OPERATION RESEARCH Prof.

SUDHIR B S

Operation Research
MODULE-3

3.1 Introduction to Transportation Problem The Transportation problem is to

transport various amounts of a single homogeneous commodity that are initially stored at
various origins, to different destinations in such a way that the total transportation cost is a
minimum.

It can also be defined as to ship goods from various origins to various destinations in
such a manner that the transportation cost is a minimum.

The availability as well as the requirements is finite. It is assumed that the cost of
shipping is linear.

Mathematical Formulation
th
Let there be m origins, i origin possessing ai units of a certain
product

Let there be n destinations, with destination j requiring bj units of a certain

product
th th
Let cij be the cost of shipping one unit from i source to j
destination
th th
Let xij be the amount to be shipped from i source to j
destination

It is assumed that the total availabilities Σai satisfy the total requirements
Σbj i.e.

Σai = Σbj (i = 1, 2, 3 … m and j = 1, 2, 3

…n)

The problem now, is to determine non-negative of xij satisfying both the availability
constraints

as well as requirement
constraints

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

and the minimizing cost of transportation

(shipping)

This special type of LPP is called as Transportation

Problem.

Tabular Representation

Let ‘m’ denote number of factories (F1, F2 … Fm)

Let ‘n’ denote number of warehouse (W1, W2 …

Wn) W→

F W1 W2 … Wn Capacities
↓ (Availability)
F1 c11 c12 … c1n a1
F2 c21 c22 … c2n a2
. . . . . .
. . . . . .
Fm cm1 cm2 … cmn am
Required b1 b2 … bn Σai = Σbj

W→
F Capacities
↓ W1 W2 … Wn
(Availability)
F1 x11 x12 … x1n a1
F2 x21 x22 … x2n a2
. . . . . .
. . . . . .
Fm xm1 xm2 … xmn am
Required b1 b2 … bn Σai = Σbj

In general these two tables are combined by inserting each unit cost cij with the
corresponding amount xij in the cell (i, j). The product cij xij gives the net cost of shipping
units from the factory Fi to warehouse Wj.

Some BasiDefinitions

 Feasible Solution
A set of non-negative individual allocations (xij ≥ 0) which simultaneously
removes deficiencies is called as feasible solution.

 Basic Feasible Solution

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OPERATION RESEARCH Prof. SUDHIR B S

A feasible solution to ‘m’ origin, ‘n’ destination problem is said to be basic if the
number
of positive allocations are m+n-1. If the number of allocations is less than m+n-1
then it is called as Degenerate Basic Feasible Solution. Otherwise it is called as
Non- Degenerate Basic Feasible Solution.
 Optimum Solution
A feasible solution is said to be optimal if it minimizes the total
transportation cost.

Methods for Initial Basic Feasible Solution

Some simple methods to obtain the initial basic feasible solution are
1. North-West Corner Rule
2. Row Minima Method
3. Column Minima Method
4. Lowest Cost Entry Method (Matrix Minima Method)
5. Vogel’s Approximation Method (Unit Cost Penalty Method)

North-West Corner Rule

Step 1
 The first assignment is made in the cell occupying the upper left-hand (north-west)
corner of the table.
 The maximum possible amount is allocated here i.e. x11 = min (a1, b1). This value of
x11
is then entered in the cell (1,1) of the transportation table.

Step 2
i. If b1 > a1, move vertically downwards to the second row and make the second
allocation of amount x21 = min (a2, b1 - x11) in the cell (2, 1).
ii. If b1 < a1, move horizontally right side to the second column and make the
second allocation of amount x12 = min (a1 - x11, b2) in the cell (1, 2).
iii. If b1 = a1, there is tie for the second allocation. One can make a second
allocation of magnitude x12 = min (a1 - a1, b2) in the cell (1, 2) or x21 = min (a2, b1 -
b1) in the cell (2, 1)

Find the initial basic feasible solution by using North-West Corner Rule

1. W→
F Factory
↓ W1 W2 W3 W4 Capacity
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Warehouse
5 8 7 14 34
Requirement

Solution
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OPERATION RESEARCH Prof. SUDHIR B S

W1 W2 W3 W5 Availability
5 2
F1 (19) (30) 7 2 0
6 3
F2 (30) (40) 9 3 0
4 14
F3 (70) (20) 18 14 0
5 8 7 14
Requirement 0 6 4 0
0 0

Initial Basic Feasible Solution

x11 = 5, x12 = 2, x22 = 6, x23 = 3, x33 = 4, x34 = 14
The transportation cost is 5 (19) + 2 (30) + 6 (30) + 3 (40) + 4 (70) + 14 (20) = Rs. 1015

2.

