Transportation Models Part 5

Stepping Stone Method

This Presentation is prepared by:

Saif H. AL-Nimer (Bani Melhem)

Saif H. AL-Nimer (Bani Melhem) 1

Steps to reach optimal solution for transportation problem:
• Step 1. Find initial feasible solution (starting feasible solution)
➢ North West Corner Method.
➢ Minimum Cell Cost Method.
➢ Vogel Approximation Method.
• Step 2. Check optimality of the solution by finding improvement indices for each empty cell (unused cell)
➢ Stepping Stone Method.
➢ MODI method.
• Step 3. If the solution is optimal stop; otherwise improve the solution and get “improved solution”.
➢ Stepping Stone Method.
• Step 4. Repeat step 2 and step 3 until reach the optimal solution.

Saif H. AL-Nimer (Bani Melhem) 2

Example 1. consider the following transportation problem:
• Use Vogel Approximation Method to Find initial feasible solution for the following transportation
problem.
• Check the optimality of your solution by finding improvement indices for each empty (unused) cell.
• If the solution is not optimal, improve it and reach to optimal solution.

TO: P1 P2 P3 Supply
From
W1 6 8 10 150

W2 7 11 11 175

W3 4 5 12 275

Demand 200 100 300

Saif H. AL-Nimer (Bani Melhem) 3

Example 1 - Solution
• VAM Initial feasible solution from previous video:
TO: P1 P2 P3 Supply
From
W1 6 8 10 150 150

W2 7 175 11 11 175

W3 4 25 5 100 12 150 275

Demand 200 100 300

• Total Cost = 10(150) + 7(175) + 4(25) + 5(100) + 12(150) = 4550

Saif H. AL-Nimer (Bani Melhem) 4

Example 1 - Solution
• Check optimality of the solution [find improvement indices] using stepping stone method:
TO: P1 P2 P3 Supply
From
W1 6 8 10 150 150

W2 7 175 11 11 175

W3 4 25 5 100 12 150 275

Demand 200 100 300

• To use stepping stone method or MODI method the following condition must be satisfied:
➔[# of sources (rows) + # of destinations (columns)] – 1 must equal # of used cells
➔W + P – 1 ?= used cells ➔ 3 + 3 – 1 ?= 5 ➔ yes √

Saif H. AL-Nimer (Bani Melhem) 5

Example 1 - Solution
• Check optimality of the solution:
TO: P1 P2 P3 Supply
From
W1 6 8 10 150 150

W2 7 175 11 11 175

W3 4 25 5 100 12 150 275

Demand 200 100 300

• Find improvement indices for each unused cell:

Index for cell: Calculation: Value:

W1P1 6 – 10 + 12 – 4 = +4

W1P2 8 – 5 + 12 – 10 = +5

W2P2 11 – 7 + 4 – 5 = +3

W2P3 11 – 12 + 4 – 7 = -4

Saif H. AL-Nimer (Bani Melhem) 6

• Check optimality of the solution:
TO: P1 P2 P3 Supply
From
W1 6 8 10 150 150

W2 7 175 11 11 175

W3 4 25 5 100 12 150 275

Demand 200 100 300

Index for cell: Calculation: Value: Meaning of Index

W1P1 6 – 10 + 12 – 4 = +4 If we reallocate the units transported and use cell W1P1. Each
unit filled in cell W1P1 will increase TC by $4
W1P2 8 – 5 + 12 – 10 = +5 If we reallocate the units transported and use cell W1P2. Each
unit filled in cell W1P2 will increase TC by $5.
W2P2 11 – 7 + 4 – 5 = +3 If we reallocate the units transported and use cell W2P2. Each
unit filled in cell W2P2 will increase TC by $3.
W2P3 11 – 12 + 4 – 7 = -4 If we reallocate the units transported and use cell W2P3. Each
unit filled in cell W2P3 will decrease TC by $4.

Saif H. AL-Nimer (Bani Melhem) 7

• Check optimality of the solution:
TO: P1 P2 P3 Supply
From Index for cell: Calculation: Value:
W1 6 8 10 150 150
W1P1 6 – 10 + 12 – 4 = +4
W2 7 175 11 11 175 W1P2 8 – 5 + 12 – 10 = +5

W3 4 25 5 100 12 150 275 W2P2 11 – 7 + 4 – 5 = +3

W2P3 11 – 12 + 4 – 7 = -4
Demand 200 100 300

• If all values of improvement indices are positive, then this table is the optimal solution.
• If there is a negative value between indices, then this table is not optimal, therefore choose the best
cell (cell with most negative index value) and transport units via it.
• If there is a “0” index, then there is an alternative solution.
• What is the best cell? Or what is the cell that should be used to improve solution?
➔Cell W2P3

