06 - 2 - Transportation Problems and Solution Methods
06 - 2 - Transportation Problems and Solution Methods
06-2
- 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
minimize Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C
The Transportation
Tableau
• 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.
- 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 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
- 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.
11 9 6 15 75
8 11 10 12 160
5 7 4 8 140
85 165 80 45
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
- VAM allocates as much as possible to the minimum cost cell in the row or column with
the largest penalty cost.
- After each VAM cell allocation, all row and column penalty costs are recomputed.
The Second
VAM Allocation
Summary of Steps
11 9 6 15 75
8 11 10 12 160
5 7 4 8 140
85 165 80 45
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
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
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
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
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
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
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
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
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
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
- 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
- The stepping-stone method determines if there is a cell with no allocation that would
reduce cost if used.
+1
- Must subtract one ton from another allocation along that row.
The Subtraction of
One Ton from
Cell 1B
- 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.
-1
The Stepping-
Stone Path for
Cell 2A
- The remaining stepping-stone paths and resulting computations for cells 2B and 3C.
The Stepping-
Stone Path for
Cell 3C
- 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
- 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 Stepping-
Stone Path for Cell
1B
The Stepping-Stone
Path for Cell 2B
The Stepping-Stone
Path for Cell 3C
- 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
- 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
Summary of Steps
50 10 100 3 20 11 150
12 50 7 150 9 50 20 250
3 14 16 50 18 50
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 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
3-10+3-7+20-18=-9
-2 12 50 7 150 9 50 20 250
-9 3 +9 14 +9 16 50 18 50
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
0 10 150 3 20 11 150
50 3 14 16 0 18 50
Old Cost:4400
New Cost:3950
Difference=9*50=450
Summary of Steps
An Unbalanced Model
(Demand . Supply)