D1 D2 D3 D4 Supply
O1 1 5 3 3 34
O2 3 3 1 2 15
O3 0 2 2 3 12
O4 2 7 2 4 19
Demand 21 25 17 17 80

Solution

D1 D2 D3 D4 Supply
21 13
O1 (1) (5) 34 13 0
12 3
O2 (3) (1) 15 3 0
12
O3 (2) 12 0
O4 2 17 19 17
Demand 21 25 17(2) 17 (4)
0 12 14 0
0 2
0

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OPERATION RESEARCH Prof. SUDHIR B S

Initial Basic Feasible Solution

x11 = 21, x12 = 13, x22 = 12, x23 = 3, x33 = 12, x43 = 2, x44 = 17
The transportation cost is 21 (1) + 13 (5) + 12 (3) + 3 (1) + 12 (2) + 2 (2) + 17 (4) = Rs. 221

3.
From To Supply
2 11 10
4 3 7
1 4 7 2 1 8
3 1 4 8 12 9

Demand 3 3 4 5 6

Solution

From 3To 1 Supply

(2) (11)
2 4 2 4 1 0
(4) (7) (2)
3 6 8 6 2 0
(8) (12) 9 6 0
3 3 4 5 6
Demand 0 2 0 3 0
0 0

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Initial Basic Feasible Solution

x11 = 3, x12 = 1, x22 = 2, x23 = 4, x24 = 2, x34 = 3, x35 = 6
The transportation cost is 3 (2) + 1 (11) + 2 (4) + 4 (7) + 2 (2) + 3 (8) + 6 (12) = Rs. 153

Row Minima Method

Step 1
 The smallest cost in the first row of the transportation table is determined.
 Allocate as much as possible amount xij = min (a1, bj) in the cell (1, j) so that the
capacity of the origin or the destination is satisfied.

Step 2
 If x1j = a1, so that the availability at origin O1 is completely exhausted, cross out the
first row of the table and move to second row.
th
 If x1j = bj, so that the requirement at destination Dj is satisfied, cross out the j
column and reconsider the first row with the remaining availability of origin O1.
 If x1j = a1 = bj, the origin capacity a1 is completely exhausted as well as the
requirement at destination Dj is satisfied. An arbitrary tie-breaking choice is made.
th
Cross out the j column and make the second allocation x1k = 0 in the cell (1, k)
with c1k being the new minimum cost in the first row. Cross out the first row and
move to second row.

Step 3
Repeat steps 1 and 2 for the reduced transportation table until all the requirements are
satisfied

Determine the initial basic feasible solution using Row Minima M ethod

1.

Availab
W1 W2 W3 W4 ility
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 80 70 20 18
Requirement 5 8 7 14

Solution

W1 W2 W3 W4
7
X
F1 (19) (30) (50) (10)
F2 9
(70) (30) (40) (60)

(40) (80) (70) (20) 6

Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

F3 18
5 8 7 7

W1 W2 W3 W4
7 X
F1 (19) (30) (50) (10)
8
F2 (70) (30) (40) (60) 1
F3 18
(40) (80) (70) (20)
5 X 7 7

W1 W2 W3 W4
7
(10) X
F1 (19) (30) (50)
8 1
X
F2 (70) (30) (40) (60)

F3 (40) (80) (70) (20) 18

5 X 6 7

W1 W2 W3 W4
7
(10) X
F1 (19) (30) (50)
8 1
(70) (30) (40) (60) X
F2
5 6 7
(40) (80) (70) (20) X
F3
X X X X

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OPERATION RESEARCH Prof. SUDHIR B S

Initial Basic Feasible Solution

x14 = 7, x22 = 8, x23 = 1, x31 = 5, x33 = 6, x34 = 7
The transportation cost is 7 (10) + 8 (30) + 1 (40) + 5 (40) + 6 (70) + 7 (20) = Rs. 1110

2.
A B C Availability
I 50 30 220 1
II 90 45 170 4
III 250 200 50 4
Requirement 4 2 3

Solution

A B C Availability
1
I 1 0
(30)
3 1
II 4 3 0
(90) (45)
1 3
III 4 1 0
(250) (50)
Requirement 4 2 3
1 1 0
0 0

Initial Basic Feasible Solution

x12 = 1, x21 = 3, x22 = 1, x31 = 1, x33 = 3
The transportation cost is 1 (30) + 3 (90) + 1 (45) + 1 (250) + 3 (50) = Rs. 745

Column Minima Method

Step 1
Determine the smallest cost in the first column of the transportation table. Allocate xi1 = min
(ai, b1) in the cell (i, 1).

Step 2
 If xi1 = b1, cross out the first column of the table and move towards right to the
second column
th
 If xi1 = ai, cross out the i row of the table and reconsider the first column with
the remaining demand.
th
 If xi1 = b1= ai, cross out the i row and make the second allocation xk1 = 0 in the cell (k,
1) with ck1 being the new minimum cost in the first column, cross out the column and
move towards right to the second column.

Step 3

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OPERATION RESEARCH Prof. SUDHIR B S

Repeat steps 1 and 2 for the reduced transportation table until all the requirements are
satisfied.

Use Column Minima method to determine an initial basic feasible solution

1.
W1 W2 W3 W4 Availability
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 80 70 20 18
Requirement 5 8 7 14

Solution

W1 W2 W3 W4
5
F1 (19) (30) (50) (10) 2

9
F2 (70) (30) (40) (60)

(40) (80)F3 (70) (20)

18
X 8 7 14

W1 W2 W3 W4
5 2
F1 X
(19) (30) (50) (10)
2 9
F (70) (30) (40) (60)
3
(40) (80)F (70) (20)
18
X 6 7 14

W1 W2 W3 W4
5 2
F1 X
(19) (30) (50) (10)
6
F2 (70) (30) (40) (60) 3

(40) (80) (70) (20) 18

F3
X X 7 14

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OPERATION RESEARCH Prof. SUDHIR B S

