Lecture 20

▪ Module B
• 9, 41, 47

▪ Module D
• 7, 14, 15

Lecture 20 1
Module B
▪ Problem 9
To
From 1 2 3 4 Supply
A $14 9 16 18 150
B 11 8 M 16 210
C 16 12 10 22 320
Demand 130 70 180 240

• Shipments are prohibited from B to 3.

• Total supply amount=680

• Total demand amount=620
• Need a dummy node in the demand side.
Lecture 20 2
a. Set up a transportation tableau for this
problem and the initial solution. Identify the
method used to find the initial solution.

We use the minimum cell cost method.

From / 1 2 3 4 Dummy Supply
To

A 14 9 16 ⑥ 18 ① 0
150
90 60
④ 11 ② 8 M
⑤ 16 0
B 210
130 70 10
16 12 ③ 10 22 0
C 320
180 140
Demand 130 70 180 240 60 680
Solution: 𝑥𝐴4 = 90, 𝑥𝐴𝐷 = 60, 𝑥𝐵1 = 130, 𝑥𝐵2 = 70,
𝑥𝐵4 = 10, 𝑥𝐶3 = 180, 𝑥𝐶4 = 140
𝑤𝑖𝑡ℎ 𝑍 = 8,650.

Lecture 20 3
 b. Solve this problem using MODI
𝑣1 =13 𝑣2 = 10 𝑣3 =6 𝑣4 =18 𝑣𝐷 =0
From / 1 2 3 4 Dummy Supply
To

A 14 9 16 18 0
𝑢𝐴 = 0 150
90 60
11 8 M 16 0
𝑢𝐵 = −2 B 210
130 70 10
16 12 10 22 0
𝑢𝐶 = 4 C 320
180 140
Demand 130 70 180 240 60 680

𝑘𝐴1 = 14 − 0 − 13 = 1, 𝑘𝐴2 = 9 − 0 − 10 = −1, 𝑘𝐴3 = 16 − 0 − 6 = 10,

𝑘𝐵3 = 𝑀 + 2 − 6 = 𝑀 − 4, 𝑘𝐵𝐷 = 0 + 2 = 2
𝑘𝐶1 = 16 − 4 − 13 = −1, 𝑘𝐶2 = 12 − 4 − 10 = −2, 𝑘𝐶𝐷 = 0 − 4 = −4.

We select cell CD.

Lecture 20 4
 𝑣1 =12 𝑣2 = 10 𝑣3 =6 𝑣4 =18 𝑣𝐷 =0
From / 1 2 3 4 Dummy Supply
To
14 9 16 +1 18 -1 0
A
𝑢𝐴 = 0 150
90 60
11 8 M 16 0
𝑢 𝐵 = −2 B 210
130 70 10

16 12 10 -1 22 +1 0
𝑢𝐶 = 4 C 320
180 140

Demand 130 70 180 240 60 680

The maximum flow is 60.

𝑣1 = 𝑣2 = 𝑣3 = 𝑣4 = 𝑣𝐷 =
From / 1 2 3 4 Dummy Supply
To
14 9 16 18 0
A
𝑢𝐴 = 150
150
11 8 M 16 0
𝑢𝐵 = B 210
130 70 10
16 12 10 22 0
𝑢𝐶 = C 320
180 80 60
Demand 130 70 Lecture180
20 240 60 680 5
 𝑣1 = 13 𝑣2 =10 𝑣3 =6 𝑣4 =18 𝑣𝐷 = −4

From / 1 2 3 4 Dummy Supply

To
14 9 16 18 0
A
𝑢𝐴 = 0 150
150
11 8 M 16 0
𝑢𝐵
B 210
= −2 130 70 10
16 12 10 22 0
𝑢𝐶 = 4 C 320
180 80 60
Deman 130 70 180 240 60 680
d

𝑘𝐴1 = 14 − 0 − 13 = 1, 𝑘𝐴2 = 9 − 0 − 10 = −1, 𝑘𝐴3 = 16 − 0 − 6 = 10,

𝑘𝐴𝐷 = 0 − 0 + 4 = 4, 𝑘𝐵3 = 𝑀 + 2 − 6 = 𝑀 − 4, 𝑘𝐵𝐷 = 0 + 2 + 4 = 6
𝑘𝐶1 = 16 − 4 − 13 = −1, 𝑘𝐶2 = 12 − 4 − 10 = −2.
We select cell C2.

Lecture 20 6
 𝑣1 = 16 𝑣2 = 10 𝑣3 = 10 𝑣4 = 18 𝑣𝐷 =0
From 1 2 3 4 Dummy Supply
/ To
A 14 9 16 18 0
𝑢𝐴 = 0 150
150

𝑢𝐵 11 -1 8 M +1 16 0
B 210
= −2 130 70 10
16 +1 12 10 -1 22 0
𝑢𝐶 =0 C 320
180 80 60
Dema 130 70 180 240 60 680
nd

The maximum flow is 70.

