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1

Transportation, Assignment and

Transshipment Problems

from

Operations Research: Applications & Algorithms,

4th edition, by Wayne L. Winston

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

2

Description

A transportation problem basically deals with the

problem, which aims to find the best way to fulfill

the demand of n demand points using the

capacities of m supply points. While trying to find

the best way, generally a variable cost of shipping

the product from one supply point to a demand

point or a similar constraint should be taken into

consideration.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

3

7.1 Formulating Transportation

Problems

Example 1: Powerco has three electric

power plants that supply the electric needs

of four cities.

•The associated supply of each plant and

demand of each city is given in the table 1.

•The cost of sending 1 million kwh of

electricity from a plant to a city depends on

the distance the electricity must travel.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

4

Transportation tableau

A transportation problem is specified by

the supply, the demand, and the shipping

costs. So the relevant data can be

summarized in a transportation tableau.

The transportation tableau implicitly

expresses the supply and demand

constraints and the shipping cost between

each demand and supply point.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

5

Table 1. Shipping costs, Supply, and Demand

for Powerco Example

From To

City 1 City 2 City 3 City 4 Supply

(Million kwh)

Plant 1 $8 $6 $10 $9 35

Plant 2 $9 $12 $13 $7 50

Plant 3 $14 $9 $16 $5 40

Demand

(Million kwh)

45 20 30 30

Transportation Tableau

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

6

Solution

1. Decision Variable:

Since we have to determine how much electricity

is sent from each plant to each city;

X

ij

= Amount of electricity produced at plant i

and sent to city j

X

14

= Amount of electricity produced at plant 1

and sent to city 4

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

7

2. Objective function

Since we want to minimize the total cost of shipping

from plants to cities;

Minimize Z = 8X

11

+6X

12

+10X

13

+9X

14

+9X

21

+12X

22

+13X

23

+7X

24

+14X

31

+9X

32

+16X

33

+5X

34

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

8

3. Supply Constraints

Since each supply point has a limited production

capacity;

X

11

+X

12

+X

13

+X

14

<= 35

X

21

+X

22

+X

23

+X

24

<= 50

X

31

+X

32

+X

33

+X

34

<= 40

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

9

4. Demand Constraints

Since each supply point has a limited production

capacity;

X

11

+X

21

+X

31

>= 45

X

12

+X

22

+X

32

>= 20

X

13

+X

23

+X

33

>= 30

X

14

+X

24

+X

34

>= 30

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

10

5. Sign Constraints

Since a negative amount of electricity can not be

shipped all Xij’s must be non negative;

Xij >= 0 (i= 1,2,3; j= 1,2,3,4)

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

11

LP Formulation of Powerco’s Problem

Min Z = 8X

11

+6X

12

+10X

13

+9X

14

+9X

21

+12X

22

+13X

23

+7X

24

+14X

31

+9X

32

+16X

33

+5X

34

S.T.: X

11

+X

12

+X

13

+X

14

<= 35 (Supply Constraints)

X

21

+X

22

+X

23

+X

24

<= 50

X

31

+X

32

+X

33

+X

34

<= 40

X

11

+X

21

+X

31

>= 45 (Demand Constraints)

X

12

+X

22

+X

32

>= 20

X

13

+X

23

+X

33

>= 30

X

14

+X

24

+X

34

>= 30

Xij >= 0 (i= 1,2,3; j= 1,2,3,4)

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

12

General Description of a Transportation

Problem

1. A set of m supply points from which a good is

shipped. Supply point i can supply at most s

i

units.

2. A set of n demand points to which the good is

shipped. Demand point j must receive at least d

i

units of the shipped good.

3. Each unit produced at supply point i and shipped

to demand point j incurs a variable cost of c

ij

.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

13

X

ij

= number of units shipped from supply point i to

demand point j

) ,..., 2 , 1 ; ,..., 2 , 1 ( 0

) ,..., 2 , 1 (

) ,..., 2 , 1 ( . .

min

1

1

1 1

n j m i X

n j d X

m i s X t s

X c

ij

m i

i

j ij

n j

j

i ij

m i

i

n j

j

ij ij

= = >

= >

= s

¯

¯

¯¯

=

=

=

=

=

=

=

=

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

14

Balanced Transportation Problem

If Total supply equals to total demand, the

problem is said to be a balanced

transportation problem:

¯ ¯

=

=

=

=

=

n j

j

j

m i

i

i d s

1 1

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

15

Balancing a TP if total supply exceeds total

demand

If total supply exceeds total demand, we

can balance the problem by adding dummy

demand point. Since shipments to the

dummy demand point are not real, they are

assigned a cost of zero.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

16

Balancing a transportation problem if total

supply is less than total demand

If a transportation problem has a total

supply that is strictly less than total

demand the problem has no feasible

solution. There is no doubt that in such a

case one or more of the demand will be left

unmet. Generally in such situations a

penalty cost is often associated with unmet

demand and as one can guess this time the

total penalty cost is desired to be minimum

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

17

7.2 Finding Basic Feasible

Solution for TP

Unlike other Linear Programming

problems, a balanced TP with m supply

points and n demand points is easier to

solve, although it has m + n equality

constraints. The reason for that is, if a set

of decision variables (x

ij

’s) satisfy all but

one constraint, the values for x

ij

’s will

satisfy that remaining constraint

automatically.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

18

Methods to find the bfs for a balanced TP

There are three basic methods:

1. Northwest Corner Method

2. Minimum Cost Method

3. Vogel’s Method

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19

1. Northwest Corner Method

To find the bfs by the NWC method:

Begin in the upper left (northwest) corner of the

transportation tableau and set x

11

as large as

possible (here the limitations for setting x

11

to a

larger number, will be the demand of demand

point 1 and the supply of supply point 1. Your

x

11

value can not be greater than minimum of

this 2 values).

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

20

According to the explanations in the previous slide

we can set x

11

=3 (meaning demand of demand

point 1 is satisfied by supply point 1).

5

6

2

3 5 2 3

3 2

6

2

X 5 2 3

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

21

After we check the east and south cells, we saw that

we can go east (meaning supply point 1 still has

capacity to fulfill some demand).

3 2 X

6

2

X 3 2 3

3 2 X

3 3

2

X X 2 3

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

22

After applying the same procedure, we saw that we

can go south this time (meaning demand point 2

needs more supply by supply point 2).

3 2 X

3 2 1

2

X X X 3

3 2 X

3 2 1 X

2

X X X 2

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

23

Finally, we will have the following bfs, which is:

x

11

=3, x

12

=2, x

22

=3, x

23

=2, x

24

=1, x

34

=2

3 2 X

3 2 1 X

2 X

X X X X

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

24

2. Minimum Cost Method

The Northwest Corner Method dos not utilize shipping

costs. It can yield an initial bfs easily but the total

shipping cost may be very high. The minimum cost

method uses shipping costs in order come up with a

bfs that has a lower cost. To begin the minimum cost

method, first we find the decision variable with the

smallest shipping cost (X

ij

). Then assign X

ij

its largest

possible value, which is the minimum of s

i

and d

j

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

25

After that, as in the Northwest Corner Method we

should cross out row i and column j and reduce the

supply or demand of the noncrossed-out row or

column by the value of Xij. Then we will choose the

cell with the minimum cost of shipping from the

cells that do not lie in a crossed-out row or column

and we will repeat the procedure.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

26

An example for Minimum Cost Method

Step 1: Select the cell with minimum cost.

2 3 5 6

2 1 3 5

3 8 4 6

5

10

15

12 8 4 6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

27

Step 2: Cross-out column 2

2 3 5 6

2 1 3 5

8

3 8 4 6

12 X 4 6

5

2

15

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

28

Step 3: Find the new cell with minimum shipping

cost and cross-out row 2

2 3 5 6

2 1 3 5

2 8

3 8 4 6

5

X

15

10 X 4 6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

29

Step 4: Find the new cell with minimum shipping

cost and cross-out row 1

2 3 5 6

5

2 1 3 5

2 8

3 8 4 6

X

X

15

5 X 4 6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

30

Step 5: Find the new cell with minimum shipping

cost and cross-out column 1

2 3 5 6

5

2 1 3 5

2 8

3 8 4 6

5

X

X

10

X X 4 6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

31

Step 6: Find the new cell with minimum shipping

cost and cross-out column 3

2 3 5 6

5

2 1 3 5

2 8

3 8 4 6

5 4

X

X

6

X X X 6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

32

Step 7: Finally assign 6 to last cell. The bfs is found

as: X

11

=5, X

21

=2, X

22

=8, X

31

=5, X

33

=4 and X

34

=6

2 3 5 6

5

2 1 3 5

2 8

3 8 4 6

5 4 6

X

X

X

X X X X

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

33

3. Vogel’s Method

Begin with computing each row and column a penalty.