W1 W2 W3 W4

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OPERATION RESEARCH Prof. SUDHIR B S

5 2
F1 X
(19) (30) (50) (10)
6 3
F2 (30) (40) X
(70) (60)
3
(40) (80) F (70) (20)
18
X X 4 14

W1 W2 W3 W4
5 2
F1 X
(19) (30) (50) (10)
6 3
F2 (70) (30) (40) (60) X
4
F3 (40) (80) (70) (20) 14
X X X 14

W1 W2 W3 W4
5 2
F1 X
(19) (30) (50) (10)
6 3
F2 (70) (30) (40) (60) X
4 14
F3 X
(40) (80) (70) (20)
X X X X

Initial Basic Feasible Solution

x11 = 5, x12 = 2, x22 = 6, x23 = 3, x33 = 4, x34 = 14

The transportation cost is 5 (19) + 2 (30) + 6 (30) + 3 (40) + 4 (70) + 14 (20) = Rs. 1015

2.
D1 D2 D3 D4 Availability
S1 11 13 17 14 250
S2 16 18 14 10 300
S3 21 24 13 10 400
Requirement 200 225 275 250

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OPERATION RESEARCH Prof. SUDHIR B S

Solution
D1 D2 D3 D4
S1 200 50
250 50 0
(11) (13)
S2 175 125
(18) (10) 300 125 0

S3 275 125
400 125 0
(13) (10)
200 225 275 250
0 175 0 0
0
Initial Basic Feasible Solution
x11 = 200, x12 = 50, x22 = 175, x24 = 125, x33 = 275, x34 = 125
The transportation cost is
200 (11) + 50 (13) + 175 (18) + 125 (10) + 275 (13) + 125 (10) = Rs. 12075

Lowest Cost Entry Method (Matrix Minima Method)

Step 1
Determine the smallest cost in the cost matrix of the transportation table. Allocate xij = min
(ai, bj) in the cell (i, j)

Step 2
th
 If xij = ai, cross out the i row of the table and decrease bj by ai. Go to step 3.
th
 If xij = bj, cross out the j column of the table and decrease ai by bj. Go to step 3.
th th
 If xij = ai = bj, cross out the i row or j column but not both.

Step 3
Repeat steps 1 and 2 for the resulting reduced transportation table until all the requirements
are satisfied. Whenever the minimum cost is not unique, make an arbitrary choice among
the
minima.

Find the initial basic feasible solution using Matrix Minima method

1.
W1 W2 W3 W4 Availability
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Requirement 5 8 7 14

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OPERATION RESEARCH Prof. SUDHIR B S

Solution

W1 W2 W3 W4
F1 7
(19) (30) (50) (10)
F2 9
(70) (30) (40) (60)
F3 8 10
(40) (8) (70) (20)
5 X 7 14

W1 W2 W3 W4
7
F1 X
(19) (30) (50) (10)
F2 9
(70) (30) (40) (60)
8
F3 10
(40) (8) (70) (20)
5 X 7 7

W1 W2 W3 W4
7
F1 X
(19) (30) (50) (10)
F2 9
(70) (30) (40) (60)
8 7
F3 3
(40) (8) (70) (20)
5 X 7 X

W1 W2 W3 W4
7
F1 X
(19) (30) (50) (10)
F2 9
(70) (30) (40) (60)
3 8 7
F3 X
(40) (8) (70) (20)
2 X 7 X

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OPERATION RESEARCH Prof. SUDHIR B S

W1 W2 W3 W4
7
F1 (10) X
(19) (30) (50)
2 7
F2 (70) (40) X
(30) (60)
3 8 7
F3 X
(40) (8) (70) (20)
X X X X

Initial Basic Feasible Solution

x14 = 7, x21 = 2, x23 = 7, x31 = 3, x32 = 8, x34 = 7
The transportation cost is 7 (10) + 2 (70) + 7 (40) + 3 (40) + 8 (8) + 7 (20) = Rs. 814

2.
To Availability
2 11 10 3 7 4
From 1 4 7 2 1 8
3 9 4 8 12 9
Requirement 3 3 4 5 6

Solution
To
4
(3) 4 0
3 5
8 5 0
(1) (1)
From
3 4 1 1
9 5 4 1 0
(9) (4) (8) (12)
3 3 4 5 6
0 0 0 1 1
0 0
Initial Basic Feasible Solution
x14 = 4, x21 = 3, x25 = 5, x32 = 3, x33 = 4, x34 = 1, x35 = 1
The transportation cost is 4 (3) + 3 (1) + 5(1) + 3 (9) + 4 (4) + 1 (8) + 1 (12) = Rs. 78

Vogel’s Approximation Method (Unit Cost Penalty Method)

Step1

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OPERATION RESEARCH Prof. SUDHIR B S

For each row of the table, identify the smallest and the next to smallest cost. Determine the
difference between them for each row. These are called penalties. Put them aside by enclosing
them in the parenthesis against the respective rows. Similarly compute penalties for each
column.

Step 2

Identify the row or column with the largest penalty. If a tie occurs then use an arbitrary
th
choice. Let the largest penalty corresponding to the i row have the cost cij. Allocate the largest
th th
possible amount xij = min (ai, bj) in the cell (i, j) and cross out either i row or j column in
the usual manner.

