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Transshipment problem -I

ByUdit Anand (211152)
Arjun Kapoor(211173)

The Case
This is a classical case of transshipment problem in which we have been given this
figure and we need to find out the minimum transportation cost in transporting
units from plants to warehouses with following assumptions.

(a) Inter plant and inter –warehouse transfers are not allowed.
(b) The units may be transshipped.

Here
P1,P2- Represent Manufacturing plants
W1,W2,W3- Represent Warehouses
The lines represent distances between
different plants and warehouses

According to assumption (a).To minimize transportation costs as per given assumptions . Converting figure into transportation table .Inter-plant and Inter-warehouse transportation cost are assumed to be ∞ to avoid allocations to those cells.we get . taking proportionality constant as unity . Unit transportation cost=Distance b/w plants and warehouses given in figure(in miles) Objective.Since it is given that transportation costs are exactly proportional to the distances . The total number of starting nodes (sources) as well as the total number of ending nodes (destinations) of this transshipment problem is 2+3=5.

it is a balanced problem The value of buffer stock to be added to all the rows and columns is 400 units.DESTINATION P1 P2 W1 W2 W3 Supply P1 0 ∞ 100 90 60 240 P2 ∞ 0 120 140 110 160 W1 100 120 0 ∞ ∞ - W2 90 140 ∞ 0 ∞ - W3 60 110 ∞ ∞ 0 - - 80 120 200 SOURCE Demand - Total Supply = 400 Total Demand = 400 Since Supply == Demand. .

DESTINATION P1 SOURCE P2 W1 W2 W3 Supply P1 0 ∞ 100 90 60 240+400 =640 P2 ∞ 0 120 140 110 160+400 =560 W1 100 120 0 ∞ ∞ 400 W2 90 140 ∞ 0 ∞ 400 W3 60 110 ∞ ∞ 0 400 400 80+400 =480 120+40 200+4 0=520 00=60 0 Demand 400 Applying VAM to find out initial basic feasible solution .

(30).( 10).(1 00).P1 P2 W1 W2 W3 P1 0 ∞ 100 90 120 60 P2 ∞ 0 140 110 W1 100 120 0 400 ∞ W2 90 140 ∞ W3 60 110 Dema 400 nd Penalt (60).(10 ).(20).( 90).(50). (60).(120) (90).(60).(40) 560 160 80 80 (110).(60).(90) ∞ ∞ 0 400 (60).(110) 400 120 80 120 80 400 . (90). (60).(∞) 400 Supply Penalties 640 240 120 (60).(20). (60) 400 480 80 520 120 600 . (20).(20 ).(60).(10). (60). 200 80 (110) (100).(50) (60).(90).(20) .(10) ∞ 400 (100).(100) 0 400 ∞ 400 (90).( 50). ies (60).(10).(6 0).(50) .(6 0).( 50).(50).(60).(10).(50).(60).(60).(10).

Initial basic feasible solution P1 P2 W1 W2 W3 P1 400 ----- ----- 120 120 P2 ----- 400 80 ----- 80 W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ----- 400 Test for degeneracy m+n-1 = 5+5-1 = 9 Therefore. Solution= 0+ 0 + 9600 + 0 + 10800+0+ 7200 + 8800+0 =36400 . it is non-degenerate.

Test for Optimality Applying MODI method Cost of Occupied cells 1 2 3 4 5 Cost of unoccupied cells ui 1 2 3 4 5 ui 1 - ∞ 100 - - 60 2 ∞ - - 140 - 110 1 0 - - 90 60 60 2 - 0 120 - 110 110 3 - - 0 - - -10 3 100 120 - ∞ ∞ -10 4 - - - 0 - -30 4 90 140 ∞ - ∞ -30 5 - - - - 0 0 5 60 110 ∞ ∞ - 0 Vj -60 -110 10 30 0 Vj -60 -110 10 30 0 .

IBFS is an optimal solution. Optimal Cost= 0+ 0 + 9600 + 0 + 3600 + 11200 + 0 + 12000+0 =36400 But since we have one 0 in the table . an alternate solution exists. .Net Evaluation table cij’=cij-(ui+vj) ∞ 30 - - - - 0 - 170 240 - ∞ ∞ 180 280 ∞ - ∞ 120 220 ∞ ∞ - - ∞ Since all values of the table are non-negative .

Alternate Optimal solution Applying Stepping Stone Method P1 P2 W1 W2 W3 P1 400 ----- ----- 120-ϴ 120+ϴ P2 ----- 400 80 ϴ 80-ϴ W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ----- 400 Putting ϴ=80 in this solution .we get … .

Alternate optimal solution P1 P2 W1 W2 W3 P1 400 ----- ----- 40 200 P2 ----- 400 80 80 ----- W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ----- 400 Test for degeneracy = m+n-1 = 5+5-1 = 9 Therefore. it is non-degenerate. Optimal Solution =36400 . We do not need to apply MODI –method as this is an alternate solution of an optimal table.

