Optimality Test for transportation problem

Optimality Test for transportation problem

V O Thomas

Department of Mathematics, Faculty of Science

V O Thomas Department of Mathematics, Faculty of Science 1

 Optimality Test for transportation problem

Once the initial basic feasible solution has been computed, the next
step in the TP is to determine whether the solution obtained is
optimum or not. Optimality test can be conducted to any initial basic
feasible solution of a TP provided such allocations has exactly
m + n − 1 non-negative allocations, where m is the number of origins
and n is the number of destinations.

We perform optimality test using Modified Distribution Method

(MODI). Various steps involved in MODI method is given below:

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 Optimality Test for transportation problem

Step 1: Find the initial basic feasible solution of TP using any one of
the three methods.

Step 2: Find out a set of numbers ui and vj for each row and column
satisfying ui + vj = cij for each occupied cell. To start with we assign
a number 0 to any row or column having maximum number of
allocations. If this maximum number of allocation is more than one,
choose any one arbitrarily.

Step 3: For each empty cell, we find the sum ui and vj and write in
the left corner of that cell.

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 Optimality Test for transportation problem

Step 4: Find out for each empty cell the net evaluation value
∆ij = cij − (ui + vj ) and write at the bottom right corner of the cell.

(i) If all ∆ij > 0, the solution is optimum and a unique solution exists.
(ii) If all ∆ij ≥ 0, the solution is optimum, but an alternate solution
exists.
(iii) If at least one ∆ij < 0, the solution is not optimum. In this case
we go to the next step.

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 Optimality Test for transportation problem

Step 5: Select the empty cell having the most negative value of ∆ij .
From this cell we draw a closed path by drawing horizontal and
vertical lines with the corner cells occupied. Assign 0 +0 and 0 −0 signs
alternatively and find the minimum allocation from the cell having
negative sign. This allocation should be added to the allocation
having positive sign and subtracted from the allocation having
negative sign.

Step 6: The above step yield a better solution by making one

occupied cell as empty and one empty cell as occupied. For this new
set of basic feasible allocations repeat from the Step 2 till an optimum
basic feasible solution is obtained.

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 Optimality Test for transportation problem

Example
1 Solve the following TP.
Destination
Supply
P Q R S
A 21 16 25 13 11
Source

B 17 18 14 23 13
C 32 17 18 41 19
Demand 6 10 12 15 43
Solution:
P P
Since ai = bj the TP is balanced and therefore there exists a
feasible solution. We shall apply VAM.

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

No. of occupied cell is 4 + 3 − 1 = 6. They are also at independent

positions. Hence we have non-degenerate basic feasible solution.

x14 = 11 , x21 = 6 , x23 = 3 , x24 = 4 , x32 = 10 , x33 = 9.

The transportation cost

= 11 × 13 + 6 × 17 + 3 × 14 + 4 × 23 + 10 × 17 + 9 × 18

= Rs 711

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 Optimality Test for transportation problem

To find the optimal solution, we apply MODI method. We find a set

of numbers ui , vj for each row and column, with ui + vj = cij for each
occupied cell. To start with we give u2 = 0 as the second row has
maximum number of allocation.

u2 + v 1 = c21 ⇒ 0 + v1 = 17 ⇒ v1 = 17
u2 + v 3 = c23 ⇒ 0 + v3 = 14 ⇒ v3 = 14
u2 + v 4 = c24 ⇒ 0 + v4 = 23 ⇒ v4 = 23
u1 + v 4 = c14 ⇒ u1 + 23 = 13 ⇒ u1 = −10
u 3 + v3 = c33 ⇒ u1 + 14 = 18 ⇒ u3 = 4
u3 + v2 = c32 ⇒ 4 + v2 = 17 ⇒ v2 = 13

Now we shall find the sum ui and vj for each empty cell and then find
∆ij = cij − (ui + vj ) and enter at the bottom right corner of that cell.

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 Optimality Test for transportation problem

Cell cij − (ui + vj )

(1, 1) c11 − (u1 + v1 ) = 21 − (−10 + 17) = 14
(1, 2) c12 − (u1 + v2 ) = 16 − (−10 + 13) = 13
(1, 3) c13 − (u1 + v3 ) = 25 − (−10 + 14) = 21
(2, 2) c22 − (u2 + v2 ) = 18 − (0 + 13) = 5
(3, 1) c31 − (u3 + v1 ) = 32 − (4 + 17) = 11
(3, 4) c34 − (u3 + v4 ) = 41 − (4 + 23) = 14

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 Optimality Test for transportation problem

Since all ∆ij > 0, the solution is optimal and unique. The optimum
solution is given by:

x14 = 11 , x21 = 6 , x23 = 3 , x24 = 4 , x32 = 10 , x33 = 9.

