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# Transportation, Assignment and Transshipment Problems

Mohon disarikan & di-email dalam bentuk epaper dg syarat: pilih satu topik:
1. Masalah Transportatsi dg iterasi solusi North-west Corner, di halaman 20 2. Masalah Transportatsi dg iterasi solusi Minimum cost, di halaman 25 3. Masalah Transportatsi dg iterasi solusi dg solusi Vogel, di halaman 34 4. Masalah assignememt di halaman 51 5. Masalah transhipment di halaman 55
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Applications of Network Optimization
Applications Physical analog of nodes Physical analog of arcs Flow phone exchanges, Cables, fiber optic Voice messages, Communication computers, links, microwave Data, systems transmission relay links Video transmissions facilities, satellites

Hydraulic systems

Pumping stations Reservoirs, Lakes Integrated Gates, registers, computer circuits processors Joints
Intersections, Airports, Rail yards
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Pipelines
Wires Rods, Beams, Springs Highways, Airline routes Railbeds

Water, Gas, Oil, Hydraulic fluids
Electrical current

Mechanical systems
Transportation systems
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Heat, Energy
Passengers, freight, vehicles, operators

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.

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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.
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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.

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. Shipping costs. and Demand for Powerco Example From City 1 City 2 To City 3 City 4 Supply (Million kwh) Plant 1 Plant 2 \$8 \$9 \$6 \$12 \$10 \$13 \$9 \$7 35 50 Plant 3 Demand (Million kwh) 6 \$14 45 \$9 20 \$16 30 \$5 30 40 Transportation Tableau .Table 1. Supply.

Solution 1. . Decision Variable: Since we have to determine how much electricity is sent from each plant to each city. Xij = Amount of electricity produced at plant i and sent to city j X14 = Amount of electricity produced at plant 1 and sent to city 4 7 .

Objective function Since we want to minimize the total cost of shipping from plants to cities. Minimize Z = 8X11+6X12+10X13+9X14 +9X21+12X22+13X23+7X24 +14X31+9X32+16X33+5X34 8 .2. .

. Supply Constraints Since each supply point has a limited production capacity.3. X11+X12+X13+X14 <= 35 X21+X22+X23+X24 <= 50 X31+X32+X33+X34 <= 40 9 .

Demand Constraints Since each supply point has a limited production capacity.4. X11+X21+X31 >= 45 X12+X22+X32 >= 20 X13+X23+X33 >= 30 X14+X24+X34 >= 30 10 . .

3.2.3. Sign Constraints Since a negative amount of electricity can not be shipped all Xij’s must be non negative.5.2. j= 1. Xij >= 0 (i= 1. .4) 11 .

LP Formulation of Powerco’s Problem Min Z = 8X11+6X12+10X13+9X14+9X21+12X22+13X23+7X24 +14X31+9X32+16X33+5X34 S.3.4) .: X11+X12+X13+X14 <= 35 (Supply Constraints) X21+X22+X23+X24 <= 50 X31+X32+X33+X34 <= 40 X11+X21+X31 >= 45 (Demand Constraints) X12+X22+X32 >= 20 X13+X23+X33 >= 30 X14+X24+X34 >= 30 Xij >= 0 (i= 1.3. j= 1.2. 12 .T.2.

2. A set of n demand points to which the good is shipped. 13 . Demand point j must receive at least di units of the shipped good. Each unit produced at supply point i and shipped to demand point j incurs a variable cost of cij. 3.General Description of a Transportation Problem 1. Supply point i can supply at most si units. . A set of m supply points from which a good is shipped.

2.n) 14 ..Xij = number of units shipped from supply point i to demand point j min  cijXij i 1 j 1 i m j n s..m.t. j  1..2.2.....n) Xij  0(i  1...2... .m) j 1 j n X i 1 i m ij  dj ( j  1...... Xij  si (i  1.

i m j n j . the problem is said to be a balanced transportation problem: s  d i i 1 j 1 15 .Balanced Transportation Problem If Total supply equals to total demand.

we can balance the problem by adding dummy demand point.Balancing a TP if total supply exceeds total demand If total supply exceeds total demand. . Since shipments to the dummy demand point are not real. they are assigned a cost of zero. 16 .