Step 3

Again compute the row and column penalties for the reduced table and then go to step 2.
Repeat the procedure until all the requirements are satisfied.

Find the initial basic feasible solution using vogel’s approximation

method

1.

W1 W2 W3 W4 Availability
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Requirement 5 8 7 14

Solution

W1 W2 W3 W4 Availability Penalty
F1 19 30 50 10 7 19-10=9
F2 70 30 40 60 9 40-30=10
F3 40 8 70 20 18 20-8=12
Requirement 5 8 7 14
Penalty 40-19=21 30-8=22 50-40=10 20-10=10

W1 W2 W3 W4 Availability Penalty
F1 (19) (30) (50) (10) 7 9
F2 (70) (30) (40) (60) 9 10
F3 (40) 8(8) (70) (20) 18/10 12
Requirement 5 8/0 7 14
Penalty 21 22 10 10

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OPERATION RESEARCH Prof. SUDHIR B S

W1 W2 W3 W4 Availability Penalty
F1 5(19) (30) (50) (10) 7/2 9
F2 (70) (30) (40) (60) 9 20
F3 (40) 8(8) (70) (20) 18/10 20
Requirement 5/0 X 7 14
Penalty 21 X 10 10

W1 W2 W3 W4 Availability Penalty
F1 5(19) (30) (50) (10) 7/2 40
F2 (70) (30) (40) (60) 9 20
F3 (40) 8(8) (70) 10(20) 18/10/0 50
Requirement X X 7 14/4
Penalty X X 10 10

W1 W2 W3 W4 Availability Penalty
F1 5(19) (30) (50) 2(10) 7/2/0 40
F2 (70) (30) (40) (60) 9 20
F3 (40) 8(8) (70) 10(20) X X
Requirement X X 7 14/4/2
Penalty X X 10 50

W1 W2 W3 W4 Availability Penalty
F1 5(19) (30) (50) 2(10) X X
F2 (70) (30) 7(40) 2(60) X X
F3 (40) 8(8) (70) 10(20) X X
Requirement X X X X
Penalty X X X X

Initial Basic Feasible Solution

x11 = 5, x14 = 2, x23 = 7, x24 = 2, x32 = 8, x34 = 10
The transportation cost is 5 (19) + 2 (10) + 7 (40) + 2 (60) + 8 (8) + 10 (20) = Rs. 779

2.
Stores Availability
I II III IV
A 21 16 15
11 13
Warehouse B 17 18 14 23 13
C 32 27 18 41 19
Requirement 6 10 12 15

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Solution
Stores Availability Penalty
I II III IV
A (21) (16) (15) (13) 11 2
Warehouse B (17) (18) (14) (23) 13 3
C (32) (27) (18) (41) 19 9
Requirement 6 10 12 15
Penalty 4 2 1 10

Stores Availability Penalty

I II III IV
A (21) (16) (15) 11(13) 11/0 2
Warehouse B (17) (18) (14) (23) 13 3
C (32) (27) (18) (41) 19 9
Requirement 6 10 12 15/4
Penalty 4 2 1 10

Stores Availability Penalty

I II III IV
A (21) (16) (15) 11(13) X X
Warehouse B (17) (18) (14) 4(23) 13/9 3
C (32) (27) (18) (41) 19 9
Requirement 6 10 12 15/4/0
Penalty 15 9 4 18

Stores Availability Penalty

I II III IV
A (21) (16) (15) 11(13) X X
Warehouse B 6(17) (18) (14) 4(23) 13/9/3 3
C (32) (27) (18) (41) 19 9
Requirement 6/0 10 12 X
Penalty 15 9 4 X

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Stores Availability Penalty

I II III IV
A (21) (16) (15) 11(13) X X
Warehouse B 6(17) 3(18) (14) 4(23) 13/9/3/0 4
C (32) (27) (18) (41) 19 9
Requirement X 10/7 12 X
Penalty X 9 4 X

Stores Availability Penalty

I II III IV
A (21)
X (16) X X(15) 11(13)
XX X
Warehouse B 6(17) 3(18) (14) 4(23)
C (32) 7(27) 12(18) (41)
Requirement X X X X
Penalty X X X X

Initial Basic Feasible Solution

x14 = 11, x21 = 6, x22 = 3, x24 = 4, x32 = 7, x33 = 12
The transportation cost is 11 (13) + 6 (17) + 3 (18) + 4 (23) + 7 (27) + 12 (18) = Rs. 796

Examining the Initial Basic Feasible Solution f or Non-Degeneracy

Examine the initial basic feasible solution for non-degeneracy. If it is said to be non-
degenerate then it has the following two properties

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

 Initial basic feasible solution must contain exactly m + n – 1 number of

individual allocations.
 These allocations must be in independent positions

Independent Positions

  
  
 

 
 
 

Non-Independent Positions

3.2 Transportation Algorithm for Minimization Problem (MODI Method)

Step 1
Construct the transportation table entering the origin capacities ai, the destination requirement
bj
and the cost cij

Step 2
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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Find an initial basic feasible solution by vogel’s method or by any of the given
method.