The minimum transportation cost = Rs 711.

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 Optimality Test for transportation problem

2 Solve the following TP:

To
Supply
1 2 3
1 2 7 4 5
From2 3 3 1 8
3 5 4 7 7
4 1 6 2 14
Demand 7 9 18 34
P P
Since ai = bj the TP is balanced and therefore there exists a
feasible solution. We shall find the initial feasible solution using VAM.

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

The number of occupied cell is 6 = m + n − 1 and also independent.

The basic feasible solution is

x11 = 5 , x22 = 2 , x23 = 6 , x32 = 7 , x41 = 2 , x43 = 12

The corresponding transportation cost

= 5 × 2 + 2 × 3 + 6 × 1 + 7 × 4 + 2 × 1 + 12 × 2

= 10 + 6 + 6 + 28 + 2 + 24 = 76

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 Optimality Test for transportation problem

To find the optimal solution, we apply MODI method. We find a set

of numbers ui and vj such that ui + vj = cij for each occupied cell.
To start with we put u1 = 0 .

u 1 + v1 = c11 ⇒ 0 + v1 = 2 ⇒ v1 = 2
u 4 + v1 = c41 ⇒ u4 + 2 = 1 ⇒ u4 = −1
u4 + v3 = c43 ⇒ −1 + v3 = 2 ⇒ v3 = 3
u2 + v3 = c23 ⇒ u2 + 3 = 1 ⇒ u2 = −2
u2 + v2 = c22 ⇒ −2 + v2 = 3 ⇒ v2 = 5
u3 + v2 = c32 ⇒ u3 + 5 = 4 ⇒ u3 = −1

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 Optimality Test for transportation problem

Now we shall find ∆ij = cij − (ui + vj ) and enter at the bottom left
corner of each empty cell.

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 Optimality Test for transportation problem

Cell ∆ij = cij − (ui + vj )

(1, 2) c12 − (u1 + v2 ) = 7 − (0 + 5) = 2
(1, 3) c13 − (u1 + v3 ) = 4 − (0 + 3) = 1
(2, 1) c21 − (u2 + v1 ) = 3 − (−2 + 2) = 3
(3, 1) c31 − (u3 + v1 ) = 5 − (−1 + 2) = 4
(3, 3) c33 − (u3 + v3 ) = 7 − (−1 + 3) = 5
(4, 2) c42 − (u4 + v2 ) = 6 − (−1 + 5) = 2

Since all ∆ij > 0, the solution is optimal and unique. The optimum
solution is given by:

x11 = 5 , x22 = 2 , x23 = 6 , x32 = 7 , x41 = 2 , x43 = 12

The minimum transportation cost

= 5 × 2 + 2 × 3 + 6 × 1 + 7 × 4 + 2 × 1 + 12 × 2

= Rs 76.
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 Optimality Test for transportation problem

3 Find the solution of TP starting with the north-west corner rule.

1 2 3 4 Supply
1 10 2 20 11 15
2 12 7 9 20 25
3 4 14 16 18 10
Demand 5 15 15 15 50

Solution:

P P
Since ai = bj , the given TP a basic feasible solution.

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 Optimality Test for transportation problem

The solution is
x11 = 5 , x12 = 10 , x22 = 5 , x23 = 15 , x24 = 5 , x34 = 10
The transportation cost is:

= 5 × 10 + 10 × 2 + 5 × 7 + 15 × 9 + 5 × 20 + 10 × 18

= Rs 520.
V O Thomas Department of Mathematics, Faculty of Science 19
 Optimality Test for transportation problem

To find the optimal solution, we apply MODI method. We find a set

of numbers ui ,vj for each occupied cell such that ui + vj = cij . Let
u1 = 0 .

u 1 + v1 = c11 ⇒ 0 + v1 = 10 ⇒ v1 = 10
u1 + v2 = c12 ⇒ 0 + v2 = 2 ⇒ v2 = 2
u2 + v2 = c22 ⇒ u2 + 2 = 7 ⇒ u2 = 5
u2 + v3 = c23 ⇒ 5 + v3 = 9 ⇒ v3 = 4
u2 + v4 = c24 ⇒ 5 + v4 = 20 ⇒ v4 = 15
u3 + v4 = c34 ⇒ 15 + u3 = 18 ⇒ u3 = 3

Now we shall find ∆ij = cij − (ui + vj ) for the unoccupied cell and
enter at the bottom right corner.