The penalty will be equal to the difference between

the two smallest shipping costs in the row or column.

Identify the row or column with the largest penalty.

Find the first basic variable which has the smallest

shipping cost in that row or column. Then assign the

highest possible value to that variable, and cross-out

the row or column as in the previous methods.

Compute new penalties and use the same procedure.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

34

An example for Vogel’s Method

Step 1: Compute the penalties.

Supply Row Penalty

6 7 8

15 80 78

Demand

Column Penalty 15-6=9 80-7=73 78-8=70

7-6=1

78-15=63

15 5 5

10

15

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

35

Step 2: Identify the largest penalty and assign the

highest possible value to the variable.

Supply Row Penalty

6 7 8

5

15 80 78

Demand

Column Penalty 15-6=9 _ 78-8=70

8-6=2

78-15=63

15 X 5

5

15

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

36

Step 3: Identify the largest penalty and assign the

highest possible value to the variable.

Supply Row Penalty

6 7 8

5 5

15 80 78

Demand

Column Penalty 15-6=9 _ _

_

_

15 X X

0

15

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

37

Step 4: Identify the largest penalty and assign the

highest possible value to the variable.

Supply Row Penalty

6 7 8

0 5 5

15 80 78

Demand

Column Penalty _ _ _

_

_

15 X X

X

15

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

38

Step 5: Finally the bfs is found as X

11

=0, X

12

=5,

X

13

=5, and X

21

=15

Supply Row Penalty

6 7 8

0 5 5

15 80 78

15

Demand

Column Penalty _ _ _

_

_

X X X

X

X

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

39

7.3 The Transportation Simplex

Method

In this section we will explain how the simplex

algorithm is used to solve a transportation problem.

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40

How to Pivot a Transportation Problem

Based on the transportation tableau, the following

steps should be performed.

Step 1. Determine (by a criterion to be developed

shortly, for example northwest corner method) the

variable that should enter the basis.

Step 2. Find the loop (it can be shown that there is

only one loop) involving the entering variable and

some of the basic variables.

Step 3. Counting the cells in the loop, label them as

even cells or odd cells.

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41

Step 4. Find the odd cells whose variable assumes the

smallest value. Call this value θ. The variable

corresponding to this odd cell will leave the basis. To

perform the pivot, decrease the value of each odd cell

by θ and increase the value of each even cell by θ. The

variables that are not in the loop remain unchanged.

The pivot is now complete. If θ=0, the entering

variable will equal 0, and an odd variable that has a

current value of 0 will leave the basis. In this case a

degenerate bfs existed before and will result after the

pivot. If more than one odd cell in the loop equals θ,

you may arbitrarily choose one of these odd cells to

leave the basis; again a degenerate bfs will result

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

42

Illustration of pivoting procedure on the Powerco

example. We want to find the bfs that would result if

X14 were entered into the basis.

Nothwest Corner bfs and loop for Powerco

35 35

10 20 20 50

10 30 40

45 20 30 30

E O E O E O

(1, 4) (3, 4) (3, 3) (2, 3) (2, 1) (1, 1)

0

1

2

3 4

5

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43

New bfs after X

14

is pivoted into basis. Since There

is no loop involving the cells (1,1), (1,4), (2,1),

(2,2), (3,3) and (3, 4) the new solution is a bfs.

35-20 0+20 35

10+20 20

20-20

(nonbasic)

50

10+20 30-20 40

45 20 30 30

After the pivot the new bfs is X

11

=15, X

14

=20,

X

21

=30, X

22

=20, X

33

=30 and X

34

=10.

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44

Two important points!

In the pivoting procedure:

1. Since each row has as many +20s as –20s, the

new solution will satisfy each supply and demand

constraint.

2. By choosing the smallest odd variable (X

23

) to

leave the basis, we ensured that all variables will

remain nonnegative.

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45

Pricing out nonbasic variables

To complete the transportation simplex, now we will

discuss how to row 0 for any bfs. For a bfs in which

the set of basic variables is BV, the coefficient of the

variable X

ij

(call it č

ij

) in the tableau’s row ) is given

by

č

ij

= c

BV

B

-1

a

ij

– c

ij

Where c

ij

is the objective function coefficient for X

ij

and a

ij

is the column for x

ij

in the original LP.

