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A B C Supply
To
From
1 7 5 9
10
3 17 12 16
2
Demand 12 12 12 36
A B C Supply
To
From
1 7 5 9
X1A X1B 10
X1C
2 9 6 11
X2A 12 X2C
X2B
3 17 12 16
2 X3B X3C
X3A
Demand 12 12 12 36
Objective Function:
Minimize : Zj = 7X1A + 5X1B + 10X1C + 9X2A + 12X2B + 6X2C + 2X3A + 17X3B + 12X3C
Constraints:
Subject to: X1A + X1B + X1C = 9
X2A + X2B + X2C = 11
X3A + X3B + X3C = 16
X1A + X2A + X3A = 12
X1B + X2B + X3B = 12
X1C + X2C + X3C = 12
Xij ≥ 0
A B C Supply
To
From
1 7 5 (9)
9 10
2 9 6 11
12
3 17 12 16
2
Demand 3 12 12 36
(12)
Step 2:
A B C Supply
To
From
1 7 5 (9)
9 10
2 9 6 (11)
3 12 8
3 17 12 16
2
Demand (12) 12 12 36
Step 3:
A B C Supply
To
From
1 7 5 (9)
9 10
2 9 6 (11)
3 12 8
8
3 17 12 16
2
Demand 12 4 12 36
(12)
Step 4:
A B C Supply
To
From
1 7 5 (9)
9 10
2 9 6 (11)
3 12
8
3 17 12 (16)
2 4 12
Demand 12 (12) 12 36
Step 5:
A B C Supply
To
From
1 7 5 9
9 10
2 9 6 11
3 12
8
3 17 12 16
2 4 12
Demand 12 12 12 36
Step 2: Represent a new variable for each row and column:
Let U = a value assigned to row 1
i
Step 3: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 7
X2A » U2 + V1 = 9
X2B » U2 + V2 = 12
X3B » U3 + V2 = 17
X3C » U3 + V3 = 12
Step 4: Evaluate the stone square in the initial solution by finding the improvement index.
Step 5:
Tableau 2:
A B C Supply
To
From
1 7 5 9
9 10
Step 6:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 9 x 7 63
X3A 3 x 2 6
X2B 11 x 12 132
X3B 1 x 17 17
X3C 12 x 12 144
Total transportation cost P362
Step 7: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 7
X3A » U3 + V1 = 2
X2B » U2 + V2 = 12
X3B » U3 + V2 = 17
X3C » U3 + V3 = 12
Step 8: Evaluate the stone square in the initial solution by finding the improvement index.
Step 9:
Tableau 3:
A B C Supply
To
From
1 7 5 9
8 1 10
Step 10:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 8 x 7 56
X1B 1 x 5 5
X2B 11 x 12 132
X3A 4 x 2 8
X3C 12 x 12 144
Total transportation cost P345
Step 11: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 7
X1B » U1 + V2 = 5
X2B » U2 + V2 = 12
X3A » U3 + V1 = 2
X3C » U3 + V3 = 12
V1 = 7, V2 = 5, U2 = 7, U3 = -5, V3 = 17
Step 12: Evaluate the stone square in the initial solution by finding the improvement index.
Step 13:
Tableau 4:
A B C Supply
To
From
1 7 5 9
8 1 10
3 17 12 16
2 11 1
4
Demand 12 12 12 36
Step 14:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 8 x 7 56
X1B 1 x 5 5
X2C 11 x 6 66
X3A 4 x 2 8
X3B 11 x 17 187
X3C 1 x 12 12
Total transportation cost P334
Step 15: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 7
X1B » U1 + V2 = 5
X2C » U2 + V3 = 6
X3A » U3 + V1 = 2
X3B » U3 + V2 = 17
X3C » U3 + V3 = 12
V1 = 7, V2 = 5, U3 = -5, V2 = 22, V3 = 17, U2 = -11
Step 16: Evaluate the stone square in the initial solution by finding the improvement index.
Step 17:
Tableau 5:
A B C Supply
To
From
1 7 5 9
8 10
1
2 9 6 11
12 10
1
3 17 12 16
2 3 1
12
Demand 12 12 12 36
Step 18:
Step 19: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1B » U1 + V2 = 5
X1C » U1 + V3 = 10
X2B » U2 + V2 = 12
X2C » U2 + V3 = 6
X3A » U3 + V1 = 2
X3B » U3 + V2 = 17
X3C » U3 + V3 = 12
V2 = 5, V3 = 10, U2 = 7, U3 = 12, V1 = -10
Step 16: Evaluate the stone square in the initial solution by finding the improvement index.
