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The Transportation Model Solution of a Transportation Problem The Assignment Model Solution of the Assignment Model

Transportation and Assignment Problems Overview

- Part of a larger class of linear programming problems known as network flow models. - Possess special mathematical features that enabled development of very efficient, unique solution methods. - Methods are variations of traditional simplex procedure.

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.

**Transportation Model Example Problem Definition and Data
**

- Problem:How many tons of wheat to transport from each grain elevator to basis in order to minimize the total cost of transportation ? - Data: Grain Elevator 1. Kansas City 2. Omaha 3. Des Moines Total Supply 150 175 275 600 tons Mill Demand 200 100 each mill on a monthly

A. Chicago B. St.Louis

C. Cincinnati 300 Total 600 tons

Grain Elevator 1. Kansas City 2. Omaha 3. Des Moines

Transport cost from Grain Elevator to Mill ($/ton) A. Chicago B. St. Louis C. Cincinnati $6 8 10 7 11 11 4 5 12

**Transportation Model Example Model Formulation
**

minimize Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C subject to x1A + x1B + x1C = 150 x2A + x2B + x2C = 175 x3A + x3B+ x3C = 275 x1A + x2A + x3A = 200 x1B + x2B + x3B = 100 x1C + x2C + x3C = 300 xij u 0 where xij = tons of wheat from each grain elevator, i, i = 1, 2, 3, to each mill j, j = A,B,C

Network of transportation routes for wheat shipments

Each cell in a transportation tableau is analogous to a decision variable that indicates the amount allocated from a source to a destination. The supply and demand values along the outside rim of a tableau are called rim values. The Transportation Tableau .Solution of the Transportation Model Tableau Format Transportation problems are solved manually within a tableau format.

stepping-stone method and .northwest corner method . Initial feasible solution determination methods include: . they must instead be given an initial feasible solution.Vogel¶s Approximation Method Methods for solving the transportation problem itself include: . .Solution of the Transportation Model Solution Methods Transportation models do not start at the origin where all decision values are zero.modified distribution method.minimum cell cost method .

The initial solution is complete when all rim requirements are satisfied. . The Initial NW Corner Solution .925 .In the northwest corner method the largest possible allocation is made to the cell in the upper left-hand corner of the tableau .The Northwest Corner Method .Transportation cost is computed by evaluating the objective function: Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C = 6(150) + 8(0) + 10(0) + 7(50) + 11(100) + 11(25) + 4(0) + 5(0) + !2(275) = $5. followed by allocations to adjacent feasible cells.

Allocate as much as possible to the cell in the upper left-hand corner.The Northwest Corner Method Summary of Steps 1. 2. subject to the supply and demand conditions. Allocate as much as possible to the next adjacent feasible cell. Repeat step 2 until all rim requirements are met. 3. .

The Minimum Cell Cost Method (1 of 3) .In the minimum cell cost method as much as possible is allocated to the cell with the minimum cost followed by allocation to the feasible cell with minimum cost. The Initial Minimum Cell Cost Allocation The Second Minimum Cell Cost Allocation .

The Minimum Cell Cost Method (2 of 3) .The complete initial minimum cell cost solution. total cost = $4.550. .The minimum cell cost method will provide a solution with a lower cost than the northwest corner solution because it considers cost in the allocation process. The Initial Solution .

Allocate as much as possible to the feasible cell with the minimum transportation cost.The Minimum Cell Cost Method Summary of Steps (3 of 3) 1. and adjust the rim requirements. . Repeat step 1 until all rim requirements have been met. 2.

Penalty cost is calculated by subtracting the minimum cell cost from the next higher cell cost in each row and column.In VAM the first step is to develop a penalty cost for each source and destination.Method is based on the concept of penalty cost or regret. . The VAM Penalty Costs .Vogel s Approximation Method (VAM) (1 of 5) . . .A penalty cost is the difference between the largest and the next largest cell cost in a row (or column).

Vogel s Approximation Method (VAM) (2 of 5) . The Initial VAM Allocation .VAM allocates as much as possible to the minimum cost cell in the row or column with the largest penalty cost.

all row and column penalty costs are recomputed.After each VAM cell allocation. The Second VAM Allocation .Vogel s Approximation Method (VAM) (3 of 5) .