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46

Since the example is a minimization problem, the

current bfs will be optimal if all the č

ij

‘s are

nonpositive; otherwise, we enter into the basis with

the most positive č

ij

.

After determining c

BV

B

-1

we can easily determine

č

ij

. Since the first constraint has been dropped,

c

BV

B

-1

will have m+n-1 elements.

c

BV

B

-1

= [u

2

u

3

…u

m

v

1

v

2

…v

n

]

Where u

2

u

3

…u

m

are elements of c

BV

B

-1

corresponding to the m-1 supply constraints, and v

1

v

2

…v

n

are elements of c

BV

B

-1

corresponding to the n

demand constraints.

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47

To determine c

BV

B

-1

we use the fact that in any

tableau, each basic variable X

ij

must have č

ij

=0.

Thus for each of the m+n-1 variables in BV,

c

BV

B

-1

a

ij

– c

ij

=0

For the Northwest corner bfs of Powerco problem,

BV={X

11

, X

21

, X

22

, X

23

, X

33

, X

34

}. Applying the

equation above we obtain:

č

11

= [u

2

u

3

v

1

v

2

v

3

v

4

] -8 = v

1

-8=0

0

0

0

1

0

0

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48

č

21

= [u

2

u

3

v

1

v

2

v

3

v

4

] -9 = u

2

+v

1

-9=0

č

22

= [u

2

u

3

v

1

v

2

v

3

v

4

] -12 = u

2

+v

2

-12=0

č

23

= [u

2

u

3

v

1

v

2

v

3

v

4

] -13 = u

2

+v

3

-13=0

0

0

0

1

0

1

0

0

1

0

0

1

0

1

0

0

0

1

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49

č

33

= [u

2

u

3

v

1

v

2

v

3

v

4

] -16 = u

3

+v

3

-16=0

č

34

= [u

2

u

3

v

1

v

2

v

3

v

4

] -5 = u

3

+v

4

-5=0

For each basic variable X

ij

(except those having i=1), we

see that the equation we used above reduces to u

i

+v

j

=c

ij

.

If we define u

1

=0, we must solve the following system

of m+n equations.

0

1

0

0

1

0

0

1

0

0

1

0

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50

u

1

=0

u

1

+v

1

=8

u

2

+v

1

=9

u

2

+v

2

=12

u

2

+v

3

=13

u

3

+v

3

=16

u

3

+v

4

=5

By solving the system above we obtain:

v

1

=8, u

2

=1, v

2

=11,v

3

=12, u

3

=4, v

4

=1

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51

For each nonbasic variable, we now compute

č

ij

= u

i

+v

j

– c

ij

We obtain:

č

12

= 0+11 – 6 = 5 č

13

= 0+12 – 10 = 2

č

14

= 0+1 – 9 = -8 č

24

= 1+1 – 7 = -5

č

31

= 4+8 – 14 = -2 č

32

= 4+11 – 9 = 6

Since č

32

is the greatest positive č

ij

, we would next

enter X

32

into the basis. Each unit that is entered

into the basis will decrease Powerco’s cost by $6.

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52

We have determined that X

32

should enter the basis. As

shown in the table below the loop involving X

32

and

some of the basic variables is (3,2), (3,3), (2,3), (2,2).

The odd cells in the loop are (2,2) and (3,3). Since the

smallest value of these two is 10 the pivot is 10.

35 35

10 20 20 50

10 30 40

45 20 30 30

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53

The resulting bfs will be:

X

11

=35, X

32

=10, X

21

=10, X

22

=10, X

23

=30 and X

34

=30

The u

i

’s and v

j

’s for the new bfs were obtained by

solving

u

1

=0

u

2

+v

2

=12

u

3

+v

4

=5

u

1

+v

1

=8

u

2

+v

3

=13

u

2

+v

1

=9

u

3

+v

2

=9

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54

In computing č

ij

= u

i

+v

j

– c

ij

for each nonbasic variable,

we find that č

12

= 5, č

13

= 2 and č

24

= 1 are the only

positive č

ij

‘s. Thus we next enter X

12

into the basis. By

applying the same steps we will finally get a solution

where all č

ij

’s are less then or equal to 0, so an optimal

solution has been obtained.

The optimal solution for Powerco is X

11

=10, X

13

=25,

X

21

=45, X

23

=5, X

32

=10 and X

34

=30.

