CHAPTER – 4

Linear Programming: II
Transportation Model

4.1. INTRODUCTION
In operations Research Linear programming is one of the model in mathematical programming, which
is very broad and vast. Mathematical programming includes many more optimization models known as
Non - linear Programming, Stochastic programming, Integer Programming and Dynamic Programming
- each one of them is an efficient optimization technique to solve the problem with a specific structure,
which depends on the assumptions made in formulating the model. We can remember that the general
linear programming model is based on the assumptions:

(a) Certainty
The resources available and the requirement of resources by competing candidates, the profit
coefficients of each variable are assumed to remain unchanged and they are certain in nature.

(b) Linearity
The objective function and structural constraints are assumed to be linear.

(c) Divisibility
All variables are assumed to be continuous; hence they can assume integer or fractional values.

(d) Single stage

The model is static and constrained to one decision only. And planning period is assumed to be
fixed.

(e) Non-negativity
A non-negativity constraint exists in the problem, so that the values of all variables are to be ≥ 0,
i.e. the lower limit is zero and the upper limit may be any positive number.

(f) Fixed technology

Production requirements are assumed to be fixed during the planning period.
142 Operations Research

(g) Constant profit or cost per unit

Regardless of the production schedules profit or cost remain constant.
Now let us examine the applicability of linear programming model for transportation and
assignment models.

4.2. TRANSPORTATION MODEL

The transportation model deals with a special class of linear programming problem in which the objective
is to transport a homogeneous commodity from various origins or factories to different
destinations or markets at a total minimum cost.
To understand the problem more clearly, let us take an example and discuss the rationale of
transportation problem. Three factories A, B and C manufactures sugar and are located in different
regions. Factory A manufactures, b1 tons of sugar per year and B manufactures b2 tons of sugar per
year and C manufactures b3 tons of sugar. The sugar is required by four markets W, X, Y and Z. The
requirement of the four markets is as follows: Demand for sugar in Markets W, X, Yand Z is d1, d2, d3
and d4 tons respectively. The transportation cost of one ton of sugar from each factory to market is
given in the matrix below. The objective is to transport sugar from factories to the markets at a minimum
total transportation cost.

Transportation cost per ton in Rs. Availability in tons

Markets
W X Y Z
A c 11 c 12 c 13 c 14 b1
Factories B c 21 c 22 c 23 c 24 b2
C c 31 c 32 c 33 c 34 b3
Demand in d1 d2 d3 d4 Σ b j / Σd j
Tons.

For the data given above, the mathematical model will be:
Minimize Z = c11 x11 + c12 x12 + c13 x13 + c14 x14 + c21 x21 + c22 x22 + c23 x23 + c24 x24 +
c31 x31 + c32 x32 + c33 x33 + c34 x34 subject to a condition: OBJECTIVE FUNCTION.
a11 x11 +a12 x12 + a13 x13 + a14 x14 ≤ b1 (because the sum must be less than or equal to the
available capacity)
a21 x21 + a22 x22 + a23 x23 + a24 x24 ≤ b2
a31 x31 + a32 x32 + a33 x33 + a34 x34 ≤ b3 MIXED STRUCTURAL CONSTRAINTS.

a11 x11 + a21 x21 + a31 x31 ≥ d1

(because the sum must be greater than or equal to the demand
a12 x12 + a22 x22 + a32 x32 ≥ d2 of the market. We cannot send less than what is required)
a13 x13 + a23 x23 + a33 x33 ≥ d3
a14 x14 + a24 x24 + a34 x34 ≥ d4 and
All xij and xji are ≥ 0 where i = 1,2,3 and j = 1,2,3,4. (This is because we cannot
supply negative elements). NON-NEGATIVITY
CONSTRAINT.
Linear Programming: II Transportation Model 143

The above problem has got the following properties:

1. It has an objective function.
2. It has structural constraints.
3. It has a non-negativity constraint.
4. The relationship between the variables and the constraints are linear.
We know very well that these are the properties of a linear programming problem. Hence the
transportation model is also a linear programming problem. But a special type of linear programming
problem.
Once we say that the problem has got the characteristics of linear programming model, and then
we can solve it by simplex method. Hence we can solve the transportation problem by using the
simplex method. As we see in the above given transportation model, the structural constraints are of
mixed type. That is some of them are of ≤ type and some of them are of ≥ type. When we start solving
the transportation problem by simplex method, it takes more time and laborious. Hence we use
transportation algorithm or transportation method to solve the problem. Before we discuss the
transportation algorithm, let us see how a general model for transportation problem appears. The
general problem will have 'm' rows and 'n' columns i.e., m × n matrix.
n m

Minimize Z = ∑ ∑c
j =1 i =1
ij x j s.t. where i = 1 to m and j = 1 to n.

∑a
i =1
ij xij ≤ bi where i = 1 to m and j = 1 to n

∑a
j =1
ij x ji ≥ d j where i = 1 to m and j = 1 to n

4.3. COMPARISON BETWEEN TRANSPORTATION MODEL AND GENERAL LINEAR

PROGRAMMING MODEL

Similarities
1. Both have objective function.
2. Both have linear objective function.
3. Both have non - negativity constraints.
4. Both can be solved by simplex method. In transportation model it is laborious.
5. A general linear programming problem can be reduced to a transportation problem if (a) the
aij's (coefficients of the structural variables in the constraints) are restricted to the values 0
and/or 1 and (b) There exists homogeneity of units among the constraints.

Differences
1. Transportation model is basically a minimization model; where as general linear programming
model may be of maximization type or minimization type.
144 Operations Research

2. The resources, for which, the structural constraints are built up is homogeneous in
transportation model; where as in general linear programming model they are different. That
is one of the constraint may relate to machine hours and next one may relate to man-hours
etc. In transportation problem, all the constraints are related to one particular resource or
commodity, which is manufactured by the factories and demanded by the market points.
3. The transportation problem is solved by transportation algorithm; where as the general linear
programming problem is solved by simplex method.
4. The values of structural coefficients (i.e. xij) are not restricted to any value in general linear
programming model, where as it is restricted to values either 0 or 1 in transportation problem.
Say for example:
Let one of the constraints in general linear programming model is: 2x –3y +10z ≤ 20. Here
the coefficients of structural variables x, y and z may negative numbers or positive numbers
of zeros. Where as in transportation model, say for example x11 + x12 + x13 + x14 = bi = 20.
Suppose the value of variables x11, and x14 are 10 each, then 10 + 0. x12 + 0. x13 + 10 = 20.
Hence the coefficients of x11 and x14 are 1 and that of x12 and x13 are zero.

4.4. APPROACH TO SOLUTION TO A TRANSPORTATION PROBLEM BY USING

TRANSPORTATION ALGORITHM
The steps used in getting a solution to a transportation problem is given below:

4.4.1. Initial Basic Feasible Solution

Step 1. Balancing the given problem. Balancing means check whether sum of availability constraints
must be equals to sum of requirement constraints. That is Σbi = Σd j . Once they are equal,
go to step two. If not by opening a Dummy row or Dummy column balance the problem. The
cost coefficients of dummy cells are zero. If Σbi is greater than Σd j , then open a dummy
column, whose requirement constraint is equals to Σbi – Σd j and the cost coefficient of
the cells are zeros. In case if Σd j is greater than Σbi , then open a dummy row, whose
availability constraint will be equals to Σd j – Σbi and the cost coefficient of the cells are
zeros. Once the balancing is over, then go to second step. Remember while solving general
linear programming problem to convert an inequality into an equation, we add (for maximization
problem) a slack variable. In transportation problem, the dummy row or dummy column,
exactly similar to a slack variable.
Step II. A .Basic feasible solution can be obtained by three methods, they are
(a) North - west corner method.
(b) Least - cost cell method. (Or Inspection method Or Matrix minimum - row minimum
- column minimum method)
(c) Vogel's Approximation Method, generally known as VAM.
After getting the basic feasible solution (b.f.s.) give optimality test to check whether
the solution is optimal or not.
There are two methods of giving optimality test:
(a) Stepping Stone Method.
(b) Modified Distribution Method, generally known as MODI method.
Linear Programming: II Transportation Model 145

4.4.2.Properties of a Basic feasible Solution

1. The allocation made must satisfy the rim requirements, i.e., it must satisfy availability
constraints and requirement constraints.
2. It should satisfy non negativity constraint.
3. Total number of allocations must be equal to (m + n – 1), where 'm' is the number of rows
and 'n' is the number of columns. Consider a value of m = 4 and n = 3, i.e. 4 × 3 matrix. This
will have four constraints of ≤ type and three constraints of ≥ type. Totally it will have 4 +
3 (i.e m + n) inequalities. If we consider them as equations, for solution purpose, we will
have 7 equations. In case, if we use simplex method to solve the problem, only six rather
than seen structural constraints need to be specified. In view of the fact that the sum of the
origin capacities (availability constraint) equals to the destination requirements (requirement
constraint) i.e., Σbi = Σ dj, any solution satisfying six of the seven constraints will
automatically satisfy the last constraint. In general, therefore, if there are 'm' rows and 'n'
columns, in a given transportation problem, we can state the problem completely with m +
n – 1 equations. This means that one of the rows of the simplex tableau represents a redundant
constraint and, hence, can be deleted. This also means that a basic feasible solution of a
transportation problem has only m + n – 1 positive components. If Σbi = Σ dj, it is always
possible to get a basic feasible solution by North-west corner method, Least Cost cell method
or by VAM.