Since the improvement index does not contain any negative value in the solution is optimum.
X1B = 8 X1C = 1 X2B = 1
X2C = 10 X3A = 12 X3B = 3
X3C = 1
Activity 2
A B C Supply
To
From
1 50 60 65 24
2 45 53 63 27
3 42 60 14
49
Demand 20 15 30 65
A B C Supply
To
From
1 50 60 65 24
X1A X1B X1C
2 45 53 63 27
X2A X2B X2C
3 42 49 60 14
X3A X3B X3C
Demand 20 15 30 65
Objective Function:
Minimize : Zj = 50X1A + 60X1B + 65X1C + 45X2A + 53X2B + 63X2C + 42X3A + 49X3B + 60X3C
Constraints:
Subject to: X1A + X1B + X1C =24
X2A + X2B + X2C = 27
X3A + X3B + X3C = 14
X1A + X2A + X3A = 20
X1B + X2B + X3B = 15
X1C + X2C + X3C = 30
Xij ≥ 0
3 42 60 14
49
Demand (20) 15 30 65
Step 2:
A B C Supply
To
From
1 50 60 65 (24)
20 4
2 45 53 63 27
3 42 49 60 14
Demand (20) 11 30 65
(15)
Step 3:
A B C Supply
To
From
1 50 60 65 (24)
20 4
2 45 53 63 (27)
11 16
3 42 49 60 14
Step 3:
A B C Supply
To
From
1 50 60 65 (24)
20 4
2 45 53 63 (27)
11 16
3 42 49 60 14
Step 4:
A B C Supply
To
From
1 50 60 65 24
20 4
2 45 53 63 27
11 16
3 42 60 14
49 14
Demand 20 15 30 65
Using Minimization Problem by Modified Distribution Method (MODI)
Tableau 1:
A B C Supply
To
From
1 50 60 65 24
20 4 X1C
2 45 53 63 27
X2A 11 16
3 42 49 60 14
X3A X3B 14
Demand 20 15 30 65
Step 2: Represent a new variable for each row and column:
Let U = a value assigned to row 1
i
Step 3: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 50
X1B » U1 + V2 = 60
X2B » U2 + V2 = 53
X2C » U2 + V3 = 63
X3C » U3 + V3 = 60
V1 = 50, V2 = 60, U2 = -7 , V3 = 70 , U3 = -10
Step 4: Evaluate the stone square in the initial solution by finding the improvement index.
Step 5:
Tableau 2:
A B C Supply
To
From
1 50 60 65 24
4 4 16
2 45 53 63 27
16 11
3 42 60 14
49 14
Demand 20 15 30 65
Step 6:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 4 x 50 200
X1B 4 x 60 240
X1C 16 x 65 1040
X2A 16 x45 720
X2B 11 x 53 583
X3C 14 x 60 840
Total transportation cost P3623
Step 7: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 50
X1B » U1 + V2 = 60
X1C » U1 + V3 = 65
X2A » U2 + V1 = 45
X2B » U2 + V2 = 53
X3C » U3 + V3 = 60
V1 = 50, V2 = 60, V3 = 65, U2 = -5, U3 = -5
Step 8: Evaluate the stone square in the initial solution by finding the improvement index.
Step 9:
Tableau 3:
A B C Supply
To
From
1 50 60 65 24
4 4 16
2 45 53 63 27
16 11
3 42 60 14
49 3
11
Demand 20 15 30 65
Step 10:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 4 x 50 200
X1B 4 x 60 240
X1C 16 x 65 1040
X2A 16 x 45 720
X2C 11 x 63 693
X3B 11 x 49 539
X3C 3 x 60 180
Total transportation cost P3612
Step 11: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 50
X1B » U1 + V2 = 60
X1C » U1 + V3 = 65
X2A » U2 + V1 = 45
X2C » U2 + V3 = 63
X3B » U3 + V2 = 49
X3C » U3 + V3 = 60
V1 = 50, V2 = 60, V3 = 65, U2 = -5, U3 = -11
Step 12: Evaluate the stone square in the initial solution by finding the improvement index.
Unused square Cij - Ui – Vj Improvement indices
X2B X2B – U2 – V2 63 – (-5) – 60 = 8
X3A X3A – U3 – V1 42 – (-11) – 50 = 3
Since the improvement index does not contain any negative value in the solution is optimum.
X1A = 4 X1B = 4 X1C = 16
X2A = 16 X2C = 11 X3B = 11
X3C = 3