Saif H. AL-Nimer (Bani Melhem) 8

• Improve solution by fill the best cell with appropriate units:
TO: P1 P2 P3 Supply
From Index for cell: Calculation: Value:
W1 6 8 10 150 150
W1P1 6 – 10 + 12 – 4 = +4
W2 7 175 11 11 175 W1P2 8 – 5 + 12 – 10 = +5

W3 4 25 5 100 12 150 275 W2P2 11 – 7 + 4 – 5 = +3

W2P3 11 – 12 + 4 – 7 = -4
Demand 200 100 300

Saif H. AL-Nimer (Bani Melhem) 9

• Improve solution by fill the best cell with appropriate units:
TO: P1 P2 P3 Supply
From Index for cell: Calculation: Value:
W1 6 8 10 150 150
W1P1 6 – 10 + 12 – 4 = +4
W2 7 175 11 11 175 W1P2 8 – 5 + 12 – 10 = +5

W3 4 25 5 100 12 150 275 W2P2 11 – 7 + 4 – 5 = +3

W2P3 11 – 12 + 4 – 7 = -4
Demand 200 100 300

TO: P1 P2 P3 Supply
From
W1 6 8 10 150

W2 7 11 11 175

W3 4 5 12 275

Demand 200 100 300

Saif H. AL-Nimer (Bani Melhem) 10

• Improve solution by fill the best cell with appropriate units:
TO: P1 P2 P3 Supply
From Index for cell: Calculation: Value:
W1 6 8 10 150 150
W1P1 6 – 10 + 12 – 4 = +4
W2 7 175 11 11 175 W1P2 8 – 5 + 12 – 10 = +5

W3 4 25 5 100 12 150 275 W2P2 11 – 7 + 4 – 5 = +3

W2P3 11 – 12 + 4 – 7 = -4
Demand 200 100 300

- Improved Solution:
TO: P1 P2 P3 Supply
From
W1 6 8 10 150 150

W2 7 25 11 11 150 175

W3 4 175 5 100 12 275

Demand 200 100 300

• Decreasing in TC = - 4 * 150 = 600

• New TC = old TC – decreasing = 5125 – 600 = 4525.
Saif H. AL-Nimer (Bani Melhem) 11
• Check optimality of the improved solution:

TO: P1 P2 P3 Supply Index for cell: Calculation: Value:

From
W1P1 6 – 10 + 11 – 7 = 0
W1 6 8 10 150 150
W1P2 8 – 5 + 4 – 7 + 11 – 10 = +1
W2 7 25 11 11 150 175
W2P2 11 – 5 + 4 – 7 = +3
W3 4 175 5 100 12 275 W2P3 12 – 4 + 7 – 11 = +4

Demand 200 100 300

• Since all values of improvement indices are positive or zero (>= 0); this solution is optimal.

Saif H. AL-Nimer (Bani Melhem) 12

Example 2. consider the following transportation problem:
• Use Minimum Cell Cost Method to Find initial feasible solution for the following transportation
problem.
• Check the optimality of your solution by finding improvement indices for each empty (unused) cell.
• If the solution is not optimal, improve it and reach to optimal solution.

TO: Market 1 Market 2 Market 3 Supply

From
Factory 1 2 7 5 200

Factory 2 10 8 5 300

Factory 3 20 25 18 500

Demand 150 600 250

Saif H. AL-Nimer (Bani Melhem) 13

Example 2 - Solution
• Minimum Cell Cost Initial feasible solution from previous videos:
TO: Market 1 Market 2 Market 3 Supply
From
Factory 1 2 150 7 50 5 200

Factory 2 10 8 50 5 250 300

Factory 3 20 25 500 18 500

Demand 150 600 250

• Total Cost = 2(150) + 7(50) + 8(50) + 5(250) + 25(500) = 14,800

Saif H. AL-Nimer (Bani Melhem) 14

Example 2 - Solution
• Check optimality of the solution [find improvement indices] using stepping stone method:
TO: Market 1 Market 2 Market 3 Supply
From
Factory 1 2 150 7 50 5 200

Factory 2 10 8 50 5 250 300

Factory 3 20 25 500 18 500

Demand 150 600 250

• To use stepping stone method or MODI method the following condition must be satisfied:
➔[# of sources (rows) + # of destinations (columns)] – 1 must equal # of used cells
➔F + M – 1 ?= used cells ➔ 3 + 3 – 1 ?= 5 ➔ yes √

Saif H. AL-Nimer (Bani Melhem) 15

Example - Solution
• Check optimality of the solution:
TO: Market 1 Market 2 Market 3 Supply
From
Factory 1 2 150 7 50 5 200