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 17 .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.

if a set of decision variables (xij’s) satisfy all but one constraint. . The reason for that is.Finding Basic Feasible Solution for Transportation Problem Unlike other Linear Programming problems. 18 . the values for xij’s will satisfy that remaining constraint automatically. a balanced TP with m supply points and n demand points is easier to solve. although it has m + n equality constraints.

. Vogel’s Method 19 . Northwest Corner Method 2.Methods to find the bfs for a balanced TP There are three basic methods: 1. Minimum Cost Method 3.

will be the demand of demand point 1 and the supply of supply point 1. Your x11 value can not be greater than minimum of this 2 values). .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 x11 as large as possible (here the limitations for setting x11 to a larger number. 20 .

5 6 2 3 3 5 2 3 2 6 2 X 5 .According to the explanations in the previous slide we can set x11=3 (meaning demand of demand point 1 is satisfied by supply point 1). 2 3 21 .

X 2 3 . 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 3 2 3 2 3 X 3 2 22 X .After we check the east and south cells.

we saw that we can go south this time (meaning demand point 2 needs more supply by supply point 2). 3 2 3 2 X 1 2 X 3 X 2 3 2 1 X 3 X X 2 23 X .After applying the same procedure. X X 2 .

x34=2 3 2 3 2 1 2 X X X X X X X 24 . . x24=1. which is: x11=3. we will have the following bfs. x22=3.Finally. x12=2. x23=2.

first we find the decision variable with the smallest shipping cost (Xij). It can yield an initial bfs easily but the total shipping cost may be very high.2. which is the minimum of si and dj 25 . . 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. Then assign Xij its largest possible value. Minimum Cost Method The Northwest Corner Method dos not utilize shipping costs.

26 . 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.After that. .

An example for Minimum Cost Method Step 1: Select the cell with minimum cost. 2 3 5 6 5 2 1 3 5 10 3 8 4 6 15 12 27 8 4 6 . .

.Step 2: Cross-out column 2 2 3 5 6 5 2 8 3 8 4 6 15 1 3 5 2 12 28 X 4 6 .

.Step 3: Find the new cell with minimum shipping cost and cross-out row 2 2 3 5 6 5 2 2 3 8 8 4 6 15 1 3 5 X 10 29 X 4 6 .

Step 4: Find the new cell with minimum shipping cost and cross-out row 1 2 5 2 2 3 8 8 4 6 15 1 3 5 X 3 5 6 X 5 30 X 4 6 . .

Step 5: Find the new cell with minimum shipping cost and cross-out column 1 2 5 2 2 3 5 X 31 . 3 5 6 X 1 8 8 3 5 X 4 6 10 X 4 6 .

Step 6: Find the new cell with minimum shipping cost and cross-out column 3 2 5 2 2 3 5 X 32 . 3 5 6 X 1 8 8 4 X X 3 5 X 4 6 6 6 .

X31=5. 3 5 6 X 1 8 8 4 X X 3 5 X 4 6 X 6 X . X21=2. X33=4 and X34=6 2 5 2 2 3 5 X 33 . X22=8.Step 7: Finally assign 6 to last cell. The bfs is found as: X11=5.

Compute new penalties and use the same procedure. and cross-out the row or column as in the previous methods. . 34 . Vogel’s Method Begin with computing each row and column a penalty. Then assign the highest possible value to that variable.3. 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. The penalty will be equal to the difference between the two smallest shipping costs in the row or column.

An example for Vogel’s Method Step 1: Compute the penalties. Supply 6 7 8 10 15 80 78 7-6=1 Row Penalty 15 78-15=63 Demand Column Penalty 15 15-6=9 5 80-7=73 5 78-8=70 35 . .

Step 2: Identify the largest penalty and assign the highest possible value to the variable. Supply 6 5 15 80 78 15 78-15=63 7 8 5 8-6=2 Row Penalty Demand Column Penalty 15 15-6=9 X _ 5 78-8=70 36 . .

Supply 6 5 15 80 7 5 78 15 _ 8 0 _ Row Penalty Demand Column Penalty 15 15-6=9 X _ X _ 37 . .Step 3: Identify the largest penalty and assign the highest possible value to the variable.

