution until no further decrease in the transportation cost is possible,
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uotExample 1. Solve the following by NWCM.
Warehouses
Ww, We Ws Supply S;
Py
Plant Py,
Ps
Demand D;-” Total cost = 20% 74+ 1X5 + 25x 74+ 2x3 +17KB= F 462
Example 2. Solve the following transportation problem by NWCM
To
Ww, We We We a
From.
40
, Co es 1 20 iz
=
Fe 20] [26 5 40 oan
a 33a] [sz 30
afl Sl 150
; [6 30 | 160 | 200] 50 | 500Luba Gude Scaaiaeal
Example 3.
Production,
at plant
Require-
mentNSPORTATION MODELS 205
example 4. Solve the following problem by NWCM
{RAI
CapacityALAUBPULLALIULL LUBY Wee +
eee weuuy ones eres een,
Example 5.
De Ds Dg Ds Availability
4 6 8 8 20
10 0 5 8 30
11 20 40 3 15
0 9 14 16 13
6 8 18 6 78pueweg
Sa
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la
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Example 7. Solve the following: transportation problem by ‘Matrix Minima Methog:Example 8. Solve the following thanportition ‘problem by LCEM.
Qi
Q.
Qs
Required
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e}m onl OI
=
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Example 9. Solve the following problem with LCEM
A B c Dummy
W aie = (tele
x = 24] b 14
7 17 13
Y t Pe ba 26
W 23) 21
Zz 36
MKT. 76
Require- 18 28 25 ~
ment 4auvar CUSL = Jy)
Example 10. Solve the following problem by Least cost entry method.
De Ds Ds Ds | Availabili
4 6 8 8
10 0 5 8
11 20 — 40 3
0 9 14 16
6 8 18 6step number (iii). Repeat the procedure until all the column and row totals are satisfied.
Example 11. Solve the following transportation problem :
[G.N.D.U. 2008 Sept.]Example 12.
Destination
A
I 21 16
Source It 17 18
Tir 32 27\GPORTATION MODELS
B
211
example 13. Priyanka Iron & Steel Co. has 3 open health furnaces & 5 rolling
Transportation costs (* per Quintal) for transporting steel for furnaces to
ain mills are shown in the following table.
F,
Fp
eee
eee
What is the optimal schedule ?
(LC.W.A. Dec., 1986)evry
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VIII. OPTIMALITY TEST
we can proceed to know, whether
After computation of an initial basic feasible solution,
the solution so obtained is optimum or not. . .
Solutions so obtained may be Optimal or may not be Optimal, so it becomes essential fo,
us to test for Optimization. For this purpose we first define non-degenerate basic feasible
solution. aa, ,
Basic feasible solution of an (m X n) transportation problem is said to be non-degenerat,
if it has following two properties : bei op tar
(a) Initial basic feasible solution must contain exactly m + n — 1 number of individual
allocations. -
(6) These allocations must be in independent positions. Independent position of a set of
allocations means that it is always impossible to form any closed loop through these
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abe S13Q0W NOLWIHOdSN|cH AND QUANTITATIVE TECHNIQUE
Ri
OPERATIONS RESEA
i wed, and therefo -
In the closed path formulation of only right angle turn 16 allo re skip
t the turning points.
Jus (+) and
all other cells which are not a Tal
At each corner of the closed path assig? J
° beginning with plus sign for the unoccupied we (we
The +ve and -ve signs can be assigned either
Seals along the closed pat!
(d) Compute the net change in cost along the ¢
transportation costs associated with each of the a a
‘tion to cost with the decreases, will be
216
minus (-) sign alternatively
ter square) to be evaluated.
wise or counter clockwise
h by adding together the unit
1] traced in the closed path,
he improvement index,
Comparing the addi
(e) Repeat steps 3 (a) to 3 @) until net change in cost has been calculated for all
unoccupied cells. . e
f the net change in the unit transportation costs. If al]
Step 4. Check the sign of each o} val solution, otherwise go to
net changes are plus (-+) or zero, then we
step 5.
Step 5. Select the unoccupied cell with most negative net change among all unoccupied
cells. If two minus values are equal, select that one which will result in moving as many units
as possible into the selected unoccupied cell with the minimum cost.
