IE 141:

OPERATIONS
RESEARCH 1
SPECIAL CASES OF TRANSPORTATION
MODELS:
THE TRANSSHIPMENT AND ASSIGNMENT
PROBLEM
Learning objectives:
• At the end of this module, the student should be able to:
• 1. Differentiate regular transportation model, assignment model and transshipment
model.
• 2. Solve the optimal solution for transshipment and assignment problem.
Assignment Model and
Transshipment Model
Assignment Model
• Special case of the transportation model,
• “the best person for the job”
Assignment Model
• This situation is a special case of the Transportation Model and it is
known as the assignment problem.
• For balanced model (demand=supply), the supply available at each
source is 1 unit and demand at each destination is 1 unit.
Assignment Model - Application
• Situation where management needs to assign - personnel to jobs, -
jobs to machines, machines to job locations, or - salespersons to
territories.
• Consider the situation of assigning n jobs to n machines.
• When a job i (=1,2,....,n) is assigned to machine j (=1,2, .....n) that incurs a cost
Cij
• The objective is to assign the jobs to machines at the least possible total cost.
• Here, jobs represent “sources” and machines represent “destinations.”
Solution to Assignment Problem
To find the optimal solution, the following techniques can be
used:

• Solution method for transportation models (ex. Northwest corner

method to find initial bfs and Stepping Stone method to find the
optimal solution)

• Hungarian Method
Hungarian Method
• Technique than can be used to solve Assignment Problem
• The steps of The Hungarian Method are as listed below:
1. Find a bfs. Find the minimum element in each row of the n x n cost matrix.
2. Construct a new matrix by subtracting from each cost the minimum cost in
its row.
3. For this new matrix, find the minimum cost in each column. Construct a
new matrix (reduced cost matrix) by subtracting from each cost the
minimum cost in its column.
Hungarian Method
• Technique than can be used to solve Assignment Problem
• The steps of The Hungarian Method are as listed below (contd):
4. Draw the minimum number of lines (horizontal and/or vertical) that are needed to
cover all zeros in the reduced cost matrix.
5. If n lines are required, an optimal solution is available among the covered zeros in
the matrix. If fewer than n lines are required, proceed to step 6.
6. Find the smallest nonzero element (call its value k) in the reduced cost matrix that
is uncovered by the lines drawn in step 5.
7. Now subtract k from each uncovered element of the reduced cost matrix and add
k to each element that is covered by two lines.
8. If the required number of lines is met, the optimal solution has been found. Else,
repeat steps 4-8.
Example 1. Assigning Machine to Job sites
• A construction company has four large cement mixers located at four different storage
facility. The mixers are to be moved to four different construction sites. The distances in
kilometers between the cement mixers and the construction sites are given in the table.

Mixer\Site A B C D
1 95 78 76 82
2 40 88 56 67
3 130 98 91 107
4 50 113 96 117

• How should the cement mixers be moved to the construction sites in order to minimize
the total distance travelled?
Solution: Example 1 using Hungarian Method
• Step 1. Find the minimum element in Step 2. Construct a new matrix by subtracting
each row of the n x n cost matrix. from each cost the minimum cost in its row.

Mixer\Sit
A B C D Min Mixer
e A B C D
\Site
1 95 78 76 82 76 1 19 2 0 6
2 40 88 56 67 40 2 0 48 16 27
3 130 98 91 107 91 3 39 7 0 16
4 50 113 96 117 50 4 0 63 46 67
Solution: Example 1 using Hungarian Method
Step 3. For this new matrix, find the minimum cost in each column. Construct a new matrix
(reduced cost matrix) by subtracting from each cost the minimum cost in its column.

Mixer\Site A B C D Mixer\Site A B C D
1 19 2 0 6 1 19 0 0 0
2 0 48 16 27
2 0 46 16 21
3 39 7 0 16
3 39 5 0 10
4 0 63 46 67
4 0 61 46 61
Min 0 2 0 6
Solution: Example 1 using Hungarian Method
Step 4. Draw the minimum number of lines (horizontal and/or vertical) that are
needed to cover all zeros in the reduced cost matrix. Note: we can draw more than 3
lines here to cover the zeros, but we need the minimum number of lines to cover all
the zeros.
Mixer\Site A B C D

1 19 0 0 0

2 0 46 16 21

3 39 5 0 10

4 0 61 46 61

Step 5. If n lines are required, an optimal solution is available among the covered zeros in the matrix. If
fewer than n lines are required, proceed to step 6. (Here, n=number of columns/row = 4) . Thus, since only
3 lines are needed to cover all the zeros, proceed to step 6.
Solution: Example 1 using Hungarian Method
Step 6. Find the smallest nonzero Step 7. Subtract k from each uncovered element of the
element (call its value k) in the reduced reduced cost matrix and add k to each element that is
cost matrix that is uncovered by the
lines drawn in step 5. (k=16) covered by two lines.