Factory 2 10 8 50 5 250 300

Factory 3 20 25 500 18 500

Demand 150 600 250

• Find improvement indices for each unused cell:

Index for cell: Calculation: Value:

F1M3 5–5+8–7 = +1

F2M1 10 – 2 + 7 – 8 = +7

F3M1 20 – 25 + 7 – 2 = 0

F3M3 18 – 5 + 8 – 25 = -4

Saif H. AL-Nimer (Bani Melhem) 16

• Check optimality of the solution:
TO: Market 1 Market 2 Market 3 Supply
From
Factory 1 2 150 7 50 5 200

Factory 2 10 8 50 5 250 300

Factory 3 20 25 500 18 500

Demand 150 600 250

Index for cell: Calculation: Value: Meaning of Index

F1M3 5–5+8–7 = +1 If we reallocate the units transported and use cell F1M3. Each
unit filled in cell F1M3 will increase TC by $1.
F2M1 10 – 2 + 7 – 8 = +7 If we reallocate the units transported and use cell F2M1. Each
unit filled in cell F2M1 will increase TC by $7.
F3M1 20 – 25 + 7 – 2 = 0 If we reallocate the units transported and use cell F3M1. The TC
does not change.
F3M3 18 – 5 + 8 – 25 = -4 If we reallocate the units transported and use cell F3M3. Each
unit filled in cell F3M3 will decrease TC by $4.

Saif H. AL-Nimer (Bani Melhem) 17

• Improve solution by fill the best cell with appropriate units:
TO: Market 1 Market 2 Market 3 Supply
From Index for cell: Calculation: Value:
Factory 1 2 150 7 50 5 200
F1M3 5–5+8–7 = +1
Factory 2 10 8 50 5 250 300 F2M1 10 – 2 + 7 – 8 = +7

Factory 3 20 25 500 18 500 F3M1 20 – 25 + 7 – 2 = 0

F3M3 18 – 5 + 8 – 25 = -4
Demand 150 600 250

- Improved Solution:
TO: Market 1 Market 2 Market 3 Supply
From
Factory 1 2 150 7 50 5 200

Factory 2 10 8 300 5 300

Factory 3 20 25 250 18 250 500

Demand 150 600 250

• New TC = 14,800 – 4 (250) = 13,800. Saif H. AL-Nimer (Bani Melhem) 18

• Check optimality of the improved solution:

TO: Market 1 Market 2 Market 3 Supply Index for cell: Calculation: Value:
From
F1M3 5 – 18 + 25 – 7 = +5
Factory 1 2 150 7 50 5 200
F2M1 10 – 8 + 7 – 2 = +7
Factory 2 10 8 300 5 300
F3M1 5 – 18 + 25 – 8 = +4
Factory 3 20 25 250 18 250 500 F3M3 20 – 2 + 7 – 25 = 0

Demand 150 600 250

• Since all values of improvement indices are positive or zero (>= 0); this solution is optimal.

Saif H. AL-Nimer (Bani Melhem) 19

Example 3
• Use North West Corner Method to Find initial feasible solution for the following transportation problem.
• Check the optimality of your solution by finding improvement indices for each empty (unused) cell.
• If the solution is not optimal, improve it and reach to optimal solution.
From\To P1 P2 P3 Supply

F1 5 4 3 250
F2 8 4 3 300

F3 9 7 5 300
Demand 300 200 200

From\To P1 P2 P3 Dummy Supply

F1 5 4 3 0 250

F2 8 4 3 0 300

F3 9 7 5 0 300

Demand 300 200 200 150

Saif H. AL-Nimer (Bani Melhem) 20
• Initial Solution (North West):

From\To P1 P2 P3 Dummy Supply

F1 5 250 4 3 0 250

F2 8 50 4 200 3 50 0 300

F3 9 7 5 150 0 150 300

Demand 300 200 200 150

• Total Cost = 3350

• Sources + Destinations – 1 ?= # of used cells ➔ 3 + 4 – 1 ?= 6 ➔ Yes ➔ continue to find improvement indices.
Index for Cell: Calculation: Value:
F1P2 4–4+8–5= +3
F1P3 3–3+8–5= +3
F1-Dummy 0–0+5–3+8–5= +5
F2-Dummy 0–0+5–3= +2
F3P1 9–8+3–5= -1
F3P2 7–4+3–5= +1

Saif H. AL-Nimer (Bani Melhem) 21

• Initial Solution:

From\To P1 P2 P3 Dummy Supply Index for Cell: Calculation: Value:

F1P2 4–4+8–5= +3
F1 5 250 4 3 0 250
F1P3 3–3+8–5= +3
F2 8 50 4 200 3 50 0 300 F1-Dummy 0–0+5–3+8–5= +5
F2-Dummy 0–0+5–3= +2
F3 9 7 5 150 0 150 300
F3P1 9–8+3–5= -1
Demand 300 200 200 150 F3P2 7–4+3–5= +1

