Transportation and Assignment Models

Specialized Problems
 Transportation Problem
– Distribution of items from several sources to several destinations. Supply capacities and destination requirements known.

• Assignment Problem
– One-to-one assignment of people to jobs, etc.

Specialized algorithms save time!

Transportation Problem
• Goal ~To determine the delivery routes to be used & units delivered so as to minimise total transportation cost • Initial sol. technique ~ North west corner rule, Vogel’s approx., Lowest cost, • Final sol. ~ Stepping Stone, MODI,
– Involves step by step process

Example of transportation problem
Factories (Sources) Retail-shops (destinations) Kuantan(A)

100units

Masjid Tanah(D)

300units

300units

Banting(E)

Johor Bahru(B) 200units

300units

Taiping(F)

Gombak(C)

200units

Capacities

routes

requirements

Lauderdale (300 units) capacity .Transportation Problem Des Moines (100 units) capacity Albuquerque (300 units) required D Cleveland (200 units) required C E B A Evansville (300 units) capacity F Boston (200 units) required Ft.

Transportation Costs From (Sources) Des Moines(D) Evansville(E) FortLauderdale(F) To (Destinations) Albuquerque(A) Boston(B) Cleveland(C) $5 $8 $9 $4 $4 $7 $3 $3 $5 .

5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity . Factory to Warehouse Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.Unit Shipping Cost:1Unit.

300 200 200 700 .Total Demand and Total Supply Albuquerque (A) Des Moines (D) Boston (B) Cleveland (C) Factory Capacity 100 300 300 Evansville (E) Fort Lauderdale (F) Warehouse Req.

Transportation Table For Executive Furniture Corp. 5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity 100 300 300 700 300 200 200 . Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.

Initial Solution Using the Northwest Corner Rule • Start in the upper left-hand cell and allocate units to shipping routes as follows: – Exhaust the supply (factory capacity) of each row before moving down to the next row. – Exhaust the demand (warehouse) requirements of each column before moving to the next column to the right. . – Check that all supply and demand requirements are met.

Initial Solution North West Corner Rule Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. 5 100 200 8 9 100 100 200 4 7 3 5 Boston (B) 4 Cleveland (C) 3 Factory Capacity 100 300 300 700 200 200 300 Total Transportation cost = 100x5 + 200x8 + 100x4 + 100x7 + 200x5= $4200 .

Eliminate any row or column that has just been completely satisfied by the assignment made 5. Determine the row or column with the greatest difference 3. Assign as many units as possible to the cost square in the row or column selected 4.Initial Solution Vogel’s Approximation steps (refer p 424) 1. Find the difference between the two lowest unit transportation costs for each row & column 2. Repeat steps 1-4 .

Eliminate row or column which has been completely satisfied.Vogel’s Approximation 1. 3. 4. For each row/column of table. 4. find difference between two lowest costs. Find greatest opportunity cost. (Opportunity cost) 2. . Assign as many units as possible to lowest cost square in row/column with greatest opportunity cost. omitting eliminated rows/columns. Begin again.

200 (refer p 427) Boston (B) 4 4 200 Cleveland (C) 3 3 100 Factory Capacity 5 100 100 300 300 700 8 9 7 100 5 300 200 200 Total Transportation cost = $3900 .Initial Solution Vogel’s Approximation Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.

5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity 100 300 300 700 300 200 200 .Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.

5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity 100 300 300 700 300 200 200 .Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.

5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity 100 300 300 700 300 200 200 .Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.

Select any unused square to evaluate.The Stepping-Stone Method • 1.and + on each corner square of the closed path. • 5. Begin at this square. Repeat steps 1 . • 2. subtract the unit cost figure in each square containing a -.4 for each unused square. Place + in unused square. • 3. Calculate improvement index: add together the unit cost figures found in each square containing a +. • If all indices computed > = 0. . Trace a closed path back to the original square via squares that are currently being used (only horizontal or vertical moves allowed). optimal sol. alternate . • 4.

Boston (B) 4 4 Cleveland (C) Start 3 3 5 Factory Capacity + 100 200 5 8 + 9 100 300 300 700 100 100 200 7 200 + 300 200 .Stepping-Stone Method .The Des Moines-to-Cleveland Route Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.

Stepping-Stone Method An Improved Solution Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. Boston (B) 4 4 Cleveland (C) 3 3 5 Factory Capacity 100 100 100 300 5 8 100 300 300 700 200 9 7 200 200 200 .

100 5 8 Boston (B) 4 4 Cleveland (C) 3 3 100 7 100 200 5 Factory Capacity 100 200 200 300 9 300 300 700 200 .Third and Final Solution Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req.

Initial Solution Vogel’s Approximation Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req. Total Transportation cost = $3900 optimal solution . +1 (refer p 427) Boston (B) 4 +2 Cleveland (C) 3 +2 Factory Capacity 5 100 100 300 300 700 8 200 4 100 3 5 100 9 200 +1 7 300 200 200 Using stepping stone: Each improvement index in the unoccupied cell >=0.