Mixer\Site A B C D Mixer\Site A B C D

1 19 0 0 0 1 35 0 0 0
2 0 46 16 21 2 0 30 0 5
3 39 5 0 10 3 55 5 0 10
4 0 61 46 61 4 0 45 30 45
Solution: Example 1 using Hungarian Method
Step 8. If the required number of lines is met, the Subtract k from each uncovered element of the reduced
optimal solution has been found. Else, repeat
steps 4-8. (Since only 3 lines were needed to cost matrix and add k to each element that is covered by
cover all the zeros, repeat steps 4-8.
two lines.
K=5

Mixer\Site A B C D Mixer\Site A B C D

1 35 0 0 0 1 40 0 5 0

2 0 30 0 5 2 0 25 0 0

3 55 5 0 10 3 55 0 0 5

4 0 45 30 45 4 0 40 30 40
Solution: Example 1 using Hungarian Method
If the required number of lines is met, the
optimal solution has been found. Else, repeat Find the zero cost assignment from the last
steps 4-8. (Since 4 lines is the minimum number matrix generated,
of lines needed to cover all the zeros, optimal
solution is found.

Mixer\Site A B C D Mixer\Site A B C D

1 40 0 5 0 1 40 0 5 0

2 0 25 0 0 2 0 25 0 0

3 55 0 0 5 3 55 0 0 5

4 0 40 30 40 4 0 40 30 40
Solution: Example 1 using Hungarian Method
Multiple optimal solution exist.

Mixer\Site A B C D Mixer\Site A B C D

1 40 0 5 0 1 40 0 5 0

2 0 25 0 0 2 0 25 0 0

3 55 0 0 5 3 55 0 0 5

4 0 40 30 40 4 0 40 30 40
Solution: Example 1 using Hungarian Method
To calculate the total distance, refer to the original distance given

Bulldozer\Site A B C D Bulldozer\Site A B C D

1 95 78 76 82 1 95 78 76 82

2 40 88 56 67 2 40 88 56 67

3 130 98 91 107 3 130 98 91 107

4 50 113 96 117 4 50 113 96 117

Total distance = 82+56+98+50=286 Total distance = 78+67+91+50=286

 Bulldozer
A B C D
Solution: Example 1 using Hungarian \Site
1 95 78 76 82

Method 2
3
40
130
88
98
56
91
67
107
4 50 113 96 117
• The optimal solution to the assignment problem is
shown in the table with the minimum total
distance travelled equal to 286 kms.
Distance Distance
Bulldozer Site Bulldozer Site
Travelled Travelled
1 D 82 1 B 78
2 C 56 2 D 67
3 B 98 or 3 C 91
4 A 50 4 A 50
Total 286 Total 286
Mini Exercise
What are the tasks that can be assigned to each staff in order to
minimize the time to create a report? (5 pts)

Task/ Time in minutes

Generate Collate data Documenta Interpretati
charts tion on of data

1 9 4 10 11
Staff
2 8 6 3 7
3 6 5 2 4
4 3 3 8 3
Transshipment Problems
• A transportation problem allows only shipments that go directly
from supply points to demand points.
• Transshipment models are more general than that of regular
transportation model where it allows shipment to pass through
intermediate or transient nodes (also called transshipment points)
before reaching the final destination.
• The optimal solution to a transshipment problem can be found by
solving a transportation problem. But it must be first converted to a
regular transportation model using the idea of buffer.
Transshipment Problems
• LP Formulation
• Pure Supply point: it can send goods to another point but cannot receive
goods from any other point
• Pure Demand point: it can receive goods from other points but cannot send
goods to any other point
• Transshipment point: It can both receive goods from other points send goods
to other points
 Transshipment Problems

• The following steps describe how the optimal solution to a

transshipment problem can be found by solving a transportation
problem.
1. If necessary, add a dummy demand/supply point (with a
demand/supply equal to the problem’s excess supply/demand) to
balance the problem.
2. Shipments to the dummy and from a point to itself will be zero
unless stated.
Transshipment Problems
3. Construct a transportation tableau as follows: A row in the tableau
will be needed for each supply point and transshipment point, and
a column will be needed for each demand point and transshipment
point.
• Each supply point will have a supply equal to its original supply
• Each demand point will have a demand equal to its original demand
• Let B (Buffer amount)= max. between total available supply and total
available demand. Then each transshipment point will have a:
• supply equal to (point’s original supply)+B, and
• demand equal to (point’s original demand)+B.
Transshipment Problems
• This ensures that any transshipment point that is a net supplier will
have a net outflow equal to point’s original supply and a net customer
will have a net inflow equal to point’s original demand.
• Although we don’t know how much will be shipped through each
transshipment point, we can be sure that the total amount will not exceed B.
Example:
• Two automobile plants, P1 and P2, are linked to three dealers – D1,
D2, and D3 – by way of 2 distribution centers, T1 and T2, according to
the network shown in the next figure. The supply amounts at plants
P1 and P2 are 1000 and 1200 cars, and the demand amounts at
dealers D1, D2 and D3, are 800, 900, and 500 cars. The shipping cost
per car (in hundreds of dollars) between pairs of nodes is shown on
the connecting links of the network.
 D1 800
8
3
1,000 P1 T1 6
5
4
7 D2 900
2 4
1,200 P2 T2 3
5 9

D3 500
 Step 1: Compute the total supply and total demand. Check if balanced, if not, add dummy.
Since total supply=total demand, there is no need to add dummy.

