Transportation

• Raktim Saha
• Mehul Rane
• Swapnil More
• Santosh Chinchole
• Amit Naik

Group- A4
 The Transportation Model
Characteristics
• A product is transported from a number of sources to a number of
destinations at the minimum possible cost.
• Each source is able to supply a fixed number of units of the product, and
each destination has a fixed demand for the product.
• The linear programming model has constraints for supply at each source
and demand at each destination.
• All constraints are equalities in a balanced transportation model where
supply equals demand.
• Constraints contain inequalities in unbalanced models where supply does
not equal demand, then in such situation dummy row or column is added.
 Solution of the Transportation Model
Solution Methods

• Transportation models do not start at the origin where all decision values are
zero; they must instead be given an initial feasible solution.
• Initial feasible solution determination methods include:
- northwest corner method
- minimum cell cost method
- Vogel’s Approximation Method
 The Northwest Corner Method
Summary of Steps
1. Allocate as much as possible to the cell in the upper left-hand corner, subject to
the supply and demand conditions.
2. Allocate as much as possible to the next adjacent feasible cell.
3. Repeat step 2 until all rim requirements are met.

The Minimum Cell Cost Method

Summary of Steps

1. Allocate as much as possible to the feasible cell with the minimum

transportation cost, and adjust the rim requirements.
2. Repeat step 1 until all rim requirements have been met
 Vogel’s Approximation Method (VAM)
Summary of Steps

1. Determine the penalty cost for each row and column.

2. Select the row or column with the highest penalty cost.
3. Allocate as much as possible to the feasible cell with the lowest transportation
cost in the row or column with the highest penalty cost.
4. Repeat steps 1, 2, and 3 until all rim requirements have been met.

5
 Destination
D1 D2 D3 D4 D5 SS

O1 2 11 10 3 7 4

Origin O2 1 4 7 2 1 8

O3 3 9 4 8 12 9

DD 3 3 4 5 6 21
   D1 D2 D3 D4 D5 SS Penalty
 
cost
Penalty
 
cost
Penalty
 
cost

O1 2 11 10 4 3 7 4 1 1  1 

1 4 7 2 1 0  1
O2 2 6 2 8  -

O3 3 3 1 9 4 4 1 8 12 5 9 1  1 1 

DD 3 1 3 4 1 5 6 21
       

Penalty
cost
  1 5 3 1 6        

Penalty
cost  1  5  3  1           

Penalty
  2  6  5 
cost
1           

  1  2     5          

Vogel’s Approximation Method (VAM)

The initial basic feasible solution thus obtained is:
x14=4,
x22=2, x25=6,
x31=3, x32=1, x33=4, x34=1
and the total cost is
=4*13+2*4+6*1+3*3+1*9+4*4+1*8
=12+8+6+9+9+16+8
=Rs.68
The initial basic feasible solution to a transportation problem
should have a total number of occupied cell (stone squares)
which is equal to the total number of rim requirements
minus one i.e. m + n — 1. When this rule is not met the
solution is degenerate. i.e .,5+3-1=7 allocations in
independent positions so it is a non-degenerate solution
D1 D2 D3 D4 D5 SS

O1 2 11 10 4 3 7 4

2 6 1
O2 1 4 7 2 8

3 1 4 1
O3 3 9 4 8 12 9

DD 3 3 4 5 6 21
Test for optimality by using MODI method:
 We have to find ui & vj for rows and column.
 In order to obtain a solution to determine the row and
column numbers,one of the variables must be choosen and
given an arbitrary value of 0.
 We select u3 and assign a 0 value to it.
 For occupied cells : ui+vj=cij
eg: u3+v1=c31
0+v1=3
therefore.,v1=3
 For unoccupied cells: ^ij=cij-(ui+vj)
eg: ^ij=c11-(u1+v1)
= 2 – (-5+3)
=4
 D1 D2 D3 D4 D5 Ui

4 7 11 4 6
O1 2 11 10 3 7 U1 = -5

2 6
O2 3 1 4 8 7 -1 2 1 U2 = -5

3 1 4 1 6
O3 3 9 4 8 12 U3= 0

Vj V1= 3 V2= 9 V3= 4 V4= 8 V5= 6

•If any cell evaluations is negative then solution under test is not optimal.
As value of C24 is negative, the solution is not
optimal

Therefore select the cell(C24) and allocate thita in

that cell

Form loop with occupied cells starting from thita

 D1 D2 D3 D4 D5 Ui

4 7 11 4 6
O1 2 11 10 3 7 U1 = -5

2 6
O2 3 1 4 8 7 -1 2 1 U2 = -5
- Φ
3 1 4 1 6
O3 3 9 4 8 12 U3= 0
+ -

Vj V1= 3 V2= 9 V3= 4 V4= 8 V5= 6

 D1 D2 D3 D4 D5 SS

3 2 11 10 4 5 7
O1 2 10 3 4 U1 = - 4

1 1 6
O2 3 1 4 8 7 2 1 8 U2 = -5
3 2 4
O3 3 9 4 1 8 6 12 9 U3 = 0

DD 3 3 4 5 6 21

V1= 3 V2= 9 V3= 4 V4= 7 V5= 6

m+n-1 5+3-1=7

All cell evaluations are non-negative then solution under test is optimal and
unique.
Therefore, the revised total cost
obtained as per the optimal
solution is:
=4*3+1*4+1*2+6*1+3*3+2*9+4*4
=12+4+2+6+9+18+16
=Rs.67