Transportation Problem

Transportation means movement of goods from one place

to another place.
– It can be from one city to the next city.
– It can be from one place to the next place.
– It can be from one country to another country.

So, movement is going to incur some costs or some

expenses and we always try to minimize this expenses.

In transportation of goods its going to incur some costs

and we are going to minimize that costs that is why this is
also known as minimization type of problem.

1
 Continued…
The transportation problem arises
frequently in planning for the
distribution of goods and services from
several supply locations to several
demand locations.
Total Supply Not Equal to Total Demand

● Often the total supply is not equal to the total

demand.
● If total supply exceeds total demand, no
modification in the linear program-ming
formulation is necessary solution.

● In this case, we modify the network

representation by adding a dummy origin with a
supply equal to the difference between the total
demand and the total supply.
THE NETWORK REPRESENTATION OF THE FOSTER GENERATORS

TRANSPORTATION PROBLEM
TRANSPORTATION COST PER UNIT FOR THE FOSTER GENERATORS
TRANSPORTATION PROBLEM
 Key point
To obtain a feasible solution, the total
supply must be greater than or equal
to the total demand.
TRANSPORTATION PROBLEM

Finding Initial Basic Feasible Solution

 Details of Transportation
Problem
Destinations

maximum
supply which
means that
Dhulikhel
Sources

based
manufacturin
g company
can supply
maximum 10
units of
shoes.

Maximum Demand which means Civil Mall has

maximum demand of 15 units and Kathmandu Mall
has maximum demand of 30 units.
9
 Details of Transportation
Problem

When the total supply is equal to total demands than this is balanced type of
matrix / Balanced transportation problem.

While solving transportation problem if we have unbalanced matrix then we

should balance it and then solve it.

Aim of transportation problem is to find out minimum costs in transporting

shoes from Different city based manufacturing company to different malls in
Kathmandu city. 11
How to solve Transportation
Problem ?
Solutions

Initial Feasible Optimum

(This gives one solution for our (Optimum solution is always
transportation problem but this the best solution of our
may not be our best solution.) transportation problem)

NWC MODI
M Using this we can find out
LC best solution of
M transportation problem
VA
M
12
How to solve Transportation
Problem ?
We cannot directly find out optimum solution, first step is
to find out Initial Basic Feasible Solution and depending
upon that solution we can infer if its optimum solution
exists or not and then we may find optimal solution.

Initial Feasible :
NWCM (Northwest – Corner Method)
LCM (Least – Cost Method)
VAM (Vogel Approximation Method)
Condition for feasibility; no. of allocations = m+n-1; where
m= no. of rows and n= no. of columns
Optimum :
MODI (Modified Distribution Method)
13
Northwest – Corner Method

14
 North-West Corner Method
Step1: Select the upper left (north-west) cell of the
transportation matrix and allocate the maximum possible
value to X11 which is equal to min(a1,b1).
Step2:
• If allocation made is equal to the supply available at the
first source (a1 in first row), then move vertically down to
the cell (2,1).
• If allocation made is equal to demand of the first
destination (b1 in first column), then move horizontally to
the cell (1,2).
• If a1=b1 , then allocate X11= a1 or b1 and move to cell (2,2).
Step3: Continue the process until an allocation is made in
the south-east corner cell of the transportation table.
Example: Solve the Transportation Table to find Initial Basic Feasible
Solution using North-West Corner Method.

Total Cost =19*5+30*2+30*6+40*3+70*4+20*14

= Rs. 1015

Feasibility: No. of allocations = m+n-1

6 = 3+4-1
6=6
 Problem 1

Civil Mall Kathmandu Mall People’s Plaza Supply

Dhulikhel 20
3 2 1

Hetauda
2 4 1 40

Bharatpur
3 5 2 40

Pokhara 4 6 7 2
5
Demand 40 30 55
17
 Problem 1
Total Cost : 20*3+20*2+20*4+10* 5+ 30*2+25*7=465

BFS: No. of allocations = m+n-1

6 = 4+3-1=6
Civil Mall Kathmandu Mall People’s Plaza Supply
Dhulikhel 20 20
3 2 1

Hetauda 20 20 4 40
2 1

Bharatpur 10 30
3 5 2 40

Pokhara 4 6 25 7 2
5125
Demand 40 30 55 125
18
Problem 2
 Problem 2
Total cost = 18*3+1*6+12*9+25*1+16*3+18*7=367

BFS: No. Allocations = m+n-1

6 = 3+4-1=6

18 1
1 0

12 25
12

16 18
18

30 0
0 0
 Least Cost Method
Step1: Select the cell having lowest unit cost in the entire
table and allocate the minimum of supply or demand values
in that cell.
Step2: Then eliminate the row or column in which supply or
demand is exhausted. If both the supply and demand
values are same, either of the row or column can be
eliminated.
In case, the smallest unit cost is not unique, then select the
cell where maximum allocation can be made.
Step3: Repeat the process with next lowest unit cost and
continue until the entire available supply at various sources
and demand at various destinations is satisfied.
The total transportation cost obtained by this method
= 8*8+10*7+20*7+40*7+70*2+40*3
= Rs.814

