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QUANTITATIVE

METHODS
UNIVERSITY PROBLEMS
ON TRANSPORTATION

TRANSPORTATION
Q1
The Punjab Transport Company has trucks available
at four different sites as stated below:
Site
A
B
C
D
Trucks
5
10
7
3
Customers W, X, and Y require trucks as shown
under:
W: 5 Trucks, X: 8 Trucks, Y: 10 Trucks
Variable costs of getting trucks to the customer are:
From A to W - Rs.70, to X - Rs.30, to Y - Rs.60
From B to W - Rs.40, to X - Rs.60, to Y - Rs.80
From C to W - Rs.50, to X - Rs.80, to Y - Rs.40

TRANSPORTATION
Initial Solution Using VAM

S1

DUMMY

70

30 (5)

60

40 (5)

60 (3)

80 (2) (-)

0 (+)

50

80

40 (5) (+)

0 (2) (-)

80

40

30 (3)

Ui + Vj to Test Initial Solution Using VAM


V1 = 10

V2 = 30

V3 = 50

V4 = 10

U1 = 0

10

30

50

10*

U2 = 30

40

60

80

40*

U3 = -10

20

40

U4 = -20

-10

10

30

-10
3

TRANSPORTATION
S1

1st Improvement of Initial Solution Using VAM [Degeneracy Exists]


W

DUMMY

70

30 (5)

60

40 (5)

60 (3) (-)

80

0 (2) (+)

50

80

40 (7) (+)

0 () (-)

80

40 (+)

30 (3) (-)

Ui + Vj to Test 1st Improvement of Initial Solution Using VAM


V1 = 10

V2 = 30

V3 = 10

V4 = -30

U1 = 0

10

30

10

-30

U2 = 30

40

60

40

U3 = 30

40

60

40

U4 = 20

30

50*

30

-10
4

TRANSPORTATION
2nd improvement of Initial Solution Using VAM

S1

DUMMY

70

30 (5)

60

40 (5)

60 (3)

80

0 (2)

50

80

40 (7)

80

40 ()

30 (3)

Ui + Vj to Test 2nd improvement of Initial Solution Using VAM


V1 = 10

V2 = 30

V3 = 2

V4 = -30

U1 = 0

10

30

20

-30

U2 = 30

40

60

50

U3 = 20

30

50

40

-10

U4 = 10

20

40

30

-10
5

TRANSPORTATION
S1

Optimal Cost = Rs.900/-

TRANSPORTATION
Q2
The following table shows all the necessary
information on the availability of supply to
each warehouse, the requirement of each
market and the unit transportation cost from
each warehouse
market. Supply
Warehouseto each
Market
P Q R S
A
6 3 5 4
22
B
5 9 2 7
15
C
5 7 8 6
8
Requirement 7 12 17 9
7

TRANSPORTATION
Q 2 Contd.
The shipping clerk has worked out the following
schedule from experience.
12 units from A to Q, 1 unit from A to R,
9 units from A to S, 15 units from B to R,
7 units from C to P, 1 unit from C to R.
a)
Check and see if the clerk has the optimal
schedule.
b)
Find the optimal schedule and minimum
transportation cost.
c)
If the clerk is approached by a carrier to route
C to Q, who offers to reduce rate in the hope of
getting some business, by how much the rate should8

TRANSPORTATION
S2

Warehouse

Market
P

3 (12)

5 (1) (+)

4 (9) (-)

2 (15)

5 (7)

8 (1) (-)

6 (+)

V1 = 2

V2 = 3

V3 = 5

V4 = 4

U1 =0

U2 = -3

-1

U3 = 3

7*

Ui + Vj

TRANSPORTATION
S2

Warehouse

Market
P

3 (12)

5 (2)

4 (8)

2 (15)

5 (7)

6 (1)

V1 = 3

V2 = 3

V3 = 5

V4 = 4

U1 =0

U2 = -3

U3 = 2

Ui + Vj

10

S2

TRANSPORTATION

(i) The clerk doesnt have the optimal


schedule.
(ii) Minimum transportation cost = Rs.149/(iii) For having allocation from C to Q, the route
CQ must be economical, i.e., the opportunity
cost for the route CQ should be negative or
zero.
That is,
CCQ (V2 + U3) 0
i.e., CCQ 5.
Hence, the rate should be reduced to Rs.5.