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 Optimality Test for transportation problem

Cell cij − (ui + vj )

(1, 3) c13 − (u1 + v3 ) = 20 − (0 + 4) = 16
(1, 4) c14 − (u1 + v4 ) = 11 − (0 + 15) = −4
(2, 1) c21 − (u2 + v1 ) = 12 − (5 + 10) = −3
(3, 1) c31 − (u3 + v1 ) = 4 − (3 + 10) = −9
(3, 2) c32 − (u3 + v2 ) = 14 − (3 + 2) = 9
(3, 3) c33 − (u3 + v3 ) = 16 − (3 + 4) = 9

The solution obtained by NWCR is not optimal because all ∆ij are
not non-negative.

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

To find optimum solution, we find the most negative ∆ij . Here it lies
in the cell (3,1). So the new entering variable is x31 . Now we have to
find a leaving variable. Now construct a closed loop that starts and
ends at the entering variable cell (3,1). The loop consists of connected
horizontal and vertical segments only and no diagonals are allowed.
Each corner of the resulting loop, except the entering variable cell,
must coincide with a current basic variable. Exactly one loop exists
for a given entering variable. Next we assign the amount θ to the
entering variable cell (3,1). For the supply and demand limits to
remain satisfied, we must alternate between subtracting and adding
the amount θ at the succesive corners of the loop as shown in figure.

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 Optimality Test for transportation problem

The values of the new variables then remain non-negative if

x11 = 5 − θ ≥ 0 x22 = 5 − θ ≥ 0 x34 = 10 − θ ≥ 0

The maximum value of θ is 5. In this case both x11 and x22 reach at
zero level. So we choose x11 or x22 as leaving vector. Let it be x11 .
Now the new table is

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 Optimality Test for transportation problem

For each of the occupied cell we calculate ui and vj such that

ui + vj = cij . Let u1 = 0 .

u1 + v 2 = c12 ⇒ 0 + v2 = 2 ⇒ v2 = 2
u 2 + v2 = c22 ⇒ u2 + 2 = 7 ⇒ u2 = 5
u2 + v4 = c24 ⇒ 5 + v4 = 20 ⇒ v4 = 15
u3 + v4 = c34 ⇒ u3 + 15 = 18 ⇒ u3 = 3
u3 + v1 = c31 ⇒ 3 + v1 = 4 ⇒ v1 = 1
u2 + v3 = c23 ⇒ 5 + v3 = 9 ⇒ v3 = 4

Now we shall find ∆ij = cij − (ui + vj ) for unoccupied cells..

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 Optimality Test for transportation problem

Cell cij − (ui + vj )

(1, 1) c11 − (u1 + v1 ) = 10 − (0 + 1) = 9
(1, 3) c13 − (u1 + v3 ) = 20 − (0 + 4) = 16
(1, 4) c14 − (u1 + v4 ) = 11 − (0 + 15) = −4
(2, 1) c21 − (u2 + v1 ) = 12 − (5 + 1) = 6
(3, 2) c32 − (u3 + v2 ) = 14 − (3 + 2) = 9
(3, 3) c33 − (u3 + v3 ) = 16 − (3 + 4) = 9

Net evaluation for cell (1, 4) is negative. So the solution is not

optimal. Assign θ to variable x14 . The values of the new variables
remain nonnegative if:
15 − θ ≥ 0 0 + θ ≥ 0 10 − θ ≥ 0
∴ The maximum value of θ = 10. The new solution is given by
x12 = 5 , x14 = 10 , x22 = 10 , x31 = 5 , x34 = 5 , x23 = 15

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 Optimality Test for transportation problem

The new table is:

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 Optimality Test for transportation problem

We calculate ui and vj for the occupied cell such that ui + vj = cij .

Let u1 = 0 .

u1 + v 2 = c12 ⇒ 0 + v 2 = 2 ⇒ v2 = 2
u1 + v 4 = c14 ⇒ 0 + v4 = 11 ⇒ v4 = 11
u2 + v 2 = c22 ⇒ u2 + 2 = 7 ⇒ u2 = 5
u2 + v 3 = c23 ⇒ 5 + v 3 = 9 ⇒ v3 = 4
u3 + v 4 = c34 ⇒ u3 + 11 = 18 ⇒ u3 = 7
u 3 + v1 = c31 ⇒ 7 + v1 = 4 ⇒ v1 = −3

We calculate ∆ij = cij − (ui + vj ) for the unoccupied cells.