Step 3
For all the basic variables xij, solve the system of equations ui + vj = cij, for all i, j for which
cell (i, j) is in the basis, starting initially with some u i = 0, calculate the values of ui and vj
on the transportation table

Step 4
Compute the cost differences dij = cij – ( ui + vj ) for all the non-basic
cells

Step 5
Apply optimality test by examining the sign of each
dij
 If all dij ≥ 0, the current basic feasible solution is optimal
 If at least one dij < 0, select the variable xrs (most negative) to enter the basis.
 Solution under test is not optimal if any dij is negative and further improvement
is required by repeating the above process.

Step 6
Let the variable xrs enter the basis. Allocate an unknown quantity Ө to the cell (r, s). Then
construct a loop that starts and ends at the cell (r, s) and connects some of the basic cells. The
amount Ө is added to and subtracted from the transition cells of the loop in such a manner
that the availabilities and requirements remain satisfied.

Step 7
Assign the largest possible value to the Ө in such a way that the value of at least one
basic
variable becomes zero and the other basic variables remain non-negative. The basic cell
whose
allocation has been made zero will leave the
basis.

Step 8
Now, return to step 3 and repeat the process until an optimal solution is
obtained.

Worked Examples
Example 1
Find an optimal solution

W1 W2 W3 W4 Availability
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Requirement 5 8 7 14
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OPERATION RESEARCH Prof. SUDHIR B S

Solution

1. Applying vogel’s approximation method for finding the initial basic feasible solution

21
Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

W1 W2 W3 W4 Availability Penalty
F1 5(19) (30) (50) 2(10) X X
F2 (70) (30) 7(40) 2(60) X X
F3 (40) 8(8) (70) 10(20) X X
Requirement X X X X
Penalty X X X X

Minimum transportation cost is 5 (19) + 2 (10) + 7 (40) + 2 (60) + 8 (8) + 10 (20) = Rs. 779

2. Check for Non-degeneracy

The initial basic feasible solution has m + n – 1 i.e. 3 + 4 – 1 = 6 allocations in independent
positions. Hence optimality test is satisfied.
3. Calculation of ui and vj : - ui + vj = cij
ui u1= -
 (19)  (10) 10 u2 =
 (40)  (60) 40 u3 =
 (8)  (20) 0
vj v1 = 29 v2 = 8 v3 = 0 v4 = 20

Assign a ‘u’ value to zero. (Convenient rule is to select the ui, which has the largest number
of allocations in its row)
Let u3 = 0, then
u3 + v4= 20 which implies 0 + v4 = 20, so v4 = 20
u2 + v4= 60 which implies u2 + 20 = 60, so u2 = 40
u1 + v4= 10 which implies u1 + 20 = 10, so u1 = -10
u2 + v3= 40 which implies 40 + v3 = 40, so v3 = 0
u3 + v2= 8 which implies 0 + v2 = 8, so v2 = 8
u1 + v1= 19 which implies -10 + v1= 19, so v1 = 29
4. Calculation of cost differences for non basic cells dij = cij – ( ui + vj )

cij ui + vj
 (30) (50)   -2 -10 
(70) (30)   69 48  
(40)  (70)  29  0 

dij = cij – ( ui + vj )
 32 60 
1 -18  
11  70 

5. Optimality test

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

dij < 0 i.e. d22 = -18

so x22 is entering the
basis

6. Construction of loop and allocation of unknown quantity Ө

We allocate Ө to the cell (2, 2). Reallocation is done by transferring the maximum possible
amount Ө in the marked cell. The value of Ө is obtained by equating to zero to the corners of
the closed loop. i.e. min(8-Ө, 2-Ө) = 0 which gives Ө = 2. Therefore x24 is outgoing as it
becomes zero.

5 (19) 2 (10)
2 (30) 7 (40)
6 (8) 12 (20)

Minimum transportation cost is 5 (19) + 2 (10) + 2 (30) + 7 (40) + 6 (8) + 12 (20) = Rs. 743
7. Improved Solution
ui u1= -
 (19)  (10) 10 u2 =
 (30)  (40) 22 u3 =
 (8)  (20) 0
vj v1 = 29 v2 = 8 v3 = 18 v4 = 20

cij ui + vj
 (30) (50)   -2 8 
(70)   (60) 51   42
(40)  (70)  29  18 

dij = cij – ( ui + vj )
 32 42 
19   18
11  52 

Since dij > 0, an optimal solution is obtained with minimal cost Rs.743

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Example 2
Solve by lowest cost entry method and obtain an optimal solution for the following problem
Available
50 30 220 1
From 90 45 170 3
250 200 50 4
Required 4 2 2

Solution
By lowest cost entry method
Available
1(30) 1/0
From 2(90) 1(45) 3/2/0
2(250) 2(50) 4/2/0
Required 4/2/2 2/1/0 2/0

Minimum transportation cost is 1 (30) + 2 (90) + 1 (45) + 2 (250) + 2 (50) = Rs. 855

Check for Non-degeneracy

The initial basic feasible solution has m + n – 1 i.e. 3 + 3 – 1 = 5 allocations in independent
positions. Hence optimality test is satisfied.
Calculation of ui and vj : - ui + vj = cij
ui
 (30) u1= -15
 (90)  (45) u2 = 0
 (250)  (50) u3 = 160
vj v1 = 90 v2 = 45 v3 = -110

Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )

cij ui + vj
50  220 75  -125
  170   -110
 200   205 

dij = cij – ( ui + vj )
-25  345
  280
 -5 

Optimality test

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

dij < 0 i.e. d11 = -25 is most negative

So x11 is entering the basis

Construction of loop and allocation of unknown quantity Ө

min(2-Ө, 1-Ө) = 0 which gives Ө = 1. Therefore x12 is outgoing as it becomes zero.

