1

TRANSPORTATION AND
ASSIGNMENT PROBLEMS
Transportation problem
Example
P&T Company produces canned peas.
Peas are prepared at three canneries (Bellingham,
Eugene and Albert Lea).
Shipped by truck to four distributing warehouses
(Sacramento, Salt Lake City, Rapid City and
Albuquerque). 300 truckloads to be shipped.
Problem: minimize the total shipping cost.
107
2
P&T company problem
108
Shipping data for P&T problem
109
Shipping cost per truckload in
Warehouse
1 2 3 4 Output
1 464 513 654 867 75
Cannery 2 352 416 690 791 125
3 995 682 388 685 100
Allocation 80 65 70 85 300
3
Network representation
110
Formulation of the problem
111
11 12 13 14 21 22
23 24 31 32 33 34
minimize 464 513 654 867 352 416
690 791 995 682 388 685
Z x x x x x x
x x x x x x
= + + + + +
+ + + + + +
11 12 13 14
21 22 23 24
31 32 33 34
11 21 31
12 22 32
13 23 33
14 24 34
subject to 75
125
100
80
65
70
85
and 0 ( 1,2,3; 1,2,3,4)
ij
x x x x
x x x x
x x x x
x x x
x x x
x x x
x x x
x i j
+ + + =
+ + + =
+ + + =
+ + =
+ + =
+ + =
+ + =
> = =
4
Constraints coefficients for P&T Co.
112
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1
1 1 1
1 1 1
1 1 1
A
(

(
`
(

(
)
(
=

(

(

(
`
(

(

)
Coefficient of:
11 12 13 14 21 22 23 24 31 32 33 34
x x x x x x x x x x x x
Cannery
constraints
Warehouse
constraints
Transportation problem model
Transportation problem: distributes anycommodity
fromanygroup of sourcesto any group of
destinations, minimizing the total distribution cost.
113
Prototype example General problem
Truckload of canned peas Units of a commodity
Three canneries msources
Four warehouses ndestinations
Output from canneryi Supplys
i
from sourcei
Allocation to warehousej Demandd
j
at destinationj
Shipping cost per truckload from
canneryi to warehousej
Cost c
ij
per unit distributed from
sourcei to destinationj
5
Transportation problem model
Each source has a certainsupplyof units to distribute
to the destinations.
Each destination has a certaindemandfor units to be
received from the source .
Requirements assumption: Each source has a fixed
supplyof units, which must be entirely distributed to
the destinations. Similarly, each destination has a fixed
demandfor units, which must be entirely received
from the sources.
114
Transportation problem model
The feasible solutions property: a transportation
problem has feasible solution if and only if
If the supplies represent maximumamounts to be
distributed, adummy destinationcan be added.
Similarly, if the demands represent maximum
amounts to be received, adummy sourcecan be
added.
115
1 1
m n
i j
i j
s d
= =
=

6
Transportation problem model
The cost assumption: the cost of distributing units
from any source to any destination isdirectly
proportional to the number of units distributed.
Thus, this cost is theunit cost of distribution timesthe
number of units distributed.
Integer solution property: for transportation problems
where everys
i
andd
j
have an integer value, all basic
variables ineveryBF solution also haveinteger values.
116
Parameter table for transp. problem
117
Cost per unit distributed
Destination
1 2 n Supply
Source
1 c
11
c
12
c
1n
s
1
2 c
21
c
22
c
2n
s
2

m c
m1
c
m2
c
mn
s
m
Demand d
1
d
2
d
n
7
Transportation problem model
The model: any problem fits the model for a
transportation problem if it can be described by a
parameter tableand if it satisfies both the
requirements assumptionand thecost assumption.
The objective is to minimize the total cost of
distributing the units.
Some problems that have nothing to do with
transportation can be formulated as a transportation
problem.
118
Network representation
119
8
Formulation of the problem
Z: the total distribution cost
x
ij
: number of units distributed from sourcei to destinationj
120
1 1
minimize ,
m n
ij ij
i j
Z c x
= =
=

1
1
subject to
, for 1,2, , ,
, for 1,2, , ,
n
ij i
j
m
ij j
i
x s i m
x d j n
=
=
= =
= =

and 0, for all and .