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 Optimality Test for transportation problem

Cell cij − (ui + vj )

(1, 1) c11 − (u1 + v1 ) = 10 − (0 − 3) = 13
(1, 3) c13 − (u1 + v3 ) = 20 − (0 + 4) = 16
(2, 1) c21 − (u1 + v1 ) = 12 − (5 − 3) = 10
(2, 4) c24 − (u2 + v4 ) = 12 − (5 + 11) = 4
(3, 2) c32 − (u3 + v2 ) = 14 − (7 + 2) = 5
(3, 3) c33 − (u3 + v3 ) = 16 − (7 + 4) = 5

Since all ∆ij > 0, the solution is optimal and unique. The solution is
given by:

x12 = 5 , x14 = 10 , x22 = 10 , x23 = 15 , x31 = 5 , x34 = 5

The minimum transportation cost

= 5 × 2 + 10 × 11 + 10 × 7 + 15 × 9 + 5 × 4 + 5 × 18
= 10 + 110 + 70 + 135 + 20 + 90
= Rs 435

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 Optimality Test for transportation problem

Find an initial basic feasible solution to the TP using NWCR and

then determine optimum solution

0 2 1 6 0 4 2 8
2 1 5 9 2 3 4 5
(i) (ii)
2 4 3 5 1 2 0 6
5 5 10 20 7 6 6 19
Solution
(i).

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 Optimality Test for transportation problem

The initial basic feasible solution is :

x11 = 5 , x12 = 1 , x22 = 4 , x23 = 5 , x33 = 5

Transportation cost = 5 × 0 + 1 × 2 + 4 × 1 + 5 × 5 + 5 × 3
= Rs 46

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 Optimality Test for transportation problem

Take u1 = 0 .

u 1 + v1 = 0 ⇒ 0 + v1 = 0 ⇒ v1 = 0
u 1 + v2 = 2 ⇒ 0 + v2 = 2 ⇒ v2 = 2
u 2 + v2 = 1 ⇒ u2 + 2 = 1 ⇒ u2 = −1
u2 + v3 = 5 ⇒ −1 + v3 = 5 ⇒ v3 = 6
u3 + v3 = 3 ⇒ u3 + 6 = 3 ⇒ u3 = −3

∆ij is most negative in the cell (1,3). The closed path starting from
this cell is shown in the above table. We should choose θ such that

1−θ ≥0 , 5−θ ≥0

∴ We take θ = 1. the new table becomes.

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

Take u1 = 0 .

u 1 + v1 = 0 ⇒ 0 + v1 = 0 ⇒ v1 = 0
u 1 + v3 = 2 ⇒ 0 + v3 = 1 ⇒ v3 = 1
u 2 + v3 = 1 ⇒ u2 + 1 = 5 ⇒ u2 = 4
u 2 + v2 = 5 ⇒ 4 + v2 = 1 ⇒ v2 = −3
u 3 + v3 = 3 ⇒ u3 + 1 = 3 ⇒ u3 = 2

∆ij < 0 in the unoccupied cell (2,1). The closed path starting from
this cell (2,1) is shown in the above table. Choose θ such that

5−θ ≥0 , 4−θ ≥0

The maximum value of θ is 4. The new table becomes.

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

Take u1 = 0 .

u 1 + v1 = 0 ⇒ 0 + v1 = 0 ⇒ v1 = 0
u 2 + v1 = 2 ⇒ u2 + 0 = 2 ⇒ u2 = 2
u 2 + v2 = 1 ⇒ 2 + v2 = 1 ⇒ u2 = −1
u 1 + v3 = 1 ⇒ 0 + v3 = 1 ⇒ v3 = 1
u 3 + v3 = 3 ⇒ u3 + 1 = 3 ⇒ u3 = 2

All ∆ij ≥ 0 in the unoccupied cell. Hence the present solution is

optimal. The optimum solution and corresponding minimum cost is:

x11 = 1 , x13 = 5 , x21 = 4 , x22 = 5 , x33 = 5

Minimum cost = 1 × 0 + 5 × 1 + 4 × 2 + 5 × 1 + 5 × 3
= 0 + 5 + 8 + 5 + 15
= Rs 33

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

Take u1 = 0 .

u 1 + v1 = 0 ⇒ 0 + v1 = 0 ⇒ v1 = 0
u 1 + v2 = 4 ⇒ 0 + v2 = 4 ⇒ v2 = 4
u 2 + v2 = 3 ⇒ u2 + 4 = 3 ⇒ u2 = −1
u3 + v2 = 2 ⇒ u3 + 4 = 2 ⇒ u3 = −2
u3 + v3 = 0 ⇒ 1 + v3 = 0 ⇒ v3 = −1

Choose θ such that 1 − θ ≥ 0  − θ ≥ 0. That is θ = .