As a result of this solution the objective function value

becomes:

Z=6(10)+10(25)+9(45)+13(5)+9(10)+5(30)=$1020

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55

7.4 Sensitivity Analysis

In this section we discuss the following three aspects

of sensitivity analysis for the transportation problem:

1. Changing the objective function coefficient of a

nonbasic variable.

2. Changing the objective function coefficient of a

basic variable.

3. Increasing a single supply by Δ and a single demand

by Δ.

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56

1. Changing the objective function coefficient

of a nonbasic variable.

Changing the objective function coefficient of a

nonbasic variable X

ij

will leave the right hand side of

the optimal tableau unchanged. Thus the current

basis will still be feasible. Since we are not changing

c

BV

B

-1

, the u

i

’s and v

j

’s remain unchanged. In row 0

only the coefficient of X

ij

will change. Thus as long

as the coefficient of X

ij

in the optimal row 0 is

nonpositive, the current basis remains optimal.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

57

Let’s try to answer the following question about

Powerco as an example:

For what range of values of the cost of shipping 1

million kwh of electricity from plant 1 to city 1 will the

current basis remain optimal?

Suppose we change c

11

from 8 to 8+ Δ.

Now č

11

= u

1

+v

1

-c

11

=0+6-(8+ Δ)=2- Δ.

Thus the current basis remains optimal for –2- Δ<=0,

or Δ>=-2, and c

11

>=8-2=6.

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58

2. Changing the objective function coefficient of a

basic variable.

Since we are changing c

BV

B

-1

, the coefficient of each

nonbasic variable in row 0 may change, and to determine

whether the current basis remain optimal, we must find

the new u

i

’s and v

j

’s and use these values to price out all

nonbasic variables. The current basis remains optimal as

long as all nonbasic variables price out nonpositive.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

59

Let’s try to answer the following question about Powerco

as an example:

For what range of values of the cost of shipping 1 million

kwh of electricity from plant 1 to city 3 will the current

basis remain optimal?

Suppose we change c

13

from 10 to 10+ Δ.

Now č

13

=0 changes from u

1

+v

3

=10 to u

1

+v

3

=10+ Δ.

Thus, to find the u

i

’s and v

j

’s we must solve the

following equations:

u

1

=0 u

1

+v

2

=6 u

2

+v

1

=9 u

2

+v

3

=13

u

3

+v

2

=9 u

1

+v

3

=10+ Δ u

3

+v

4

=5

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

60

Solving these equations, we obtain u

1

=0, v

2

=6, v

3

=10+ Δ,

v

1

=6+ Δ , u

2

=3- Δ, u

3

=3, and

v

4

=2.

We now price out each nonbasic variable. The current

basis will remain optimal as long as each nonbasic

variable has a nonpositive coefficient in row 0.

č

11

= u

1

+v

1

-8=Δ-2<=0 for Δ<=2

č

14

= u

1

+v

4

-9=-7

č

22

= u

2

+v

2

-12=-3-Δ<=0 for Δ>=-3

č

24

= u

2

+v

4

-7=-2-Δ<=0 for Δ>=-2

č

31

= u

3

+v

1

-14=-5+Δ<=0 for Δ<=5

č

33

= u

3

+v

3

-16=Δ-3<=0 for Δ<=3

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

61

Thus, the current basis remains optimal for –2<=Δ<=2,

or 8=10-2<=c

13

<=10+2=12

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

62

3. Increasing Both Supply s

i

and Demand d

j

by Δ.

Changing both supply and demand by the same amount

will maintain the balance of the transportation problem.

Since ui’s and vj’s may be thought of as the negative of

each constraint’s shadow price, we know that if the

current basis remains optimal,

New Z value = old Z value+Δu

i

+Δv

j

For example if we increase plant 1,s supply and city 2’s

demand by 1 unit, then

New cost=1020+1(0)+1(6)=$1026

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

63

We can also find the new values of the decision variables

as follows:

1. If Xij is a basic variable in the optimal solution,

increase Xij by Δ.

2. If Xij is a nonbasic variable in the optimal solution,

find the loop involving Xij and some of the basic

variables. Find an odd cell in the loop that is in row I.

Increase the value of this odd cell by Δ and go around the

loop, alternately increasing and then decreasing current

basic variables in the loop by Δ.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

64

7.5. Assignment Problems

Example: Machineco has four jobs to be completed.

