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06 - 2 - Transportation Problems and Solution Methods

This document discusses transportation problems and their solutions. It covers the transportation model, which involves transporting a product from sources to destinations at minimum cost while respecting supply and demand constraints. The document provides an example problem and defines its inputs. It also describes methods for finding an initial feasible solution to a transportation problem, such as the northwest corner method and minimum cell cost method. Finally, it discusses approaches for solving the transportation model, such as the stepping stone method and modified distribution method.
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100% found this document useful (1 vote)
2K views60 pages

06 - 2 - Transportation Problems and Solution Methods

This document discusses transportation problems and their solutions. It covers the transportation model, which involves transporting a product from sources to destinations at minimum cost while respecting supply and demand constraints. The document provides an example problem and defines its inputs. It also describes methods for finding an initial feasible solution to a transportation problem, such as the northwest corner method and minimum cell cost method. Finally, it discusses approaches for solving the transportation model, such as the stepping stone method and modified distribution method.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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IN3017: Logistics

06-2

Transportation Problems and


Solutions
Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 1
[email protected]
06
Learning Objectives

• The Transportation Model


• Solution of a Transportation Problem

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 2


[email protected]
06
Overview

- Part of a larger class of linear programming problems known as


network flow models.
- Possess special mathematical features that enabled development of
very efficient, unique solution methods.
- Methods are variations of traditional simplex procedure.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 3


[email protected]
06 The Transportation Model Characteristics

• A product is transported from a number of sources to a number of destinations at


the minimum possible cost.
• Each source is able to supply a fixed number of units of the product, and each
destination has a fixed demand for the product.
• The linear programming model has constraints for supply at each source and
demand at each destination.
• All constraints are equalities in a balanced transportation model where supply
equals demand.
• Constraints contain inequalities in unbalanced models where supply does not
equal demand.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 4


[email protected]
06 Transportation Model Example
Problem Definition and Data

- Problem: How many tons of wheat to transport from each grain elevator to each mill on a monthly
basis in order to minimize the total cost of transportation ?
- Data: Grain Elevator Supply Mill Demand
1. Kansas City 150 A. Chicago 200
2. Omaha 175 B. St.Louis 100
3. Des Moines 275 C. Cincinnati 300
Total 600 tons Total 600 tons

Transport cost from Grain Elevator to Mill ($/ton)


Grain Elevator A. Chicago B. St. Louis C. Cincinnati
1. Kansas City $6 8 10
2. Omaha 7 11 11
3. Des Moines 4 5 12

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 5


[email protected]
06 Transportation Model Example
Problem Definition and Data

minimize Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C

subject to x1A + x1B + x1C = 150


x2A + x2B + x2C = 175
x3A + x3B+ x3C = 275
x1A + x2A + x3A = 200
x1B + x2B + x3B = 100
x1C + x2C + x3C = 300
xij  0

Network of transportation routes for wheat shipments

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 6


[email protected]
06 Solution of the Transportation Model
Tableau Format

• Transportation problems are solved manually within a tableau format.


• Each cell in a transportation tableau is analogous to a decision variable that
indicates the amount allocated from a source to a destination.
• The supply and demand values along the outside rim of a tableau are called rim
values.

The Transportation
Tableau

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 7


[email protected]
06 Solution of the Transportation Model

• Transportation models do not start at the origin where all decision values are zero;
they must instead be given an initial feasible solution.
• Initial feasible solution determination methods include:
- Northwest corner method
- Minimum cell cost method
- Vogel’s Approximation Method
• Methods for solving the transportation problem itself include:
- Stepping-stone method and
- Modified distribution method.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 8


[email protected]
06 The Northwest Corner Method

- In the northwest corner method the largest possible allocation is made to the cell in the upper
left-hand corner of the tableau , followed by allocations to adjacent feasible cells.

The Initial NW Corner


Solution

- The initial solution is complete when all rim requirements are satisfied.
- Transportation cost is computed by evaluating the objective function:
Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C
= 6(150) + 8(0) + 10(0) + 7(50) + 11(100) + 11(25) + 4(0) + 5(0) + !2(275)
= $5,925
Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey 9
[email protected]
06 The Northwest Corner Method

Summary of Steps

1. Allocate as much as possible to the cell in the upper left-hand


corner, subject to the supply and demand conditions.
2. Allocate as much as possible to the next adjacent feasible cell.
3. Repeat step 2 until all rim requirements are met.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey10


[email protected]
06 The Minimum Cell Cost Method
(1 of 3)
- In the minimum cell cost method as much as possible is allocated to the cell with the
minimum cost followed by allocation to the feasible cell with minimum cost.