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

Take u1 = 0 .

u 1 + v1 = 0 ⇒ 0 + v1 = 0 ⇒ v1 = 0
u 1 + v2 = 4 ⇒ 0 + v2 = 4 ⇒ v2 = 4
u 2 + v2 = 3 ⇒ u2 + 4 = 3 ⇒ u2 = −1
u3 + v2 = 2 ⇒ u3 + 4 = 2 ⇒ u3 = −2
u3 + v3 = 0 ⇒ −2 + v3 = 0 ⇒ v3 = 2

All ∆ij ≥ 0 , hence optimality has been reached. The optimum

solution is:

x11 = 7 +  , x12 = 1 −  , x22 = 5 , x32 =  , x33 = 6

Minimum cost = (7 + ) × 0 + (1 − ) × 4 + 5 × 3 +  × 2 + 6 × 0
= 4 − 4 + 15 + 2
= 19 − 2
= 19 as  → 0
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 Optimality Test for transportation problem

Find an IBFS to the following TP using VAM and then find an

optimum solution.

1 5 3 3 34
3 3 1 2 15
0 2 2 3 12
2 7 2 4 19
21 25 17 17 80

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

We find u0i s and vj0 s using the occupied cells as follows. Let u1 = 0 .

u 1 + v1 = 1 ⇒ 0 + v1 = 1 ⇒ v1 = 1
u 1 + v3 = 3 ⇒ 0 + v3 = 3 ⇒ v3 = 3
u 4 + v3 = 2 ⇒ u4 + 3 = 3 ⇒ u4 = −1
u4 + v4 = 4 ⇒ −1 + v4 = 4 ⇒ v4 = 5
u2 + v4 = 2 ⇒ u2 + 5 = 2 ⇒ u2 = −3
u2 + v2 = 3 ⇒ −3 + v2 = 3 ⇒ v2 = 6
u3 + v2 = 2 ⇒ u3 + 6 = 2 ⇒ u3 = −4

We have calculated ∆ij for unoccupied cells and put the values in the
corresponding cells

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 Optimality Test for transportation problem

Find maximum value of θ satisfying 2 − θ ≥ 0 , 13 − θ ≥ 0. Max value

of θ = 2.

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 Optimality Test for transportation problem

We find u0i s and vj0 s using the occupied cells as follows. Let u1 = 0 .

u 1 + v1 = 1 ⇒ 0 + v1 = 1 ⇒ v1 = 1
u 1 + v3 = 3 ⇒ 0 + v3 = 3 ⇒ v3 = 3
u 1 + v4 = 3 ⇒ 0 + v4 = 3 ⇒ v4 = 3
u 2 + v4 = 2 ⇒ u2 + 3 = 2 ⇒ u2 = −1
u2 + v2 = 3 ⇒ −1 + v2 = 3 ⇒ v2 = 4
u3 + v2 = 2 ⇒ u3 + 4 = 2 ⇒ u3 = −2
u4 + v3 = 2 ⇒ u4 + 3 = 2 ⇒ u4 = −1

We have calculated ∆ij for unoccupied cells and put the values in the
corresponding cells

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 Optimality Test for transportation problem

Find maximum value of θ satisfying 2 − θ ≥ 0 , 11 − θ ≥ 0. Max value

of θ = 2.