11

Q3

TRANSPORTATION

In the following transportation problem, the


penalty costs per unit of unsatisfied demand
are 15, 13, and 12 for destinations 1, 2, and
3; then find the optimal solution. Further if,
the demand at destination 3 must be
satisfied Source
exactly, obtain
the revised
Destination
Supply optimal
solution.
1
2
3
A

15

11

16

15

16

14

16

60

13

15

18

30

Demand

75

20

50

12

TRANSPORTATION
S3

Source

Destination
1

15

11

16

16

14

16

13

15

18

DUMMY

CD1

CD2

CD3

Difference between two lowest unit costs of the cells in Col.1, Col
and Col.3 must be 15, 13, and 12.
13 CD1 = 15
11 CD2 = 13
16 CD3 = 12

CD1 = -2
CD2 = -2
CD3 = +4

13

TRANSPORTATION
S3

Source

Destination
1

15

11 (15)

16

16 (5)

14 (5)

16 (50)

13 (30)

15

18

DUMMY

-2 (40)

-2

Source

Destination
V1 = 13

V2 = 11

V3 = 13

U1 = 0

13

11

13

U2 = 3

16

14

16

U3 = 0

13

11

13

U4 = -15

-2

-4

-2
14

TRANSPORTATION
S3

Optimal Cost = Rs.1425/-

15

Q4

TRANSPORTATION

Solve the following transportation problem.


Source
Destination
Supply
D1 D2 D3 D4
S1
10 20 5 7
10
S2
13 9 12 8
20
S3
4 15 7 9
30
S4
14 7 8 0
40
S5
3 12 5 19
50
Demand 60 60 20 10
16

S4

TRANSPORTATION
Source

Destination
D1

D2

D3

D4

S1

10 (10)

20

S2

13

9 (20)

12

S3

4 (30)

15

S4

14

7 (10)

1 (20)

0 (10)

S5

3 (20)

12 (30)

19
17

TRANSPORTATION
Source

S4

Destination

D1

D2

D3

D4

S1

10 (10) (-)

20

5 (+)

S2

13

9 (20)

12

S3

4 (30)

15

S4

14

7 (10) (+)

1 (20) (-)

0 (10)

S5

3 (20) (+)

12 (30) (-)

19

Source

Destination
V1 = 10

V2 = 19

V3 = 13

V4 = 12

U1 = 0

10

19

13*

12

U2 = -10

U3 = -6

13

U4 = -12

-2

U5 = -7

12

5
18

TRANSPORTATION
Source

S4

Destination

D1

D2

D3

D4

S1

10

20

5 (10)

S2

13

9 (20)

12

S3

4 (30)

15

S4

14

7 (20) (+)

1 (10) (-)

0 (10)

S5

3 (20)

12 (20) (-)

5 (+)

19

Source

Destination
V1 = 2

V2 = 11

V3 = 5

V4 = 4

U1 = 0

11

U2 = -2

U3 = 2

13

U4 = -4

-2

U5 = 1

12

6*

5
19

TRANSPORTATION
Source

S4

Destination

D1

D2

D3

D4

S1

10

20

5 (10)

S2

13

9 (20)

12

S3

4 (30)

15

S4

14

7 (30)

0 (10)

S5

3 (20)

12 (10)

5 (10)

19

Source

Destination
V1 = 3

V2 = 12

V3 = 5

V4 = 5

U1 = 0

12

U2 = -3

U3 = 1

13

U4 = -5

-2

U5 = 0

12

5
20

TRANSPORTATION
S4

Optimal Cost = Rs.820/-

21

Q5

TRANSPORTATION

Find the optimal solution for the following


cost matrix.
Source
Destination
Supply
D1

D2

D3

D4

O1
O2

20
24

22
37

17
9

4
7

120
70

O3

32

37

20

15

50

Demand

60

40

30

110

22

TRANSPORTATION
S5

Source

Destination
D1

D2

D3

D4

O1

20 (+)

22 (40)

17

4 (80) (-)

O2

24 (10) (-)

37

9 (30)

7 (30) (+)

O3

32 (50)

37

20

15

Source

Destination
V1 = 21

V2 = 22

V3 = 6

V4 = 4

U1 = 0

21*

22

U2 = 3

24

25

U3 = 11

32

33

17

15
23

TRANSPORTATION
S5

Source

Destination
D1

D2

D3

D4

O1

20 (10) (+)

22 (40)

17

4 (70) (-)

O2

24

37

9 (30)

7 (40)

O3

32 (50) (-)

37

20

15 (+)

