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OPERATIONS
RESEARCH

JASSON J. NKONGO 1
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TRANSPORTATION
AND
ASSIGNMENTS
JASSON J. NKONGO 2
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TESTING FOR
OPTIMALITY

JASSON J. NKONGO 3
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Testing for Optimality
Once the first solution, has been obtained, the
next step is to determine whether this solution is
the best (optimal) or least cost solution. The
evaluation procedure involves the examination
of each unused square in the tableau to see
whether it is more desirable to move a shipment
into one of them. The purpose of this evaluation
is to determine whether a better schedule of
shipments can be obtained.

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Testing for Optimality Cont…
The methods for evaluating the unused squares,
are the Stepping Stone and the Modified
Distribution Method (MODI), and these methods
will be demonstrated.
Stepping Stone Method
(a)Select unused square to be evaluated.
(b)Trace a closed path beginning with unused
square and finally networking back to same
unused square.
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Stepping Stone Method Cont…
Rules for closed path
(i) Only right-angle turn is allowed.
(ii) Only stepping at stone square is allowed.
(iii) The path may skip over stone square as
well as water square.
(iv) Assign (+) and (-) signs alternatively starting
(+) sign at unused square (either clockwise
or anticlockwise).

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Stepping Stone Method Cont…
(v) Calculate improvement indices. If all values
are either positive or zero then our solution
is optimal otherwise chose the most
negative valued closed path and make the
following improvements.
(vi) Choose minimum value from cells having (-)
sign. Add this to cells having (+) signs and
subtract from the cells having (-) signs.
(vii) Repeat the above steps for each unused
square.
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Stepping Stone Method Cont…
NOTE: If all the indices are greater than or
equal to zero, an optimal solution has
been found. Conversely, if any of the
indices is negative, an improved (lower
cost) solution can be achieved.

Consider the initial solution below from example

1.

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Stepping Stone Method Cont…
Initial Solution (1st Tableau)
Destination
Project A Project B Project C Supply
Plant 𝑊
40 80 80 56
56 X X
Source Plant 𝑋 160 240
16 66 X 160 82
Plant 𝑌 80 160 240
X 36 41 77
Demand 72 102 41 215 /215

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Stepping Stone Method Cont…
Improvement Indices for the 1st tableau are:
𝑊𝐵 = 80 – 40 + 160 − 240 = −40
𝑊𝐶 = 80 – 40 + 160 – 240 + 160 – 240 = −120
𝑋𝐶 = 160 – 240 + 160 – 240 = −160
𝑌𝐴 = 80 – 160 + 240 – 160 = 0

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Stepping Stone Method Cont…
This is not optimal solution, since cells (squares)
𝑊𝐵, 𝑊𝐶, and 𝑋𝐶 have negative improvement
indices. Hence, we are supposed to prepare an
improved solution.

In order to improve the solution, we take the cell

with largest negative value, that is −160(𝑋𝐶),
followed by other cells in ascending order. So,
the improved tableau is shown below.
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Stepping Stone Method Cont…
Initial Solution (2nd Tableau)
Destination
Project A Project B Project C Supply
Plant 𝑊
40 80 80 56
56 X X
Source Plant 𝑋 160 240
16 25 41 160 82
Plant 𝑌 80 160 240
X 77 X 77
Demand 72 102 41 215 /215

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Stepping Stone Method Cont…
Improvement Indices for the 2nd tableau are:
𝑊𝐵 = 80 – 40 + 160 − 240 = −40
𝑊𝐶 = 80 – 40 + 160 – 160 = 40
𝑌𝐶 = 240 − 160 + 240 − 160 = 160
𝑌𝐴 = 80 – 160 + 240 – 160 = 0

So, we need to improve cell 𝑊𝐵. The improved

tableau is shown below.