1(50)

1(90) 2(45)

2(250) 2(50)

Minimum transportation cost is 1 (50) + 1 (90) + 2 (45) + 2 (250) + 2 (50) = Rs. 830

II Iteration
Calculation of ui and vj : - ui + vj = cij
ui
 (50) u1= -40
 (90)  (45) u2 = 0
 (250)  (50) u3 = 160
vj v1 = 90 v2 = 45 v3 = -110

Calculation of dij = cij – ( ui + vj )

cij ui + vj
 30 220  5 -150

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

  170   -110
 200   205 

dij = cij – ( ui + vj )
 25 370
  280
 -5 

Optimality test
dij < 0 i.e. d32 = -5
So x32 is entering the basis

Construction of loop and allocation of unknown quantity Ө

2 – Ө = 0 which gives Ө = 2. Therefore x22 and x31 is outgoing as it becomes zero.

1(50)

3(90) 0(45)

2(200) 2(50)

Minimum transportation cost is 1 (50) + 3 (90) + 2 (200) + 2 (50) = Rs. 820

III Iteration

Calculation of ui and vj : - ui + vj = cij

ui
 (50) u1= -40
 (90)  (45) u2 = 0
 (200)  (50) u3 = 155
vj v1 = 90 v2 = 45 v3 = -105

Calculation of dij = cij – ( ui + vj )

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

cij ui + vj
 30 220  5 -145
  170   -105
250   245  

dij = cij – ( ui + vj )
 25 365
  275
5  

Since dij > 0, an optimal solution is obtained with minimal cost Rs.820

Example 3
Is x13 = 50, x14 = 20, x21 = 55, x31 = 30, x32 = 35, x34 = 25 an optimal solution to the
transportation problem.

Available
6 1 9 3 70
From 11 5 2 8 55
10 12 4 7 90
Required 85 35 50 45

Solution
Available
50(9) 20(3) X
From 55(11) X
30(10) 35(12) 25(7) X
Required X X X X

Minimum transportation cost is 50 (9) + 20 (3) + 55 (11) + 30 (10) + 35 (12) + 25 (7) = Rs. 2010

Check for Non-degeneracy

The initial basic feasible solution has m + n – 1 i.e. 3 + 4 – 1 = 6 allocations in independent
positions. Hence optimality test is satisfied.

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Calculation of ui and vj : - ui + vj = cij

ui
 (9)  (3) u1= -4
 (11) u2 = 1
 (10)  (12)  (7) u3 = 0
vj v1 = 10 v2 = 12 v3 = 13 v4 = 7

Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )

cij ui + vj
6 1   6 8  
 5 2 8  13 14 8
  4    13 

dij = cij – ( ui + vj )
0 -7  
 -8 -12 0
  -9 

Optimality test
dij < 0 i.e. d23 = -12 is most negative
So x23 is entering the basis

Construction of loop and allocation of unknown quantity Ө

min(50-Ө, 55-Ө, 25-Ө) = 25 which gives Ө = 25. Therefore x34 is outgoing as it becomes zero.

25(9) 45(3)
30(11) 25(2)
55(10) 35(12)

Minimum transportation cost is 25 (9) + 45 (3) + 30 (11) + 25 (2) + 55 (10) + 35 (12) = Rs. 1710

II iteration

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Calculation of ui and vj : - ui + vj = cij

ui
 (9)  (3) u1= 8
 (11)  (2) u2 = 1
 (10)  (12) u3 = 0
vj v1 = 10 v2 = 12 v3 = 1 v4 = -5

Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )

cij ui + vj
6 1   18 20  
 5  8  13  -4
  4 7   1 -5

dij = cij – ( ui + vj )
-12 -19  
 -8  12
  3 12

Optimality test
dij < 0 i.e. d12 = -19 is most negative
So x12 is entering the basis

Construction of loop and allocation of unknown quantity Ө

min(25-Ө, 30-Ө, 35-Ө) = 25 which gives Ө = 25. Therefore x13 is outgoing as it becomes zero.

25(1) 45(3)
5(11) 50(2)
80(10) 10(12)

Minimum transportation cost is 25 (1) + 45 (3) + 5 (11) + 50 (2) + 80 (10) + 10 (12) = Rs. 1235

III Iteration

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Calculation of ui and vj : - ui + vj = cij

ui
 (1)  (3) u1= -11
 (11)  (2) u2 = 1
 (10)  (12) u3 = 0
vj v1 = 10 v2 = 12 v3 = 1 v4 = 14

Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )

cij ui + vj
6  9  -1  -10 
 5  8  13  15
  4 7   1 14

dij = cij – ( ui + vj )
7  19 
 -8  -7
  3 -7

Optimality test
dij < 0 i.e. d22 = -8 is most negative
So x22 is entering the basis

Construction of loop and allocation of unknown quantity Ө

min(5-Ө, 10-Ө) = 5 which gives Ө = 5. Therefore x21 is outgoing as it becomes zero.