The Initial Minimum Cell Cost Allocation

The Second Minimum Cell Cost Allocation

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey11


[email protected]
06 The Minimum Cell Cost Method
(2 of 3)

- The complete initial minimum cell cost solution; total cost = $4,550.
- The minimum cell cost method will provide a solution with a lower cost than
the northwest corner solution because it considers cost in the allocation process.

The Initial Solution

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey12


[email protected]
06 The Minimum Cell Cost Method
(3 of 3)

1. Allocate as much as possible to the feasible cell with the


minimum transportation cost, and adjust the rim requirements.
2. Repeat step 1 until all rim requirements have been met.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey13


[email protected]
06 The Minimum Cell Cost Method

11 9 6 15 75

8 11 10 12 160

5 7 4 8 140

85 165 80 45

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey14


[email protected]
06 The Minimum Cell Cost Method

11 75 9 6 15 75
(4)

25 8 90 11 10 45 12 160
(3) (5) (6)

60 5 7 80 4 8 140
(2) (1)

85 165 80 45

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey15


[email protected]
06 Vogel’s Approximation Method (VAM)
(1 of 5)
- Method is based on the concept of penalty cost or regret.
- A penalty cost is the difference between the largest and the next largest cell cost in a row
(or column).
- In VAM the first step is to develop a penalty cost for each source and destination.
- Penalty cost is calculated by subtracting the minimum cell cost from the next higher cell
cost in each row and column.

The VAM Penalty Costs

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey16


[email protected]
06 Vogel’s Approximation Method (VAM)
(2 of 5)

- VAM allocates as much as possible to the minimum cost cell in the row or column with
the largest penalty cost.

The Initial VAM


Allocation

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey17


[email protected]
06 Vogel’s Approximation Method (VAM)
(3 of 5)

- After each VAM cell allocation, all row and column penalty costs are recomputed.

The Second
VAM Allocation

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey18


[email protected]
06 Vogel’s Approximation Method (VAM)
(4 of 5)

- Recomputed penalty costs after the third allocation.

The Third VAM


Allocation

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey19


[email protected]
06 Vogel’s Approximation Method (VAM)
(5 of 5)

- The initial VAM solution; total cost = $5,125


- VAM and minimum cell cost methods both provide better initial solutions than does the
northwest corner method.

The Initial VAM


Solution

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey20


[email protected]
06 Vogel’s Approximation Method (VAM)

Summary of Steps

1. Determine the penalty cost for each row and column.


2. Select the row or column with the highest penalty cost.
3. Allocate as much as possible to the feasible cell with the
lowest transportation cost in the row or column with the
highest penalty cost.
4. Repeat steps 1, 2, and 3 until all rim requirements have been
met.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey21


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75

8 11 10 12 160

5 7 4 8 140

85 165 80 45

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey22


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 2

5 7 4 8 140 1

85 165 80 45

3 2 2 4

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey23


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 2

5 7 4 8 140 1

85 165 80 45

3 2 2 4 min

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey24


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 2

5 7 4 45 8 95 1

85 165 80 0

3 2 2 4

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey25


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 2

5 7 4 45 8 95 1

85 165 80 0

3 2 2

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey26


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 2

85 5 7 4 45 8 10 1

0 165 80 0

2 2

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey27


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 1

85 5 7 4 45 8 10 3

0 165 80 0

2 2

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey28


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 6 15 75 3

8 11 10 12 160 1

85 5 7 10 4 45 8 0 3

0 165 70 0

2 2

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey29


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 70 6 15 5 9

8 160 11 10 12 160 11

85 5 7 10 4 45 8 0

0 165 0 0

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey30


[email protected]
06 Vogel’s Approximation Method (VAM)

11 9 70 6 15 5 9

8 160 11 10 12 0

85 5 7 10 4 45 8 0

0 165 0 0

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey31


[email protected]
06 Vogel’s Approximation Method (VAM)

11 5 9 70 6 15 5

8 160 11 10 12 0

85 5 7 10 4 45 8 0

0 165 0 0

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey32


[email protected]
06 The Stepping-Stone Solution Method
(1 of 12)

- Once an initial solution is derived, the problem must be solved using either
- The stepping-stone method
OR
- The modified distribution method (MODI).
- The initial solution used as a starting point in this problem is the minimum cell cost
method solution because it had the minimum total cost of the three methods used.