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Stepping Stone Method Cont…
Initial Solution (3rd Tableau)
Destination
Project A Project B Project C Supply
Plant 𝑊
40 80 80 56
31 25 X
Source Plant 𝑋 160 240
41 X 41 160 82
Plant 𝑌 80 160 240
X 77 X 77
Demand 72 102 41 215 /215

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Stepping Stone Method Cont…
Improvement Indices for the 3rd tableau are:
𝑊𝐶 = 80 − 80 + 40 − 160 + 160 = 40
𝑋𝐵 = 240 − 80 + 40 − 160 = 40
𝑌𝐶 = 240 − 160 + 160 − 40 + 80 − 160 = 120
𝑌𝐴 = 80 − 160 + 80 − 40 = −40

So, we need to improve cell 𝑌𝐴. The improved

tableau is shown below
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Stepping Stone Method Cont…
Initial Solution (4th Tableau)
Destination
Project A Project B Project C Supply
Plant 𝑊
40 80 80 56
X 56 X
Source Plant 𝑋 160 240
41 X 41 160 82
Plant 𝑌 80 160 240
31 46 X 77
Demand 72 102 41 215 /215

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Stepping Stone Method Cont…
Improvement Indices for the 4th tableau are:
𝑊𝐴 = 40 − 80 + 160 − 80 = 40
𝑊𝐶 = 80 − 80 + 160 − 80 + 160 − 160 = 80
𝑋𝐵 = 240 − 160 + 80 − 160 = 0
𝑌𝐶 = 240 − 160 + +160 − 80 = 160

Since the values of improved indices are greater or

equal to zero (improved indices ≥ 0). So, we have
optimal solution.
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Stepping Stone Method Cont…
Transportation cost = 80 56 + 160 41 +
160 41 + 80 31 +
160 46

= 4480 + 6560 + 6560 +

2480 + 7360
= 27,440/=
Therefore, the transportation cost is Tsh. 27,440/=
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Modified Distribution Method
The modified distribution method, referred to as
the MODI method, is very similar to the
stepping-stone method except that it provides a
more efficient means for computing the
improvement indices for the unused squares.

The major difference between these two

methods is on how to determine the unused
square with the most improvement potential.
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Modified Distribution Method
With the stepping stone method, we had to trace
a closed path for each unused square, but this is
not the case with the MODI. Under the MODI,
the closed path is only drawn for the unused cell
with the most improvement potential so as to
determine the maximum quantity that can be
shipped to that square.

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Modified Distribution Method
Also, there is a slight difference on the features
of the transportation tableau used under the
stepping stone method and the one used for the
MODI method.

The features for the transportation tableau under

the MODI method are as follow.

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MODI Cont…
Initial Tableau
R ! /K" K# = K$ = K% = Supply
Project A Project B Project C
R# = 0 Plant 𝑊 40 80 80
56 56
R$ = Plant 𝑋 160 240 160
16 66 82
R% = Plant 𝑌 80 160 240
36 41 77
Demand 72 102 41 215/215
JASSON J. NKONGO 22
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MODI Cont…
In the above table 𝑅 and 𝐾 represent row and
column values.

Beginning with the same initial solution obtained

by using the northwest corner rule, we first
computer a value for each row (𝑅) and each
column (𝐾) in the transportation tableau. These
values depend on the particular solution and are
used to compute the improvement indices for
the unused squares.
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MODI Cont…
To compute 𝑅 and 𝐾 we use the filled squares for
identification purposes.
To compute the value for each row and column,
we have to use the formula
𝐶!" = 𝑅! + 𝐾"
where
𝑅! = value assigned to row 𝑖
𝐾" = value assigned to column 𝑗
𝐶!" = cost in square 𝑖𝑗 (the square at the
intersection of row 𝑖 and column 𝑗)
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MODI Cont…
Initial Tableau
R ! /K" K! = 40 K " = 120 K # = 200 Supply
Project A Project B Project C
R! = 0 Plant 𝑊 40 80 80
56 56
R " = 120 Plant 𝑋 160 240 160
16 66 82