0 .Kj 5. set R1 = 0.MODI Method: 5 Steps 1.5 = 0 I_DB = 4 .1 = 0 . Compute improvement index for each unoccupied cell I_EA = 8 .1 = 3 I_DC = 3 . After writing all equations. Select the largest negative index and proceed to solve the problem as you did using the stepping-stone method. 4. and K3= -1 2. 2. R3=6. Solve the system of equations for Ri and Kj values. 1.0 . Compute the improvement index for each unused square by the formula improvement index: Iij = Cij .(-1) = 4 I_FB = 7 . 3.3 .Ri . R2=3. K2=1. Set up equation for each occupied cell let R1=0 then solve for K1=5.6 . Compute the values for each row and column: set Ri + Kj = Cij for those squares currently used or occupied.

Stepping-Stone Method . optimal solution I_FA is –ve (not optimal yet).The Des Moines-to-Cleveland Route Kj Ri To K1 K2 K3 From Albuquerque (A) 100 200 - Boston (B) Cleveland (C) Factory Capacity 100 300 300 700 Des Moines R1 (D) 5 3 4 4 3 3 1 Evansville R2 (E) Fort R3 Lauderdale (F) Warehouse Req. 8 100 + 4 7 - 9 -2 + 100 200 200 200 5 300 Each improvement index Iij in the unoccupied cell >=0. Total Transportation cost = $4200 .

Special Problems in Transportation Method • Unbalanced Problem – Demand Less than Supply – Demand Greater than Supply • Degeneracy (one or more Iij =0) More Than One Optimal Solution .

Unbalanced Problem Demand Less than Supply Customer 1 Factory 1 8 Customer 2 5 Dummy 0 Factory Capacity 170 130 80 Factory 2 Factory 3 Customer Requirements 15 3 10 9 0 0 150 80 150 380 .

Unbalanced Problem Supply Less than Demand Customer 1 Factory 1 Factory 2 Dummy Customer Requirements 8 15 0 Customer 2 5 10 0 Customer 3 16 7 0 Factory Capacity 170 130 80 380 150 80 150 .

Degeneracy Customer 1 Factory 1 Factory 2 Factory 3 Customer Requirements Customer 2 4 4 Customer 3 3 3 20 7 80 100 5 Factory Capacity 100 120 80 300 100 5 8 100 9 100 100 .

Coming Up! Customer 1 Factory 1 Factory 2 Factory 3 Customer Requirements Customer 2 8 5 10 Customer 3 16 7 10 Factory Capacity 70 130 80 280 70 50 15 80 3 9 50 50 30 150 80 .Degeneracy .

Boston (B) 4 4 Cleveland (C) Start 3 3 Factory Capacity 100 300 300 700 5 8 200 + 100 + 9 100 100 200 7 + 300 200 5 200 .The Des Moines-to-Cleveland Route Albuquerque (A) Des Moines (D) Evansville (E) Fort Lauderdale (F) Warehouse Req.Stepping-Stone Method .

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The Assignment Method 1. subtract the smallest number in each row from every number in that row – subtract the smallest number in each column from every number in that column 2. then one can make an optimal assignment (step 4) . draw the minimum number of vertical and horizontal straight lines necessary to cover zeros in the table – if the number of lines equals the number of rows or columns.

continued 3.The Assignment Method . if the number of lines does not equal the number of rows or columns – subtract the smallest number not covered by a line from every other uncovered number – add the same number to any number lying at the intersection of any two lines – return to step 2 4. make optimal assignments at locations of zeros within the table .

The Assignment Problem Project 1 2 3 $11 $14 $6 $8 $10 $11 $9 $12 $7 Person Adams Brown Cooper .

Hungarian Method Initial Table Person Adams Brown Cooper Project 1 2 11 8 9 14 10 12 3 6 11 7 .

Hungarian Method Row Reduction Person Adams Brown Cooper Project 1 2 5 0 2 8 2 5 3 0 3 0 .

Hungarian Method Column Reduction Person Adams 1 5 0 2 Project 2 6 0 3 3 0 3 0 Brown Cooper .

Hungarian Method Testing Person 1 Adams Brown Project 2 Covering Line 2 3 5 6 0 0 2 0 3 3 0 Covering Line 1 Cooper .

Hungarian Method Revised Opportunity Cost Table Person Adams Brown 1 3 0 Project 2 4 0 3 0 5 Cooper 0 1 0 .

Hungarian Method Person Adams Brown Covering Line Project 1 Testing 2 4 0 1 Covering Line 3 1 3 0 0 3 0 5 0 Covering Line 2 Cooper .

Hungarian Method Assignments Person Adams Brown Project 1 2 3 6 10 Cooper 9 .

Maximization Assignment Problem Adams Brown Cooper Davis 1 $11 $8 $9 $10 Project 2 3 $14 $6 $10 $11 $12 $7 $13 $8 Dummy $0 $0 $0 $0 .

Maximization Assignment Problem Adams Brown Cooper Davis 1 $32 $6 $5 $4 2 $0 $4 $2 $1 Project 3 $8 $3 $7 $6 Dummy $14 $14 $14 $14 .

Part A ~ 14 October 2004 .

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