25(1) 45(3)
5(5) 50(2)
85(10) 5(12)

Minimum transportation cost is 25 (1) + 45 (3) + 5 (5) + 50 (2) + 85 (10) + 5 (12) = Rs. 1195

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

IV Iteration

Calculation of ui and vj : - ui + vj = cij

ui
 (1)  (3) u1= -11
 (5)  (2) u2 = -7
 (10)  (12) u3 = 0
vj v1 = 10 v2 = 12 v3 = 9 v4 = 14
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )

cij ui + vj
6  9  -1  -2 
11   8 3   7
  4 7   9 14

dij = cij – ( ui + vj )
7  11 
8   1
  -5 -7

Optimality test
dij < 0 i.e. d34 = -7 is most negative
So x34 is entering the basis

Construction of loop and allocation of unknown quantity Ө

min(5-Ө, 45-Ө) = 5 which gives Ө = 5. Therefore x32 is outgoing as it becomes zero.

30(1) 40(3)
5(5) 50(2)
85(10) 5(7)

Minimum transportation cost is 30 (1) + 40 (3) + 5 (5) + 50 (2) + 85 (10) + 5 (7) = Rs. 1160

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

V Iteration
Calculation of ui and vj : - ui + vj = cij
ui
 (1)  (3) u1= -4
 (5)  (2) u2 = 0
 (10)  (7) u3 = 0
vj v1 = 10 v2 = 5 v3 = 2 v4 = 7

Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )

cij ui + vj
6  9  6  -2 
11   8 10   7
 12 4   5 2 

dij = cij – ( ui + vj )
0  11 
1   1
 7 2 

Since dij > 0, an optimal solution is obtained with minimal cost Rs.1160. Further more d11 =
0 which indicates that alternative optimal solution also exists.

Introduction to Assignment Problem

In assignment problems, the objective is to assign a number of jobs to the equal number
of persons at a minimum cost of maximum profit.

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Suppose there are ‘n’ jobs to be performed and ‘n’ persons are available for doing these jobs.
Assume each person can do each job at a time with a varying degree of efficiency. Let cij be
th th
the cost of i person assigned to j job. Then the problem is to find an assignment so that the
total cost for performing all jobs is minimum. Such problems are known as assignment
problems.

These problems may consist of assigning men to offices, classes to the rooms or problems to
the research team etc.

Mathematical formulation
Cost matrix: cij= c11 c12 c13 … c1n
c21 c22 c23 … c2n
.
.
.
cn1 cn2 cn3 … cnn

Subject to restrictions of the form

th th
Where xij denotes that j job is to be assigned to the i person.

This special structure of assignment problem allows a more convenient method of solution
in comparison to simplex method.

Algorithm for Assignment Problem (Hungarian Method)

Step 1
Subtract the minimum of each row of the effectiveness matrix, from all the elements of
the respective rows (Row reduced matrix).

Step 2
Further modify the resulting matrix by subtracting the minimum element of each column from
all the elements of the respective columns. Thus first modified matrix is obtained.

Step 3
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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Draw the minimum number of horizontal and vertical lines to cover all the zeroes in the
resulting matrix. Let the minimum number of lines be N. Now there may be two possibilities
 If N = n, the number of rows (columns) of the given matrix then an optimal
assignment can be made. So make the zero assignment to get the required solution.
 If N < n then proceed to step 4

Step 4
Determine the smallest element in the matrix, not covered by N lines. Subtract this
minimum element from all uncovered elements and add the same element at the intersection
of horizontal
and vertical lines. Thus the second modified matrix is
obtained.

Step 5
Repeat step 3 and step 4 until minimum number of lines become equal to number of rows
(columns) of the given matrix i.e. N =
n.

Step 6
To make zero assignment - examine the rows successively until a row-wise exactly single zero
is
found; mark this zero by ‘ ‘to make the assignment. Then, mark a ‘X’ over all zeroes if lying
in the column of the marked zero, showing that they cannot be considered for further
assignment. Continue in this manner until all the rows have been examined. Repeat the same
procedure for the columns also.

Step 7
Repeat the step 6 successively until one of the following situations
arise
 If no unmarked zero is left, then process ends
 If there lies more than one of the unmarked zeroes in any column or row, then mark
‘ ‘one of the unmarked zeroes arbitrarily and mark a cross in the cells of remaining
zeroes in its row and column. Repeat the process until no unmarked zero is left in the
matrix.

Step 8
Exactly one marked zero in each row and each column of the matrix is obtained. The
assignment
corresponding to these marked zeroes will give the optimal
assignment.

Worked Examples
Example 1

A department head has four subordinates and four tasks have to be performed.
Subordinates differ in efficiency and tasks differ in their intrinsic difficulty. Time each man

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

would take to perform each task is given in the effectiveness matrix. How the tasks should be
allocated to each person so as to minimize the total man-hours?
Subordinates
Tasks I II III IV
A 8 26 17 11

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

B 13 28 4 26
C 38 19 18 15
D 19 26 24 10

Solution

Row Reduced Matrix

0 18 9 3
9 24 0 22
23 4 3 0
9 16 14 0

I Modified Matrix

N = 4, n = 4
Since N = n, we move on to zero assignment

Zero assignment

Total man-hours = 8 + 4 + 19 + 10 = 41 hours

Example 2
A car hire company has one car at each of five depots a, b, c, d and e. a customer requires a car
in each town namely A, B, C, D and E. Distance (kms) between depots (origins) and towns
(destinations) are given in the following distance matrix

a b c d e
A 160 130 175 190 200
B 135 120 130 160 175
C 140 110 155 170 185
D 50 50 80 80 110
E 55 35 70 80 105

