TRANSPORTATION MODEL

LEARNING OBJECTIVES:
• learn other ways/steps to solve linear programming problems
• define the elements and objectives of transportation problems
• set up the transportation problem in the form of table
• solve the transportation model and interpret the solution
• find the value of an unoccupied cell in the transportation table
by using the MODI method
TYPES OF TRANSPORTATION TABLE:
• BALANCE TRANSPORTATION TABLE: S = D
• UNBALANCE TRANSPORTATION TABLE:
S < D– add dummy row
D < S– add dummy column
• NON-DEGENERATE TABLE- # of occupied cells = to the # of
rows + # of columns minus 1 [(R+C)-1]
• DEGENERATE TABLE- # of occupied cells < to the # of rows + #
of columns minus 1 [(R+C)-1]
TRANSPORTATION METHOD:
• is a simplified special case of the simplex method
• its name was derived from its application to problems involving
transporting a standard product from several sources to several
destinations at maximum cost
• it was offered by Mr. F. Hitchcock and afterwards expanded by
Mr. T. Koopmans
 THE MODIFIED DISTRIBUTION(MODI)
• This method is more productive and serviceable than
steppingstone.
• This method precludes the necessity for finding a different
closed lop to evaluate empty cell.
• It allows us to compute improvement indices quickly for each
unused square without drawing all the closed paths.
• It can give substantial time saving method of transportation.
 STEPS: THE MODIFIED DISTRIBUTION(MODI)
1. a. Vi + Wj = Cij where:
Vi= dual variables associated with the ith source constraint
Wj= dual variables associated with the jth source constraint
Cij= the cost of shipping one unit from the ith source to the jth
destination
b. The value of an unoccupied cell: UC=Cij –Vi-Wj
 STEPS: THE MODIFIED DISTRIBUTION(MODI)
2. Write the complete set of equations in the style formula 1(a)
for all occupied cells in the transportation table.
3. Write the complete set of equations in the style formula 1(b)
for all occupied cells in the transportation table.
4. Set the first Vi in Step 2 to zero. It will then be possible to
obtain values for all of the dual variables.
5. Use the numerical values your obtained in Step 4 to solve the
equation in Step 3.
 EXAMPLE:
The ABAN Construction Supply won a bidding to supply cements
to three horizontal (road) projects. Projects 1, 2 and 3 requires
100 bags, 170 bags and 180 bags respectively. It has three
warehouses; A B C. The available bags per warehouse are as
follows: 120 bags for A, 180 bags for B, and 150 bags for C. It
will cost P 50/bag to transport from warehouse A to Project 1, P
20/bag to Project 2, P 40/bag to Project 3; warehouse B costs P
30, P 50 and P40 respectively for Projects 1, 2 and 3. P 40, P
30, P 20 for warehouse C.
ASSIGNMENT:
Aling Miling, a fruit trader, sells fruits to shoppers in Manila, Quezon City and
Caloocan City. The monthly demand is 5000 kilos in Metro Manila, 3000 kilos
in QC and 2000 kilos in Caloocan City. The fruits are shipped from Laguna,
Batangas and Mindoro. The monthly supply offered in Laguna is 4000 kilos,
in Batangas 3500 and 2500 in Mindoro.
Source to Manila, Caloocan city and Quezon City
Laguna to the above destinations-P5, P55 and P60 respectively
Batangas to above destinations-P65,P66 and P60 respectively
Mindoro to above destinations-P74,P75 and 80 respectively.
What is the minimized cost?
Solve the transportation problem using MODI METHOD.