𝑣1 =13 𝑣2 =8 𝑣3 =6 𝑣4 =18 𝑣𝐷 =0
From / 1 2 3 4 Dummy Supply
To
A 14 9 16 18 0
𝑢𝐴 = 0 150
150
11 8 M 16 0
𝑢𝐵 =-2 B 210
130 80
16 12 10 22 0
𝑢𝐶 =4 C 320
70 180 10 60
Deman 130 70 180 240 60 680
d

Lecture 20 7
 𝑣1 =13 𝑣2 = 8 𝑣3 = 6 𝑣4 =18 𝑣𝐷 = 0

From / 1 2 3 4 Dummy Supply

To
14 9 16 18 0
A
𝑢𝐴 =0 150
150

11 8 M 16 0
𝑢𝐵
B 210
= −2
130 80
16 12 10 22 0
𝑢𝐶 = 4 C 320
70 180 10 60

Deman 130 70 180 240 60 680

d

𝑘𝐴1 = 14 − 0 − 13 = 1, 𝑘𝐴2 = 9 − 0 − 8 = 1, 𝑘𝐴3 = 16 − 0 − 6 = 10

𝑘𝐴𝐷 = 0, 𝑘𝐵2 = 8 + 2 − 8 = 2, 𝑘𝐵3 = 𝑀 + 2 − 6 = 𝑀 − 4, 𝑘𝐵𝐷 = 0 + 2 = 2
𝑘𝐶1 = 16 − 13 − 4 = −1
We select cell C1.

Lecture 20 8
 𝑣1 =13 𝑣2 =8 𝑣3 = 6 𝑣4 =18 𝑣𝐷 =0
From / 1 2 3 4 Dummy Supply
To
A 14 9 16 18 0
𝑢𝐴 =0 150
150

𝑢𝐵 -1 11 8 M +1 16 0
B 210
= −2 130 80
+1 16 12 10 -1 22 0
𝑢𝐶 =4 C 320
70 180 10 60
Deman 130 70 180 240 60 680
d

The maximum flow is 10.

𝑣1 =13 𝑣2 =9 𝑣3 =7 𝑣4 =18 𝑣𝐷 =-3
From / 1 2 3 4 Dummy Supply
To
A 14 9 16 18 0
𝑢𝐴 = 0 150
150
11 8 M 16 0
𝑢𝐵 =-2 B 210
120 90
16 12 10 22 0
𝑢𝐶 =3 C 320
10 70 180 60
Deman 130 70 180 240 60 680
d

Lecture 20 9
 𝑣1 =13 𝑣2 =9 𝑣3 =7 𝑣4 =18 𝑣𝐷 =-3
From / 1 2 3 4 Dummy Supply
To
A 14 9 16 18 0
𝑢𝐴 = 0 150
150
11 8 M 16 0
𝑢𝐵 =-2 B 210
120 90
16 12 10 22 0
𝑢𝐶 =3 C 320
10 70 180 60
Deman 130 70 180 240 60 680
d

𝑘𝐴1 = 14 − 0 − 13 = 1, 𝑘𝐴2 = 9 − 0 − 9 = 0, 𝑘𝐴3 = 16 − 0 − 7 = 9

𝑘𝐴𝐷 = 3, 𝑘𝐵2 = 8 + 2 − 9 = 1, 𝑘𝐵3 = 𝑀 + 2 − 7 = 𝑀 − 5, 𝑘𝐵𝐷 = 0 + 5 = 5
𝑘𝐶4 = 22 − 18 − 3 = 1
This is an optimal solution. 𝑥𝐴4 = 150, 𝑥𝐵1 = 120, 𝑥𝐵4 = 90, 𝑥𝐶1 = 10, 𝑥𝐶2 = 70, 𝑥𝐶3 = 180, 𝑥𝐶𝐷 = 60
With Z=8,260.

Lecture 20 10
c. Are there multiple optimal solutions? Explain. If so, identify them.

There are multiple optimal solution because in the previous anaysis we have 𝑘𝐴2=0.

𝑣1 = 𝑣2 = 𝑣3 = 𝑣4 = 𝑣𝐷 =
From / 1 2 3 4 Dummy Supply
To
14 +1 9 16 -1 18 0
A
𝑢𝐴 = 150
150
-1 11 8 M +1 16 0
𝑢𝐵 = B 210
120 90
+1 16 -1 12 10 22 0
𝑢𝐶 = C 320
10 70 180
60

Dema 130 70 180 240 60 680

nd

The maximum flow is 70.

Lecture 20 11
 𝑣1 = 𝑣2 = 𝑣3 = 𝑣4 = 𝑣𝐷 =

From / 1 2 3 4 Dummy Suppl

To y
A 14 9 16 18 0
𝑢𝐴 = 150
70 80
11 8 M 16 0
𝑢𝐵 = B 210
50 160
16 12 10 22 0
𝑢𝐶 = C 320
80 180 60
Deman 130 70 180 240 60 680
d

.
The alternative optimal solution is
𝑥𝐴2 = 70, 𝑥𝐴4 = 80, 𝑥𝐵1 = 50, 𝑥𝐵4 = 160, 𝑥𝐶1 = 80, 𝑥𝐶3 = 180, 𝑥𝐶𝐷 = 60 𝑤𝑖𝑡ℎ 𝑍 = 8,260.