The Third VAM Allocation .Vogel s Approximation Method (VAM) (4 of 5) .Recomputed penalty costs after the third allocation.

total cost = $5.VAM and minimum cell cost methods both provide better initial solutions than does the northwest corner method. The Initial VAM Solution .125 .Vogel s Approximation Method (VAM) (5 of 5) .The initial VAM solution.

Allocate as much as possible to the feasible cell with the lowest transportation cost in the row or column with the highest penalty cost. . 2. 3.Vogel s Approximation Method (VAM) Summary of Steps 1. Select the row or column with the highest penalty cost. Repeat steps 1. and 3 until all rim requirements have been met. Determine the penalty cost for each row and column. 4. 2.

the problem must be solved using either the steppingstone method or the modified distribution method (MODI).The initial solution used as a starting point in this problem is the minimum cell cost method solution because it had the minimum total cost of the three methods used. The Minimum Cell Cost Solution .The Stepping-Stone Solution Method (1 of 12) . .Once an initial solution is derived.

The Stepping-Stone Solution Method (2 of 12) .The stepping-stone method determines if there is a cell with no allocation that would reduce cost if used. +1 The Allocation of One Ton to Cell 1A .

The Subtraction of One Ton from Cell 1B .Must subtract one ton from another allocation along that row.The Stepping-Stone Solution Method (3 of 12) .

thus one ton must be added to a cell as shown.The Stepping-Stone Solution Method (4 of 12) . The Addition of One Ton to Cell 3B and the Subtraction of One Ton from Cell 3A .A requirement of this solution method is that units can only be added to and subtracted from cells that already have allocations.

The Stepping-Stone Solution Method (5 of 12) . The SteppingStone Path for Cell 2A .To evaluate the cost reduction potential of an empty cell. a closed path connecting used cells to the empty cells is identified. .An empty cell that will reduce cost is a potential entering variable.

The Stepping-Stone Path for Cell 2B The SteppingStone Path for Cell 3C .The remaining stepping-stone paths and resulting computations for cells 2B and 3C.The Stepping-Stone Solution Method (6 of 12) .

The Stepping-Stone Path for Cell 1A .After all empty cells are evaluated.The Stepping-Stone Solution Method (7 of 12) .A tie can be broken arbitrarily. . the one with the greatest cost reduction potential is the entering variable.

At each iteration one variable enters and one leaves (just as in the simplex method). The Second Iteration of the Stepping-Stone Method . the amount is the minimum amount subtracted on the stepping-stone path.When reallocating units to the entering variable (cell). .The Stepping-Stone Solution Method (8 of 12) .

Check to see if the solution is optimal. The Stepping-Stone Path for Cell 2A The SteppingStone Path for Cell 1B .The Stepping-Stone Solution Method (9 of 12) .

Continuing check for optimality. The Stepping-Stone Path for Cell 2B The Stepping-Stone Path for Cell 3C .The Stepping-Stone Solution Method (10 of 12) .

The stepping-stone process is repeated until none of the empty cells will reduce costs (i.Solution and total minimum cost : x1A = 25 tons.The Stepping-Stone Solution Method (11 of 12) . x3B = 100 tons Z = $6(25) + 8(0) + 10(125) + 7(0) + 11(0) + 11(175) + 4(175) + 5(100) + 12(0) = $4. x1C = 125 tons. x3A = 175 tons.In example. . an optimal solution).e.525 . . therefore Table 19 solution is optimal. x2C = 175 tons.. evaluation of four paths indicates no cost reductions.

.A multiple optimal solution occurs when an empty cell has a cost change of zero and all other empty cells are positive.The Stepping-Stone Solution Method (12 of 12) .Alternate optimal total minimum cost also equals $4. The Alternative Optimal Solution . .An alternate optimal solution is determined by allocating to the empty cell with a zero cost change.525.

Allocate as much as possible to the empty cell with the greatest net decrease in cost. . Determine the stepping-stone paths and cost changes for each empty cell in the tableau. 3. Repeat steps 1 and 2 until all empty cells have positive cost changes that indicate an optimal solution.The Stepping-Stone Solution Method Summary of Steps 1. 2.