Each machine must be assigned to complete one job.

The time required to setup each machine for

completingeach job is shown in the table below.

Machinco wants to minimize the total setup time needed

to complete the four jobs.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

65

Setup times

(Also called the cost matrix)

Time (Hours)

Job1 Job2 Job3 Job4

Machine 1 14 5 8 7

Machine 2 2 12 6 5

Machine 3 7 8 3 9

Machine 4 2 4 6 10

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

66

The Model

According to the setup table Machinco’s problem can be

formulated as follows (for i,j=1,2,3,4):

1 0

1

1

1

1

1

1

1

1 . .

10 6 2 9 3 8 7

5 6 12 2 7 8 5 14 min

44 34 24 14

43 33 23 13

42 32 22 12

41 31 21 11

44 43 42 41

34 33 32 31

24 23 22 21

14 13 12 11

44 43 42 41 34 33 32 31

24 23 22 21 14 13 12 11

= =

= + + +

= + + +

= + + +

= + + +

= + + +

= + + +

= + + +

= + + +

+ + + + + + + +

+ + + + + + + =

ij ij orX X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X t s

X X X X X X X X

X X X X X X X X Z

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

67

For the model on the previous page note that:

X

ij

=1 if machine i is assigned to meet the demands of

job j

X

ij

=0 if machine i is assigned to meet the demands of

job j

In general an assignment problem is balanced

transportation problem in which all supplies and

demands are equal to 1.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

68

Although the transportation simplex appears to be very

efficient, there is a certain class of transportation

problems, called assignment problems, for which the

transportation simplex is often very inefficient. For that

reason there is an other method called The Hungarian

Method. The steps of The Hungarian Method are as

listed below:

Step1. Find a bfs. Find the minimum element in each row

of the mxm cost matrix. Construct a new matrix by

subtracting from each cost the minimum cost in its row.

For this new matrix, find the minimum cost in each

column. Construct a new matrix (reduced cost matrix) by

subtracting from each cost the minimum cost in its

column.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

69

Step2. Draw the minimum number of lines (horizontal

and/or vertical) that are needed to cover all zeros in the

reduced cost matrix. If m lines are required , an optimal

solution is available among the covered zeros in the

matrix. If fewer than m lines are required, proceed to step

3.

Step3. Find the smallest nonzero element (call its value

k) in the reduced cost matrix that is uncovered by the

lines drawn in step 2. Now subtract k from each

uncovered element of the reduced cost matrix and add k

to each element that is covered by two lines. Return to

step2.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

70

7.6 Transshipment Problems

A transportation problem allows only shipments that go

directly from supply points to demand points. In many

situations, shipments are allowed between supply points

or between demand points. Sometimes there may also

be points (called transshipment points) through which

goods can be transshipped on their journey from a

supply point to a demand point. Fortunately, the optimal

solution to a transshipment problem can be found by

solving a transportation problem.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

71

The following steps describe how the optimal solution to

a transshipment problem can be found by solving a

transportation problem.

Step1. If necessary, add a dummy demand point (with a

supply of 0 and a demand equal to the problem’s excess

supply) to balance the problem. Shipments to the dummy

and from a point to itself will be zero. Let s= total

available supply.

Step2. Construct a transportation tableau as follows: A

row in the tableau will be needed for each supply point

and transshipment point, and a column will be needed for

each demand point and transshipment point.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

72

Each supply point will have a supply equal to it’s

original supply, and each demand point will have a

demand to its original demand. Let s= total available

supply. Then each transshipment point will have a supply

equal to (point’s original supply)+s and a demand equal

to (point’s original demand)+s. This ensures that any

transshipment point that is a net supplier will have a net

outflow equal to point’s original supply and a net

demander will have a net inflow equal to point’s original

demand. Although we don’t know how much will be

shipped through each transshipment point, we can be

sure that the total amount will not exceed s.

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

73

Transportation Problem

Powerco Power Plant: Formulation

Define Variables:

Let Xij = number of (million kwh) produced at plant i and

sent to city j.

Objective Function:

Min z = 8*X11 + 6*X12 + 10*X13 + 9*X14

+ 9*X21 + 12*X22 + 13*X23 + 7*X24

+ 14*X31 + 9*X32 + 16*X33 + 5*X34

Supply Constraints:

X11 + X12 + X13 + X14 < = 35 (Plant 1)

X21 + X22 + X23 + X24 < = 50 (Plant 2)

X31 + X32 + X33 + X34 < = 40 (Plant 3)

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

74

Transportation

Problem

Powerco Power Plant: Formulation (Cont’d.)