R # = 40 Plant 𝑌 80 160 240

36 41 77
Demand 72 102 41 215/215
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MODI Cont…
The formula is applied only to the stone squares in
a particular solution. To start the solution, we let
𝑅# = 0
𝑅# + 𝐾# = 𝐶## 𝑅$ + 𝐾# = 𝐶$# 𝑅$ + 𝐾$ = 𝐶$$
0 + 𝐾# = 40 𝑅$ + 40 = 160 120 + 𝐾$ = 240
𝐾# = 40 𝑅$ = 160 − 40 𝐾$ = 240 − 120
𝑅$ = 120 𝐾$ = 120
𝑅% +𝐾$ = 𝐶%$ 𝑅% + 𝐾% = 𝐶%%
𝑅% + 120 = 160 40 + 𝐾% = 240
𝑅% = 160 − 120 𝐾% = 240 − 40
𝑅% = 40 𝐾% = 200
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MODI Cont…
• The 𝑅 and 𝐾 values need not always be
positive; indeed, they may be positive, negative
or zero.

• With the row and column values computed, the

next step is to evaluate each unused square in
the present solution, that is, to compute the
improvement indices.

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MODI Cont…
Computing the improvement index for any
unused square is accomplished in the following
manner; from the cost of an unused square
subtract the corresponding row and column
values. As a general formula, this can be stated
as follows.

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MODI Cont…
Improvement index = 𝐶!" – 𝑅! – 𝐾"
𝑊𝐵 = 𝐶#$ = 80 − 0 − 120 = −40
𝑊𝐶 = 𝐶#% = 80 − 0 − 200 = −120
𝑋𝐶 = 𝐶$% = 160 − 120 − 200 = −160
𝑌𝐴 = 𝐶%# = 80 − 40 − 40 = 0

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MODI Cont…
As with the stepping stone if a result is negative
further improvement is possible. When all the
indices are equal to or greater than zero, the
optimal solution has been obtained. In this case,
the solution is not optimal, and hence, an
improved solution should be prepared following
the normal procedure. Therefore, we need to
improve cell 𝑋𝐶, because it has largest negative
value.
JASSON J. NKONGO 30
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MODI Cont…
Initial Tableau
R ! /K" K! = 40 K " = 120 K # = 40 Supply
Project A Project B Project C
R! = 0 Plant 𝑊 40 80 80
56 56
R " = 120 Plant 𝑋 160 240 160
16 25 41 82

R # = 40 Plant 𝑌 80 160 240

77 77
Demand 72 102 41 215/215
JASSON J. NKONGO 31
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MODI Cont…
To start the solution, we let 𝑅# = 0 𝑅" + 𝐾" = 𝐶""
𝑅! + 𝐾! = 𝐶!! 𝑅" + 𝐾! = 𝐶"! 120 + 𝐾" = 240
0 + 𝐾! = 40 𝑅" + 40 = 160 𝐾" = 240 − 120
𝐾! = 40 𝑅" = 160 − 40 𝐾" = 120
𝑅" = 120
𝑅" + 𝐾# = 𝐶"# 𝑅# + 𝐾" = 𝐶#"
120 + 𝐾# = 160 𝑅# + 120 = 160
𝐾# = 160 − 120 𝑅# = 160 − 120
𝐾# = 40 𝑅# = 40
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MODI Cont…
Improvement index = 𝐶!" – 𝑅! – 𝐾"

𝑊𝐵 = 𝐶#$ = 80 − 0 − 120 = −40

𝑊𝐶 = 𝐶#% = 80 − 0 − 40 = 40
𝑌𝐴 = 𝐶%# = 80 − 40 − 40 = 0
𝑌𝐶 = 𝐶%% = 240 − 40 − 40 = 160

We need to improve cell 𝑊𝐵, because it has

largest negative value.
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MODI Cont…
Initial Tableau
R ! /K" K! = 40 K " = 80 K # = 40 Supply
Project A Project B Project C
R! = 0 Plant 𝑊 40 80 80
31 25 56
R " = 120 Plant 𝑋 160 240 160
41 41 82