Step 4: Identify the largest penalty and assign the highest possible value to the variable. Supply 6 0 15 5 80 7 5 78 15 _ 8 X _ Row Penalty Demand Column Penalty 15 _ X _ X _ 38 . .

and X21=15 Supply 6 0 15 15 Demand Column Penalty X _ X _ X _ 5 80 7 5 78 X _ 8 X _ Row Penalty 39 .Step 5: Finally the bfs is found as X11=0. . X12=5. X13=5.

The Transportation Proble as a Simplex Method In this section we will explain how the simplex algorithm is used to solve a transportation problem. . 40 .

Step 2. for example northwest corner method) the variable that should enter the basis. label them as even cells or odd cells. Step 3. . the following steps should be performed. Counting the cells in the loop. 41 . Determine (by a criterion to be developed shortly. Step 1.How to Pivot a Transportation Problem Based on the transportation tableau. Find the loop (it can be shown that there is only one loop) involving the entering variable and some of the basic variables.

again a degenerate bfs will result . Call this value θ. you may arbitrarily choose one of these odd cells to leave the basis. The variable corresponding to this odd cell will leave the basis. the entering variable will equal 0. . If more than one odd cell in the loop equals θ. If θ=0. To perform the pivot. Find the odd cells whose variable assumes the smallest value. and an odd variable that has a current value of 0 will leave the basis. The variables that are not in the loop remain unchanged. The pivot is now complete.42 Step 4. decrease the value of each odd cell by θ and increase the value of each even cell by θ. In this case a degenerate bfs existed before and will result after the pivot.

43 . The time required to setup each machine for completing each job is shown in the table below.Assignment Problems Example: Machineco has four jobs to be completed. Machinco wants to minimize the total setup time needed to complete the four jobs. Each machine must be assigned to complete one job. .

.Setup times (Also called the cost matrix) Time (Hours) Job1 Machine 1 Machine 2 Machine 3 14 2 7 Job2 5 12 8 Job3 8 6 3 Job4 7 5 9 Machine 4 2 4 6 10 44 .

. X 11  X 12  X 13  X 14  1 X 21  X 22  X 23  X 24  1 X 31  X 32  X 33  X 34  1 X 41  X 42  X 43  X 44  1 X 11  X 21  X 31  X 41  1 X 12  X 22  X 32  X 42  1 X 13  X 23  X 33  X 43  1 X 14  X 24  X 34  X 44  1 45 Xij  0orXij  1 .2.The Model According to the setup table Machinco’s problem can be formulated as follows (for i.t.4): min Z  14 X 11  5 X 12  8 X 13  7 X 14  2 X 21  12 X 22  6 X 23  5 X 24  7 X 31  8 X 32  3 X 33  9 X 34  2 X 41  X 42  6 X 43  10 X 44 s.3.j=1.

For the model on the previous page note that: Xij=1 if machine i is assigned to meet the demands of job j Xij=0 if machine i is not 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. . 46 .

j  1.  xij  1. ij 47 .n Each supply is 1 x j 1 n i 1 ij  1.n . i  1.The Assignment Problem In general the LP formulation is given as Minimize  c i 1 j 1 n n n ij xij . Each demand is 1 . xij  0 or 1.

Orlin solved a problem with 2 million nodes and 40 million arcs in ½ hour. . Research on the assignment problem predates research on LPs. – 10 years ago. • Very efficient special purpose solution techniques exist. 48 . Comments on the Assignment Problem • This is a classical problem.• The Air Force has used this for assigning thousands of people to jobs. Yusin Lee and J.

there is a certain class of transportation problems. for which the transportation simplex is often very inefficient. Construct a new matrix by subtracting from each cost the minimum cost in its row. called assignment problems.49 Although the transportation simplex appears to be very efficient. Construct a new matrix (reduced cost matrix) by subtracting from each cost the minimum cost in its column. Find a bfs. . For this new matrix. The steps of The Hungarian Method are as listed below: Step1. Find the minimum element in each row of the mxm cost matrix. find the minimum cost in each column. For that reason there is an other method called The Hungarian Method. .