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Solution

Row Reduced Matrix

30 0 45 60 70
15 0 10 40 55
30 0 45 60 75
0 0 30 30 60
20 0 35 45 70

I Modified Matrix

N < n i.e. 3 < 5, so move to next modified matrix

II Modified Matrix

N = 5, n = 5
Since N = n, we move on to zero assignment
Zero assignment

Minimum distance travelled = 200 + 130 + 110 + 50 + 80 = 570 kms

Example 3
Solve the assignment problem whose effectiveness matrix is given in the table

1 2 3 4

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

A 49 60 45 61
B 55 63 45 69
C 52 62 49 68
D 55 64 48 66

Solution

Row-Reduced Matrix
4 15 0 16
10 18 0 24
3 13 0 19
7 16 0 18

I Modified Matrix

N < n i.e 3 < 4, so II modified matrix

II Modified Matrix

N < n i.e 3 < 4

III Modified matrix

Since N = n, we move on to zero assignment

Zero assignment

Multiple optimal assignments exists

Solution - I

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Total cost = 49 + 45 + 62 + 66 = 222 units

Solution – II

Minimum cost = 61 + 45 + 52 + 64 = 222 units

Example 4
Certain equipment needs 5 repair jobs which have to be assigned to 5 machines. The
estimated time (in hours) that a mechanic requires to complete the repair job is given in
the table.
Assuming that each mechanic can be assigned only one job, determine the minimum
time assignment.

J1 J2 J3 J4 J5
M1 7 5 9 8 11
M2 9 12 7 11 10
M3 8 5 4 6 9
M4 7 3 6 9 5
M5 4 6 7 5 11

Solution

Row Reduced Matrix

2 0 4 3 6
2 5 0 4 3
4 1 0 2 5
4 0 3 6 2
0 2 3 1 7

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

I Modified Matrix

N<n

II Modified Matrix

N=n

Zero assignment

Minimum time = 5 + 7 + 6 + 5 + 4 = 27 hours

Unbalanced Assignment Problems

If the number of rows and columns are not equal then such type of problems are called
as unbalanced assignment problems.

Example 1
A company has 4 machines on which to do 3 jobs. Each job can be assigned to one and only one
machine. The cost of each job on each machine is given in the following table
Machines
W X Y Z
A 18 24 28 32
Jobs
B 8 13 17 19
C 10 15 19 22

Solution

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

18 24 28 32
8 13 17 19
10 15 19 22
0 0 0 0

Row Reduced matrix

0 6 10 14
0 5 9 11
0 5 9 12
0 0 0 0

I Modified Matrix

N < n i.e. 2 < 4

II Modified Matrix

N < n i.e. 3 < 4

III Modified Matrix

N=n

Zero assignment

Multiple assignments exists

Solution -I

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

Minimum cost = 18 + 13 + 19 = Rs 50

Solution -II

Minimum cost = 18 + 17 + 15 = Rs 50

Example 2
Solve the assignment problem whose effectiveness matrix is given in the table

R1 R2 R3 R4
C1 9 14 19 15
C2 7 17 20 19
C3 9 18 21 18
C4 10 12 18 19
C5 10 15 21 16
Solution

9 14 19 15 0
7 17 20 19 0
9 18 21 18 0
10 12 18 19 0
10 15 21 16 0

Row Reduced Matrix

9 14 19 15 0
7 17 20 19 0
9 18 21 18 0
10 12 18 19 0

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

10 15 21 16 0

I Modified Matrix

N < n i.e. 4 < 5

II Modified Matrix

N < n i.e. 4 < 5

III Modified Matrix

N=n

Zero assignment

Minimum cost = 19 + 7 + 12 + 16 = 54 units

Maximal Assignment Problem

Example 1

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

A company has 5 jobs to be done. The following matrix shows the return in terms of rupees on
th th
assigning i ( i = 1, 2, 3, 4, 5 ) machine to the j job ( j = A, B, C, D, E ). Assign the five jobs
to the five machines so as to maximize the total expected profit.
Jobs
A B C D E
1 5 11 10 12 4
2 2 4 6 3 5
Machines
3 3 12 5 14 6
4 6 14 4 11 7
5 7 9 8 12 5

Solution

Subtract all the elements from the highest element

Highest element = 14

9 3 4 2 10
12 10 8 11 9
11 2 9 0 8
8 0 10 3 7
7 5 6 2 9

Row Reduced matrix

7 1 2 0 8
4 2 0 3 1
11 2 9 0 8
8 0 10 3 7
5 3 4 0 7

I Modified Matrix

N < n i.e. 3 < 5

II Modified Matrix

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Department Of Mechanical Engineering, GMIT, Bharathinagara
OPERATION RESEARCH Prof. SUDHIR B S

N < n i.e. 4 < 5

III Modified Matrix

N=n

Zero assignment

Optimal assignment 1 – C 2 – E 3 – D 4 – B 5 – A
Maximum profit = 10 + 5 + 14 + 14 + 7 = Rs. 50

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Department Of Mechanical Engineering, GMIT, Bharathinagara