OPTIMIZATION TECHNIQUE FOR

TRANSPORTATION PROBLEM

Submitted in partial fulfillment of requirement for the degree

of

MASTER OF SCIENCE (APPLIED MATHEMATICS)

OF
UNIVERSITY OF MUMBAI

Submitted by

MS. SAKSHI SANJAY GURAV

EXAM SEAT NO.43238105
M.Sc. (2021 – 2023)

Department of Mathematics
B. K. Birla College of Arts, Science and Commerce
(Autonomous), Kalyan
 Project on

OPTIMIZATION TECHNIQUE FOR TRANSPORTATION

PROBLEM

Presented By

MS. SAKSHI SANJAY GURAV

EXAM SEAT NO. 43238105
M.Sc. (2021-2023)

For

B. K. Birla College of Arts, Science and Commerce

(Autonomous), Kalyan

Affiliated to

University of Mumbai
 CERTIFICATE

This is to certify that Ms. SAKSHI SANJAY GURAV, Exam Seat No.

43238105 of the Master of Science (Applied Mathematics) Programme course, has

satisfactorily completed his SEM IV Project as prescribed by B. K. Birla College of Arts,

Science and Commerce (Autonomous) for getting the degree under the University of

Mumbai, 2021 – 2023.

Prof. Dr. Seema Purohit Prof. Prakash Sansare

Prof. in Charge Head of the Department

 CERTIFICATE

as partial fulfillment of his/her project work for the fourth Semester of the Master of

Science Programme as prescribed by B. K. Birla College of Arts, Science and

Commerce (Autonomous) under the University of Mumbai for the A.Y. 2021 –

2023.

Internal Examiner External Examiner

Prof. …………… Prof. …………………….

Date:……………….. Date: …………………

INDEX
 CHAPTER I

INTRODUCTION

The transportation problem is a special type of linear programming problem where the

objective is to minimise the cost of distributing a product from a number of sources or

origins to a number of destinations. Because of its special structure the usual simplex

method is not suitable for solving transportation problems.

The transportation problem is a special type of linear programming problem, where the

objective is to minimize the cost of distributing a product from a number of sources to a

number of destinations.

 Transportation deals with the transportation of a commodity (single product) from

‘m’ sources (origin or supply or capacity capacity centres) centres) to ‘n’

destinations destinations (sinks or demand or requirement requirement centres)

centres).

 It is assumed that, level of supply of each source and the amount of demand at

each destination are known. The unit transportation cost of commodity from each

source to each destination are known

 The objective is to determine the amount to be shifted from each source to each

destination such that the total transportation cost is minimum.

Optimization techniques play a crucial role in improving efficiency and effectiveness

in transportation systems. They involve the application of mathematical models,

algorithms, and computational tools to find the best solutions for various
transportation-related problems. These techniques aim to minimize costs, maximize

resource utilization, reduce travel time, and enhance overall system performance.

There are several optimization techniques commonly used in transportation, and here

are a few key ones:

1.1 Route Optimization

This technique focuses on finding the most efficient routes for vehicles or shipments.

It considers factors such as distance, traffic conditions, delivery time windows, and

vehicle capacity to determine the optimal sequence of stops or the best routes to

minimize travel time and fuel consumption.

1.2 Vehicle Routing Problem (VRP)

VRP involves optimizing the delivery or pickup routes for a fleet of vehicles to serve a

set of customers. It takes into account factors like customer demand, vehicle capacity,

time windows, and delivery priorities to develop the most efficient routes, minimizing

the number of vehicles required and reducing total distance traveled.

1.3 Facility Location Optimization

This technique deals with determining the optimal location for facilities such as

warehouses, distribution center, or transit hubs. It considers factors like demand

patterns, transportation costs, proximity to customers, and network connectivity to

identify the best locations that minimize overall transportation costs and maximize

service coverage.

1.4 Mode Selection Optimization

In transportation, different modes (e.g., road, rail, air, water) can be utilized for

moving goods or passengers. Mode selection optimization aims to identify the most
cost-effective and efficient mode(s) to transport goods based on factors like distance,

volume, time constraints, cost considerations, and environmental impacts.

1.5Traffic Signal Optimization

Traffic congestion is a significant challenge in urban transportation. Traffic signal

optimization techniques aim to minimize traffic delays and improve traffic flow by

determining the optimal timing and coordination of traffic signals. By optimizing

signal timing plans, these techniques can reduce travel time, fuel consumption, and

emissions.

1.6 Fleet Management Optimization

Fleet management involves optimizing the allocation, scheduling, and utilization of

vehicles in a transportation fleet. Optimization techniques in fleet management

consider factors like vehicle availability, maintenance requirements, driver availability,

and customer demands to efficiently assign vehicles to tasks, minimize downtime, and

maximize resource utilization.

These optimization techniques are just a few examples of how mathematics and

computational methods can be applied to improve transportation systems. By

leveraging these techniques, transportation providers can enhance operational

efficiency, reduce costs, and provide better service to customers, ultimately leading to

more sustainable and reliable transportation networks.

 CHAPTER II

LITERATURE REVIEW

Transportation problems are fundamental in various industries and play a crucial role in

optimizing the movement of goods, resources, and people. This literature review aims to

provide an overview of the optimization techniques commonly used to solve transportation

problems. It discusses the key concepts, methodologies, and recent advancements in the

field of transportation optimization. The review covers both classical approaches and

modern techniques, highlighting their strengths, weaknesses, and applicability in different

scenarios

Definition and significance of transportation problems

Objectives of transportation optimization

Classical Optimization Techniques

2.1. North-West Corner Rule

2.2. Least Cost Method

2.3. Vogel's Approximation Method

2.4. Russell's Method

2.5. Stepping Stone Method

2.6. MODI (Modified Distribution Method)

2.7. Transhipment Problem

2.8. Assignment ProblemTransportation problem (TP) is one of the predominant areas of

Operations Research and it has wide applications in inventory control, communication

network, production planning, scheduling, personal allocation and so forth.

Transportation problems play an important role in logistics and supply chain management

for reducing cost and improving service.

In today’s highly competitive market the pressure on organizations to find better ways to

create and deliver products and services to customers becomes stronger. How and when to

send the products to the customers in the quantities they want in a cost-effective manner

becomes more challenging. Transportation models provide a powerful

framework to meet this challeng.

They ensure the efficient movement and timely availability of raw materials and finished

goods. The objective of the transportation problem is to determine the shipping schedule

that minimizes the total shipping cost while satisfying supply limit and demand

requirements. This paper is organized as follows: Section 2 presents some types of

transportation problem such as cost minimizing transportation problem,cost minimizing

transportation problem with mixed constraints,Bottleneck transportation problem and

multi-objective transportation problem with its mathematical models and the last section

presents the

This literature review provides a comprehensive overview of optimization techniques for

transportation problems. It covers both traditional and modern approaches, highlighting

their strengths, limitations, and applicability in different scenarios. Researchers and

practitioners in the field of transportation optimization can use this review as a valuable

resource to gain insights into the existing literature and identify promising avenues for

future research.