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# Transportation problems

Operational Research Level 4

Prepared by T.M.J.A.Cooray Department of Mathematics

MA 4020-Transportation problems

1

Introduction

Transportation

problem is a special kind of LP problem in which goods are transported from a set of sources to a set of destinations subject to the supply and demand of the source and the destination respectively, such that the total cost of transportation is minimized.

MA 4020-Transportation problems 2

finished goods warehouses . raw materials houses. Destinations Markets Finished goods ware house ware raw materials ware houses.Examples: Sources factories. suppliers etc. factories. MA 4020-Transportation problems 3 .

A schematic representation of a transportation problem is shown below a1 a2 S1 D1 D2 b1 b2 ai Si Dj bj am Sm Dn bn MA 4020-Transportation problems 4 .

number of destinations ai.supply at source I bj – demand at destination j cij – cost of transportation per unit from source i to destination j Xij – number of units to be transported from the source i to destination j MA 4020-Transportation problems 5 . m- number of sources n.

Destination j 1 S 1 c11 O 2 U R C E i i ci1 2 j n c12 c1j c1n Supply a1 a2 ci2 cij cin ai m Demand cm1 cm2 b1 b2 MA 4020-Transportation problems cmn bj bn am 6 .

..Transportation problem: represented as a LP model Minimize : Z cij X ij i 1 j 1 m n subject to X j 1 m i 1 ij n ij ai i 1.....m bj j 1..2.n MA 4020-Transportation problems 7 .m and j 1...2.......n X X ij 0 f or i 1..

with equalities instead of inequalities..2.The ideal situation is shown below..n X X ij 0 f or i 1.....m and j 1...m bj j 1.. Minimize : Z cij X ij i 1 j 1 m n subject to X j 1 m i 1 ij n ij ai i 1... There are “mn” unknown variables and m+n-1 independent equations.2.......n MA 4020-Transportation problems 8 .

the number of possible routes should be m+n1. MA 4020-Transportation problems 9 . In such a case evaluation of the solution will not be possible.When solving the transportation problem . If it is <m+n-1. say . it is called a degenerate solution. In order to evaluate the cells /routes (using the u-v method or the stepping stone method ) we need to imagine/introduce some used cells/routes carrying / transporting a very small quantity. That cell should be selected at the correct place.

Sourc e Destination 1 2 3 20 10 15 10 25 200 12 30 400 9 18 400 Supply 200 300 500 1000 1 2 3 Deman d MA 4020-Transportation problems 10 .Example: Consider a transportation problem involving 3 sources and 3 destinations.

j 1 n MA 4020-Transportation problems 11 .Types of transportation problems Balanced transportation problems m a i 1 i i n b j 1 j n j Unbalanced transportation problems a i 1 m b j 1 Include a dummy source or a dummy destination having a supply “d” or demand “d” to convert it to a balanced transportation problem. Where d= b j j 1 n ai i 1 m or a i 1 m i b j respectively.

Example Plant 1 W A1 R E2 H O3 U S4 E Supply 2 3 4 5 Deman d 10 5 15 20 20 2 10 5 15 20 3 15 14 13 30 15 2 7 10 9 4 15 8 25 25 30 20 30 MA 4020-Transportation problems 12 .

Solution of transportation problems Two phases: First phase: Find an initial feasible solution 2nd phase: Check for optimality and improve the solution MA 4020-Transportation problems 13 .

Find an initial feasible solution North west corner method Least cost method Vogel’s approximation method MA 4020-Transportation problems 14 .

Checking for optimality U-V method Stepping-Stone method MA 4020-Transportation problems 15 .

.Example-( having a degenerate solution) Introduce to for phase 2. 1 Destinations 2 3 Sources S1 3 Supply 2 6 3 5 20 3 5 4 7 30 25 15 20 10 5 S2 1 S3 S4 Demand 2 20 MA 4020-Transportation problems 16 .

In transportation problems . MA 4020-Transportation problems 17 .Transshipment models. It is sometimes economical if the shipment passes through some transient nodes in between the sources and destinations.shipments are sent directly from a particular source to a particular destination to minimize the total cost of shipments. In transshipment models it is possible for a shipment to pass through one or more intermediate nodes before it reaches its destination.

MA 4020-Transportation problems 18 .Transshipment problem with sources and destinations acting as transient nodes Number of starting nodes as well as the number of ending nodes is the sum of number of sources and the number of destinations of the original problem. m n a i 1 i bj j 1 Let be B= the buffer stock and it is added to all the starting nodes and all the ending nodes.

Sj Sm D1 … B am+B Sm B D1 b1+B … B B Dn MA 4020-Transportation problems Dn bn+B 19 .a1+B .. aj+B S1 S1 Sj B ..

these nodes are not having any original demand.S2.….But each of these transient nodes is assigned with B units as the demand value.D2. Destinations D1.….Dn are included as additional starting nodes mainly to act as transient nodes. The sources S1.Sm are included as additional ending nodes mainly to act as transient nodes.they don’t have any original supply and the supply of these nodes should be at least B. MA 4020-Transportation problems 20 .

between the destinations and between sources and destinations . MA 4020-Transportation problems 21 . We need to know the transshipment cost between the sources .

S1 S2 S3 S4 D1 D2 S1 S2 0 10 4 0 20 6 5 10 25 5 12 20 S3 S4 D1 D2 15 20 20 10 20 25 18 25 0 10 60 30 8 0 15 23 45 30 0 4 7 6 10 0 22 MA 4020-Transportation problems .Example Supplies at the sources are 100.150 and 350 and Demand at the destinations are 350 and 450 respectively.200.

S1 S2 S3 S4 D1 D2 S1 0 S2 S3 S4 D1 D2 10 15 20 20 10 800 4 0 20 25 18 25 800 20 6 0 10 60 30 800 5 10 8 0 15 23 800 25 5 45 30 0 4 800+35 0=1150 12 20 7 6 10 0 800+45 0=1250 800+100=900 800+200=1000 800+150=950 800+350=1150 800 800 Same algorithms can be used to solve this transshipment problem. MA 4020-Transportation problems 23 .

Where B = ai b j i 1 j 1 MA 4020-Transportation problems 24 m n . Consider the case where the shipping items are first sent to intermediate finished goods ware houses from the supply points/factories and then to the destinations.Transportation problem with some transient nodes between sources and destination. To solve these problems the capacity at each transient node is made equal to B.

The goods from the plants are sent to market places through two intermediate finished goods warehouses. Cost of transportation per unit between plants and warehouses and warehouses to market places and also supply values of plants and demand values of the markets are shown in the table. MA 4020-Transportation problems 25 .Example Multi plant organization has 3 plants and three market places.

M1 P1 P2 P3 W1 W2 DEMAND M2 40 15 M3 W1 W2 15 28 30 30 10 15 20 0 900 SUPPLY 10 25 200 300 400 900 900 30 0 35 25 900 Solution of the problem is same as Ordinary transportation Problems. MA 4020-Transportation problems 26 100 400 40 0 900 .

MA 4020-Transportation problems 27 .