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Transportation method-APPENDIX

This document summarizes the steps taken to optimally allocate transportation resources from multiple sources (F1, F2, F3) to multiple destinations (P1, P2, P3, P4) using the MODI method. It shows the initial allocation with a total cost of 10,000. The first modification reduces the cost to 9,400. The second modification further reduces the cost to 8,700. The third modification reduces it to 8,300. The final optimal allocation is shown with a total cost of 7,900. The solution is deemed optimal because the net cost index is positive for all vacant cells, meaning the solution cannot be further improved.

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0% found this document useful (0 votes)
56 views7 pages

Transportation method-APPENDIX

This document summarizes the steps taken to optimally allocate transportation resources from multiple sources (F1, F2, F3) to multiple destinations (P1, P2, P3, P4) using the MODI method. It shows the initial allocation with a total cost of 10,000. The first modification reduces the cost to 9,400. The second modification further reduces the cost to 8,700. The third modification reduces it to 8,300. The final optimal allocation is shown with a total cost of 7,900. The solution is deemed optimal because the net cost index is positive for all vacant cells, meaning the solution cannot be further improved.

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simson
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Transportation -

appendix

F. M. Kapepiso
Exercise 1- Suggested using MODI method
Initial solution Northwest method

To P1 P2 P3 P4 Supply Uj
From
F1 4 1 6 7 500 0
300 200 +3 +7
F2 6 5 7 3 600 4
-2 200 400 -1

F3 3 6 8 5 900 5
-6 0 100 800

Demand 300 400 500 800 2000


Vj 4 1 3 0
Total cost= 10000
First modified allocation

To P1 P2 P3 P4 Supply Uj
From
F1 4 1 6 7 500 0
200 300 +3 +1
F2 6 5 7 3 600 4
-2 100 500 -7

F3 3 6 8 5 900 -1
100 +6 +6 800

Demand 300 400 500 800 2000


Vj 4 1 3 6
Total cost=9400
Second modified allocation

To P1 P2 P3 P4 Supply Uj
From
F1 4 1 6 7 500 0
100 400 -4 +1
F2 6 5 7 3 600 -3
+5 +7 500 100

F3 3 6 8 5 900 -1
200 +6 -1 700

Demand 300 400 500 800 2000


Vj 4 1 10 6
Total cost=8700
Third modified allocation

To P1 P2 P3 P4 Supply Uj
From
F1 4 1 6 7 500 0
+4 400 100 +5
F2 6 5 7 3 600 1
+5 +3 400 200

F3 3 6 8 5 900 3
300 +2 -1 600

Demand 300 400 500 800 2000


Vj 0 1 6 2
Total cost=8300
Final table

To P1 P2 P3 P4 Supply Uj
From
F1 4 1 6 7 500 0
+3 400 100 +4
F2 6 5 7 3 600 0
+5 +4 +1 600

F3 3 6 8 5 900 2
300 +3 400 200

Demand 300 400 500 800 2000


Vj 1 1 6 3
Total cost=7900

Solution is optimal because the net cost index is positive in respect of all the vacant cells,
the solution cannot be improved.
Thanks

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