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 Optimality Test for transportation problem

We find u0i s and vj0 s using the occupied cells as follows. Let u1 = 0 .

u 1 + v1 = 1 ⇒ 0 + v1 = 1 ⇒ v1 = 1
u 1 + v3 = 3 ⇒ 0 + v3 = 3 ⇒ v3 = 3
u 1 + v4 = 3 ⇒ 0 + v4 = 3 ⇒ v4 = 3
u 2 + v3 = 1 ⇒ u2 + 3 = 1 ⇒ u2 = −2
u2 + v2 = 3 ⇒ −2 + v2 = 3 ⇒ v2 = 5
u3 + v2 = 2 ⇒ u3 + 5 = 2 ⇒ u3 = −3
u4 + v3 = 2 ⇒ u4 + 3 = 2 ⇒ u4 = −1

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 Optimality Test for transportation problem

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 Optimality Test for transportation problem

All ∆ij ≥ 0 , optimality has been reached. The optimum solution is:

x11 = 21 , x13 = 9 , x14 = 4 , x22 = 13 , x23 = 2 , x32 = 12 , x43 = 19

Minimum cost = 21 × 1 + 9 × 3 + 4 × 3 + 13 × 3 + 2 × 1 + 12 × 2 + 19 × 2
= 21 + 27 + 12 + 39 + 2 + 24 + 38 = 163

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 Optimality Test for transportation problem

Example
A product is produced by four factories F1 , F2 , F3 and F4 . Their unit
production cost are Rs 2, 3, 1 and 5 respectively. Production capacity
of the factories are 50, 70, 30 and 50 units respectively. The product is
supplied to four stores S1 , S2 , S3 and S4 . The requirements of which
are 25, 35, 105 and 20 , respectively. Unit costs of transportation are
given below.
Find the transportation plan such that the total production and
transportation cost is minimum.

S1 S2 S3 S4
F1 2 4 6 11
F2 10 8 7 5
F3 13 3 9 12
F4 4 6 8 3

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 Optimality Test for transportation problem

Solution
We shall form the transportation table which consists of both
production and transportation costs.

S1 S2 S3 S4 Supply
F1 4 6 8 13 50
F2 13 11 10 8 70
F3 14 4 10 13 30
F4 9 11 13 8 50
Demand 25 35 105 20

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 Optimality Test for transportation problem

P P
Here ai = 200 and bj = 185. Hence the given TP is not
balanced. So we have to add a dummy column with zero
transportation cost.We shal find the initial basic feasible solution by
Matrix minima method.

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 Optimality Test for transportation problem

The initial basic feasible solution is

x11 = 25 , x12 = 5 , x13 = 20 , x23 = 50 , x24 = 20 , x32 = 30,

x43 = 35 , x45 = 15.

Transportation cost

= 25 × 4 + 5 × 6 + 20 × 8 + 50 × 10 + 20 × 8 + 30 × 4 + 35 × 13 + 15 × 0

= Rs 1525

To find optimal solution, we apply MODI method.

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 Optimality Test for transportation problem

Using occupied cells, we find the following.

u 1 + v1 = 4 ⇒ 0 + v1 = 4 ⇒ v1 = 4
u 1 + v2 = 6 ⇒ 0 + v2 = 6 ⇒ v2 = 6
u 1 + v3 = 8 ⇒ 0 + v3 = 8 ⇒ v3 = 8
u2 + v3 = 10 ⇒ u2 + 8 = 10 ⇒ u2 = 2
u2 + v4 = 8 ⇒ 2 + v4 = 8 ⇒ v4 = 6
u3 + v2 = 4 ⇒ u3 + 6 = 4 ⇒ u3 = −2
u4 + v3 = 13 ⇒ u4 + 8 = 13 ⇒ u4 = 5
u4 + v5 = 0 ⇒ 5 + v5 = 0 ⇒ v5 = −5

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 Optimality Test for transportation problem

For the unoccupied cells we calculate ∆ij = cij − (ui + vj ).

(i, j) ∆ij = cij − (ui + vj )

(1, 4) ∆14 = c14 − (u1 + v4 ) = 13 − (0 + 6) = 7
(1, 5) ∆15 = c15 − (u1 + v5 ) = 0 − (0 − 5) = 5
(2, 1) ∆21 = c21 − (u2 + v1 ) = 13 − (2 + 4) = 7
(2, 2) ∆22 = c22 − (u2 + v2 ) = 11 − (2 + 6) = 3
(2, 5) ∆25 = c25 − (u2 + v5 ) = 0 − (2 − 5) = 3
(3, 1) ∆31 = c31 − (u3 + v1 ) = 14 − (−2 + 4) = 12
(3, 3) ∆33 = c33 − (u3 + v3 ) = 10 − (−2 + 8) = 4
(3, 4) ∆34 = c34 − (u3 + v4 ) = 13 − (−2 + 6) = 9
(3, 5) ∆35 = c35 − (u3 + v5 ) = 0 − (−2 − 5) = 7
(4, 1) ∆41 = c41 − (u4 + v1 ) = 9 − (5 + 4) = 0
(4, 2) ∆42 = c42 − (u4 + v2 ) = 11 − (5 + 6) = 0
(4, 4) ∆44 = c44 − (u4 + v4 ) = 8 − (5 + 6) = −3