The Minimum
Cell Cost Solution

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey33


[email protected]
06 The Stepping-Stone Solution Method
(2 of 12)

- The stepping-stone method determines if there is a cell with no allocation that would
reduce cost if used.

+1

The Allocation of One Ton to Cell 1A

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey34


[email protected]
06 The Stepping-Stone Solution Method
(3 of 12)

- Must subtract one ton from another allocation along that row.

The Subtraction of
One Ton from
Cell 1B

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey35


[email protected]
06 The Stepping-Stone Solution Method
(4 of 12)

- A requirement of this solution method is that units can only be added to and subtracted
from cells that already have allocations, thus one ton must be added to a cell as shown.

The Addition of One


Ton to Cell 3B and the
Subtraction of One Ton
from Cell 3A

-1

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey36


[email protected]
06 The Stepping-Stone Solution Method
(5 of 12)

- An empty cell that will reduce cost is a potential entering variable.


- To evaluate the cost reduction potential of an empty cell, a closed path connecting used
cells to the empty cells is identified.

The Stepping-
Stone Path for
Cell 2A

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey37


[email protected]
06 The Stepping-Stone Solution Method
(6 of 12)

- The remaining stepping-stone paths and resulting computations for cells 2B and 3C.

The Stepping-Stone Path


for Cell 2B

The Stepping-
Stone Path for
Cell 3C

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey38


[email protected]
06 The Stepping-Stone Solution Method
(7 of 12)

- After all empty cells are evaluated, the one with the greatest cost reduction potential is the
entering variable.
- A tie can be broken arbitrarily.

The Stepping-Stone
Path for Cell 1A

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey39


[email protected]
06 The Stepping-Stone Solution Method
(8 of 12)

- When reallocating units to the entering variable (cell), the amount is the minimum amount
subtracted on the stepping-stone path.
- At each iteration one variable enters and one leaves (just as in the simplex method).

The Second Iteration of


the Stepping-Stone
Method

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey40


[email protected]
06 The Stepping-Stone Solution Method
(9 of 12)

- Check to see if the solution is optimal.

The Stepping-Stone Path for


Cell 2A

The Stepping-
Stone Path for Cell
1B

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey41


[email protected]
06 The Stepping-Stone Solution Method
(10 of 12)

- Continuing check for optimality.

The Stepping-Stone
Path for Cell 2B

The Stepping-Stone
Path for Cell 3C

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey42


[email protected]
06 The Stepping-Stone Solution Method
(11 of 12)

- The stepping-stone process is repeated until none of the empty cells will reduce costs
(i.e., an optimal solution).
- In example, evaluation of four paths indicates no cost reductions, therefore Table 19
solution is optimal.
- Solution and total minimum cost :
x1A = 25 tons, x2C = 175 tons, x3A = 175 tons, x1C = 125 tons, x3B = 100 tons
Z = $6(25) + 8(0) + 10(125) + 7(0) + 11(0) + 11(175) + 4(175) + 5(100) + 12(0)
= $4,525

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey43


[email protected]
06 The Stepping-Stone Solution Method
(12 of 12)

- A multiple optimal solution occurs when an empty cell has a cost change of zero and all
other empty cells are positive.
- An alternate optimal solution is determined by allocating to the empty cell with a zero
cost change.
- Alternate optimal total minimum cost also equals $4,525.

The Alternative
Optimal Solution

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey44


[email protected]
06 The Stepping-Stone Solution Method

Summary of Steps

1. Determine the stepping-stone paths and cost changes for


each empty cell in the tableau.
2. Allocate as much as possible to the empty cell with the
greatest net decrease in cost.
3. Repeat steps 1 and 2 until all empty cells have positive cost
changes that indicate an optimal solution.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey45