D1 800
8
3
1,000 P1 T1 6
5
Total Supply 4 Total Demand
=1000+ 1200
=2200 7 D2 900 = 800+ 900+500
=2200
2 4
1,200 P2 5 T2 9 3

D3 500
 Step 1: Compute the total supply and total demand. Check if balanced, if not, add dummy.
Buffer = B = maximum between total supply and total demand = 2,200

D1 800
8
3
1,000 P1 T1 6
5
Total Supply 4 Total Demand
=1000+ 1200
=2200 7 D2 900 = 800+ 900+500
=2200
2 4
1,200 P2 5 T2 9 3

D3 500
 Identify the Pure Supply Points, pure demand points and transshipment points.

Pure Supply points = P1 AND P2

Pure Demand point = D3
Transshipment points = T1, T2, D1, D2

D1 800
8
3
1,000 P1 T1 6
5
Total Supply 4 Total Demand
=1000+ 1200
=2200 7 D2 900 = 800+ 900+500
=2200
2 4
1,200 P2 5 T2 9 3

D3 500
Step 3. A row in the tableau will be needed for each supply point and transshipment point, and a
column will be needed for each demand point and transshipment point.

Supply points = P1, P2, T1, T2, D1, D2

Demand points = T1, T2, D1, D2 D3

T1 T2 D1 D2 D3 Supply

P1

P2

T1

T2

D1

D2
Demand
•Step 3.
1. Each supply point will have a supply equal to its original supply
2. Each demand point will have a demand equal to its original demand
3. Since B = 2,200, each transshipment point will have a:
supply equal to (point’s original supply)+B, and
demand equal to (point’s original demand)+B.
T1 T2 D1 D2 D3 Supply

P1 1000

P2 1200

T1 B

T2 B

D1 B

D2 B

Demand B B 800+B 900+B 500

•Step 3.
A. Refer the unit shipping costs to the given network.
B. Assign a very large value M to shipments that are not possible based on the network.
C. Shipments to the dummy and from a point to itself will be zero unless stated.

T1 T2 D1 D2 D3 Supply
3 4 M M M
P1 1000
2 5 M M M
P2 1200
0 7 8 6 M
T1 2200
M 0 M 4 9
dummy cell/variable, or shipping to self
T2 2200 regular unit shipping costs
M M 0 5 M shipment not possible

D1 2200
M M M 0 3
D2 2200
Demand 2200 2200 3000 3100 500
•Solve the problem as regular transportation model.
Using least cost, 6 iterations.
Using VAM, 2 iterations.
Optimal solution Z = 20,700

T1 T2 D1 D2 D3 Supply
3 4 M M M
P1 1000 1000
2 5 M M M
P2 1200 1200
0 7 8 6 M
T1 1000 800 400 2200
M 0 M 4 9
T2 1200 1000 2200
M M 0 5 M
D1 2200 2200
M M M 0 3
D2 1700 500 2200
Demand 2200 2200 3000 3100 500
 T1 T2 D1 D2 D3 Supply
3 4 M M M
Optimal solution Z = 20,700 P1
2
1000
5 M M M
1000

P2 1200 1200
0 7 8 6 M
T1 1000 800 400 2200
M 0 M 4 9
T2 1200 1000 2200
M M 0 5 M
D1 2200 2200
M M M 0 3
D2 1700 500 2200
Demand 2200 2200 3000 3100 500
Issues in Transportation
Model
Special Issues in Modeling
• Demand not equal to supply
§ Called an unbalanced problem
§ Common situation in the real world
§ Resolved by introducing dummy sources (d > s) or
dummy destinations (d < s) as necessary with cost
coefficients of zero
Consider the original problem, and let the capacity
of Des Moines be 250 (instead of 100)
To Factory
From Albuquerque Boston Cleveland capacity

$5 $4 $3
Des Moines 100

$8 $4 $3
Evansville 300

Fort $9 $7 $5
Lauderdale
300

Warehouse
requirement 300 200 200 700
Special Issues in Modeling
Total Cost = 250($5) + 50($8) + 200($4) + 50($3) + 150($5) + 150(0)
= $3,350

To (A) (B) (C) Factory

Dummy capacity
From Albuquerque Boston Cleveland

$5 $4 $3 0
(D) Des Moines 250 250

$8 $4 $3 0
(E) Evansville 50 200 50 300

$9 $7 $5 0
(F) Fort Lauderdale 150 150 300

Warehouse
requirement 300 200 200 150 850

New
Figure C.9 Des Moines
capacity
Special Issues in Modeling
§ Degeneracy
§ Already discussed in the previous module