Demand Constraints:

X11 + X21 +X31 > = 45 (City 1)

X12 + X22 +X32 > = 20 (City 2)

X13 + X23 +X33 > = 30 (City 3)

X14 + X24 +X34 > = 30 (City 4)

Nonnegativity Constraints:

Xij > = 0 (i=1,..,3; j=1,..,4)

Balanced?

Total Demand = 45 + 20 + 30 + 30 = 125

Total Supply = 35 + 50 + 40 = 125

Yes, Balanced Transportation Problem! (If problem is

unbalanced, add dummy supply or demand as required.)

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

75

Transportation Problem

Powerco Power Plant: LINGO Formulation

model:

! A 3 Plant, 4 Customer

Transportation Problem;

SETS:

PLANT / P1, P2, P3/ : CAPACITY;

CUSTOMER / C1, C2, C3, C4/ : DEMAND;

ROUTES( PLANT, CUSTOMER) : COST, QUANTITY;

ENDSETS

! The objective;

[OBJ] MIN = @SUM( ROUTES: COST * QUANTITY);

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

76

Transportation Problem

Powerco Power Plant: LINGO Formulation (Cont’d.)

! The demand constraints;

@FOR( CUSTOMER( J): [DEM]

@SUM( PLANT( I): QUANTITY( I, J))>= DEMAND( J));

! The supply constraints;

@FOR( PLANT( I): [SUP]

@SUM( CUSTOMER(J): QUANTITY(I,J))<=CAPACITY( I));

! Here are the parameters;

DATA:

CAPACITY = 35, 50, 40 ;

DEMAND = 45, 20, 30, 30;

COST = 8, 6, 10, 9,

9, 12, 13, 7,

14, 9, 16, 5;

ENDDATA

end

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

77

Transportation Problem

Powerco Power Plant: LINGO Solution

Optimal solution found at step: 7

Objective value: 1020.000

QUANTITY( P1, C1) 0.0000000

QUANTITY( P1, C2) 10.00000

QUANTITY( P1, C3) 25.00000

QUANTITY( P1, C4) 0.0000000

QUANTITY( P2, C1) 45.00000

QUANTITY( P2, C2) 0.0000000

QUANTITY( P2, C3) 5.000000

QUANTITY( P2, C4) 0.0000000

QUANTITY( P3, C1) 0.0000000

QUANTITY( P3, C2) 10.00000

QUANTITY( P3, C3) 0.0000000

QUANTITY( P3, C4) 30.00000

All Quantities

are Integers!

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

78

Transportation Problem

Powerco Power Plant: LINGO Solution (Cont’d.)

Row Slack or Surplus Dual Price

OBJ 1020.000 1.000000

DEM( C1) 0.0000000 -9.000000

DEM( C2) 0.0000000 -9.000000

DEM( C3) 0.0000000 -13.00000

DEM( C4) 0.0000000 -5.000000

SUP( P1) 0.0000000 3.000000

SUP( P2) 0.0000000 0.0000000

SUP( P3) 0.0000000 0.0000000

All constraints are binding!

(Typical of Balanced Transportation Problems; results in

simple algorithms)

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

79

Transportation Problem

Powerco Power Plant: Sensitivity Analysis

Row Dual Price

OBJ 1.00000

DEM( C1) -9.00000 (-v1)

DEM( C2) -9.00000 (-v2)

DEM( C3) -13.00000 (-v3)

DEM( C4) -5.00000 (-v4)

SUP( P1) 3.00000 (-u1)

SUP( P2) 0.00000 (-u2)

SUP( P3) 0.00000 (-u3)

Changes in total cost due to changes in demand and supply:

z = v1* C1 + v2* C2 + v3* C3 + v4* C4

+ u1* P1 + u2* P2 + u3* P3

e.g. C2 = 1, P1 = 1 z = 9*1 + (-3)*1 = $6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

80

Transportation Problem

Powerco Power Plant: Sensitivity Analysis

Row Dual Price

OBJ 1.00000

DEM( C1) -9.00000 (-v1)

DEM( C2) -9.00000 (-v2)

DEM( C3) -13.00000 (-v3)

DEM( C4) -5.00000 (-v4)

SUP( P1) 3.00000 (-u1)

SUP( P2) 0.00000 (-u2)

SUP( P3) 0.00000 (-u3)

Changes in total cost due to changes in demand and supply:

z = v1* C1 + v2* C2 + v3* C3 + v4* C4

+ u1* P1 + u2* P2 + u3* P3

e.g. C2 = 1, P1 = 1 z = 9*1 + (-3)*1 = $6

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

81

Powerco Power Plant: Sensitivity Analysis (Cont’d.)