Source

Destination
V1 = 20

V2 = 22

V3 = 6

V4 = 4

U1 = 0

20

22

U2 = 3

23

25

U3 = 12

32

34

18

16*
24

TRANSPORTATION
S5

Source

Destination
D1

D2

D3

D4

O1

20 (60)

22 (40)

17

4 (20)

O2

24

37

9 (30)

7 (40)

O3

32

37

20

15 (50)

Source

Destination
V1 = 20

V2 = 22

V3 = 6

V4 = 4

U1 = 0

20

22

U2 = 3

23

25

U3 = 11

31

33

17

15
25

TRANSPORTATION
S5

Optimal Cost = Rs.3460/-

26

Q6

TRANSPORTATION

Find the optimal solution for the following


cost matrix.
Factory
Warehouse
Capacity
D1

D2

D3

D4

F1

19

30

50

16

F2

70

30

40

60

F3

40

70

20

18

Requirement

14

27

TRANSPORTATION
S6

Factory

Warehouse
D1

D2

D3

D4

F1

19 (5)

30

50

16 (2)

F2

70

30 (+)

40 (7)

60 (2) (-)

F3

40

8 (8) (-)

70

20 (10) (+)

Factory

Warehouse
V1 = 19

V2 = 4

V3 = -4

V4 = 16

U1 = 0

19

-4

16

U2 = 44

63

48*

40

60

U3 = 4

23

20

28

TRANSPORTATION
S6

Factory

Warehouse
D1

D2

D3

D4

F1

19 (5)

30

50

16 (2)

F2

70

30 (2)

40 (7)

60

F3

40

8 (6)

70

20 (12)

Factory

Warehouse
V1 = 19

V2 = 4

V3 = 14

V4 = 16

U1 = 0

19

14

16

U2 = 26

45

30

40

42

U3 = 4

23

18

20
29

TRANSPORTATION
S6

Optimal Cost = Rs.755/-

30

Q7

TRANSPORTATION

Find the optimal solution for the following


cost matrix.
Factory
Destination Capacity
I

II III IV

20 5 25 15

50

17 13 16 17

50

5 21 19 23

100

Requirement 30 40 60 70

31

TRANSPORTATION
S7

Factory

Destination
I

II

III

IV

20

5 (40)

25

15 (10)

17

13

16

17 (50)

5 (30)

21

19 (60)

23 (10)

Factory

Destination
V1 = -3

V2 = 5

V3 = 11

V4 = 15

U1 = 0

-3

11

15

U2 = 2

-1

13

17

U3 = 8

13

19

23
32

TRANSPORTATION
S7

Optimal Cost = Rs.2720/-

33

Q8

TRANSPORTATION

Given the following transportation problem:


Warehouse
W1
W2
W3
W4
Demand

Market
A
B
C
10
12
7
14
11
6
9
5
13
11
7
9
240
200 220

Supply
180
100
160
120

34

TRANSPORTATION
Q 8 Contd.

It is known that currently no units can be


sent from warehouse W1 to market A and
from warehouse W3 to market C. determine
the least cost transportation schedule. Is the
optimal solution obtained by you unique? If
not, what is/are the other optimal solution/s?

35

TRANSPORTATION
Warehouse

S8

Market
A

W1

10 (60)

12

7 (120)

W2

14

11

6 (100)

W3

9 (+)

5 (160) (-)

13

W4

11 (80) (-)

7 (40) (+)

DUMMY

0 (100)

Warehouse

Market
V1 = 10

V2 = 6

V3 = 7

U1 = 0

10

U2 = -1

U3 = -1

9*

U4 = 1

11

U5 = -10

-4

-3
36

TRANSPORTATION
S8

Alternate Solution will be


Warehouse

Market
A

W1

10 (60)

12

7 (120)

W2

14

11

6 (100)

W3

9 (80)

5 (80)

13

W4

11

7 (120)

DUMMY

0 (100)

Optimal Solution: Rs.4000/37

Q9

TRANSPORTATION

Solve the following transportation problem


for maximum profit:
Warehouse
X
Y
Z
Demand

A
12
8
14
180

Market
B
C
18
6
7
10
3
11
320 100

Capacity
D
25
18
20
400

200
500
300
1000
38

S9

TRANSPORTATION

On converting the given maximization problem to the minimization:


Warehouse

Market

Capacity

13

19

200

17

18

15

500

11

22

14

300

Demand

180

320

100

400

1000

39

TRANSPORTATION
S9

Warehouse

Market
A

13

7 (200)