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 Optimality Test for transportation problem

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20 − θ ≥ 0 35 − θ ≥ 0

Maximum value of θ = 20. Choose cell(4,4) as the entering variable

cell and (2,4) as the leaving variable cell.Now the revised table
becomes

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For each occupied cell calculate ui and vj using ui + vj = cij . Let

u1 = 0
u 1 + v1 = 4 ⇒ 0 + v1 = 4 ⇒ v1 = 4
u 1 + v2 = 6 ⇒ 0 + v2 = 6 ⇒ v2 = 6
u 1 + v3 = 8 ⇒ 0 + v3 = 8 ⇒ v3 = 8
u2 + v3 = 10 ⇒ u2 + 8 = 10 ⇒ u2 = 2
u3 + v2 = 4 ⇒ u3 + 6 = 4 ⇒ u3 = −2
u4 + v3 = 13 ⇒ u4 + 8 = 13 ⇒ u4 = 5
u4 + v4 = 8 ⇒ 5 + v4 = 8 ⇒ u4 = 3
u4 + v5 = 0 ⇒ 5 + v5 = 0 ⇒ v5 = −5

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For the unoccupied cells we calculate ∆ij = cij − (ui + vj ).

(i, j) ∆ij = cij − (ui + vj )

(1, 4) ∆14 = 13 − (0 + 3) = 10
(1, 5) ∆15 = 0 − (0 − 5) = 5
(2, 1) ∆21 = 13 − (2 + 4) = 7
(2, 2) ∆22 = 11 − (2 + 6) = 3
(2, 4) ∆24 = 8 − (2 + 3) = 3
(2, 5) ∆25 = 0 − (2 − 5) = 3
(3, 1) ∆31 = 14 − (−2 + 6) = 10
(3, 3) ∆33 = 10 − (−2 + 8) = 4
(3, 4) ∆34 = 13 − (−2 + 3) = 12
(3, 5) ∆35 = 0 − (−2 − 5) = 7
(4, 1) ∆41 = 9 − (5 + 4) = 0
(4, 2) ∆42 = 11 − (5 + 6) = 0

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 Optimality Test for transportation problem

Since all ∆j ≥ 0, solution is optimum.The optimum table is given

below.

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 Optimality Test for transportation problem

An optimum solution is

x11 = 25 , x12 = 5 , x13 = 20 , x23 = 70 , x32 = 30 , x43 = 15,

x44 = 20 , x45 = 15.

Optimum cost

= 25 × 4 + 5 × 6 + 20 × 8 + 70 × 10 + 30 × 4 + 15 × 13 + 20 × 8 + 15 × 0

= 100+30+160+700+120+195+160+0

= Rs 1465

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 Optimality Test for transportation problem

Degeneracy in TP
Degeneracy occurs when basic variables take zero values. We allocate
a quantity  > 0( very small ) instead of zero to the basic variable in
the balanced TP. We shall discuss the method through an example.
Example
Obtain the optimal solution to the TP using NWCR to find the IBFS.

D1 D2 D3 D4 ai
O1 2 5 4 7 4
O2 6 1 2 5 6
O3 4 5 2 4 8
bj 3 7 6 2

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Solution
We shall find IBFS by NWCR as follows

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Here we can put 0 in cell (3,2) or (2,3), but we put it in cell (2,3)
having least cost. Hence the degenerate BFS is

x11 = 3 , x12 = 1 , x22 = 6 , x23 = 0 , x33 = 6 , x34 = 2

Transportation cost= 3 × 2 + 1 × 5 + 6 × 1 + 0 × 2 + 6 × 2 + 2 × 4
= 6 + 5 + 6 + 0 + 12 + 8
= 37

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 Optimality Test for transportation problem

Optimality Test
We calculate ui , vj for the occupied cells and ∆ij for unoccupied cells
and write as shown below

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 Optimality Test for transportation problem

In the first table we put in the cell (2,3) an allocation  instead of 0 so

that X23 +  = x23 . Not all ∆ij ≥ 0 and hence the given solution is
not optimum. We shall use the method described earlier to find the
optimum solution.
We find θ such that

1−θ ≥0 , −θ ≥0

∴ We take θ = . Then the new table becomes

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 Optimality Test for transportation problem

Since all ∆ij > 0, the solution is optimum. The optimum solution is
given by:

x11 = 3 , x12 = 1 −  , x13 =  , x22 = 6 +  , x33 = 6 , x34 = 2

Minimum transportation cost

= 3 × 2 + (1 − ) × 5 +  × 4 + (6 + ) × 1 + 6 × 2 + 2 × 4

= 6 + 5 − 5 + 4 + 6 + 6 + 12 + 8

= 37 + 5
Now making  → 0 we get

x11 = 3 , x12 = 1 , x13 = 0 , x22 = 6 , x33 = 6 , x34 = 2

Minimum transportation cost=37.