[email protected]
06 The Stepping-Stone Solution Method

50 10 100 3 20 11 150

12 50 7 150 9 50 20 250

3 14 16 50 18 50

50 150 150 100

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey46


[email protected]
06 The Stepping-Stone Solution Method

50 10 100 3 20 11 150
-1 +1

12 50 7 150 9 50 20 250
-1 +1

+1 3 14 16 50 18 50
-1

50 150 150 100

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey47


[email protected]
06 The Stepping-Stone Solution Method

50 10 100 3 20 11 150
-1 +1

12 50 7 150 9 50 20 250
-1 +1

+1 3 14 16 50 18 50
-1

50 150 150 100

3-10+3-7+20-18=-9

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey48


[email protected]
06 The Stepping-Stone Solution Method

50 10 100 3 +15 20 -5 11 150

-2 12 50 7 150 9 50 20 250

-9 3 +9 14 +9 16 50 18 50

50 150 150 100

Min (50, 50)=50

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey49


[email protected]
06 The Stepping-Stone Solution Method

50 10 100 3 20 11 150
-50 +50

12 50 7 150 9 50 20 250
-50 +50

+50 3 14 16 50 18 50
-50

50 150 150 100

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey50


[email protected]
06 The Stepping-Stone Solution Method

0 10 150 3 20 11 150

12 0 7 150 9 100 20 250

50 3 14 16 0 18 50

50 150 150 100

Old Cost:4400
New Cost:3950
Difference=9*50=450

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey51


[email protected]
06 The Modified Distribution Method (MODI)
(1 of 6)
- MODI is a modified version of the stepping-stone method in which math equations replace
the stepping-stone paths.
- In the table, the extra left-hand column with the ui symbols and the extra top row with the
vj symbols represent values that must be computed.
- Computed for all cells with allocations :
ui + vj = cij = unit transportation cost for cell ij.

The Minimum Cell Cost


Initial Solution

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey52


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06 The Modified Distribution Method (MODI)
(2 of 6)

- Formulas for cells containing allocations:


x1B: u1 + vB = 8
x1C: u1 + vC = 10
x2C: u2 + vC = 11
x3A: u3 + vA = 4
x3B: u3 + vB = 5

The Initial Solution with All ui and vj Values

- Five equations with 6 unknowns, therefore let u1 = 0 and solve to obtain:


vB = 8, vC = 10, u2 = 1, u3 = -3, vA= 7

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey53


[email protected]
06 The Modified Distribution Method (MODI)
(3 of 6)

- Each MODI allocation replicates the stepping-stone allocation.


- Use following to evaluate all empty cells:
cij - ui - vj = kij
where kij equals the cost increase or decrease that would occur by allocating to a cell.
- For the empty cells in Table 26:
x1A: k1A = c1A - u1 - vA = 6 - 0 - 7 = -1
x2A: k2A = c2A - u2 - vA = 7 - 1 - 7 = -1
x2B: k2B = c2B - u2 - vB = 11- 1 - 8 = +2
x3C: k3C = c3C - u3 -vC = 12 - (-3) - 10 = +5

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey54


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06 The Modified Distribution Method (MODI)
(4 of 6)
- After each allocation to an empty cell, the ui and vj values must be recomputed.

The Second Iteration of the MODI Solution Method

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey55


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06 The Modified Distribution Method (MODI)
(5 of 6)

- Re-computing ui and vj values:


x1A: u1 + vA = 6, vA = 6 x1C: u1 + vC = 10, vC = 10 x2C: u2 + vC = 11, u2 = 1
x3A: u3 + vA = 4, u3 = -2 x3B: u3 + vB = 5, vB = 7

The New ui and vj Values for the Second Iteration


Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey56
[email protected]
06 The Modified Distribution Method (MODI)
(6 of 6)

- Cost changes for the empty cells, cij - ui - vj = kij;


x1B: k1B = c1B - u1 - vB = 8 - 0 - 7 = +1
x2A: k2A = c2A - u2 - vA = 7 - 1 - 6 = 0
x2B: k2B = c2B - u2 - vB = 11 - 1 -7 = +3
x3C: k2B = c2B - u3 - vC = 12 - (-2) - 10 = +4

- Since none of the values are negative, solution obtained is optimal.

- Cell 2A with a zero cost change indicates a multiple optimal solution.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey57


[email protected]
06 The Modified Distribution Method (MODI)

Summary of Steps

1. Develop an initial solution.


2. Compute the ui and vj values for each row and column.
3. Compute the cost change, kij, for each empty cell.
4. Allocate as much as possible to the empty cell that will
result in the greatest net decrease in cost (most negative kij)
5. Repeat steps 2 through 4 until all kij values are positive or
zero.

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey58


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06 The Unbalanced Transportation Model
(1 of 2)

- When demand exceeds supply a dummy row is added to the tableau.

An Unbalanced Model
(Demand . Supply)

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey59


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06 The Unbalanced Transportation Model
(2 of 2)

- When supply exceeds demand, a dummy column is added to the tableau.


- The dummy column (or dummy row) has no effect on the initial solution methods or the
optimal solution methods.

An Unbalanced Model (Supply . Demand)

Dr. Mostafa Hajiaghaei-Keshteli Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey60


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