Assignment & Transportation Model

By:-
Dr. Gaurav Goyal
Asst Professor
L M Thapar School of Management
1
 HUNGARIAN METHOD
(ASSIGNMENT)
provides a simple heuristic that can be used to find
the optimal set of assignments for a balanced or an
unbalanced matrix.
It is easy to use, even for fairly large problems.
It is based on minimization of opportunity costs
that would result from potential pairings.

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 HUNGARIAN METHOD : TYPES OF
PROBLEMS
Balanced Minimization
Balanced Maximization
Unbalanced Minimization
Unbalanced Maximization

Minimization – Cost, Time, Distance

Maximization – Revenue, Profit, Productivity

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 BALANCED MINIMIZATION
Machineco has 4 machines and 4 jobs to be completed.
Each machine must be assigned to complete one job.
The time required to set up each machine for
completing each job is shown below:-
Time (Hours)

Machine Job 1 Job 2 Job 3 Job 4

1 14 5 8 7

2 2 12 6 5

3 7 8 3 9

4 2 4 6 10

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STEP 1: SUBTRACT THE MIN IN A ROW
FROM THE ENTIRE ROW
Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 14 5 8 7
2 2 12 6 5
3 7 8 3 9
4 2 4 6 10

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 2
2 0 10 4 3
3 4 5 0 6
4 0 2 4 8
5
STEP 2: SUBTRACT THE MIN IN A COLUMN
FROM THE ENTIRE COLUMN
Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 2
2 0 10 4 3
3 4 5 0 6
4 0 2 4 8

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 0
2 0 10 4 1
3 4 5 0 4
4 0 2 4 6

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STEP 3: ASSIGN ROW WISE BY TAKING A ROW WITH
MINIMUM ZEROES AND CANCELLING OUT NON
ASSIGNED ZEROES IN THE SAME ROW AND COLUMN

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 0
2 0 10 4 1
3 4 5 0 4
4 0 2 4 6

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 STEP 4: DRAW LINES TO CANCEL
OUT ALL ZEROES IN THE MATRIX
Tick all unassigned rows
Look for unassigned zeroes in the unassigned rows and put a
tick below the respective columns
Look for assigned zero in the ticked column and tick the row
in which the zero is there
Cancel all unticked rows and ticked columns

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 STEP 4.1: TICK ALL UNASSIGNED ROWS

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 0
2 0 10 4 1
3 4 5 0 4
4 0 2 4 6

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 STEP 4.2: LOOK FOR UNASSIGNED ZEROES IN THE UNASSIGNED ROWS AND PUT A TICK BELOW THE RESPECTIVE COLUMNS

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 0
2 0 10 4 1
3 4 5 0 4
4 0 2 4 6

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 STEP 4.3: LOOK FOR ASSIGNED ZERO
IN THE TICKED COLUMN AND TICK
THE ROW IN WHICH THE ZERO IS
THERE
Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 0
2 0 10 4 1
3 4 5 0 4
4 0 2 4 6

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 STEP 4.4: CANCEL ALL
UNTICKED ROWS AND TICKED
COLUMNS
Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 9 0 3 0
2 0 10 4 1
3 4 5 0 4
4 0 2 4 6

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STEP 5: TAKE THE MINIMUM OUT OF THE LEFT
VALUES AND SUBTRACT IT FROM THE LEFT
VALUES & ADD IT TO THE INTERSECTION VALUES

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 10 0 3 0
2 0 9 3 0
3 5 5 0 4
4 0 1 3 5

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 STEP 6: DO THE ASSIGNMENTS
AGAIN

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 10 0 3 0
2 0 9 3 0
3 5 5 0 4
4 0 1 3 5

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 STEP 7: WRITE DOWN THE FINAL
ASSIGNMENTS AS PER THE ORIGINAL
MATRIX
FINAL ASSIGNMENTS ( AS PER TIME MATRIX)
I B 5
II D 5
III C 3
IV A 4
MIN TOTAL TIME 17

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 UNBALANCED MINIMUM
Matrix is not a square matrix; 3 jobs might be needed to
be assigned to 4 possible machines
One of the rows or columns is less
Solution:
put zeroes to account for the missing row / column
solve it as a balanced minimum problem

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 UNBALANCED MINIMUM (EXAMPLE:
COLUMN MISSING)
Time (Hours)
Machine Job 1 Job 2 Job 3
1 14 5 8
2 2 12 6
3 7 8 3
4 2 4 6

Time (Hours)
Machine Job 1 Job 2 Job 3 Job 4
1 14 5 8 0
2 2 12 6 0
3 7 8 3 0
4 2 4 6 0
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 BALANCED MAXIMUM
Involves revenue, profit etc instead of costs, time and
distance
Needs to be converted to a balanced minimum problem
Solution:
Find the maximum out of the entire matrix
Subtract the entire matrix from the maximum value
Solve it as a balanced minimum problem

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 BALANCED MAXIMUM TO
BALANCED MINIMUM
REVENUES
JOB EMP1 EMP2 EMP3 EMP4
1 50 48 46 40
2 43 42 40 34
3 39 37 34 28
4 30 28 25 23

REVENUES
JOB EMP1 EMP2 EMP3 EMP4
1 0 2 4 10
2 7 8 10 16
3 11 13 16 22
4 20 22 25 27
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 UNBALANCED MAXIMUM
Revenues might have been assigned for assigning 3
possible tasks to 4 possible employees
SOLUTION:
Add rows / columns with all zeroes for the missing
rows / columns to make it a balanced maximization
problem
Convert to balanced minimization problem by taking
the maximum value from the matrix and subtracting
the entire matrix from the maximum value
Solve it as a balanced minimization problem

