Mathematical Formulation of The Transportation Problem
Mathematical Formulation of The Transportation Problem
Transportation problem is one of the subclasses of LPPs in which the objective is to transport various quantities 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 minimum. To achieve this objective we must know the amount and location of available supplies and the quantities demanded. In addition, we must know the costs that result from transporting one unit of commodity from various origins to various destinations. Mathematical Formulation of the Transportation Problem A transportation problem can be stated mathematically as a Linear Programming Problem as below: Minimize Z = subject to the constraints = ai , i = 1, 2,..,m = bj , j = 1, 2,..,m xij 0 for all i and j Where, ai = quantity of commodity available at origin i bj= quantity of commodity demanded at destination j cij= cost of transporting one unit of commodity from ith origin to jth destination xij = quantity transported from ith origin to jth destination Tabular form of the Transportation Problem To D1 From O1 O2 . . . Om Deman d c11 c21 . . . cm1 b1 D2 c12 c22 . . . cm2 b2 . . . . Dn c1n c2n . . . cmn bn . . . am Supply a1 a2
. .
NORTH - WEST CORNER RULE Step1:Identify the cell at North-West corner of the transportation matrix. Step2:Allocate as many units as possible to that cell without exceeding supply or demand; then cross out the row or column that is exhausted by this assignment Step3:Reduce the amount of corresponding supply or demand which is more by allocated amount. Step4:Again identify the North-West corner cell of reduced transportation matrix. Step5:Repeat Step2 and Step3 until all the rim requirements are satisfied. Vogels Approximation Method (VAM) Step-I: Compute the penalty values for each row and each column. The penalty will be equal to the difference between the two smallest shipping costs in the row or column. Step-II: Identify the row or column with the largest penalty. Find the first basic variable which has the smallest shipping cost in that row or column. Then assign the highest possible value to that variable, and cross-out the row or column which is exhausted. Step-III: Compute new penalties and repeat the same procedure until all the rim requirements are satisfied. An example for Vogels Method Find the IBFS of the following transportation problem by using Penalty Method.
D1 D2 D3
Supply 10
15 15
80 5
78 5
15
80 5 80-7=73
78 5 78-8=70
15
78-15=63
Step 2: Identify the largest penalty and choose least cost cell to corresponding this penalty
Supply 10 Row Penalty 7-6=1
80 5 80-7=73
78 5 78-8=70
15
78-15=63
Step-3: Allocate the amount 5 which is minimum of corresponding row supply and column demand and then cross out column2
Supply 5 6 7 8 10 Row Penalty 7-6=1
80 5 80-7=73
78 5 78-8=70
15
78-15=63
15 Dem and 15
80 X
78 5 78-8= 70
15
78-15= 63
Step-5: Identify the largest penalty and choose least cost cell to corresponding this penalty
Supply 5 6 7 8 5 Row Penalty 8-6=2
80 X
78 5 78-8=70
15
78-15=63
Step-6: Allocate the amount 5 which is minimum of corresponding row supply and column demand, then cross out column3
Supply 5 6 7 8 5 5 Row Penalty 8-6=2
80 X
78 X
15
78-15=63
Step-7: Finally allocate the values 0 and 15 to corresponding cells and cross out column 1
D1 0 O1 6 15 O2 Demand 15 X 80 X 78 X 7 D2 5 8 D3 5 Supply X
Solution of the problem Now the Initial Basic Feasible Solution of the transportation problem is X11=0, X12=5, X13=5, and X21=15 and Total transportation cost = (0x6)+(5x7)+(5x8)+(15x15) = 0+35+40+225
= 300.