UNIT 5

TRANSPORTATION PROBLEM
 Introduction
Transportation problem is a special kind of LP
problem in which goods are transported from a
set of sources to a set of destinations subject to
the supply and demand of the source and the
destination respectively, such that the total cost
of transportation is minimized.
 Examples
Sources
factories, finished goods warehouses ,
raw materials ware houses, suppliers etc.
Destinations
Markets, Finished goods ware house, raw
materials ware houses, factories.
Simple Network Representation
 Characteristics of Transportation
Model
• 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 in equalities in unbalanced models where
supply does not equal demand.
 TERMINOLOGY USED IN TRANSPORTATIONAL MODEL
• Feasible solution: Non negative values of xij where i=1, 2……….m and
j=1, 2,…n which satisfy the constraints of supply and demand is called
feasible solution.
• Basic feasible solution: If the no of positive allocations are (m+n-1).
• Optimal solution: A feasible solution is said to be optimal solution if it
minimizes the total transportation cost.
• Balanced transportation problem: A transportation problem in which the
total supply from all sources is equal to the total demand in all the
destinations.
• Unbalanced transportation problem: Problems which are not balanced
are called unbalanced.
• Matrix terminology: In the matrix, the squares are called cells and form
columns vertically and rows horizontally.
• Degenerate basic feasible solution: If the no. of allocation in basic
feasible solutions is less than (m+n-1).
 UNBALANCED TRANSPORTATION PROBLEM

• Demand > Supply

Add dummy column in matrix with zero cost
• Supply > Demand
Add dummy row in matrix with zero cost
Optimal Solution of Transportation Problem
 Methods for initial feasible solution

1. North west corner method

2. Least cost method
3. Vogel’s approximation method
 STEPS TO SOLVE THE PROBLEM
Step1: construct an empty m*n matrix, completed with rows & columns.
Step2: indicate the rows and column totals at the end.
Step3: starting with (1,1)cell at the north west corner of the matrix, allocate
maximum possible quantity keeping in view that allocation can neither be
more than the quantity required by the respective warehouses nor more
than quantity available at the each supply centre.
Step4: adjust the supply and demand nos. in the rows and columns
allocations.
Step5: if the supply for the first row is exhausted then move down to the first
cell in the second row and first column and go to the step 4.
Step6: if the demand for the first column is satisfied, then move to the next
cell in the second column and first row and go to step 4.
Step7: if for any cell, supply equals demand then the next allocation can be
made in cell either in the next row or column.
Step8: continue the procedure until the total available quantity is fully
allocated to the cells as required.
Example
Solution
Solution
 LEAST COST ENTRY METHOD

• This method takes into consideration the

lowest cost and therefore takes less time to
solve the problem.
 STEPS TO SOLVE THE PROBLEM

Step1: select the cell with the lowest transportation cost among all
the rows and columns of the transportation table. If the
minimum cost is not unique then select arbitrarily any cell with
the lowest cost.
Step2: allocate as many units as possible to the cell determined in
step 1 and eliminate that row in which either capacity or
requirement is exhausted.
Step3:adjust the capacity and the requirement for the next
allocations.
Step4: repeat the steps1to3 for the reduced table until the entire
capacities are exhausted to fill the requirements at the different
destinations.
Example 2
Solution
Solution
Example 3
Solution
Solution
 MAXIMIZATION PROBLEM

In this profit is given which is to be

maximized. To solve this problem we convert
the problem into minimization. Conversion is
done by selecting the largest element from
Profit Pay off matrix and then subtracting all
elements from largest element including itself.
Reduced matrix obtain becomes minimization
case and then same steps are taken to solve it
as is done in minimization problem
 VOGEL’S APPROXIMATION METHOD

• Basis of allocation is unit cost penalty

• The subsequent allocations in cells are done
keeping in view the highest unit cost.
• IBFS obtained by this method is either optimal
or very near to optimal solution.
• So amount of time required to calculate the
optimum solution is reduced.
 STEPS TO SOLVE THE PROBLEM
Step1: for each row of the table identify the lowest and the next lowest cost
cell. Find their least cost than the difference shall be zero.
Step 2: similarly find the difference of each column and place it below each
column. These differences found in the steps 1 and 2 are also called
penalties.
Step 3: looking at all the penalties. Identify the highest of them and the row or
column relative to that penalty. Allocate the maximum possible units to the
least cost cell in the selected row or column. Ties should be broken in this
order Maximum difference least cost cell. Maximum difference tie least
cost cell Maximum unit’s allocations tie arbitrary
Step 4: adjust the supply and demand and cross the satisfied row or column.
Step 5:Recompute the column and row differences ignoring deleted
rows/columns and go to the step3. Repeat the procedure until the entire
column and row totals are satisfied.
Example 4
Solution
Solution
 Methods for Checking for optimality

1. U-V method
2. Stepping-Stone method
 Optimum Basic Solution: Stepping-Stone
Method
1. Select any unused square to evaluate
2. Beginning at this square, trace a closed path back to the original
square via squares that are currently being used
3. Beginning with a plus (+) sign at the unused corner, place
alternate minus and plus signs at each corner of the path just
traced
4. Calculate an improvement index by first adding the unit-cost
figures found in each square containing a plus sign and
subtracting the unit costs in each square containing a minus sign
5. Repeat steps 1 though 4 until you have calculated an
improvement index for all unused squares. If all indices are ≥ 0,
you have reached an optimal solution.
Optimal solution by stepping stone method
Example 5
Solution 5
 Example 6

4525 with multiple solution