Variable Value Reduced Cost

QUANTITY( P1, C1) 0.00 2.00 (c11)

QUANTITY( P1, C2) 10.00 0.00 (c12)

QUANTITY( P1, C3) 25.00 0.00 (c13)

QUANTITY( P1, C4) 0.00 7.00 (c14)

QUANTITY( P2, C1) 45.00 0.00 (c21)

QUANTITY( P2, C2) 0.00 3.00 (c22)

QUANTITY( P2, C3) 5.00 0.00 (c23)

QUANTITY( P2, C4) 0.00 2.00 (c24)

QUANTITY( P3, C1) 0.00 5.00 (c31)

QUANTITY( P3, C2) 10.00 0.00 (c32)

QUANTITY( P3, C3) 0.00 3.00 (c33)

QUANTITY( P3, C4) 30.00 0.00 (c34)

z = c11* Q11 + c12* Q12 + c13* Q13 + c14* Q14

+ c21* Q21 + c22* Q22 + c23* Q23 + c24* Q24

+ c31* Q31 + c32* Q32 + c33* Q33 + c34* Q34

Nonbasic

Basic

Basic

Nonbasic

Basic

Nonbasic

Basic

Nonbasic

Nonbasic

Basic

Nonbasic

Basic

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

82

Assignment Problems

Personnel Assignment:

Time (hours)

Job 1 Job 2 Job 3 Job 4

Person 1 14 5 8 7

Person 2 2 12 6 5

Person 3 7 8 3 9

Person 4 2 4 6 10

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

83

Assignment Problem Formulation

Define Variables:

Let Xij = 1 if ith person is assigned to jth job

Xij = 0 if ith person is not assigned to jth job

Objective Function:

Min z = 14*X11 + 5*X12 + … + 10*X44

Personnel Constraints:

X11 + X12 + X13 + X14 = 1

X21 + X22 + X23 + X24 = 1

X31 + X32 + X33 + X34 = 1

X41 + X42 + X43 + X44 = 1

Demand Constraints:

X11 + X21 + X31 + X41 = 1

X12 + X22 + X32 + X42 = 1

X13 + X23 + X33 + X43 = 1

X14 + X24 + X34 + X44 = 1

Binary Constraints:

Xij = 0 or Xij = 1

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

84

Assignment Problem Algorithm

14 5 8 7

2 12 6 5

7 8 3 9

2 4 6 10

Row Minimum

5

2

3

2

9 0 3 2

0 10 4 3

4 5 0 6

0 2 4 8

0 0 0 2 Column Minimum

Subtract Row Minimum from Each Row:

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

85

Assignment Problem Algorithm

9 0 3 0

0 10 4 1

4 5 0 4

0 2 4 6

Subtract Column Minimum from Each Column:

10 0 3 0

0 9 3 0

5 5 0 4

0 1 3 5

Subtract Minimum uncrossed value from uncrossed values

and add to twice-crossed values:

Draw lines to cross out zeros and read solution from zeros

0

0

0

0

Solution:

Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.

86

Hungarian Method

Step 1: Find the minimum element in each row of the m x m cost

matrix. Construct a new matrix by subtracting from each cost the

minimum cost in its row. For this new matrix, find the minimum cost in

each column. Construct a new matrix (called the reduced cost matrix)

by subtracting from each cost the minimum cost in its column.

Step 2: Draw the minimum number of lines (horizontal and/or vertical)

that are needed to cover all the zeros in the reduced cost matrix. If m

lines are required, an optimal solution is available among the covered

zeros in the matrix. If fewer than m lines are needed, proceed to Step

3.

Step 3: Find the smallest nonzero element (call its value k) in the

reduced cost matrix that is uncovered by the lines drawn in Step 2.

Now subtract k from each uncovered element of the reduced cost

matrix and add k to each element that is covered by two lines. Return

to Step 2.

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