(
)

Coefficient of:
11 12 1 21 22 2 1 2
... ... ... ...
n n m m mn
x x x x x x x x x
Supply
constraints
Demand
constraints
9
Example: solving with Excel
122
Example: solving with Excel
123
10
Transportation simplex method
Version of the simplex calledtransportation simplex
method.
Problems solved by hand can use atransportation
simplex tableau.
Dimensions:
For a transportation problem withmsources andn
destinations, simplex tableauhasm+n+1 rows and
(m+1)(n+1) columns.
Thetransportation simplex tableauhas onlymrows
andncolumns!
124
Transportation simplex tableau (TST)
125
c
ij
-u
i
-v
j
Destination
1 2 n Supply u
i
Source
1
c
11
c
12
c
1n s
1
2
c
21
c
22
c
2n s
2

m
c
m1
c
m2
c
mn s
n
Demand d
1
d
2
d
n
Z=
v
j
Additional
information to be
added to each cell:
c
ij
x
ij
c
ij
If x
ij
is a basic
variable:
If x
ij
is a nonbasic
variable:
11
Transportation simplex method
Initialization: construct an initial BF solution. To begin,
all source rows and destination columns of the TST are
initially under consideration for providing a basic
variable (allocation).
1. From the rows and columns still under consideration,
select the next basic variable (allocation) according to
one of the criteria:
Northwest corner rule
Vogels approximation method
Russells approximation method
126
Transportation simplex method
2. Make that allocation large enough to exactly use up
the remaining supply in its row or the remaining
demand in its column (whatever is smaller).
3. Eliminate that row or column (whichever had the
smaller remaining supply or demand) from further
consideration.
4. If only one row or one column remains under
consideration, then the procedure is completed.
Otherwise return to step 1.
Go to the optimality test.
127
12
Transportation simplex method
Optimality test: deriveu
i
andv
j
by selecting the row
having the largest number of allocations, setting its
u
i
=0, and then solving the set of equationsc
ij
=u
i
+v
j
for each(i,j) such that x
ij
is basic. If c
ij
- u
i
- v
j
0for
every(i,j) such that x
ij
isnonbasic, then the current
solution is optimal and stop. Otherwise, go to an
iteration.
128
Transportation simplex method
Iteration:
1. Determine the entering basic variable: select the
nonbasic variablex
ij
having thelargest (in absolute
terms) negativevalue of c
ij
- u
i
- v
j
.
2. Determine the leaving basic variable: identify the
chain reaction required to retain feasibility when the
entering basic variable is increased. From the donor
cells, select the basic variable having thesmallest
value.
129
13
Transportation simplex method
Iteration:
3. Determine the new BF solution: add the value of the
leaving basic variable to the allocation for each
recipient cell. Subtract this value from the allocation
for each donor cell.
4. Apply theoptimality test.
130
Assignment problem
Special type of linear programming whereassignees
are being assigned to performtasks.
Example: employees to be given work assignments
Assignees can be machines, vehicles, plants or even
time slots to be assigned tasks.
131
14
Assumptions of assignment problems
1. The number of assignees and the number of tasks are
the same, and is denoted byn.
2. Each assignee is to be assigned to exactlyonetask.
3. Each task is to be performed by exactlyoneassignee.
4. There is a cost c
ij
associated with assigneei
performing taskj (i, j =1, 2, , n).
5. The objective is to determine how well n assignments
should be made to minimize the total cost.
132
Prototype example
Job Shop Companyhas purchased three new
machines of different types, and there are four
different locations in the shop where a machine can be
installed.
Objective: assign machines to locations.
133
Cost per hour of material handling (in )
Location
1 2 3 4
1 13 16 12 11
Machine 2 15 13 20
3 5 7 10 6
15
Formulation as an assignment problem
We need thedummy machine 4, and an extremely
large cost M:
Optimal solution:machine 1 to location 4, machine 2
to location 3 and machine 3 to location 1 (total cost of
29per hour).
134
Location
1 2 3 4
1 13 16 12 11
Assignee
(Machine)
2 15 M 13 20
3 5 7 10 6
4(D) 0 0 0 0
Assignment problem model
Decision variables
135
1 1
minimize ,
n n
ij ij
i j
Z c x
= =
=

1
1
subject to
1, for 1,2, , ,
1, for 1,2, , ,
n
ij
j
n
ij
i
x i n
x j n
=
=
= =
= =

and 0, for all and

16
Assignment vs. Transportation prob.
Assignment problem is a special type of transportation
problem wheresources=assigneesanddestinations=
tasksand:
#sourcesm =#destinations n;
every supplys
i
=1;
every demandd
j
=1.
Due to theinteger solution property, sinces
i
andd
j
are
integers, every BF solutionis an integer solution for an
assignment problem. We may delete the binary
restriction and obtain alinear programmingproblem!
136
Network representation
137
17
Parameter table as in transportation
138
Cost per unit distributed
Destination
1 2 n Supply
Source
1 c
11
c
12
c
1n
1
2 c
21
c
22
c
2n
1

m =n c
n1
c
n2
c
nn
1
Demand 1 1 1
Concluding remarks
A special algorithm for the assignment problem is the
Hungarian algorithm(more efficient).
Thereforestreamlined algorithmswere developed to
explore thespecial structureof some linear
programming problems: transportation or assignment
problems.
Transportation and assignment problems are special
cases of minimum cost flow problems.
Network simplex methodsolves this type of problems.
139