Lecture 20 12
Module B
▪ Problem 41
• Cost Table. Determine the optimal assignmnet and total
minimum cost. Identify all alternative solutions.
Machine
From A B C D
1 $10 2 8 6
2 9 5 11 9
3 12 7 14 14
4 3 1 4 2

• Row Reduction
Machine
From A B C D
1 8 0 6 4
2 4 0 6 4
3 5 0 7 7
Lecture 20 4 2 0 3 1 13
• Column Reduction
Machine
From A B C D
1 6 0 3 3
2 2 0 3 3
3 3 0 4 6
4 0 0 0 0

• Only two lines are required to cross out all zeros. The minimum value from all
values not crossed out is 2.
Machine
From A B C D
1 6-2 0 3-2 3-2
2 2-2 0 3-2 3-2
3 3-2 0 4-2 6-2
4 0 0+2 0 0

Lecture 20 14
 Machine
From A B C D
1 4 0 1 1
2 0 0 1 1
3 1 0 2 4
4 0 2 0 0

• Only three lines are required to cross out all zeros. The minimum value from all
values not crossed out is 1.

Machine
From A B C D
1 4-1 0 1-1 1-1
2 0 0+1 1 1
3 1-1 0 2-1 4-1
4 0 2+1 0 0

Lecture 20 15
 Machine
From A B C D
1 3 0 0 0
2 0 1 1 1
3 0 0 1 3
4 0 3 0 0

• Now four lines are required to cross out zeros.

▪ Solution 1 ▪ Solution 2
• 2-> A • 2-> A
• 3-> B • 3-> B
• 1->C • 1->D
• 4->D • 4->C
• With cost of $9+7+8+2=$26 • With cost of $9+7+6+4=$26

Lecture 20 16
Module B
▪ Problem 47
• Maximize the overall average evaluation.
• A perfect score is 100.
• Rating table
Course
Instructor A B C D
1 80 75 90 85
2 95 90 90 97
3 85 95 88 91
4 93 91 80 84
5 91 92 93 88

• Cost =100-Rate
• One dummy course is needed.
Lecture 20 17
 Course
Instructor A B C D Dummy
1 20 25 10 15 0
2 5 10 10 3 0
3 15 5 12 9 0
4 7 9 20 16 0
5 9 8 7 12 0

• Column Reduction

Course
Instructor A B C D Dummy
1 15 20 3 12 0
2 0 5 3 0 0
3 10 0 5 6 0
4 2 4 13 13 0
5 1 3 0 9 0
• Only four lines are required to cross out all zeros. The minimum value from all
values not crossed out is 2. Lecture 20 18
 Course
Instructor A B C D Dummy
1 13 18 1 10 0
2 0 5 3 0 2
3 10 0 5 6 2
4 0 2 11 11 0
5 1 3 0 9 0

• Now five lines are required to cross out zeros.

▪ Solution
• 1-> Dummy
• 2-> D
• 3->B
• 4->A
• 5 ->C

Lecture 20 19
Module D
▪ Problem 7
• M𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 𝑣𝑝 − 12000 − 17𝑣
• Subject to 𝑣 = 800 − 15𝑝
• Solve this nonlinear programming model for the optimal price (p) using
the substitution method.

• 𝑍 = 800 − 15𝑝 𝑝 − 12,000 − 17 800 − 15𝑝

= −15𝑝2 + 1055𝑝 −25,600.
Take a derivative with respect to p and set it equal to zero.

Lecture 20 20
Module D
▪ Problem 14
• M𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 25𝑥1 − 0.8𝑥12 + 30𝑥2 − 1.2𝑥22
• Subject to 𝑥1 + 2𝑥2 = 40 ℎ𝑟.
• Determine the optimal solution using the method of Lagrange multipliers.

• Lagrangian function:
• 𝐿 = 25𝑥1 − 0.8𝑥12 + 30𝑥2 − 1.2𝑥22 − 𝜆 𝑥1 + 2𝑥2 − 40
𝜕𝐿
• = 25 − 1.6𝑥1 − 𝜆 = 0
𝜕𝑥1
𝜕𝐿
• = 30 − 2.4𝑥2 − 2𝜆 = 0
𝜕𝑥2
𝜕𝐿
• = 𝑥1 + 2𝑥2 − 40 = 0
𝜕𝜆
• 𝑥1 , 𝑥2 = 15.45, 12.27 𝜆 = 0.27 𝑤𝑖𝑡ℎ 𝑍 = 382.73.

Lecture 20 21
Module D
▪ Problem 15
• Interpret the meaning of 𝜆 𝑖𝑛 𝑃𝑟𝑜𝑏𝑙𝑒𝑚 14.

• It represents the marginal value of one additional labor hour. It is the

expected profit increase when one labor hour is increased.

• 𝐿 = 25𝑥1 − 0.8𝑥12 + 30𝑥2 − 1.2𝑥22 − 𝜆 𝑥1 + 2𝑥2 − 40

Lecture 20 22