4.4.3. Basic Feasible Solution by North - West corner Method

Let us take a numerical example and discuss the process of getting basic feasible solution by
various methods.
Example 4.1. Four factories, A, B, C and D produce sugar and the capacity of each factory is given
below: Factory A produces 10 tons of sugar and B produces 8 tons of sugar, C produces 5 tons of
sugar and that of D is 6 tons of sugar. The sugar has demand in three markets X, Y and Z. The demand
of market X is 7 tons, that of market Y is 12 tons and the demand of market Z is 4 tons. The following
matrix gives the transportation cost of 1 ton of sugar from each factory to the destinations. Find the
Optimal Solution for least cost transportation cost.

Cost in Rs. per ton (× 100)

Factories. Markets. Availability in tons.
X Y Z

A 4 3 2 10
B 5 6 1 8
C 6 4 3 5
D 3 5 4 6

Requirement in tons. 7 12 4 Σ b = 29, Σ d = 23

146 Operations Research

Here Σb is greater than Σd hence we have to open a dummy column whose requirement constraint
is 6, so that total of availability will be equal to the total demand. Now let get the basic feasible solution
by three different methods and see the advantages and disadvantages of these methods. After this let us
give optimality test for the obtained basic feasible solutions.

a) North- west corner method

(i) Balance the problem. That is see whether Σbi = Σd j . If not open a dummy column or
dummy row as the case may be and balance the problem.
(ii) Start from the left hand side top corner or cell and make allocations depending on the
availability and requirement constraint. If the availability constraint is less than the requirement
constraint, then for that cell make allocation in units which is equal to the availability constraint.
In general, verify which is the smallest among the availability and requirement and allocate
the smallest one to the cell under question. Then proceed allocating either sidewise or down-
ward to satisfy the rim requirement. Continue this until all the allocations are over.
(iii) Once all the allocations are over, i.e., both rim requirement (column and row i.e., availability
and requirement constraints) are satisfied, write allocations and calculate the cost of
transportation.
Solution by North-west corner method:

For cell AX the availability constraint is 10 and the requirement constraint is 7. Hence 7 is smaller
than 10, allocate 7 to cell AX. Next 10 – 7 = 3, this is allocated to cell AY to satisfy availability
requirement. Proceed in the same way to complete the allocations. Then count the allocations, if it is
equals to m + n – 1, then the solution is basic feasible solution. The solution, we got have 7 allocations
which is = 4 + 4 – 1 = 7. Hence the solution is basic feasible solution.
Linear Programming: II Transportation Model 147

Now allocations are:

From To Units in tons Cost in Rs.

A X 7 7 × 4 = 28

A Y 3 3 × 3 = 09

B Y 8 8 × 6 = 48

C Y 1 1 × 4 = 04

C Z 4 4 × 3 = 12

D Z 1 1 × 4 = 04

D DUMMY 5 5 × 0 = 00

Total in Rs. 105

4.4.4. Solution by Least cost cell (or inspection) Method: (Matrix Minimum
method)
(i) Identify the lowest cost cell in the given matrix. In this particular example it is = 0. Four cells
of dummy column are having zero. When more than one cell has the same cost, then both the cells are
competing for allocation. This situation in transportation problem is known as tie. To break the tie,
select any one cell of your choice for allocation. Make allocations to this cell either to satisfy availability
constraint or requirement constraint. Once one of these is satisfied, then mark crosses (×) in all the
cells in the row or column which ever has completely allocated. Next search for lowest cost cell. In
the given problem it is cell BZ which is having cost of Re.1/- Make allocations for this cell in similar
manner and mark crosses to the cells in row or column which has allocated completely. Proceed this
way until all allocations are made. Then write allocations and find the cost of transportation. As the
total number of allocations are 7 which is equals to 4 + 4 – 1 = 7, the solution is basic feasible solution.
148 Operations Research

(Note: The numbers under and side of rim requirements shows the sequence of allocation and the units
remaining after allocation)
Allocations are:

From To Units in tons Cost in Rs.

A Y 8 8 × 3 = 24

A Z 2 2 × 2 = 04

B Z 3 3 × 1 = 03

B DUMMY 5 5 × 0 = 00

C X 1 1 × 6 = 06

C Y 4 4 × 4 = 16

D X 6 6 × 3 = 18

Total in Rs. 71

4.4.5. Solution by Vogel’s Approximation Method: (Opportunity cost method)

(i) In this method, we use concept of opportunity cost. Opportunity cost is the penalty for not
taking correct decision. To find the row opportunity cost in the given matrix deduct the
smallest element in the row from the next highest element. Similarly to calculate the
column opportunity cost, deduct smallest element in the column from the next highest
element. Write row opportunity costs of each row just by the side of availability constraint
and similarly write the column opportunity cost of each column just below the requirement
constraints. These are known as penalty column and penalty row.
The rationale in deducting the smallest element form the next highest element is:
Let us say the smallest element is 3 and the next highest element is 6. If we transport one unit
Linear Programming: II Transportation Model 149

through the cell having cost Rs.3/-, the cost of transportation per unit will be Rs. 3/-.
Instead we transport through the cell having cost of Rs.6/-, then the cost of transportation
will be Rs.6/- per unit. That is for not taking correct decision; we are spending Rs.3/- more
(Rs.6 – Rs.3 = Rs.3/-). This is the penalty for not taking correct decision and hence the
opportunity cost. This is the lowest opportunity cost in that particular row or column as
we are deducting the smallest element form the next highest element.
Note: If the smallest element is three and the row or column having one more three,
then we have to take next highest element as three and not any other element. Then
the opportunity cost will be zero. In general, if the row has two elements of the same
magnitude as the smallest element then the opportunity cost of that row or column is
zero.
(ii) Write row opportunity costs and column opportunity costs as described above.
(iii) Identify the highest opportunity cost among all the opportunity costs and write a tick (√ )
mark at that element.
(iv) If there are two or more of the opportunity costs which of same magnitude, then select any
one of them, to break the tie. While doing so, see that both availability constraint and
requirement constraint are simultaneously satisfied. If this happens, we may not get basic
feasible solution i.e solution with m + n – 1 allocations. As far as possible see that both are
not satisfied simultaneously. In case if inevitable, proceed with allocations. We may not get
a solution with, m + n – 1 allocations. For this we can allocate a small element epsilon (∈) to
any one of the empty cells. This situation in transportation problem is known as degeneracy.
(This will be discussed once again when we discuss about optimal solution).
In transportation matrix, all the cells, which have allocation, are known as loaded cells and
those, which have no allocation, are known as empty cells.
(Note: All the allocations shown in matrix 1 to 6 are tabulated in the matrix given below:)
150 Operations Research

Consider matrix (1), showing cost of transportation and availability and requirement constraints.
In the first row of the matrix, the lowest cost element is 0, for the cell A-Dummy and next highest
element is 2, for the cell AZ. The difference is 2 – 0 = 2. The meaning of this is, if we transport the load
through the cell A-Dummy, whose cost element is 0, the cost of transportation will be = Rs.0/- for
Linear Programming: II Transportation Model 151

each unit transported. Instead, if we transport the load through the cell, AZ whose cost element is Rs.
2/- the transportation cost is = Rs.2/- for each unit we transport. This means to say if we take decision
to send the goods through the cell AZ, whose cost element is Rs.2/- then the management is going to
loose Rs. 2/- for every unit it transport through AZ. Suppose, if the management decide to send load
through the cell AX, Whose cost element is Rs.4/-, then the penalty or the opportunity cost is Rs.4/-.
We write the minimum opportunity cost of the row outside the matrix. Here it is shown in brackets.
Similarly, we find the column opportunity costs for each column and write at the bottom of each
corresponding row (in brackets). After writing all the opportunity costs, then we select the highest
among them. In the given matrix it is Rs.3/- for the rows D and C. This situation is known as tie.
When tie exists, select any of the rows of your choice. At present, let us select the row D. Now in that
row select the lowest cost cell for allocation. This is because; our objective is to minimize the
transportation cost. For the problem, it is D-dummy, whose cost is zero. For this cell examine what
is available and what is required? Availability is 6 tons and requirement is 5 tons. Hence allocate 5 tons
to this cell and cancel the dummy row from the problem. Now the matrix is reduced to 3 × 4. Continue
the above procedure and for every allocation the matrix goes on reducing, finally we get all allocations
are over. Once the allocations are over, count them, if there are m + n – 1 allocations, then the solution
is basic feasible solution. Otherwise, the degeneracy occurs in the problem. To solve degeneracy, we
have to add epsilon (∈), a small element to one of the empty cells. This we shall discuss, when we
come to discuss optimal solution. Now for the problem the allocations are:

From To Load Cost in Rs.

