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MODI Method Examples, Transportation Problem

The document provides an example of using the MODI (Modified Distribution) method to solve a transportation problem. It presents a transportation problem with supply and requirement amounts for 4 distribution centers and 3 plants. The initial basic feasible solution is found using the Matrix Minimum method. Opportunity costs are then calculated and the smallest negative cost is used to find a closed path, with units reallocated accordingly. This process is repeated, reallocating units based on the smallest negative opportunity cost, until the optimal solution is reached where all opportunity costs are non-negative. The minimum transportation cost for the optimal solution is presented.

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Nikhil Kumbhar
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5K views4 pages

MODI Method Examples, Transportation Problem

The document provides an example of using the MODI (Modified Distribution) method to solve a transportation problem. It presents a transportation problem with supply and requirement amounts for 4 distribution centers and 3 plants. The initial basic feasible solution is found using the Matrix Minimum method. Opportunity costs are then calculated and the smallest negative cost is used to find a closed path, with units reallocated accordingly. This process is repeated, reallocating units based on the smallest negative opportunity cost, until the optimal solution is reached where all opportunity costs are non-negative. The minimum transportation cost for the optimal solution is presented.

Uploaded by

Nikhil Kumbhar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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8/20/2014 MODI Method Examples, Transportation Problem

http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 1/4
MODI Method Examples:
Transportation Problem
In the previous section, we provided the steps in MODI method
(modified distribution method) to solve a transportation
problem. In this section, we provide an example. Let's solve the
following example:
This example is the largest and the most involved
you have read so far. So you must read the steps
and the explanation mindfully.
Example: MODI Method (Modified
Distribution Method)
Consider the transportation problem presented in the following
table.
Distribution centre
D1 D2 D3 D4 Supply
Plant
P1 19 30 50 12 7
P2 70 30 40 60 10
P3 40 10 60 20 18
Requirement 5 8 7 15
Determine the optimal solution of the above problem.
Solution.
An initial basic feasible solution is obtained by Matrix Minimum
Method and is shown in table 1.
Table 1
Distribution centre
D1 D2 D3 D4 Supply
Plant
P1
19 30 50 7
P2
30 60 10
P3
60 18
Requirement 5 8 7 15
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8/20/2014 MODI Method Examples, Transportation Problem
http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 2/4
Initial basic feasible solution
12 X 7 + 70 X 3 + 40 X 7 + 40 X 2 + 10 X 8 + 20 X 8 = Rs. 894.
Calculating u
i
and v
j
using u
i
+ v
j
= c
ij
Substituting u
1
= 0, we get
u
1
+ v
4
= c
14
0 + v
4
= 12 or v
4
= 12
u
3
+ v
4
= c
34
u
3
+ 12 = 20 or u
3
= 8
u
3
+ v
2
= c
32
8 + v
2
= 10 or v
2
= 2
u
3
+ v
1
= c
31
8 + v
1
= 40 or v
1
= 32
u
2
+ v
1
= c
21
u
2
+ 32 = 70 or u
2
= 38
u
2
+ v
3
= c
23
38 + v
3
= 40 or v
3
= 2
Table 2
Distribution centre
D1 D2 D3 D4 Supply u
i
Plant
P1
19 30 50 7 0
P2
30 60 10 38
P3
60 18 8
Requirement 5 8 7 15
v
j
32 2 2 12
Calculating opportunity cost using c
ij
( u
i
+ v
j
)
Unoccupied cells Opportunity cost
(P
1
, D
1
) c
11
( u
1
+ v
1
) = 19 (0 + 32) = 13
(P
1
, D
2
) c
12
( u
1
+ v
2
) = 30 (0 + 2) = 28
(P
1
, D
3
) c
13
( u
1
+ v
3
) = 50 (0 + 2) = 48
(P
2
, D
2
) c
22
( u
2
+ v
2
) = 30 (38 + 2) = 10
(P
2
, D
4
) c
14
( u
2
+ v
4
) = 60 (38 + 12) = 10
(P
3
, D
3
) c
33
( u
3
+ v
3
) = 60 (8 + 2) = 50
Table 3
Distribution centre
D1 D2 D3 D4 Supply u
i
Plant
P1
7 0
P2
10 38
P3
18 8
Requirement 5 8 7 15
8/20/2014 MODI Method Examples, Transportation Problem
http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 3/4
v
j
32 2 2 12
Now choose the smallest (most) negative value from opportunity
cost (i.e., 13) and draw a closed path from P1D1. The following
table shows the closed path.
Table 4
Choose the smallest value with a negative position on the closed
path(i.e., 2), it indicates the number of units that can be shipped
to the entering cell. Now add this quantity to all the cells on the
corner points of the closed path marked with plus signs and
subtract it from those cells marked with minus signs. In this way,
an unoccupied cell becomes an occupied cell.
Now again calculate the values for u
i
& v
j
and opportunity cost.
The resulting matrix is shown below.
Table 5
Distribution centre
D1 D2 D3 D4 Supply u
i
Plant
P1
7 0
P2
10 51
P3
18 8
Requirement 5 8 7 15
v
j
19 2 11 12
Choose the smallest (most) negative value from opportunity cost
(i.e., 23). Now draw a closed path from P2D2 .
Table 6
8/20/2014 MODI Method Examples, Transportation Problem
http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 4/4
About the Author
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505 Recommend
Now again calculate the values for u
i
& v
j
and opportunity cost
Don't panic. The
following table is
the last table.
"Every complex human problem has an easy
solution - neat & small, but wrong." - Vinay
Chhabra & Manish Dewan
Table 7: MODI Method
Distribution centre
D1 D2 D3 D4 Supply u
i
Plant
P1
7 0
P2
10 28
P3
18 8
Requirement 5 8 7 15
v
j
19 2 12 12
Since all the current opportunity costs are nonnegative, this is the
optimal solution. The minimum transportation cost is: 19 X 5 + 12 X
2 + 30 X 3 + 40 X 7 + 10 X 5 + 20 X 13 = Rs. 799

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