WHAT IS MODI METHOD

It is used to save the time over stepping stone method It provides a new means of finding the unused route with the largest negative improvement index. Once largest index identified ,we are required to trace only one path, just as with the stepping stone approach, this helps to determine the maximum number of unit that can be shipped by the best unused route.

STEPS
1.Construct a transportation table with the given cost of transportation and rim requirement. 2.Determine IBFS. 3.For current basic feasible solution check degeneracy and non-degeneracy. rim requirement=stone square(non-degeneracy) rim requirement != stone square(degeneracy) 4.Find occupied matrix. 5.Find unoccupied matrix.

Steps (contd)
6.Find opportunity cost of unoccupied cells using formula: opportunity cost =actual cost-implied cost dij= cij - (ri+kj) 7.Unoccupied cell evaluation: (a) if dij>0 then cost of transportation unchanged. (b) if dij=0 then cost of transportation unchanged. (c) if dij<0 then improved solution can be obtain and go to next step.

STEPS(contd)
8.Select an unoccupied cell with largest ve opportunity cost among all unoccupied cell. 9.Construct closed path for the unoccupied cell determined in step 8. 10.Assign as many as units as possible to the unoccupied cell satisfying rim conditions. 11.Go to step 4 and repeat procedure until All dij>=0 i.e. reached to the optimal solution.

SPECIAL CASES
Balanced problem Unbalanced problem Non -degeneracy Degeneracy :occurs in two cases 1. Degeneracy occurs in initial basic solution. 2. Degeneracy occurs in during the test of optimality. Profit maximization

PROBLEM1: What shipping schedule should be used. if the matrix given below the kilometers from source to destination and Shipping costs are Rs. 10 per kilometer. DESTINATION A B C

50

30

220

CAPACITY 1

SOURSE Y 90 45 170 3

50

200

50

4 8 8

REQUIREMENT

IBFS BY A 50 X 12 90 Y

USING VAM B 30 30 45 33

METHOD C 220 220 170 45 45 45 _ 20 20 20 20 P1 P2 P3 P4

50 Z 2 2

200

50 2 2 150 150 _ _

P1 P2 P3

40 40 40

15 15 15

120 _ _

STONE SEQUARE =4 RIM REQUIREMENT =M+N-1=3+3-1=5 50 1 90 45 3 50 2 200 50 2 30 E 170 220

DEGENERACY

NOW STONE SEQUARE =5 RIM REQUIREMENT =5

NON DEGENERACY

IBFS 50 1 90 45 3 50 2 200 50 2 30 E 170 220

OCCUPIED MATRIX

50

30

45

15

50

50

50

30

50

OCCUPIED MATRIX

UNOCCUPIED MATRIX

170 50 30 0 50 25 45 15 65 170 50 50 0 30 50 30 105 65

50

OPTIMUL SOLUATION OPTIMUL SOLUTION

XA XB YB ZA ZC

50*1=50 30*E=_ 45*3=135 50*2=100 50*2=100 385 *10=3850

PROBLEM2:DETERMINE THE OPTIMUM SOLUTION FOR THE COMPANY OF TRASPOTATION PROBLEM(USING NWCM AND MODI METHOD) WAREHOUSE W1 F1 FACTORY F2 15 10 17 80 3 9 10 8 W2 8 W3 15 CAPACITY

120

F3

80

REQUIREMENT

150

80

50

IBFS WITH NWCM W1 F1 8 120 15 30 3 9 10 50 10 30 50 80 17 8 W2 15 120 W3

F2

80

F3

150

80

50

OCCUPIED MATRIX

UNOCCUPIED MATRIX 5 11 3 6 4 -7

-7

15

10

11 -11

10 -1 15

14

-1

15

10

11

10

11

LOOP CONSTRUCT

8 120

15

8 120

8 E 10 80

15

15 30 3

10

+ 50

17

15

17

9 30 + _

10 50

1 0 30

10 50

DEGENERACY OCCUAR

STONE SEQUARE=RIM REQUIREMENT

OCCUPIED MATRIX

UNOCCUPIED MATRIX

0 8 8 5 15 5

5 10 7 10 6 3 10 0 3 3 3

0 17 7

0 10

10

OPTIMUM SOLUTION
F1 W1 F1 W2 F2 W2 F3 W1 F3 W3 8*120 =960 8*E = _ 10*80 =800 3*30= 90 10*50 =500 2,350 RS