BFS; no. of allocations = m+n-1

6 = 3+4-1
6=6

Here, we can see that the Least Cost Method involves a

lower cost than the North-West Corner Method.
 Vogel’s Approximation Method
Step1: Calculate penalty for each row and column by taking the
difference between the two smallest unit costs. This penalty or
extra cost has to be paid if one fails to allocate the minimum
unit transportation cost.
Step2: Select the row or column with the highest penalty and
select the minimum unit cost of that row or column. Then,
allocate the minimum of supply or demand values in that cell. If
there is a tie, then select the cell where maximum allocation
could be made.
Step3: Adjust the supply and demand and eliminate the satisfied
row or column. If a row and column are satisfied
simultaneously, only of them is eliminated and the other one is
assigned a zero value. Any row or column having zero supply
or demand, can not be used in calculating future penalties.
Step4: Repeat the process until all the supply sources and
demand destinations are satisfied.
The total transportation cost obtained by this method
= 8*8+19*5+20*10+10*2+40*7+60*2
= Rs.779

BFS: No. of allocations = m+n-1

6=3+4-1=6

Here, we can see that Vogel’s Approximation Method

involves the lowest cost than North-West Corner Method
and Least Cost Method and hence is the most preferred
method of finding initial basic feasible solution.
 D1 D2 D3 D4 Supply

S1 6 1 9 3 70

S2 11 5 2 8 55

S3 10 12 4 7 70

Demand 85 35 50 45
Assignment Problem
 Definition
• The assignment problem arises in a variety of
decision-making situations;
• Typical assignment problems involve assigning jobs
to machines,
agents to tasks,
sales personnel to sales
territories,
contracts to bidders, and so on.
● A distinguishing feature of the assignment problem
is that one agent is assigned to one and only one task.
Specifically, we look for the set of assignments that will
optimize a stated objective, such as minimize cost,
minimize time, or maximize profits.
 Key point
The assignment problem is a
special case of the
transportation problem.
ESTIMATED PROJECT COMPLETION TIMES (DAYS) FOR THE FOWLE
MARKETING RESEARCH ASSIGNMENT PROBLEM
T
A NETWORK MODEL OF THE FOWLE MARKETING RESEARCH
ASSIGNMENT PROBLEM
ASSIGNMENT ALGORITHM
(OR) HUNGARIAN METHOD
• First check whether the number of rows is
equal to number of columns, if it is so, the
assignment problem is said to be balanced.
• Then proceed to step 1. If it is not balanced,
then it should be balanced before applying the
algorithm.
• Step 1: Subtract the smallest cost element of
each row from all the elements in the row of
the given cost matrix. See that each row
contains at least one zero.
 Continued…
• Step 2: Subtract the smallest cost element of
each column from all the elements in the
column of the resulting cost matrix obtained
by step 1 and make sure each column contains
at least one zero. K.
Step 3: (Assigning the zeros)
• (a) Examine the rows successively until a row
with exactly one unmarked zero is found.
• Make an assignment to this single unmarked
zero by encircling it.
• Cross all other zeros in the column of this
encircled zero, as these will not be considered
for any future assignment. Continue in this way
until all the rows have been examined.
•
 Continued…
• (b) Examine the columns successively until a
column with exactly one unmarked zero is
found. Make an assignment to this single
unmarked zero by encircling it and cross any
other zero in its row. Continue until all the
columns have been examined. K.
 Step 4: (Apply Optimal
Test)
(a) If each row and each column contain exactly
one encircled zero, then the current assignment
is optimal.
(b) If atleast one row or column is without an
assignment (i.e., if there is atleast one row or
column is without one encircled zero), then the
current assignment is not optimal.
Go to step 5.
 Step-5
• Subtract the smallest cost element of each
column from all the elements in the column of
the resulting cost matrix obtained by step 1
and make sure each column contains at least
one zero.
• Cover all the zeros by drawing a minimum
number of straight lines as follows:
 • Cover all the zeros by drawing a minimum
number of straight lines as follows:

(a) Mark the rows that do not have assignment. (b)

Mark the columns (not already marked) that have
zeros in marked rows.
(c) Mark the rows (not already marked) that have
assignments in marked columns.
(d) Repeat (b) and (c) until no more marking is
required.
(e) Draw lines through all unmarked rows and
marked columns. If the number of these lines is
equal to the order of the matrix then it is an
optimum solution otherwise not. K.
 Continued…
Step 6: Determine the smallest cost element not
covered by the straight lines. Subtract this
smallest cost element from all the uncovered
elements and add this to all those elements which
are lying in the intersection of these straight lines
and do not change the remaining elements which
lie on the straight lines.

Step 7: Repeat steps (1) to (6), until an optimum

assignment is obtained.
 PROBLEM 1: Solve the following assignment
problem shown in Table using Hungarian method.
The matrix entries are processing time of each man
in hours.
Since each row and each column contain exactly one encircled zero, then the
current assignment is optimal. Where the optimal assignment is as 1 to II , 2 to
IV , 3 to I , 4 to V and 5 to III. The optimal z = 15 + 14 + 21 + 20 + 16 = 86
hours. K.
PROBLEM 3: Solve the assignment problem At the
head office of a company there are five
registration counters. Five persons are available
for service. How should the counters be assigned
to persons so as to maximize the profit?
Solution: The given problem is balanced with 5 job and 5
machine. To convert the problem as minimization we reduce
the matrix by subtracting all entry by the largest value , that is
62
Since each row and each column contain
exactly one encircled zero, then the current
assignment is optimal.

Where the optimal assignment is as 1 to C

, 2 to E , 3 to A , 4 to D and 5 to B.

The Maximize profit is z = 40 + 36 + 40 +

36 + 62 = 214.
Solve the assignment
problem
Problem
Solve the following assignment
problem.
Self Practice