A X 3 3 × 4 = 12

A Y 7 7 × 3 = 21

B X 3 3 × 5 = 15

B Z 5 5 × 1 = 05

C Y 5 5 × 4 = 20

D X 1 1 × 3 = 03

D DUMMY 5 5 × 0 = 00

Total Rs. 76

Now let us compare the three methods of getting basic feasible solution:
152 Operations Research

Inspection or least cost cell

North – west corner method. Vogel’s Approximation Method.
method
1. The allocation is made The allocations are made The allocations are made
from the left hand side top depending on the cost of the depending on the opportunity
corner irrespective of the cost cell. Lowest cost is first cost of the cell.
of the cell. selected and then next highest
etc.
2. As no consideration is As the cost of the cell is As the allocations are made
given to the cost of the cell, considered while making depending on the opportunity
naturally the total allocations, the total cost of cost of the cell, the basic feasible
transportation cost will be transportation will be solution obtained will be very
higher than the other comparatively less. nearer to optimal solution.
methods.
3. It takes less time. This The basic feasible solution, we It takes more time for getting
method is suitable to get get will be very nearer to basic Feasible solution. But the
basic feasible solution optimal solution. It takes more solution we get will be very
quickly. time than northwest coroner nearer to Optimal solution.
method.
4. When basic feasible When optimal solution is VAM and MODI is the best
solution alone is asked, it is asked, better to go for option to get optimal solution.
better to go for northwest inspection method for basic
corner method. feasible solution and MODI for
optimal solution.

In the problem given, the total cost of transportation for Northwest corner method is Rs. 101/-.
The total cost of transportation for Inspection method is Rs. 71/- and that of VAM is Rs. 76/-. The total
cost got by inspection method appears to be less. That of Northwest coroner method is highest. The
cost got by VAM is in between.
Now let us discuss the method of getting optimal solution or methods of giving optimality test for
basic feasible solution.

4.4.6. Optimality Test: (Approach to Optimal Solution)

Once, we get the basic feasible solution for a transportation problem, the next duty is to test whether
the solution got is an optimal one or not? This can be done by two methods. (a) By Stepping Stone
Method, and (b) By Modified Distribution Method, or MODI method.
(a) Stepping stone method of optimality test
To give an optimality test to the solution obtained, we have to find the opportunity cost of empty
cells. As the transportation problem involves decision making under certainty, we know that an optimal
solution must not incur any positive opportunity cost. Thus, we have to determine whether any positive
opportunity cost is associated with a given progarmme, i.e., for empty cells. Once the opportunity
cost of all empty cells are negative, the solution is said to be optimal. In case any one cell has got
positive opportunity cost, then the solution is to be modified. The Stepping stone method is used for
finding the opportunity costs of empty cells. Every empty cell is to be evaluated for its opportunity
cost. To do this the methodology is:
1. Put a small ‘+’ mark in the empty cell.
Linear Programming: II Transportation Model 153

2. Starting from that cell draw a loop moving horizontally and vertically from loaded cell to
loaded cell. Remember, there should not be any diagonal movement. We have to take turn
only at loaded cells and move to vertically downward or upward or horizontally to reach
another loaded cell. In between, if we have a loaded cell, where we cannot take a turn,
ignore that and proceed to next loaded cell in that row or column.
3. After completing the loop, mark minus (–) and plus (+) signs alternatively.
4. Identify the lowest load in the cells marked with negative sign.
5. This number is to be added to the cells where plus sign is marked and subtract from the load
of the cell where negative sign is marked.
6. Do not alter the loaded cells, which are not in the loop.
7. The process of adding and subtracting at each turn or corner is necessary to see that rim
requirements are satisfied.
8. Construct a table of empty cells and work out the cost change for a shift of load from loaded
cell to loaded cell.
9. If the cost change is positive, it means that if we include the evaluated cell in the programme,
the cost will increase. If the cost change is negative, the total cost will decrease, by including
the evaluated cell in the programme.
10. The negative of cost change is the opportunity cost. Hence, in the optimal solution of
transportation problem empty cells should not have positive opportunity cost.
11. Once all the empty cells have negative opportunity cost, the solution is said to be optimal.
One of the drawbacks of stepping stone method is that we have to write a loop for every empty
cell. Hence it is tedious and time consuming. Hence, for optimality test we use MODI method rather
than the stepping stone method.
Let us take the basic feasible solution we got by Vogel's Approximation method and give optimality
test to it by stepping stone method.
Basic Feasible Solution obtained by VAM:
154 Operations Research

Table showing the cost change and opportunity costs of empty cells:
Table I.

S.No. Empty Evalution Opportunity cost

Cost change in Rs.
Cell Loop formation -(Cost change)

1. AZ +AZ – AX + BX – BZ +2 – 4 + 5 – 1 = + 2 –2
2 A Dummy + A DUMMY – AX + BX – B DUMMY +0 – 4 + 3 – 0 = – 1 +1
3 BY + BY – AY + AX – BX +6 – 3 + 4 – 5 = +2 -2
4 B DUMMY + B DUMMY – BX + DX – D DUMMY +0 – 5 +3 – 0 = –2 +2
5 CX +CX – CY + AX – AY 6 – 4 + 3 – 4 = +1 –1
6 CZ +CZ – BZ + BX –AX + AY – CY +2 –1 +5 – 4 +5 – 4 =+1 –1
7 C DUMMY + C DUMMY – D DUMMY + DX – + 0 – 0 +3 – 4 +3 – 4 = +2
AX + AY – CY –2
8 DY +DY – DX + AX – AY +5 – 3 +4 – 3 = +3 –3
9 DZ +DZ – DX +BX – BZ +4 – 3 + 5 – 1 = +5 –5

In the table 1 cells A DUMMY, B DUMMY, C DUMMY are the cells which are having positive
opportunity cost. Between these two cells B DUMMY and C DUMMY are the cells, which are having
higher opportunity cost i.e Rs. 2/ - each. Let us select any one of them to include in the improvement
of the present programme. Let us select C DUMMY.
Linear Programming: II Transportation Model 155

Table II.

S.No. Empty Evalution Opportunity

Cell Loop formation Cost change in Rs. Cost

1 AX +AX –DX + D DUMMY – C DUMMY +4–3+0–0+4–3=+2 –2

+ CY – AY
2 AX AZ – AY + CY – C DUMMY + +2–3+4–0+0–3+ –4
D DUMMY – DX+ BX – BZ 3–0=+4
3 ADUMMY + A DUMMY – AY + DX – +0–4+3–0=–1 +1
D DUMMY
4 BY +BY – BX + DX – D DUMMY + + 6 –5 + 3 –0 + 0 – 4 = 0 0
C DUMMY – CY
5 B DUMMY + B DUMMY – BX + DX – D DUMMY + 0 – 5 + 3 – 0 = –2 +2
6 CX + CX – DX + D DUMMY – C DUMMY + 6 –3 + 0 – 0 = +3 –3
7 CZ + CZ – C DUMMY + D DUMMY +2–0+0–3+5–1=+3 –3
– DX + BX – BZ
8 DY DY – CY + C DUMMY – D DUMMY +5–4+0–0=1 –1

9 DZ + DZ – DX + BX – BZ + 4 – 3 +5 – 1 = + 5 –5

Cells A DUMMY and B DUMMY are having positive opportunity costs. The cell B DUMMY is
having higher opportunity cost. Hence let us include this cell in the next programme to improve the
solution.
Table III.
S.No. Empty Evaluation Opportunity
Cell Loop formation Cost change in Rs. Cost

1 AX +AX – AY + CY – C DUMMY + +4 – 3 + 4 – 0 + 0 – 5 = 0 0
B DUMMY – BX
2 AZ + AZ – BZ + B DUMMY – C DUMMY +2 –1 + 0 – 0 + 4 – 3 =+ 2 –2
+ CX – AX
3 A DUMMY + A DUMMY – C DUMMY + CY – AY +0 – 0 + 4 – 3 = +1 –1
4 BY + BY – B DUMMY + C DUMMY – CY +6 – 0 + 0 – 4 = + 2 –2
5 CX + CX – BX + B DUMMY – C DUMMY +6 – 5 + 0 – 0 = +1 –1
6 CZ + CZ – BZ + B DUMMY – C DUMMY +2 – 1 + 0 – 0 = +1 –1
7 DY +DY – CY + C DUMMY – B DUMMY +5 – 4 + 0 – 0 + 5 – 3 = +3 –3
+ BX – DX
8 DZ + DZ – BZ + BX – DX +4 – 1 + 5 – 3 = +5 –5

9 D DUMMY + D DUMMY – DX + BX – B DUMMY + 0 – 3 + 5 – 0 = +2 –2

156 Operations Research

All the empty cells have negative opportunity cost hence the solution is optimal. The allocations
are:

S.No Loaded cell Load Cost in Rs.

1 AY 10 10 × 3 = 30

2 BX 01 01 × 5 = 05

3 BZ 05 05 × 1 = 05

4 B DUMMY 02 02 × 0 = 00

5 CY 02 02 × 4 = 08

6 C DUMMY 03 03 × 0 = 00

7 DX 06 06 × 3 = 18

Total in Rs. 66

Total minimum transportation cost is Rs. 66/-

Optimal allocation.