Step 6. Assign as many units as possible to unoccupied cell satisfying rim conditions,
The maximum number of units to be assigned are equal to the smaller circled number ignoring
sign among the occupied cells with minus value in the closed path.
Step 7. Go to step 3 and repeat the procedure until all unoccupied cells are evaluated
|
| and the net change is positive or zero values.
Fyamnle 18. Sale the follamning hv NWCM and test its optimality by Stepping
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OSL =OPERATIONS RES At ne ee INNS
226
i ity.
The following steps are followed to determine the optimal ee ee
Step 1. From the given data construct a transportation table wi gi
ion and rim conditions. ope el : :
an pep 2. Determine in initial basic feasible solution using a suitable method. (.e, NWC
ee Estep ar er the current basic feasible solution with _m + Hic gemumiod cone solely
index numbers (dual variables) Rj = (i = 1,,...m)and Kj = (j= 1, 2y--
ctively. : oie oo
se nation calube of Ryand K,, the following relationship (formula) for occupied
cells is used,
oy = Ry + Kj for all i,j ;
Step 4. For occupied cells, the opportunity cost by using the formula.
dy = oj - Ri + K for all i, j
Step 5. Now the opportunity cost ofan unoccupied cell is determined by using the formula;
Opportunity cost = Actual cost - Implied cost
dy = cy- (Ri + Kj)
Step 6. Examine unoccupied cells evaluation for dij : : :
(a) If dj > 0, then the cost of transportation will increase, i.e., and optimal solution has
been arrived at. :
() Ifdj = 0, then the cost of transportation will remain unchanged. But there exists an
alternative solution. : a
(c) Ifdy < 0, then an improved solution can be obtained by introducing cell (i, j) in the
basis and go to step 7. (i.e. next step)
Step 7. Select an unoccupied cell (i.e. Water Square) with largest negative opportunity
cost among all unoccupied cells,
Step 8. Construct a closed path for the unoccupied cell determined in step 7 and assign
plus (+) and minus (-) sign alternatively beginning with plus sign for the selected unoccupied
cell in clockwise or other direction,
Step 9. Assign as many units as possible to the w
The smallest allocation in a cell with negative sign on the closed path indi
Tom those occupied cells on the path
marked with minus signs,
Step 10. Go to step 4 and repeat procedure until all dy
reached. Calculate the associated total transportation cost.
Example 20. Ra/]ninjeer fo 4h eer
= 0, ie, an optimal solution isIX DEGENERACY IN THE TRANSPORTATION PROBLEM
It may be noted that total number of stone squares must be equal to them + n-1i.e. r'
requirement. If this condition is not satisfied the solution is degenerate.
Such situation occurs in the following two cases :
a8
There may be excessive number of stone squares in a solution than the ri
requirements that ism +n-1. This type of degeneracy arises only in developing t
initial solution and is caused by an improper assignment or an error in formulati
the problem. In such cases there is a need to modify the initial solution so as
satisfy the rule of m + n-1 (rim requirements).
The second situation occurs when there may be insufficient number of stone squ
in a solution. Degeneracy of this type may occur either in the initial solution or i
subsequent table.
- Ad wa TeedtneSUDSE4QUELIL Lavic,
Stage 1. Degeneracy occur at the :
This particular case of degeneracy arises when both a column requirement and row
requirement are satisfied simultaneously. We introduce greek letter epsilon e in a wate,
square with the lowest transportation cost and by this process the number of stone squares
becomes equal to the rim requirements and we can proceed to solve the solution in an ordin: ,
way. The value of Epsilon (¢) is assumed to be something greater than 0 but which does ne
affect our mathematical calculation in anyway. Once € is introduced into the solution, it
remain there until degeneracy is removed or a final solution is arrived at, whichever oe
first. The use of ¢ is illustrated in the following example. iis
jnitial solutionStage 2. Degeneracy occurs during the test of optimality
Such situation occurs while during the iteration process two stone squares eliminate in
one step that is both a column requirement and row requirement are satisfied simultaneously,
Degeneracy at this stage can also be resolved by allocating epsilon (¢) to one or more of the
recently vacated cells or other vacant cells having least cost value and independent position.
The same has been illustrated in the following examples.
Eyamnle 24. Find Ontimal calutian to tha fallamina tranenartation nroblem in