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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)

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

W

DUMMY

70

30 (5)

60

40 (5)

60 (3) (-)

80

0 (2) (+)

50

80

40 (7) (+)

0 () (-)

80

40 (+)

30 (3) (-)

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)

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

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

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

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

15

Q4

TRANSPORTATION

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

21

Q5

TRANSPORTATION

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

26

Q6

TRANSPORTATION

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

30

Q7

TRANSPORTATION

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

33

Q8

TRANSPORTATION

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.

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

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)

Q9

TRANSPORTATION

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

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)

43

TRANSPORTATION

Q 10

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

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

47

TRANSPORTATION

S 10

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

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

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)

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

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

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

65

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