(b) Modified Distribution Method of Optimality test

In stepping stone method, we have seen that to get the opportunity cost of empty cells, for every
cell we have to write a loop and evaluate the cell, which is a laborious process. In MODI (Modified
DIstribution method, we can get the opportunity costs of empty cells without writing the loop. After
Linear Programming: II Transportation Model 157

getting the opportunity cost of all the cells, we have to select the cell with highest positive opportunity
cost for including it in the modified solution.
Steps in MODI method:
1. Select row element (ui) and Column element (vj) for each row and column, such that ui + vj
= the actual cost of loaded cell. In MODI method we can evaluate empty cells simultaneously
and get the opportunity cost of the cell by using the formula (ui + vj) – Cij, where Cij is the
actual cost of the cell.
2. In resource allocation problem (maximization or minimization method), we have seen that
once any variable becomes basis variable, i.e., the variable enters the programme; its
opportunity cost or net evaluation will be zero. Here, in transportation problem also, once
any cell is loaded, its opportunity cost will be zero. Now the opportunity cost is given by (ui
+ vj) – Cij, which is, equals to zero for a loaded cell.
i.e. (ui + vj) – Cij = 0 which means, (ui + vj) = Cij. Here (ui + vj) is known as implied cost
of the cell. For any loaded cell the implied cost is equals to actual cost of the cell as its
opportunity cost is zero. For any empty cell, (implied cost – actual cost) will give
opportunity cost.
3. How to select ui and vj? The answer is:
(a) Write arbitrarily any one of them against a row or against a column. The written ui or
vj may be any whole number i.e ui or vj may be ≤ or ≥ to zero. By using the formula
(ui + vj) = Cij for a loaded cell, we can write the other row or column element. For
example, if the actual cost of the cell Cij = 5 and arbitrarily we have selected ui = 0,
then vj is given by ui + vj = 0 + vj = 5. Hence vj = –5. Like this, we can go from loaded
cell to loaded cell and complete entering of all ui s and vj s.
(b) Once we get all ui s and vj s, we can evaluate empty cells by using the formula (ui + vj)
– Actual cost of the cell = opportunity cost of the cell, and write the opportunity cost
of each empty cell at left hand bottom corner.
(c) Once the opportunity costs of all empty cells are negative, the solution is
said to be optimal. In case any cell is having the positive opportunity cost,
the programme is to be modified.
Remember the formula that IMPLIED COST OF A CELL = ui + vj
Opportunity cost of loaded cell is zero i.e (ui + vj) = Actual cost of the cell.
Opportunity cost of an empty cell = implied cost – actual cost of the cell = (ui
+ vj) – Cij
(d) In case of degeneracy, i.e. in a basic feasible solution, if the number of loaded
cells are not equals to m + n – 1, then we have to add a small element epsilon
∈), to any empty cell to make the number of loaded cells equals to m + n –
(∈
1. While adding '∈ ∈' we must be careful enough to see that this ∈ should not
form a closed loop when we draw horizontal and vertical lines from loaded
cell to loaded cell. In case the cell to which we have added ∈ forms a closed
loop, then if we cannot write all ui s and vj s.
∈ is such a small element such that a + ∈ = a or a – ∈ = a and ∈ – ∈ = 0.
158 Operations Research

Implied cost Actual cost Action

ui + vj > C ij A better programme can be designed by including this cell

in the solution.
ui + vj = C ij Indifferent; however, an alternative programme with same
total cost can be written by including this cell in the
programme.
ui + vj < C ij Do not include this cell in the programme.

Now let us take the basic feasible solution obtained by VAM method and apply MODI method of
optimality test.
Basic feasible solution got by VAM method.

The cell C DUMMY is having a positive opportunity cost. Hence we have to include this cell in the
programme. The solution has m + n – 1 allocations.
Linear Programming: II Transportation Model 159

The cell B DUMMY is having a positive opportunity cost. Thïs is to be included in the modified
programme.

As the opportunity cost of all empty cells are negative, the solution is optimal. The solution has m
+ n – 1 allocations.
The allocations are:
S.No Loaded Cell Load Cost in Rs.
1 AY 10 10 × 3 = 30
2. BX 01 01 × 5 = 05
3. BZ 05 05 × 1 = 05
4. B DUMMY 02 02 × 0 = 00
5. CY 02 02 × 4 = 08
6. C DUMMY 03 03 × 0 = 00
7. CX 06 06 × 3 = 18
Total Cost in Rs. 66

Readers can verify the optimal solution got by Stepping stone method and the MODI method they
are same. And they can also verify the opportunity costs of empty cells they are also same. This is the
advantage of using MODI method to give optimality test. Hence the combination of VAM and MODI
can be conveniently used to solve the transportation problem when optimal solution is asked.

4.4.7. Alternate Solutions

By principle, we know that the opportunity cost of a loaded cell or a problem variable is always
equals to zero. In case any empty cell of the optimal solution of a transportation problem got zero as the
opportunity cost, it should be understood that it is equivalent to a loaded cell. Hence by including that
cell, we can derive another solution, which will have same total opportunity cost, but different allocations.
Once one alternate solution exists, we can write any number of alternate solutions. The methodology
is:
1. Let the Optimal solution is matrix A with one or more empty cells having zero as the opportunity
cost.
160 Operations Research

2. By including the cell having zero as the opportunity cost, derive one more optimal solution,
let it be the matrix B.
3. The new matrix C is obtained by the formula: C = d A + (1– d) B, where 'd' is a positive
fraction less than 1.
It is better to take always d = 1/2, so that C = 1/2 A + 1/2 B.
Now we shall take the optimal solution of the problem above and write the alternate optimal
solutions.
Matrix A (First optimal Solution).

The cell AX, having zero opportunity cost is included in revised solution. The loop is:
+ AX – BX + B DUMMY – C DUMMY + CY – AY = + 4 – 5 + 0 – 0 + 4 – 3 = 0
Allocation:

S.No Loaded Cell Load Cost in Rs.

1. AX 01 01 × 4 = 04
2. AY 09 09 × 3 = 18
3. BZ 05 05 × 1 = 05
4. B Dummy 03 03 × 0 = 00
5. CY 03 03 × 4 = 12
6. C Dummy 02 02 × 0 = 00
7. DX 06 06 × 3 = 18
Total cost in Rs. 66
Linear Programming: II Transportation Model 161

Matrix B (First alternative solution):

Matrix C (Second alternate solution)

The total cost is 0.5 × 4 + 9.5 ×3 + 0.5 × 5 + 5 × 1 + 2.5 × 0 + 2.5 × 0 + 2.5 × 0 + 6 × 3 =

Rs. 66/-
Once we get one alternate solution we can go on writing any number of alternate solutions until
we get the first optimal solution.

4.5. MAXIMIZATION CASE OF TRANSPORTATION PROBLEM

Basically, the transportation problem is a minimization problem, as the objective function is to
minimize the total cost of transportation. Hence, when we would like to maximize the objective function.
There are two methods.
 maximization

162 Operations Research

(i) The given matrix is to be multiplied by –1, so that the problem becomes maximization problem.
Or ii) Subtract all the elements in the matrix from the highest element in the matrix. Then the problem
becomes maximization problem. Then onwards follow all the steps of maximization problem to get the
solution. Let us consider the same problem solved above.
Problem 4.2. Four factories, A, B, C and D produce sugar and the capacity of each factory is given
below: Factory A produces 10 tons of sugar and B produces 8 tons of sugar, C produces 5 tons of
sugar and that of D is 6 tons of sugar. The sugar has demand in three markets X, Y and Z. The demand
of market X is 7 tons, that of market Y is 12 tons and the demand of market Z is 4 tons. The following
matrix gives the returns the factory can get, by selling the sugar in each market. Formulate a transportation
problem and solve for maximizing the returns.
Profit in Rs. per ton (× 100) Availability in tons.
Markets.
X Y Z
Factories.
A 4 3 2 10
B 5 6 1 8
C 6 4 3 5
D 3 5 4 6
Requirement in tons. 7 12 4 Σ b = 29, Σ d = 23
Here Σ b is greater than Σ d hence we have to open a dummy column whose requirement
constraint is 6, so that total of availability will be equal to the total demand. Now let get the basic
feasible solution by VAM and then give optimality test by MODI method. The balanced matrix of the
transportation problem is:

By multiplying the matrix by –1, we can convert it into a maximisation problem. Now in VAM we
have to find the row opportunity cost and column opportunity costs. In minimisation problem, we use
to subtract the smallest element in the row from next highest element in that row for finding row
opportunity cost. Similarly, we use to subtract smallest element in the column by next highest element
Linear Programming: II Transportation Model 163

in that column to get column opportunity cost. Here as we have multiplied the matrix by –1 the highest
element will become lowest element. Hence subtract the lowest element from the next highest element
as usual. Otherwise, instead of multiplying by –1 simply find the difference between highest element
and the next lowest element and take it as opportunity cost of that row or column. For example in the
given problem in the row A, the highest element is 4 and the next lowest element is 3 and hence the
opportunity cost is 4 – 3 = 1. (Or smallest element is –4 and the next highest element is –3 and the
opportunity cost is –3 – (– 4) = –3 + 4 = 1). Similarly, we can write all opportunity costs. Once we find
the opportunity costs, rest of the procedure is same. That is, we have to select highest opportunity
cost and select the highest profit element in that row or column for allocation. Obtain the basic feasible
solution. As usual the basic feasible solution must have m + n – 1 allocations. If the allocations are not
equal to m + n – 1, the problem degenerate. In that case, add ∈ to an empty cell, which do not form
loop with other loaded cells. Once we have basic feasible solution, the optimality test by MODI method,
is followed. Here, once the opportunity costs of all the cells are positive, (as we have converted the
maximistion problem into minimisation problem) the solution is said to be optimal.
In the given problem as the opportunity costs of all empty cells are positive, the solution is
optimal. And the optimal return to the company is Rs. 125/-.
Allocations:

S.No Loaded Cell Load Cost in Rs.