Diagrammatic representation of optimal solution(IBFS) 120 W2 P1 120 W3 80 P2 80 W1 .

we get . Inter-plant and Inter-warehouse transportation cost are not ∞ but their actual allocations to those cells.Since it is given that transportation costs are exactly proportional to the distances .e.To minimize transportation costs as per given assumptions . Unit transportation cost=Distance b/w plants and warehouses given in figure(in miles) Objective. The total number of starting nodes (sources) as well as the total number of ending nodes (destinations) of this transshipment problem is 2+3=5. taking proportionality constant as unity . According to assumption (b) that the units may be Transhipped i. Converting figure into transportation table .

.DESTINATION P1 P2 W1 W2 W3 Supply P1 0 80 100 90 60 240 P2 80 0 120 140 110 160 W1 100 120 0 60 80 - W2 90 140 60 0 90 - W3 60 110 80 30 0 - - 80 120 200 SOURCE Demand Total Supply = 400 Total Demand = 400 Since Supply == Demand. it is a balanced problem.

DESTINATION P1 SOURCE P2 W1 W2 W3 Supply P1 0 80 100 90 60 240+400 =640 P2 80 0 120 140 110 160+400 =560 W1 100 120 0 60 80 400 W2 90 140 60 0 30 400 W3 60 110 80 30 0 400 400 80+400 =480 120+40 200+4 0=520 00=60 0 Demand 400 .

(30).( 30).(50).(10).(30).(30) 0 400 (30).(1 0).(3 0).(20).( 60).(20) 60 80 400 (60).(60).( 50).(10).(60) 0 30 400 (30).( (30).(10) 110 560 160 80 80 (80).(30) 400 P2 80 0 120 400 W1 100 200 40 120 140 80 0 80 400 W2 90 140 60 400 W3 60 110 80 30 400 Dema 400 nd 400 480 80 520 120 80 600 .(60) ies (80) (60). (30).(30).(20).(60) .(20).(30).(30).(30).(3 0).(60).P1 P1 0 P2 W1 W2 W3 Supply Penalties 80 100 90 60 640 240 40 (60). (30).(60).(60) .(30).(2 0).(20 ). (20).(140) (30).(10). 200 80 Penalt (60).(50) .(30). (30).(30).(30).

Initial basic feasible solution 400 ----- ----- 40 200 ----- 400 80 80 ------ ----- ----- 400 ----- ----- ----- ----- ----- 400 ----- ----- ----- ----- ----- 400 Test for degeneracy = m+n-1 = 5+5-1 = 9 Therefore. Solution= 0+3600 + 12000 + 0 + 9600 + 11200 + 0 + 0+0 =36400 . it is non-degenerate.

Test for Optimality Applying MODI method Cost of Occupied cells 1 2 3 4 5 Cost of unoccupied cells ui 1 2 3 4 5 ui 1 - 80 100 - - 60 2 80 - - - 110 110 1 0 - - 90 60 60 2 - 0 120 140 - 110 3 - - 0 - - -10 3 100 120 - 60 80 -10 4 - - - 0 - -30 4 90 140 60 - 30 -30 5 - - - - 0 0 5 60 110 80 30 - 0 Vj -60 -110 10 30 0 Vj -60 -110 10 30 0 .

Optimal Cost= 0+3600 + 12000 + 0 + 9600 + 11200 + 0 + 0+0 =36400 But since we have two 0’s in the table . two alternate solution exist. . IBFS is an optimal solution.Net Evaluation table cij’=cij-(ui+vj) - 130 30 - - - - - 170 240 - 40 90 180 280 80 - 60 120 220 70 0 - 0 30 Since all values of the table are non-negative .

we get … .Alternate Optimal solution Applying Stepping Stone Method P1 P2 W1 W2 W3 P1 400 ----- ----- 40+ϴ 200-ϴ P2 ----- 400 80 80-ϴ ϴ W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ----- 400 Putting ϴ=80 in this solution .

it is non-degenerate. Optimal Solution =36400 .Alternate optimal solution P1 P2 W1 W2 W3 P1 400 ----- ----- 120 120 P2 ----- 400 80 ---- 80 W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ----- 400 Test for degeneracy = m+n-1 = 5+5-1 = 9 Therefore. We do not need to apply MODI –method as this is an alternate solution of an optimal table.

we get … .Alternate Optimal solution Applying Stepping Stone Method P1 P2 W1 W2 W3 P1 400 ----- ----- 40-ϴ 200+ϴ P2 ----- 400 80 80 ---- W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ϴ 400-ϴ Putting ϴ=40 in this solution .

We do not need to apply MODI –method as this is an alternate solution of an optimal table.Alternate optimal solution P1 P2 W1 W2 W3 P1 400 ----- ----- 0 240 P2 ----- 400 80 ---- 80 W1 ----- ----- 400 ----- ----- W2 ----- ----- ----- 400 ----- W3 ----- ----- ----- ----- 360 Test for degeneracy = m+n-1 = 5+5-1 = 9 Therefore. it is non-degenerate. Optimal Solution =36400 .

200 W3 P1 40 W2 80 P2 80 W1 .

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