The Modified Distribution Method (MODI) (1 of 6) . The Minimum Cell Cost Initial Solution . .In the table. the extra left-hand column with the ui symbols and the extra top row with the vj symbols represent values that must be computed.MODI is a modified version of the stepping-stone method in which math equations replace the stepping-stone paths.Computed for all cells with allocations : ui + vj = cij = unit transportation cost for cell ij. .

. u2 = 1. u3 = -3.Five equations with 6 unknowns. vC = 10. vA= 7 .Formulas for cells containing allocations: x1B: u1 + vB = 8 x1C: u1 + vC = 10 x2C: u2 + vC = 11 x3A: u3 + vA = 4 x3B: u3 + vB = 5 The Modified Distribution Method (MODI) (2 of 6) The Initial Solution with All ui and vj Values . therefore let u1 = 0 and solve to obtain: vB = 8.

u2 .1 .vj = kij where kij equals the cost increase or decrease that would occur by allocating to a cell.8 = +2 x3C: k3C = c3C .Each MODI allocation replicates the stepping-stone allocation.0 .(-3) .The Modified Distribution Method (MODI) (3 of 6) .1 .vA = 6 .u1 .10 = +5 .7 = -1 x2B: k2B = c2B .vA = 7 . .7 = -1 x2A: k2A = c2A .ui .For the empty cells in Table 26: x1A: k1A = c1A .vB = 11.u2 .Use following to evaluate all empty cells: cij .u3 -vC = 12 . .

The Modified Distribution Method (MODI) (4 of 6) . The Second Iteration of the MODI Solution Method .After each allocation to an empty cell. the ui and vj values must be recomputed.

vC = 10 x3B: u3 + vB = 5.The Modified Distribution Method (MODI) (5 of 6) . vA = 6 x3A: u3 + vA = 4. vB = 7 x2C: u2 + vC = 11.Recomputing u and v values: i j x1A: u1 + vA = 6. u2 = 1 The New ui and vj Values for the Second Iteration . u3 = -2 x1C: u1 + vC = 10.

u1 . .1 .The Modified Distribution Method (MODI) (6 of 6) .(-2) .u2 .vB = 11 .vA = 7 . . solution obtained is optimal.0 . cij .u2 .vC = 12 .Cost changes for the empty cells.Since none of the values are negative.10 = +4 .u3 .7 = +1 x2A: k2A = c2A .vj = kij.vB = 8 .6 = 0 x2B: k2B = c2B . x1B: k1B = c1B .1 -7 = +3 x3C: k2B = c2B .ui .Cell 2A with a zero cost change indicates a multiple optimal solution.

2. Compute the cost change. Develop an initial solution. Repeat steps 2 through 4 until all kij values are positive or zero. Allocate as much as possible to the empty cell that will result in the greatest net decrease in cost (most negative kij) 5. . kij. for each empty cell. Compute the ui and vj values for each row and column. 3. 4.The Modified Distribution Method (MODI) Summary of Steps 1.

Supply) . An Unbalanced Model (Demand .The Unbalanced Transportation Model (1 of 2) .When demand exceeds supply a dummy row is added to the tableau.

The Unbalanced Transportation Model (2 of 2) . .The dummy column (or dummy row) has no effect on the initial solution methods or the optimal solution methods. An Unbalanced Model (Supply .When supply exceeds demand. a dummy column is added to the tableau. Demand) .

if not.1 cells with allocations.The tableau in the figure does not meet the condition since 3 + 3 -1 = 5 cells and there are only 4 cells with allocations. it is degenerate.In a transportation tableau with m rows and n columns. The Minimum Cell Cost Initial Solution .Degeneracy (1 of 3) . there must be m + n . .

an empty cell must artificially be treated as an occupied cell.In a degenerate tableau.Degeneracy (2 of 3) . The Initial Solution . -To rectify a degenerate tableau. all the stepping-stone paths or MODI equations cannot be developed.

4 = + 4 The Second Stepping-Stone Iteration .The stepping-stone path s and cost changes for this tableau: 2A 2C 1C 1A x2A: 7 .1 3C 1C 1A 3A x3C: 12 .6 = 0 2B 2C 1C 1B x2B: 11 .8 + 6 .11 + 10 .Degeneracy (3 of 3) .11 + 10 .4 = .10 + 6 .8 = + 2 3B 1B 1A 3A x3B: 5 .