19

17

18 (100) (+)

15

7 (400) (-)

11 (180)

22 (20) (-)

14 (100)

5 (+)

Warehouse

Market
V1 = -4

V2 = 7

V3 = -1

V4 = -4

U1 = 0

-4

-1

-4

U2 = 11

18

10

U3 = 15

11

22

14

11*
40

TRANSPORTATION
S9

Warehouse

Market
A

13

7 (200)

19

17

18 (120)

15 (+)

7 (380) (-)

11 (180)

22

14 (100) (-)

5 (20) (+)

Warehouse

Market
V1 = 2

V2 = 7

V3 = 5

V4 = -4

U1 = 0

-4

U2 = 11

13

18

16*

U3 = 9

11

16

14

5
41

TRANSPORTATION
S9

Warehouse

Market
A

13

7 (200)

19

17

18 (120)

15 (100)

7 (280)

11 (180)

22

14

5 (120)

Warehouse

Market
V1 = 2

V2 = 7

V3 = 4

V4 = -4

U1 = 0

-4

U2 = 11

13

18

15

U3 = 9

11

16

13

5
42

TRANSPORTATION
S9
Hence,
optimal allocation for maximization
Warehouse

Market
A

12

18 (200)

25

7 (120)

10 (100)

18 (280)

14 (180)

11

20 (120)

Maximum profit: Rs.15400/-

43

TRANSPORTATION
Q 10

A manufacturer of jeans is interested in


developing an advertising campaign that will
reach 4 different age groups. Advertising
campaign can be conducted through T.V., radio,
and magazines. The following table gives
estimated cost per exposure for each group in
appropriate units of money, according to
medium employed. The maximum exposure
levels possible in each of the media T.V., radio,
and magazine are 40, 30, and 20 million
respectively. Also desired exposures in each
age group 12 - 18, 19 - 25, 25 - 35, and 36 and
44

TRANSPORTATION
Q 10 Contd.
Media

Age Group
12 18

19 25

26 35

36 and above

T.V.

12

10

10

Radio

10

12

10

Magazine

14

12

12

Formulate above problem as Transportation problem


and find the optimal solution.
45

TRANSPORTATION
12 18

19 25

26 35

36 +

DUMMY

TV

12

7 (25)

10 (5) (-)

10 (10)

0 (+)

RADIO

10 (30)

12

10

0 ()

MAGAZINE

14

12

9 (10) (+)

12

0 (10) (-)

S 10

V1 = 11

V2 = 7

V3 = 10

V4 = 10

V5 =1

U1 = 0

11

10

10

1*

U2 = -1

10

U3 = -1

10

46

TRANSPORTATION
12 18

19 25

26 35

TV

12

7 (25)

10

10 (10) (-)

0 (5) (+)

RADIO

10 (30)

12

10 (+)

0 () (-)

MAGAZINE

14

12

9 (15)

12

0 (5)

V1 = 10

V2 = 7

V3 = 9

V4 = 10

V5 =0

U1 = 0

10

10

U2 = 0

10

10*

U3 = 0

10

10

S 10

36 and above DUMMY

47

TRANSPORTATION
S 10

Minimum Cost = Rs.710/-

48

TRANSPORTATION

Q 11
A company has factories at A, B, and C which supply
warehouses at D, E, F, and G. monthly warehouse
requirements are 80, 90, 110 and 160 units
respectively. Monthly capacities are 160, 150, and
190 units respectively. Unit shipping costs (Rs.) are
D
E
F
G
given below:
A

12

18

10

19

22

21

10

13

What is optimal shipping cost schedule?

49

TRANSPORTATION
S 11

DUMMY

12

18

7 (160)

0 ()

10 (80)

19 (+)

22 (10) (-)

21

0 (60)

8 (90) (-)

10 (100) (+)

13

V1 = 10

V2 = 20

V3 = 22

V4 = 7

V5 = 0

U1 = 0

10

20*

22*

U2 = 0

10

20*

22

U3 = -12

-2

10

-5

-12

50

TRANSPORTATION
D

DUMMY

12

18 (+)

7 (160)

0 () (-)

10 (80)

19 (10) (-)

22

21

0 (60) (+)

8 (80)

10 (110)

13

S 11

V1 = 10

V2 = 19

V3 = 21

V4 = 7

V5 = 0

U1 = 0

10

19*

21*

U2 = 0

10

19

21

U3 = -11

-1

10

-4

-11

51

TRANSPORTATION
D

DUMMY

12

18 () (-)