1. AX 02 02 × 4 = 08
2. AY 03 03 × 3 = 09
3. A Dmy 05 05 × 0 = 00
4. BY 08 08 × 6 = 48
5. CX 05 05 × 6 = 30
6. DY 01 01 × 5 = 05
7. DZ 05 05 × 4 = 20
Total returns in Rs. 125

(1)
164 Operations Research

(2)

(3)

(4)

(5)
Linear Programming: II Transportation Model 165

4.6. DEGENERACY IN TRANSPORTATION PROBLEM

Earlier, it is mentioned that the basic feasible solution of a transportation problem must have (m + n – 1)
basis variables or allocations. This means to say that the number of occupied cells or loaded cells in a
given transportation problem is 1 less than the sum of number of rows and columns in the transportation
matrix. Whenever the number of occupied cells is less than (m + n – 1) , the transportation problem is
said to be degenerate.
Degeneracy in transportation problem can develop in two ways. First, the problem becomes
degenerate when the initial programme is designed by northwest corner or inspection or VAM, i.e. at
the stage of initial allocation only.
To solve degeneracy at this stage, we can allocate extremely small amount of goods (very close
to zero) to one or more of the empty cells depending on the shortage, so that the total occupied cells
becomes m + n – 1. The cell to which small element (load) is allocated is considered to be an occupied
cell. In transportation problems, Greek letter ‘∈’ represents the small amount. One must be careful
enough to see that the smallest element epsilon is added to such an empty cell, which will enable us to
write row number ‘ui’ and column number ‘vj’ without any difficulty while giving optimality test to the
basic feasible solution by MODI method. That is care must be taken to see that the epsilon is added to
such a cell, which will not make a closed loop, when we move horizontally and vertically from loaded
cell to loaded cell.
(Note: Epsilon is so small so that if it is added or subtracted from any number, it does not change
the numerical value of the number for which it added or from which it is subtracted.).
Secondly, the transportation problem may become degenerate during the solution stages. This
happens when the inclusion of a most favorable empty cell i.e. cell having highest opportunity cost
results in simultaneous vacating of two or more of the currently occupied cells. Here also, to solve
degeneracy, add epsilon to one or more of the empty cells to make the number of occupied cells equals
to (m + n – 1).
To understand the procedure let us solve one or two problems.
Problem. 4.3. Solve the transportation problem given below
166 Operations Research

Solution by Northwest corner method:

Initial allocation show that the solution is not having (m+n–1) allocations. Hence degeneracy occurs.

The smallest load ∈ is added to cell XB which does not make loop with other loaded cells.
Linear Programming: II Transportation Model 167

Shifting of load by drawing loops to cell YA.

The basic feasible solution is having four loaded cells. As the number of columns is 3 and number
of rows is 2 the total number of allocations must be 2 + 3 – 1 = 4. The solution got has four allocations.
Hence the basic feasible solution. Now let us give optimality test by MODI method.

Row numbers ui s and column numbers vj s are written in the matrix and opportunity cost of
empty cells are evaluated. As the opportunity cost of all empty cells are negative, the solution is
optimal. The allocations and the total cost of transportation is:

S.No Loaded Cell Load Cost in Rs.

1. XA 05 05 × 2 = 50
2. XB 15 15 × 1 = 15
3. YA 15 15 × 3 = 45
4. YC 25 25 × 1 = 25
Total cost in Rs. 135
168 Operations Research

Problem. 4.4. Solve the transportation problem given below:

Let us make initial assignment by using Northwest corner method. To modify the solution we
include the cell O1D3 in the programme, as it is having highest opportunity cost.
Improved solution:
Linear Programming: II Transportation Model 169

Total number of allocations are less than m + n – 1. Hence we have to add one epsilon to an
empty cell. Remember, in transportation problem, which has minimization of cost as its objective
function a, we have to add epsilon to recently vacated cell, which is having lowest shipping cost. We
have a tie between two cells, i.e. O1D2 and O2D3. Let us select O1D2 to add epsilon. To improve the
solution, let us take empty cell O4D1 in the programme.
Improved Programme: The solution is not having m + n – 1 allocations. We have to add epsilon;
in the programme epsilon is added to cell 04D4
Revised Programme.

The epsilon is shifted to an empty cell. The improved solution is having 8 allocations. Hence a
feasible solution.
As the cell O1D4 having positive opportunity cost, let us include and revise the programme.
Revised programme. Cell 03D5 having positive opportunity cost is included in revised programme.
170 Operations Research

Revised programme: Cell O3D1 having positive opportunity cost is included in the revised
programme.

Revised Programme.
Linear Programming: II Transportation Model 171

As the opportunity costs of all empty cells are negative, the solution is optimal. The allocations
and the total cost of transportation is:

S.No Loaded Cell Load Cost in Rs.

1. O1D1 5 5 × 4 = 20
2. O1D2 ε ----
3. O1D3 15 15 × 1 = 15
4. O1D4 20 20 × 2 = 40
5. O2D2 30 30 × 2 = 60
6. O3D1 15 15 × 3 = 45
7. O3D5 5 5 × 2 = 10
8. O4D1 10 10 × 2 = 20
Total Cost in Rs. 210/-

The same problem, if we solve by VAM, the very first allocation will be feasible and optimality
test shows that the solution is optimal.
Roc: Row opportunity cost, COC= Column opportunity cost, Avail: Availability, Req: Requirement.

D1 D2 D3 D4 D5 Avail ROC
O1 4 3 1 15 2 6 40 1
O2 5 2 3 4 5 30 1
O3 3 5 6 3 2 20 1
O4 2 4 4 5 3 10 1
REQ 30 30 15 20 5 100
COC 1 1 2 1 1

D1 D2 D4 D5 Avail ROC
O1 4 3 2 6 25 1
O2 5 2 30 4 5 30 2
O3 3 5 3 20 1
O4 2 4 5 3 10 1
REQ 30 30 20 5 85
COC 1 1 1 1

D1 D4 D 5 Avail ROC
O1 4 2 20 6 25 2
O3 3 3 2 20 1
O4 2 5 3 10 1
REQ 30 20 5 55
ROC 1 1 1
172 Operations Research

D1 D5 Avail ROC
O1 4 5 6 5 2
O3 3 2 20 1
O4 2 3 10 1
REQ 30 5 35
COC 1 1

D1 D5 Avail ROC
O3 3 2 20 1
O4 2 10 3 10 1
REQ 25 5 30
COC 1 1

D1 D5 AVAIL
O3 3 15 2 5 20
REQ 15 5 20

Allocation by VAM:

Allocations are same as in the optimal solution got by northwest corner method. All opportunity
costs of empty cells are negative. Hence the total transportation cost is Rs. 210/-
Linear Programming: II Transportation Model 173

4.7. TIME MINIMISATION MODEL OR LEAST TIME MODEL OF TRANSPORTATION

TIME.
It is well known fact that the transportation problem is cost minimization model, i.e we have to find the
least cost transportation schedule for the given problem. Some times the cost will become secondary
factor when the time required for transportation is considered. This type of situation we see in military
operation. When the army want to send weapons or food packets or medicine to the war front, then the
time is important than the money. They have to think of what is the least time required to transport the
goods than the least cost of transportation. Here the given matrix gives the time elements, i.e. time
required to reach from one origin to a destination than the cost of transportation of one unit from one
origin to a destination. A usual, we can get the basic feasible solution by Northwest corner method or by
least time method or by VAM. To optimize the basic feasible solution, we have to identify the highest time
element in the allocated cells, and try to eliminate it from the schedule by drawing loops and encouraging
to take the cell, which is having the time element less than the highest one. Let us take a problem and
work out the solution. Many a time, when we use VAM for basic feasible solution, the chance of getting
an optimal solution is more. Hence, the basic feasible solution is obtained by Northwest corner method.
Problem 4.5. The matrix given below shows the time required to shift a load from origins to destinations.
Formulate a least time schedule. Time given in hours.
Roc: Row opportunity cost, Coc: Column opportunity cost, Avail: Availability, Req: Requirement.

1. Initial assignment by Northwest corner method: The Maximum time of allocated cell is 17
hours. Any cell having time element greater than 17 hours is cancelled, so that it will not in the programme.
174 Operations Research

By drawing loops, let us try to avoid 17 hours cell and include a cell, which is having time element
less than 17 hours. The basic feasible solution is having m + n – 1 allocations.

Here also the maximum time of transport is 17 hours.

In this allocation highest time element is 11 hours. Let us try to reduce the same.
Linear Programming: II Transportation Model 175

In this allocation also the maximum time element is 11 hours. Let us try to avoid this cell.