When the prohibited cell is evaluated. . it will always contain the cost M.A prohibited route is assigned a large cost such as M. which will keep it from being selected as an entering variable. .Prohibited Routes .

Transportation Model Example QM for Windows Solution .

Transportation Model Example QM for Windows Solution (continued) .

Supply at each source and demand at each destination limited to one unit. In an unbalanced model supply does not equal demand.The Assignment Model Characteristics Special form of linear programming model similar to the transportation model. . In a balanced model supply equals demand.

demand is for only one team of officials at each game. .The Assignment Model Example Problem Definition and Data Problem: Assign four teams of officials to four games in a way that will minimize total distance traveled by the officials. Supply is always one team of officials.

The Assignment Model Example Problem Model Formulation Minimize Z = 210xAR + 90xAA + 180xAD + 160xAC + 100xBR + 70xBA + 130xBD + 200xBC + 175xCR + 105xCA + 140xCD + 170xCC + 80xDR + 65xDA + 105xDD +120xDC subject to xAR + xAA + xAD+ xAC = 1 xBR + xBA + xBD + xBC = 1 xCR + xCA+ xCD + xCC = 1 xDR + xDA + xDD + xDC = 1 xAR + xBR + xCR + xDR = 1 xAA + xBA + xCA + xDA = 1 xAD+ xBD + xCD + xDD = 1 xAC + xBC + xCC + xDC = 1 xij u 0 .

Example: assigning four teams of officials to four games in a way that will minimize distance traveled by the officials.An assignment problem is a special form of the transportation problem where all supply and demand values equal one.Solution of the Assignment Model (1 of 7) . The Travel Distances to Each Game for Each Team of Officials . .

Solution of the Assignment Model (2 of 7) .An opportunity cost table is developed by first subtracting the minimum value in each row from all other row values (row reductions) and then repeating this process for each column. The Assignment Tableau with Row Reductions .

.Solution of the Assignment Model (3 of 7) .Assignments can be made in the table wherever a zero is present.An optimal solution results when each of the four teams can be assigned to a different game.The minimum value in each column is subtracted from all column values (column reductions). .Table 36 does not contain an optimal solution The Tableau with Column Reductions . .

The Opportunity Cost Table with the Line Test .An optimal solution occurs when the number of independent unique assignments equals the number of rows and columns. .If the number of unique assignments is less than the number of rows (or columns) a line test must be used.Solution of the Assignment Model (4 of 7) .

The Second Iteration .Solution of the Assignment Model (5 of 7) .In a line test all zeros are crossed out by horizontal and vertical lines. the minimum uncrossed value is subtracted from all other uncrossed values and added to values where two lines cross.

Solution of the Assignment Model (6 of 7) .This indicates an optimal solution has been reached. .If in initial assignment team A went to Clemson. .Assignments and distances: Assignment Team A p Atlanta Team B p Raleigh Team C p Durham Team D p Clemson Total Distance 90 100 140 120 450 miles Assignment Team A p Clemson Team B p Atlanta Team C p Durham Team D p Raleigh Total Distance 160 70 140 80 450 miles . result is the same. .At least four lines are required to cross out all zeros in table 38. resulting assignments represent multiple optimal solutions.

a dummy row is added to the tableau.When supply exceeds demand.Solution of the Assignment Model (7 of 7) .When demand exceeds supply. An Unbalanced Assignment Tableau with a Dummy Column . a dummy column is added to the tableau. .A prohibited assignment is given a large relative cost of M so that it will never be selected.The addition of a dummy row or column does not affect the solution method. . .

cross out all zeros using the minimum number of horizontal and/or vertical lines. the tableau contains the optimal solution. Leave all other values unchanged and repeat step 3. and add the same value to all cells where two lines intersect. repeat step 4. subtract the minimum uncrossed value from all other uncrossed values. If m lines are required.Solution of the Assignment Model Summary of Solution Steps 1. 3 In the completed opportunity cost table. If fewer than m lines are required. 6. 4. . 5. Perform row reductions. 2. If fewer than m lines are required. Perform column reductions.

The Assignment Model Example Problem Computer Solution with QM for Windows .

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