8 (+)

7 (160)

10 (80)

19 (10)

22

21

0 (60)

8 (80) (+)

10 (110) (-)

13

S 11

V1 = 9

V2 = 18

V3 = 20

V4 = 7

V5 = -1

U1 = 0

18

20*

-1

U2 = 1

10

19

21

U3 = -10

-1

10

-3

-11

52

TRANSPORTATION
D

DUMMY

12

18

8 ()

7 (160)

10 (80)

19 (10)

22

21

0 (60)

8 (80)

10 (110)

13

S 11

V1 = -3

V2 = 6

V3 = 8

V4 = 7

V5 = -13

U1 = 0

-3

-13

U2 = 13

10

19

21

20

U3 = 2

-1

10

-11
53

TRANSPORTATION
S 11

Optimal Cost = Rs.3850/-

54

TRANSPORTATION

Q 12
Solve the following transportation problem given the
unit transportation costs, demand and supply as
below:

Sources

1
2
3
Demand

Warehouse
A
B
5
1
6
4
3
2
75
20

Supply

C
7
6
5
50

10
80
15

55

TRANSPORTATION
S 12

Sources

Warehouse
A

1 (10)

6 (60) (-)

4 (10)

6 (10) (+)

3 (15)

DUMMY

0 (+)

0 (40) (-)

Sources

Warehouse
V1 = 3

V2 = 1

V3 = 3

U1 = 0

U2 = 3

U3 = 0

U4 = -3

0*

-2

0
56

TRANSPORTATION
Alternate Solution

S 12

Sources

Warehouse
A

1 (10)

6 (20)

4 (10)

6 (50)

3 (15)

DUMMY

0 (40)

Minimum Cost: Rs.515/57

TRANSPORTATION

Q 13
A steel company has three open hearth furnaces and
five rolling mills. Transportation cost (Rs. per ton) for
shipping steel from furnaces to rolling mills are as
shown in the following table:
Furnaces
M1
M2
M3
M4
M5
Capacity
F1

F2

12

F3

14

Demand

What is optimal shipping cost schedule?

58

TRANSPORTATION
S 13

Furnaces

M1

M2

M3

M4

M5

DUMMY

F1

2 (4)

3 (+)

2 (4)

0 () (-)

F2

2 (4)

1 (8)

F3

6 (4)

4 (6) (-)

0 (4) (+)

Furnaces

V1 = 6

V2 = 2

V3 = 4

V4 = 2

V5 = 1

V6 = 0

U1 = 0

6*

4*

U2 = 0

6*

U3 = 0

59

TRANSPORTATION
S 13

Furnaces

M1

M2

M3

M4

M5

DUMMY

F1

4 (+)

2 (4)

3 () (-)

2 (4)

F2

2 (4)

1 (8)

F3

6 (4) (-)

4 (6) (+)

0 (4)

Furnaces

V1 = 5

V2 = 2

V3 = 3

V4 = 2

V5 = 1

V6 = -1

U1 = 0

5*

-1

U2 = 0

-1

U3 = 1

60

TRANSPORTATION
S 13

Furnaces

M1

M2

M3

M4

M5

DUMMY

F1

4 ()

2 (4)

2 (4)

F2

2 (4)

1 (8)

F3

6 (4)

4 (6)

0 (4)

Furnaces

V1 = 5

V2 = 2

V3 = 3

V4 = 2

V5 = 1

V6 = -1

U1 = 0

-2

U2 = 0

-2

U3 = 1

61

TRANSPORTATION
S 13

Minimum Cost: Rs.80/-

62

TRANSPORTATION

Q 14
Find the optimal solution for the following cost
matrix.
D1
D2
D3
D4
Availability
O1

26

22

17

120

O2

24

37

70

O3

32

37

20

15

50

Demand

60

40

30

110

240
63

TRANSPORTATION
D1

D2

D3

D4

O1

26

22 (40)

17

4 (80)

O2

24 (10) (+)

37

9 (30)

7 (30) (-)

O3

32 (50) (-)

37

20

15 (+)

S 14

V1 = 21

V2 = 22

V3 = 6

V4 = 4

U1 = 0

21

22

U2 = 3

24

25

U3 = 11

32

33

17

15*

64

TRANSPORTATION
S 14

Minimum Cost = Rs.3520/-

65

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