Draw the minimum number of lines (horizontal and/or vertical) that are needed to cover all zeros in the reduced cost matrix. 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.Step2. . 50 . Find the smallest nonzero element (call its value k) in the reduced cost matrix that is uncovered by the lines drawn in step 2. an optimal solution is available among the covered zeros in the matrix. Step3. If fewer than m lines are required. If m lines are required . proceed to step 3.

the optimal solution to a transshipment problem can be found by solving a transportation problem. . 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. shipments are allowed between supply points or between demand points. 51 . In many situations.Transshipment Problems A transportation problem allows only shipments that go directly from supply points to demand points.

. shipments may be allowed between supply points and/or between demand points • LP Formulation – Supply point: it can send goods to another point but cannot receive goods from any other point – Demand point It can receive goods from other points but cannot send goods to any other point – Transshipment point: It can both receive goods from other points send goods to other points 52 .Transshipment Problem • An extension of a transportation problem – More general than the transportation problem in that in this problem there are intermediate “transshipment points”. In addition.

. Step1. 53 . Step2. If necessary. Construct a transportation tableau as follows: A row in the tableau will be needed for each supply point and transshipment point. add a dummy demand point (with a supply of 0 and a demand equal to the problem’s excess supply) to balance the problem. and a column will be needed for each demand point and transshipment point.The following steps describe how the optimal solution to a transshipment problem can be found by solving a transportation problem. Shipments to the dummy and from a point to itself will be zero. Let s= total available supply.

Each supply point will have a supply equal to it’s original supply. Although we don’t know how much will be shipped through each transshipment point. Let s= total available supply. we can be sure that the total amount will not exceed 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. and each demand point will have a demand to its original demand. 54 . 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. .

and the Denver factory can produce as many as 200 widgets per day. Widgets are shipped by air to customers in LA and Boston. 55 . Because of the deregulation of airfares.Transshipment Example • Example 5: Widgetco manufactures widgets at two factories. The customers in each city require 130 widgets per day. Widgetco believes that it may be cheaper first fly some widgets to NY or Chicago and then fly them to their final destinations. Widgetco wants to minimize the total cost of shipping the required widgets to customers. . one in Memphis and one in Denver. The Memphis factory can produce as 150 widgets. The cost of flying a widget are shown next.

NY Chicago LA Boston Dummy Supply Memphis \$8 \$13 \$25 \$28 \$0 150 Denver \$15 \$12 \$26 \$25 \$0 200 NY \$0 \$6 \$16 \$17 \$0 350 Chicago \$6 \$0 \$14 \$16 \$0 350 Demand 350 350 130 130 90 Supply points: Memphis. Chicago The problem can be solved using the transportation simplex method .Transportation Tableau Associated with the Transshipment Example • • • • • • • • • • 56 . Denver Demand Points: LA Boston Transshipment Points: NY.

.Limitations of Transportation Problem • One commodity ONLY: any one product supplied and demanded at multiple locations – Merchandise – Electricity. water • Invalid for multiple commodities: (UNLESS transporting any one of the multiple commodities is completely independent of transporting any other commodity and hence can be treated by itself alone) – Example: transporting product 1 and product 2 from the supply points to the demand points where the total amount (of the two products) transported on a link is subject to a capacity constraint – Example: where economy of scale can be achieved by transporting the two products on the same link at a larger total volume and at a lower unit cost of transportation 57 .

the cost of truck rental (or cost of trucking in general) consists of a fixed charge that is independent of the mileage and a mileage charge that is proportional to the total mileage driven. there is a trick to convert a “non-linear program with a piecewise linear but convex objective function to a linear program.” including linear and non-linear programming • Economy of scale the per-unit cost of transportation on a link decreasing with the volume (nonlinear and concave. . For example. Such fixed charges render the objective function NON-LINEAR and CONCAVE and make the problem much more difficult to solve 58 . no such tricks exists for a piecewise linear but concave objective function) • Fixed-cost: transportation usually involves fixed charges.Limitations of Transportation Problem – Difficult to generalize the technique to accommodate (these are generic difficulty for “mathematical programming.