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 UNBALANCED MAXIMUM TO
BALANCED MAXIMUM
REVENUES
JOB EMP1 EMP2 EMP3 EMP4
1 50 48 46 40
2 43 42 40 34
3 39 37 34 28

REVENUES
JOB EMP1 EMP2 EMP3 EMP4
1 50 48 46 40
2 43 42 40 34
3 39 37 34 28
4 0 0 0 0

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 BALANCED MAXIMUM TO
BALANCED MINIMUM
REVENUES
JOB EMP1 EMP2 EMP3 EMP4
1 50 48 46 40
2 43 42 40 34
3 39 37 34 28
4 0 0 0 0

REVENUES
JOB EMP1 EMP2 EMP3 EMP4
1 0 2 4 10
2 7 8 10 16
3 11 13 16 22
4 50 50 50 50
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 TRANSPORTATION MODEL
A distribution-type problem in which supplies of
goods that are held at various locations are to be
distributed to other receiving locations.
The solution of a transportation problem will indicate
to a manager the quantities and costs of various
routes and the resulting minimum cost.
Used to compare location alternatives in deciding
where to locate factories and warehouses to achieve
the minimum cost distribution configuration.

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 TRANSPORTATION
FORMULATION
A transportation problem
 Typically involves a set of sending locations, which are
referred to as origins, and a set of receiving locations,
which are referred to as destinations.
 To develop a model of a transportation problem, it is
necessary to have the following information:
1. Supply quantity (capacity) of each origin.
2. Demand quantity of each destination.
3. Unit transportation cost for each origin-destination route.

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 TYPES OF PROBLEMS
Balanced Minimization (involves cost and demand &
supply values match)
Unbalanced Minimization (involves cost but demand
& supply values do not match)
Balanced Maximization (involves revenues / profits
but demand & supply values match)
Unbalanced Maximization (involves revenues /
profits but demand & supply values do not match)

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 TRANSPORTATION PROBLEM – AN
EXAMPLE

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 STEP 1: FIND AN INITIAL BASIC
FEASIBLE SOLUTION
North West Corner Method
Least Cost Method
Vogel’s Approximation Method (Method of Penalties)

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 Northwest Corner Method

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 Finding an Initial Feasible Solution:
The Northwest-Corner Method

The Northwest-Corner Method

is a systematic approach for developing an initial feasible
solution.
is simple to use and easy to understand.
does not take transportation costs into account.
gets its name because the starting point for the allocation
process is the upper-left-hand (northwest) corner of the
transportation table.

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 Northwest-Corner Method

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 Finding an Initial Feasible Solution:
Least Cost Method

1. Identify the cell that has the lowest unit cost.

2. Cross out the cells in the row or column that has been
exhausted (or both, if both have been exhausted), and adjust
the remaining row or column total accordingly.
3. Identify the cell with the lowest cost from the remaining
cells.
4. Repeat steps 2 and 3 until all supply and demand have been
allocated.

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 Least Cost Method

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 Least Cost Method

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 Vogel Approximation Method

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 Steeping Stone Method Using the Northwest-Corner Method

Table 6S–8 Evaluation Path for Cell B–1

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 Table 6S–10 Evaluation Paths for Cells A–3 and C–2

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 Table 6S–11 Initial Feasible Solution Obtained Using the
Northwest-Corner Method

Evaluation Using the MODI Method

The MODI (MOdified DIstribution) method of evaluating a transportation solution
for optimality involves the use of index numbers that are established for the rows and
columns. These are based on the unit costs of the occupied cells. The index numbers
can be used to obtain the cell evaluations for empty cells without the use of stepping-
McGr stone paths.
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 Table 6S–12 Index Numbers for Initial Northwest-Corner Solution
to the Harley Problem

Rules for Tracing Stepping-Stone Paths

1. All unoccupied cells must be evaluated. Evaluate cells one at a time.
2. Except for the cell being evaluated, only add or subtract in occupied cells. (It is
permissible to skip over occupied cells to find an occupied cell from which the path
can continue.)
3. A path will consist of only horizontal and vertical moves, starting and ending with
the empty cell that is being evaluated.
McGr
4. Alternate + and - signs, beginning with a + sign in the cell being evaluated.
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 Table 6S–13 Cell Evaluations for Northwest-Corner Solution for
the Harley Problem

Table 6S–14 Stepping-Stone Path for Cell A–3

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 Table 6S–15 Distribution Plan after Reallocation of 50 Units

Table 6S–16 Index Numbers and Cell Evaluations

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 Summary of the Transportation Method

1. Obtain an initial feasible solution. Use either the northwest-corner

method, the intuitive method, or the Vogel’s approximation method.
Generally, the intuitive method and Vogel’s approximation are the
preferred approaches.
2. Evaluate the solution to determine if it is optimal. Use either the
stepping-stone method or MODI. The solution is not optimal if any
unoccupied cell has a negative cell evaluation.
3. If the solution is not optimal, select the cell that has the most negative
cell evaluation. Obtain an improved solution using the stepping-stone
method.
4. Repeat steps 2 and 3 until no cell evaluations (reduced costs) are
negative. Once you have identified the optimal solution, compute its total
cost.
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