No more reduction of time is possible. Hence the solution is optimal and the time required for
completing the transportation is 10 Hours. Tmax = 10 hours.

4.8. PURCHASE AND SELL PROBLEM: (TRADER PROBLEM)

Problem. 4.7 M/S Epsilon traders purchase a certain type of product from three manufacturing units
in different places and sell the same to five market segments. The cost of purchasing and the cost of
transport from the traders place to market centers in Rs. per 100 units is given below:
Market Segments.
(Transportation cost in Rs.per 100 units).
Place of Availability Manufacturing 1 2 3 4 5
Manufacture. In units x 10000. cost in Rs. per unit
Bangalore (B) 10 40 40 30 20 25 35
Chennai (C) 15 50 30 50 70 25 40
Hyderabad (H) 5 30 50 30 60 55 40
Requirement in units × 10000 6 6 8 8 4

The trader wants to decide which manufacturer should be asked to supply how many to which
market segment so that the total cost of transportation and purchase is minimized.
Solution
Here availability is 300000 units and the total requirement is 320000 units. Hence a dummy row
(D) is to be opened. The following matrix shows the cost of transportation and purchase per unit in Rs.
from manufacturer to the market centers directly.
1 2 3 4 5 Availability
B 4040 4030 4020 4025 4035 10
C 5030 5050 5070 5025 5040 15
H 3050 3030 3060 3055 3040 5
D 0 0 0 0 0 2
Requirement. 6 6 8 8 4 32
176 Operations Research

Let us multiply the matrix by 100 to avoid decimal numbers and get the basic feasible solution by VAM.
Table. Avail: Availability. Req: Requirement, Roc: Row opportunity cost, Coc: Column opportunity
cost.
Tableau. I Cost of transportation and purchase Market segments.

Tableau. II Cost of transportation and purchase

Market segments.

Tableau. II Cost of transportation and purchase

Market segments.
Linear Programming: II Transportation Model 177

Tableau. II Cost of transportation and purchase

Market segments.

Tableau. II Cost of transportation and purchase

Market segments.

Tableau. II Cost of transportation and purchase

Market segments.
178 Operations Research

Tableau. II Cost of transportation and purchase

Market segments.

Final Allocation by MODI method.

Tableau. II Cost of transportation and purchase
Market segments.

Allocation:
From To Load Cost in Rs.
Bangalore 2 10,000 4,03,000
Bangalore 3 80,000 32, 16,000
Bangalore 5 10,000 4, 03,000
Chennai 1 60,000 30, 18,000
Chennai 4 80,000 40, 20,000
Chennai 5 10,000 5, 04,000
Hyderabad 2 50,000 15, 15,000
Total cost in Rs. 1,30, 79,000
Linear Programming: II Transportation Model 179

4.9. MAXIMISATION PROBLEM: (PRODUCTION AND TRANSPORTATION

SCHEDULE FOR MAXIMIZATION)
This type of problems will arise when a company having many units manufacturing the same
product and wants to satisfy the needs of various market centers. The production manager has to
work out for transport of goods to various market centers to cater the needs. Depending on the
production schedules and transportation costs, he can arrange for transport of goods from manufacturing
units to the market centers, so that his costs will be kept at minimum. At the same time, this problem
also helps him to prepare schedules to aim at maximizing his returns.
Problem.4.8. A company has three manufacturing units at X, Y and Z which are manufacturing certain
product and the company supplies warehouses at A, B, C, D, and E. Monthly regular capacities for
regular production are 300, 400 and 600 units respectively for X, Y and Z units. The cost of production
per unit being Rs.40, Rs.30 and Rs. 40 respectively at units X, Y and Z. By working overtime it is
possible to have additional production of 100, 150 and 200 units, with incremental cost of Rs.5, Rs.9
and Rs.8 respectively. If the cost of transportation per unit in rupees as given in table below, find the
allocation for the total minimum production cum transportation cost. Under what circumstances one
factory may have to work overtime while another may work at under capacity?
Transportation cost in Rs. To
From A B C D E
X 12 14 18 13 16
Y 11 16 15 11 12
Z 16 17 19 16 14
REQ 400 400 200 200 300

(a) If the sales price per unit at all warehouses is Rs. 70/- what would be the allocation for
maximum profit? Is it necessary to obtain a new solution or the solution obtained above
holds valid?
(b) If the sales prices are Rs.70/-, Rs. 80/-, Rs. 72/-, Rs. 68/- and Rs. 65/- at A, B, C, D and E
respectively what should be the allocation for maximum profit?
Solution: Total production including the overtime production is 1750 units and the total requirement
by warehouses is 1500 units. Hence the problem is unbalanced. This can be balance by opening a
Dummy Row (DR), with cost coefficients equal to zero and the requirement of units is 250. The cost
coefficients of all other cells are got by adding production and transportation costs. The production
cum transportation matrix is given below:
A B C D E DC Availability
X 52 54 58 53 56 0 300
Y 41 46 45 41 42 0 400
Z 56 57 59 56 54 0 600
XOT 57 59 63 58 61 0 100
YOT 50 55 54 50 51 0 150
ZOT 64 65 67 64 62 0 200
Requirement: 400 400 200 200 300 250 1750
180 Operations Research

Initial Basic feasible solution by VAM:

As we have m +n – 1 (= 11) allocations, the solution is feasible and all the opportunity costs of
empty cells are negative, the solution is optimal.
Allocations:
Cell Load Cost in Rs.
XA 300 300 × 52 = 15,600
YD 100 100 × 41 = 4,100
YE 300 300 × 40 = 12,000
ZB 400 400 × 54 = 21,000
ZC 100 100 × 59 = 5,900
ZD 100 100 × 56 = 5,600
XOT A 50 50 × 57 = 2,850
XOT DR 50 50 × 0 = 0
YOT A 50 50 × 50 = 5,500
YOT C 100 100 × 54 = 5,400
ZOT DR 50 50 × 0 = 0
Total Cost in Rs. 75, 550
Linear Programming: II Transportation Model 181

Allocation by VAM:

(1)
A B C D E DC AVAIL ROC
X 52 54 58 53 56 0 300 52
Y 41 46 45 41 42 0 400 41
Z 56 57 59 56 54 0 600 54
XOT 57 59 63 58 61 0 100 50
YOT 50 55 54 50 51 0 150 50
ZOT 64 65 67 64 62 0 (200) 2 00 62
REQ 400 400 2 00 2 00 300 2 50 1750
COC 9 8 9 9 9 0

As for one allocation a row and column are getting eliminated. Hence, the degeneracy occurs.
(2) A B C D E DC AVAIL ROC
X 52 54 58 53 56 0 300 52
Y 41 46 45 41 42 0 400 41
Z 56 57 59 56 54 0 600 54
XOT 57 59 63 58 61 0 (50) 100 57
YOT 50 55 54 50 51 0 150 50
REQ 400 400 2 00 2 00 300 2 50 15 50
COC 9 8 9 9 9 0

(3)

A B C D E AVAIL ROC
X 52 54 58 53 56 300 1
Y 41 46 45 41 42 (300) 400 0
Z 56 57 59 56 54 600 2
XOT 57 59 63 58 61 50 2
YOT 50 55 54 50 51 150 0
REQ 400 400 2 00 2 00 300 1500
COC 9 8 9 9 9

Here also for one allocation, a row and a column are getting eliminated. Degeneracy will occur. In
all we may have to allocate two ∈ s to two empty cells.
182 Operations Research

(4)

A B C D AVAIL ROC
X 52 54 58 53 300 1
Y 41 46 45 41 (100) 100 0
Z 56 57 59 56 600 0
XOT 57 59 63 58 50 1
YOT 50 55 54 50 150 0
REQ 400 400 2 00 2 00 1200
COC 9 8 9 9

(5)

A B C D Avail Roc
X 52 54 58 53 300 1
Z 56 57 59 56 600 0
XOT 57 59 63 58 50 1
YOT 50 55 54 (150) 50 150 0
Req 400 400 200 100 1100
Coc 2 1 4 3

(6)
A B C D Avail Roc
X 52 (300) 54 58 53 300 1
Z 56 57 59 56 600 0
XOT 57 59 63 58 50 1
Req 400 400 50 100 950
Coc 4 3 1 3

(6)
A B C D Avail Roc
Z 56 57 59 (50) 56 550 0
XOT 57 59 63 58 50 1
Req 100 400 50 100 600
Coc 1 2 4 2
Linear Programming: II Transportation Model 183

(7)
A B D Avail Roc
Z 56 57 56 (100) 550 0
XOT 57 59 58 50 1
Req 100 400 100 600
Coc 1 2 2

(8)
A B Avail Roc
Z 56 57 (400) 450 1
XOT 57 59 50 2
Req 100 400 500
Coc 1 2

(9)

A Avail
Z 56 (50) 50
XOT 57 (50) 50
100

In the table showing optimal solution, we can understand that the company X has to work 50%
of its over time capacity, and company Y has to work 100% of its overtime capacity and company Z
will not utilize its overtime capacity.
(a) Here the total profit or return that the trading company gets is equals to Sales revenue – total
expenses, which include manufacturing cost and transportation cost. Hence,
Profit = (Total Sales Revenue) – (Manufacturing cost + transportation cost).
In the question given the sales price is same in all market segments, hence, the profit calculated is
independent of sales price. Hence the programme, which minimizes the total cost will, maximizes the
total profit. Hence the same solution will hold good. We need not work a separate schedule for
maximization of profit.
(b) Here sales price in market segments will differ. Hence we have to calculate the total profit by
the formula given above for all the markets and work for solution to maximise the profit.
184 Operations Research

