Transportation Method of Linear

Programming: Testing the

Optimality of the Initial Feasible
Solution

2-1
2-2
 Transportation Method of Linear
programming
 The Transportation Method of linear programming is
applied to the problems related to the study of the efficient
transportation routes i.e. how efficiently the product from
different sources of production is transported to the different
destinations, such as the total transportation cost is minimum.
 Here origin means the place where the product is originated or
manufactured for the ultimate sales while the places where the
product is required to be sold is called destination.

2-3
Steps in Transportation Method of Linear
programming
1. Obtaining the initial feasible solution, which means
identifying the solution that satisfies the requirements of
demand and supply.
There are several methods through which the initial feasible
solution can be obtained; these are:
 North-West Corner
 Least Cost Method
 Vogel’s Approximation Method
Note: It is to be ensured that the number of cells occupied should
be equal to m+n-1, where “m” is the number of rows while
“n” is the number of columns.

2-4
Steps in Transportation Method of Linear
programming
2. Testing the optimality of the initial feasible solution. Once
the feasible solution is obtained, the next step is to check
whether it is optimum or not.

There are two methods used for testing the optimality:

 Stepping-stone Method
 Modified Distribution Method (MODI)

2-5
Steps in Transportation Method of Linear
programming
3. The final step is to revise the solution until the optimum
solution is obtained.

The two most common objectives of transportation problem

could be: i) maximize the profit of transporting “n” units of
product to the destination “y”, ii) Minimize the cost of
shipping “n” units of product to the destination “y”.

2-6
 Stepping Stone Method
The Stepping Stone Method is used to check the optimality
of the initial feasible solution determined by using any of
the method Viz. North-West Corner, Least Cost Method
or Vogel’s Approximation Method.

Thus, the stepping stone method is a procedure for finding

the potential of any non-basic variables (empty cells) in
terms of the objective function.

2-7
 Stepping Stone Method
Through Stepping stone method, we determine that what
effect on the transportation cost would be in case one unit
is assigned to the empty cell.

With the help of this method, we come to know whether the

solution is optimal or not.

2-8
 Procedures in Stepping Stone
Method
1. The prerequisite
condition to solve for
the optimality is to
ensure that the number
of occupied cells is
exactly equal to m+n-1,
where ‘m’ is the number
of rows, while ‘n’ is
equal to the number of
columns.

2-9
 Procedures in Stepping Stone
Method
2. Firstly, the empty cell is selected and then the closed path is
created which starts from the unoccupied cell and returns to the
same unoccupied cell, called as a “closed loop”. For creating a
closed loop the following conditions should be kept in mind:
 In a closed loop, cells are selected in a sequence such that one cell
is unused/unoccupied, and all other cells are used/occupied.
 A pair of Consecutive used cells lies either in the same row or the
same column.
 No three consecutive occupied cells can either be in the same row
or column.
 The first and last cells in the closed loop lies either in the same
row or column.
 Only horizontal and vertical movement is allowed.

2-10
Procedures in Stepping Stone
Method
Empty Cells: AF, BD, BF CD

2-11
 Procedures in Stepping Stone
Method
3. Once the loop is
created, assign “+” or
“–“ sign alternatively on
each corner cell of the
loop, but begin with the
“+” sign for the
unoccupied cell.

2-12
 Procedures in Stepping Stone
Method
4. Repeat these steps again until all the
unoccupied cells get evaluated.

5. Now, if all the computed changes are

positive or are equal to or greater than
zero, then the optimal solution has been
reached.

2-13
 Procedures in Stepping Stone
Method
6. But in case, if any, value comes to be negative,
then there is a scope to reduce the transportation
cost further.
Then, select that unoccupied cell which has the most
negative change and assign as many units as
possible.
Subtract the unit that added to the unoccupied cell
from the other cells with a negative sign in a loop,
to balance the demand and supply requirements.

2-14
Procedures in Stepping Stone
Method

2-15
 Procedures in Stepping Stone
Method
7. With the new matrix so formed, again the empty
cells will be evaluated through a loop formation
and signs will be assigned accordingly.
The cell with the highest opportunity cost will be
assigned the units, and this process will repeat
until the best optimum solution is obtained or the
opportunity cost of all the unoccupied cells comes
to be negative.

2-16
Procedures in Stepping Stone
Method

2-17
 Modified Distribution Method
 The Modified Distribution
Method or MODI is an efficient method
of checking the optimality of the initial
feasible solution.

2-18
 Steps in Modified Distribution
Method
1. Initial basic feasible solution is given
below:

2-19
 Steps in Modified Distribution
Method
2. Now, calculate the values of ui and vj by using
the equation:
ui+vj = Cij

Substituting the value of u1 as 0

U1+V1 = C11, 0+V1 = 6 or V1 = 6
U1 +V2 = C12, 0+V2 = 4 or V2 = 4
U2+V2 = C22, U2+4 = 8 or U2 = 4
U3+ V2 = C32, U3+4 = 4 or U3 = 0
U3+V3 = C33, 0+V3 = 2 or V3 =2
2-20
Steps in Modified Distribution
Method

2-21
 Steps in Modified Distribution
Method
3. Next step is to calculate the opportunity
cost of the unoccupied cells (AF, BD, BF,
CD) by using the following formula:
Cij – (ui+Vi)

AF = C13 – (U1+V3),  1- (0+2) = -1 or 1

BD = C21 – (U2+v1),   3- (4+6) = -7 or 7
BF = C23 – (U2+V3),   7- (4+2) = 1 or -1
CD = C31- (U3+V1),    4- (0+6) = -2 or 2
2-22
 Steps in Modified Distribution
Method
4. Choose the largest positive opportunity
cost, which is 7 and draw a closed path,
as shown in the matrix below. Start from
the unoccupied cell and assign “+” or
“–“sign alternatively. Therefore, The
most favored cell is BD, assign as many
units as possible.

2-23
Steps in Modified Distribution
Method

2-24
 Steps in Modified Distribution
Method
5. The matrix below shows
the maximum allocation
to the cell BD, and that
number of units are
added to the cell with a
positive sign and
subtracted from the cell
with a negative sign.

2-25
 Steps in Modified Distribution
Method
6. Again, repeat the steps from 1 to 4 i.e.
find out the opportunity costs for each
unoccupied cell and assign the maximum
possible units to the cell having the
largest opportunity cost.
This process will go on until the optimum
solution is reached.

2-26
 Modified Distribution Method
The Modified distribution method is an
improvement over the stepping stone
method since; it can be applied more
efficiently when a large number of
sources and destinations are involved,
which becomes quite difficult or tedious
in case of stepping stone method.

2-27
 Modified Distribution Method
Modified distribution method reduces the
number of steps involved in the
evaluation of empty cells, thereby
minimizes the complexity and gives a
straightforward computational scheme
through which the opportunity cost of
each empty cell can be determined.

2-28