• Improved Solution:

From\To P1 P2 P3 Dummy Supply

F1 5 250 4 3 0 250

F2 8 4 200 3 100 0 300

F3 9 50 7 5 100 0 150 300

Demand 300 200 200 150

Saif H. AL-Nimer (Bani Melhem) 22

• Check optimality of the Improved Solution:
From\To P1 P2 P3 Dummy Supply

F1 5 250 4 3 0 250

F2 8 4 200 3 100 0 300

F3 9 50 7 5 100 0 150 300

Demand 300 200 200 150

• Sources + Destination – 1 ?= Occupied Cells ➔ 3 + 3 – 1 ?= 6 ➔ Yes ➔ complete to find indices.

Index for Cell: Calculation: Value:
F1P2 4–5+9–5+3–4= +2
F1P3 3–5+9–5= +2
F1-Dummy 0–0+9–5= +4
F2P1 8–3+5–9= +1
F2-Dummy 0–0+5–3= +2
F3P2 7–4+3–5= +1

• All values of improvement indices are >=0 ➔ this is the optimal solution.
Saif H. AL-Nimer (Bani Melhem) 23
• Question: Considering the following initial basic feasible solution determined by least cost method, Answer
the following questions using stepping stone solution method for optimality check.
From To Destination A Destination B Destination C Destination D Supply Cell Calculation Value
Source 1 14 24 18 28 4800 1A 14 – 28 + 16 – 11 = –9
1400 3000 400 2B 18 – 24 + 28 – 16 = +6
Source 2 11 18 17 16 5600 2C 17 – 16 + 28 – 18 = +11
3600 2000
3A 30 – 16 + 24 – 28 + 16 – 11 = +15
Source 3 30 16 22 30 3200 3C 22 – 18 + 24 – 16 = +12
3200 3D 30 – 28 + 24 – 16 = +10
Demand 3600 4600 3000 2400

• Which empty cell should be used to reduce the total transportation cost?
- Source 3 – Destination A
- Source 2 – Destination C
- Source 2 – Destination B
- Source 3 – Destination D
- Source 1 – Destination A

Saif H. AL-Nimer (Bani Melhem) 24

• Question: Considering the following initial basic feasible solution determined by least cost method, Answer
the following questions using stepping stone solution method for optimality check.
From To Destination A Destination B Destination C Destination D Supply

Source 1 14 24 18 28 4800
1400 3000 400
Source 2 11 18 17 16 5600
3600 2000

Source 3 30 16 22 30 3200
3200

Demand 3600 4600 3000 2400

• The maximum quantity that can be allocated to the new incoming cell will be:
- 3600
- 2000
- 400
- 3200
- None

Saif H. AL-Nimer (Bani Melhem) 25

• Question: Considering the following initial basic feasible solution determined by least cost method, Answer
the following questions using stepping stone solution method for optimality check.
From To Destination A Destination B Destination C Destination D Supply

Source 1 14 24 18 28 4800
1400 3000 400
Source 2 11 18 17 16 5600
3600 2000

Source 3 30 16 22 30 3200
3200

Demand 3600 4600 3000 2400

• Amount of decreasing in Total cost will be …………………………

Saif H. AL-Nimer (Bani Melhem) 26

• Question: Considering the following initial basic feasible solution determined by least cost method, Answer
the following questions using stepping stone solution method for optimality check.
From To Destination A Destination B Destination C Destination D Supply

Source 1 14 24 18 28 4800
1400 3000 400
Source 2 11 18 17 16 5600
3600 2000

Source 3 30 16 22 30 3200
3200

Demand 3600 4600 3000 2400

• The total transportation costs in the next iteration will be:

- 218,000
- 221,000
- 188,400
- 243,600
- None

Saif H. AL-Nimer (Bani Melhem) 27

Homework 1:
• Use Minimum Cell Cost Method to Find initial feasible solution for the following transportation problem.
• Check the optimality of your solution by finding improvement indices for each empty (unused) cell.
• If the solution is not optimal, improve it and reach to optimal solution.
TO: RS1 RS2 RS3 Supply
From
F1 3 2 7 5000

F2 7 5 2 4500

F3 2 5 4 2500

Demand 6000 4000 2000

Saif H. AL-Nimer (Bani Melhem) 28

Homework 2:

Saif H. AL-Nimer (Bani Melhem) 29

• Please Subscribe in Channel.
• Like and share video.
• Comment if you have any Questions, Notes, or Criticism.

THANK YOU

Saif H. AL-Nimer (Bani Melhem) 30