The matrix showing the total profit earned by the company:

As all the opportunity cost of empty cells are positive (maximization problem), the solution is
optimal.
The allocations are:
Cell Load Cost in Rs.
XB 300 300 × 26 = 7, 800
YA 400 400 × 29 = 11, 600
ZC 200 200 × 13 = 2, 600
ZD 50 50 × 12 = 600
ZE 300 300 × 11 = 3, 300
Z DR 50 50 × 0 = 0
XOT B 100 100 × 21 = 2, 100
YOT D 150 150 × 18 = 2, 700
ZOT DR 200 200 × 0 = 0
Profit in Rs. = 30, 700
Linear Programming: II Transportation Model 185

○
A B C D E DC Avail Coc

○
○
X 18 26 14 15 9 0 300 8

○
○
Y 29 34 27 27 25 0 400 5
○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○
400 ○
○

Z 14 23 13 12 11 0 600 9
○
○

XOT 13 21 9 10 4 0 100 8
○

YOT 20 25 18 18 14 0 150 5
○
○

ZOT 6 15 5 4 3 0 200 9
○
○

Req 400 400 200 200 300 250 1750

○
○

Coc 11 8 9 9 9 0
○
○
○

As for one allocation a row and column are getting eliminated. Hence, the degeneracy occurs.

(2)
B C D E DC Avail Coc
○ ○ ○ ○
X ○ ○ ○ ○ ○
26
○ ○ ○ ○ ○
14
○ ○ ○ ○ ○
15 ○ ○ ○ ○ ○
9 ○ ○ ○ ○
0 ○ ○ ○ ○ ○
300 ○ ○ ○ ○ ○
11
○ ○ ○ ○ ○

300
Z 23 13 12 11 0 600 10
XOT 21 9 10 4 0 100 11
YOT 25 18 18 14 0 150 7
ZOT 15 5 4 3 0 200 10
Req 400 200 200 300 250 1350
Coc 1 4 3 5 0

(3)
○

B C D E DC Avail Coc
○
○

Z 23 13 12 11 0 600 10
○
○

XOT 21 9 10 4 0 100 11
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

100
○
○

YOT 25 18 18 14 0 150 7
○
○

ZOT 15 5 4 3 0 200 10
○
○

Req 100 200 200 300 250 1050

○

Coc 2 5 6 3 0
○
○
○

Here also for one allocation, a row and a column are getting eliminated. Degeneracy will occur. In
all we may have to allocate two ∈ s to two empty cells.
186 Operations Research

○
(4)

○
C D E DC Avail Coc

○
Z 13 12 11 0 600 1

○
○
YOT 18 18 14 0 150 0

○
○
150

○
○
ZOT 5 4 3 0 200 1

○
○
Req 200 200 300 250 950

○
○
Coc 5 6 3 0

○
○
○

(5)
○
○
○

C D E DC Avail Coc
○
○

Z 13 12 11 0 600 1
○

200
○
○

ZOT 5 4 3 0 200 1
○
○

Req 200 50 300 250 800

○
○

Coc 8 8 8 0
○
○
○

(6)
○

○
○

D E DC Avail Coc
○
○

Z 12 11 0 400 1
○
○

300
○
○

ZOT 4 3 0 200 1
○
○

Req 50 300 250 600

○
○

Coc 8 8 0
○
○
○

(7)

(8)
Linear Programming: II Transportation Model 187

Problem. 4.9. A company has booked the orders for its consignment for the months of April, May,
June and July as given below:
April: 900 units, May: 800 units, June: 900 units and July: 600 units. The company can produce 750
units per month in regular shift, at a cost of Rs. 80/- per unit and can produce 300 units per month by
overtime production at a cost of Rs. 100/- per unit. Decide how much the company has to produce in
which shift for minimizing the cost of production. It is given that there is no holding cost of inventory.
Solution: Remember here the production of April is available to meet the orders of April and subsequent
months. But the production of May cannot be available to meet the demand of April. Similarly, the
production of June is not available to meet the demand of April, May, but it can meet the demand of
June and subsequent months and so on. Hence very high cost of production is allocated to the cells
(Infinity or any highest number greater than the costs given in the problem), which cannot meet the
demands of previous months (i.e. back ordering is not allowed). Here total availability is 4200 units and
the total demand is for 3200 units. Hence we have to open a dummy column (DC), with cost coefficients
equal to zero. The balanced matrix is shown below. Let us find the initial basic feasible solution by
Northwest corner method and apply optimality test by MODI method.
A: April, M: May, J: June, Jl: July, AT: April Over time, MT: May overtime, JT: June overtime, JLT:
July over time. DC : Dummy column.
Tableau 1.

Here the cell JT DC is having highest opportunity cost. Hence let us include the cell in the revised
programme. To find the opportunity costs of empty cells, the row number ui and column number vj are
188 Operations Research

shown. The cells marked with (X) are avoided from the programme. We can also allocate very high
cost for these cells, so that they will not enter into the programme.
Tableau II. Revised programme.

As the opportunity costs of all empty cells are either zeros or negative elements, the solution is
optimal. As many empty cells are having zero as the opportunity cost, they can be included in the
solution and get alternate solution.
Allocations:
Demand month. Production of the month Load Cost in Rs.
April April regular 750 750 × 80 = 60,000
April April over time 150 150 × 100 = 15,000
May April over time 150 150 × 100 = 15,000
May May regular 650 650 × 80 = 52,000
June May regular 100 100 × 80 = 8,000
June May over time 300 300 × 100 = 30,000
June June Regular 500 500 × 80 = 40,000
July June regular 250 250 × 80 = 20,000
July July regular 350 350 × 80 = 28,000
Dummy column June over time 300 300 × 0
Dummy Column July regular 300 300 × 0
Dummy column July over time 300 300 × 0
Total cost in Rs.: 2,68,000
Linear Programming: II Transportation Model 189

Problem: 4.10. Let us slightly change the details given in the problem 4.9. It is given that production
of a month could be stored and delivered in next month without extra costs. Let us now consider that
there is a cost associated with inventory holding or inventory carrying cost. Let the inventory carrying
cost is Rs. 20 per month decide the new allocation.
Solution: In the cost matrix, for regular production, the cost is Rs. 80/-, for overtime production, the
cost is Rs. 100 and for the stock held the inventory carrying cost is Rs. 20/ per month. If the stock is
held for two months the inventory carrying cost is Rs. 40/-. That is if the production of April is
supplied in June the cost will be Rs. 80/- + Rs. 40/- =
Rs. 120/- and do on. The initial basic feasible solution is obtained by Northwest corner method.

Cell AOT DC is having highest positive opportunity cost. Hence we have to include this in the
revised programme.
190 Operations Research

In the above matrix, two cells, MO M and JO J are having positive opportunity costs = 20.
Hence, they may be included in the revised programme. If we include them in the programme, the final
optimal solution will be as follows:
Linear Programming: II Transportation Model 191

As all the opportunity costs of empty cells are negative, the solution is optimal. The optimal
allocations are:
Month of demand Month of production load cost in Rs. Rs.
April April regular 750 750 × 80 = 60,000
April April over time 150 150 × 100 = 15,000
Dummy Col April over time 150 150 × 0 = 0
May May regular 750 750 × 80 = 60,000
May May over time 50 50 × 100 = 5,000
Dummy Column May over time 250 250 × 0 = 0
June June regular 750 750 × 80 = 60,000
June June over time 150 150 × 100 = 15,000
Dummy column June over time 150 150 × 0 = 0
July July regular 600 600 × 80 = 48,000
Dummy column July regular 150 150 × 0 = 0
Dummy column July overtime 300 300 × 0 = 0
Total cost in Rs. 2,63,000
192 Operations Research

4.10. TRANSSHIPMENT PROBLEM

We may come across a certain situation, that a company (or companies) may be producing the product
to their capacity, but the demand arises to these products during certain period in the year or the
demand may reach the peak point in a certain period of the year. This is particularly true that products
like Cool drinks, Textbooks, Notebooks and Crackers, etc. The normal demand for such products will
exist, throughout the year, but the demand may reach peak points during certain months in the year. It
may not possible for all the companies put together to satisfy the demand during peak months. It is not
possible to produce beyond the capacity of the plant. Hence many companies have their regular
production throughout the year, and after satisfying the existing demand, they stock the excess production
in a warehouse and satisfy the peak demand during the peak period by releasing the stock from the
warehouse. This is quite common in the business world. Only thing that we have to observe the
inventory carrying charges of the goods for the months for which it is stocked is to be charged to the
consumer. Take for example crackers; though their production cost is very much less, they are sold at
very high prices, because of inventory carrying charges. When a company stocks its goods in warehouse
and then sends the goods from warehouse to the market, the problem is known as Transshipment
problem. Let us work one problem and see the methodology of solving the Transshipment Problem.
Problem. 4.11. A company has three factories X, Y and Z producing product P and two warehouses
to stock the goods and the goods are to be sent to four market centers A, B, C and D when the demand
arises. The figure given below shows the cost of transportation from factories to warehouses and
from warehouses to the market centers, the capacities of the factories, and the demands of the market
centers. Formulate a transportation matrix and solve the problem for minimizing the total transportation
cost.