R # = 80 Plant 𝑌 80 160 240

77 77
Demand 72 102 41 215/215
JASSON J. NKONGO 34
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MODI Cont…
To start the solution, we let 𝑅! = 0
𝑅! + 𝐾! = 𝐶!! 𝑅! + 𝐾" = 𝐶!" 𝑅" + 𝐾! = 𝐶"!
0 + 𝐾! = 40 0 + 𝐾" = 80 𝑅" + 40 = 160
𝐾! = 40 𝐾" = 80 − 0 𝑅" = 160 − 40
𝐾" = 80 𝑅" = 120

𝑅" + 𝐾# = 𝐶"# 𝑅# + 𝐾" = 𝐶#"

120 + 𝐾# = 160 𝑅# + 80 = 160
𝐾# = 160 − 120 𝑅# = 160 − 80
𝐾# = 40 𝑅# = 80
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MODI Cont…
Improvement index = 𝐶$% – 𝑅$ – 𝐾%
𝑊𝐶 = 𝐶!# = 80 − 0 − 40 = 40
𝑋𝐵 = 𝐶"" = 240 − 120 − 80 = 40
𝑌𝐴 = 𝐶#! = 80 − 80 − 40 = −40

𝑌𝐶 = 𝐶## = 240 − 80 − 40 = 120

We need to improve cell 𝑌𝐴, because it has largest

negative value.
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MODI Cont…
Initial Tableau
R ! /K" K! = 0 K " = 80 K# = 0 Supply
Project A Project B Project C
R! = 0 Plant 𝑊 40 80 80
56 56
R " = 160 Plant 𝑋 160 240 160
41 41 82

R # = 80 Plant 𝑌 80 160 240

31 46 77
Demand 72 102 41 215/215
JASSON J. NKONGO 37
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MODI Cont…
To start the solution, we let 𝑅# = 0
𝑅! + 𝐾" = 𝐶!" 𝑅# + 𝐾" = 𝐶#" 𝑅# + 𝐾! = 𝐶#!
0 + 𝐾" = 80 𝑅# + 80 = 160 80 + 𝐾! = 80
𝐾" = 80 − 0 𝑅# = 160 − 80 𝐾! = 80 − 80
𝐾" = 80 𝑅# = 80 𝐾! = 0

𝑅" + 𝐾! = 𝐶"! 𝑅" +𝐾# = 𝐶"#

𝑅" + 0 = 160 160 + 𝐾# = 160
𝑅" = 160 − 0 𝐾# = 160 − 160
𝑅" = 160 𝐾# = 0
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MODI Cont…
Improvement index = 𝐶!" – 𝑅! – 𝐾"

𝑊𝐴 = 𝐶## = 40 − 0 − 0 = 40
𝑊𝐶 = 𝐶#% = 80 − 0 − 0 = 40
𝑋𝐵 = 𝐶$$ = 240 − 160 − 80 = 0
𝑌𝐶 = 𝐶%% = 240 − 80 − 0 = 160
Since the values of improved indices are greater
or equal to zero (improved indices ≥ 0). So, we
have optimal solution.
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MODI Cont…
Transportation cost = 80 56 + 160 41 +
160 41 + 80 31 +
160 46
= 4480 + 6560 + 6560 + 2480 +
7360
= 27,440/=
Hence, the transportation cost is Tsh. 27,440/=
Therefore, both stepping stone and MODI give
the same optimal solution.
JASSON J. NKONGO 40
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Thank you for your

attention

JASSON J. NKONGO 41
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Get ready for

Unbalanced
Transportation Problems

JASSON J. NKONGO 42