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Maximization of TP
We have solved minimization problem for TP using different
techniques. But maximization problem can also be solved using the
techniques we adopted. We shall explain it through the following
example.
Example
Four products are produced in three machines and their profit
margins are given by the table below:

P1 P2 P3 P4 Capacity
M1 6 4 1 5 14
M2 8 9 2 7 18
M3 4 3 6 2 7
Requirements 6 10 15 8

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(a) You are required to find a suitable production plan of products in

machines so that the capacities and requirements are met and the
profit is maximized.

(b) How can you identify an alternative optimum solution? Can you
find a similar situation in the problem?

(c) While evaluating alternative solution, you may meet a case of

degeneracy for testing the optimality criteria. Explain the steps to
avoid degeneracy in the problem.

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Solution
We use M ax Z = −M in (−Z). Hence we change the sign of each
element of the profit matrix.
Let us obtain the IBFS by matrix minima method.

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All ∆ij > 0. Hence the solution is optimum. The optimum allocation
is
x13 = 8 , x14 = 6 , x21 = 6 , x22 = 10 , x24 = 2 , x33 = 7

M in(−Z) = (−1)(8)+(−5)(6)+(−8)(6)+(−9)(10)1+(−7)(2)+(−6)(7)

= −232
M ax Z = −M in(−Z) = 232 units (max profit).

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(b) Since ∆ij = 0 for cell (1,1), we have an alternate optimum

solution. To find out this alternate optimum we proceed as follows.
We form a closed loop starting from cell (1,1) and proceed as above.
The maximum value of θ satisfies the inequality

6−θ ≥0 , 6−θ ≥0

∴θ=6

Then the new table becomes

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Cells (2,1) and (1,4) vanishes simultaneously. Hence degeneracy

occurs. Now to test optimality, we put  > 0 in the cell (2,1) with cost
component minimum.
All ∆ij > 0. Hence the solution is optimum. The optimum solution is
obtained by putting  = 0

x11 = 6 , x13 = 8 , x21 = 0 , x22 = 10 , x24 = 8 , x33 = 7

Max profit
= −{(6)(−6) + (8)(−1) + (0)(−8) + (10)(−9) + (8)(−9) + (7)(−6)}
= 232 units

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 Optimality Test for transportation problem

Assignment
Solve the sollowing TP using VAM to determine the IBFS and the
find an optimum solution using MODI method.

D1 D2 D3 D4 ai D1 D2 D3 D4 ai
O1 1 2 3 4 6 O1 5 8 3 6 30
O2 4 3 2 0 8 O2 4 5 7 4 50
O3 0 2 2 1 10 O3 6 2 4 5 40
bj 4 6 8 6 24 bj 30 20 40 30 120

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Solve the following TP for initial basic feasible solution using matrix
minima method and then find an optimum solution .

D1 D2 D3 D4
O1 4 6 2 3 12
O2 8 2 3 4 10
O3 5 7 6 5 8
9 8 6 5

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 Optimality Test for transportation problem

Solve the balanced TP for optimal solution . Find the IBFS using
VAM.

D1 D2 D3 D4 ai D1 D2 D3 D4 ai
O1 15 20 13 21 15 O1 21 13 17 24 11
O2 22 15 19 14 12 O2 19 15 13 17 15
O3 16 12 14 31 13 O3 23 11 22 20 18
O4 24 23 15 30 20 O4 16 18 21 14 11
bj 16 10 10 24 bj 13 17 11 14

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 Optimality Test for transportation problem

D1 D2 D3 D4 ai D1 D2 D3 D4 D5 ai
O1 2 3 11 7 6 O1 3 5 6 9 7 9
O2 1 0 6 1 1 O2 5 2 4 3 6 6
O3 5 8 15 9 10 O3 4 1 3 2 5 10
bj 7 5 3 2 bj 2 5 6 7 5

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