Solution:
To formulate a transportation problem for three factories and four market centers, we have to
find out the cost coefficients of cells. For this, if we want the cost of the cell XA, the cost of transportation
from X to warehouse W1 + Cost transportation from W1 to market center A are calculated and as our
objective is to minimize the cost, the least of the above should be entered as the cost coefficient of cell
XA. Similarly, we have to workout the costs and enter in the respective cells.
Linear Programming: II Transportation Model 193

Cell XA: Route X-W1-A and X- W2- A minimum of these two (28 and 18) i.e 18
Cell XB Route X - W1 - B and X - W2 - B Minimum of the two is (29, 17) i.e 17
Cell XC Route X - W1 - C and X- W2 - C Minimum of the two is (27, 11) i.e 11
Cell XD Route X- W1 - D and X- W2 - D Minimum of the two is (34, 22) i.e 22
Similarly we can calculate for other cells and enter in the matrix. The required transportation
problem is:
A B C D Available
X 18 17 21 22 150
Y 18 17 21 22 100
Z 18 19 17 24 100
Required. 80 100 70 100 350

Basic Feasible Solution by VAM:

194 Operations Research

As the opportunity costs of all empty cells are negative, the solution is optimal. The optimal
allocation is:
Cell Route Load Cost in Rs. Rs.
XA X-W2-A 50 50 × 18 = 900 (The answer shows that the
XB X - W2 - B 100 100 × 17 = 1700 capacity of W2 is 250 units and
YB Y- W2 - B ε --- = ---- capacity of W1 is100 units).
YD Y - W2- D 100 100 × 22 = 2200
ZA Z- W1- A 30 30 × 18 = 540
ZC Z - W1 - C 70 70 × 17 = 1190
Total Cost in Rs. 6530

(1)
A B C D Avail Roc
X 18 17 21 22 150 0
Y 18 17 21 22 100 0
Z 18 19 17 24 100 2
70
Req. 80 100 70 100 350
Coc 18 17 15 22
(2)

A B D Avail Roc
X 18 17 22 150 1
Y 80 18 17 22 100 1
Z 18 19 24 30 1
Req. 80 100 100 280
Coc 0 0 0

(3)

B D Avail Roc
X 17 22 70 5
70
Y 17 22 100 5
Z 19 24 30 5
Req. 100 100 200
Coc 0 0
Linear Programming: II Transportation Model 195

(4)
B D Avail Roc
Y 17 22 100 5
30
Z 19 24 30 5
Req. 30 100 200
Coc 2 2

D Avail Roc
Y 22 70
70
Z 24 30
30
Req. 100 100
Coc
Problem 4.12.

In the above some restrictions are imposed. The restrictions are:

Let warehouse W1 be pure transshipment warehouse and W2 is transshipment as well as distribution
point.
(i) The capacity limitation on W1 = 70 units.
(ii) The warehouse W2 also deals with direct distribution of 80 units.
As per the given conditions, the following discussion will hold good.
Solution:
1. As a source and intermediate transshipment node, W1 has the capacity limitations of 70
units. Hence, availability of W1 and requirement of destination W1 is 70 units.
196 Operations Research

2. W2 has no capacity limitation. However, it deals partial direct distribution of 80 units. Therefore,
as a source its availability should be the difference between the total availability from all
factories i.e X, Y and Z less its own direct distribution. 430 – 80 = 350.
3. As an intermediate destination, it should have the capacity to route entire production i.e. 430
units.
4. Unit cost of transportation from X, Y, and Z to destinations A, B, C and D, through W1 and
W2 can be had from figure given, this can be entered in the table- 1 showing the initial
transportation matrix.
5. There is no direct transportation from X,Y, and Z to destinations A, B, C and D. To avoid this
direct routes we can allocate very high cost of transportation costs for these cells or we can
avoid these cells by crossing them, i.e. eliminating them from the programme.
6. W1 as source giving to W1 as warehouse or sink, and W2 as a source giving to W2 as
warehouse or sink will have zero cost.

As the total number of allocations are m + n – 1 after allocating ∈ to cell W1A, the solution is a
basic feasible solution. By giving the optimality test by MODI method, we see that all the opportunity
costs of empty cells are negative and hence the solution is optimal.
The allocation:
Cell Load Cost in Rs. Rs.
XW2 150 150 × 19 = 1500
YW2 160 160 × 10 = 1600
ZW1 70 70 × 10 = 700
ZW2 50 50 × 12 = 600
W1A ε ----- -- -----
W 1C 70 70 × 7 = 140
W2 W 2 70 70 × 0 = 0
W 2A 80 80 × 8 = 160
W 2B 100 100 × 7 = 700
W2D 100 100 × 12 = 1200
Total Cost in Rs. 6,600
Linear Programming: II Transportation Model 197

VAM:
(1) W1 W2 A B C D Avail ROC
X 20 10 X X X X 150 10
Y 15 10 X X X X 160 5
Z 10 12 X X X X 120 2
70
W1 0 X 8 9 7 14 70 1
W2 X 0 8 7 11 12 350 1
Req. 70 430 80 100 70 100 850
COC 10 10 0 2 4 2

(2)

W2 A B C D Avail ROC
X 10 X X X X 150 10
Y 10 X X X X 160 10
Z 12 X X X X 50 12
50
W1 X 8 9 7 14 70 1
W2 0 8 7 11 12 350 7
Req. 430 80 100 70 100 780
COC 10 0 2 4 2

(3)
W2 A B C D Avail ROC
X 10 X X X X 150 10
150
Y 10 X X X X 160 10
W1 X 8 9 7 14 70 1
W2 0 8 7 11 12 350 7
Req. 380 80 100 70 100 730
COC 10 0 2 4 2
198 Operations Research

(4)

W2 A B C D Avail ROC
Y 10 X X X X 160 10
160
W1 X 8 9 7 14 70 1
W2 0 8 7 11 12 350 7
Req. 230 80 100 70 100 580
COC 10 0 2 4 2
(5)
W2 A B C D Avail ROC
W1 X 8 9 7 14 70 1
W2 0 8 7 11 12 350 7
70
Req. 70 80 100 70 100 420
COC INF 0 2 4 2

(6)

A B C D Avail ROC
W1 8 9 7 14 70 1
70
W2 8 7 11 12 280 1
Req. 80 100 70 100 350
COC 0 2 4 2
(7)

A B D Avail ROC
W2 8 7 12 280
80 100 100
Req. 80 100 100 280
COC

4.12. REDUNDANCY IN TRANSPORTATION PROBLEMS

Some times, it may very rarely happen or while writing the alternate solution it may happen or during
modifying the basic feasible solution it may happen that the number of occupied cells of basic feasible
solution or some times the optimal solution may be greater than m + n – 1. This is called redundancy
in transportation problem. This type of situation is very helpful to the manager who is looking about
shipping of available loads to various destinations. This is as good as having more number of independent
simultaneous equations than the number of unknowns. It may fail to give unique values of unknowns
Linear Programming: II Transportation Model 199

as far as mathematical principles are concerned. But for a transportation manager, it enables him to plan
for more than one orthogonal path for an or several cells to evaluate penalty costs, which obviously will
be different for different paths.

4.13. SENSITIVITY ANALYSIS

(a) Non - basic variables
While discussing MODI method for getting optimal solution, we have discussed significance of
implied cost, which fixes the upper limit of cost of the empty cell to entertain the cell in the next
programme. Now let us discuss the influence of variations in present parameters on the optimum
solution i.e sensitivity of optimal solution for the variations in the costs of empty cells and
loaded cells. If unit cost of transportation of a particular non-basic variable changes, at what value of
the cost of present optimum will no longer remain optimum? To answer this question, in the first
instance, it is obvious that as the empty cell is not in the solution, any increase in its unit transportation
cost will to qualify it for entering variable. But if the unit cost of empty cells is reduced the chances of
changing the optimum value may be examined. Let us take an optimum solution and examine the above
statement.

In the solution shown above as all the opportunity costs of empty cells are negative. Consider
empty cell XA. Its opportunity cost is Rs. -3/- This means to say that the units cost of transportation
of cell XA decreases by Rs.3/- or more i.e Rs.10/- the unit cost of transportation of the empty cell XA
minus 3 = 7, or less than 7 the optimal solution changes, i.e. the cell XA will become eligible for
entering into solution. Hence this cost, which shows the limit of the unit cost of empty cell, is known
as implied cost in transportation problems. We can see that the opportunity cost of empty cell ZE is
zero. This shows that the cell ZE is as good as a loaded cell and hence we can write alternate solutions
by taking the cell ZE into consideration. (Note: No unit cost of transportation is given for the cell
ZC. Hence that cell should not be included in the programme. For this purpose, we can cross
the cell or allocate very high unit cost of transportation for the cell. In case zero or any
negative element is given as the unit cost of transportation for a cell, the value can be taken
for further treatment.)
200 Operations Research

(b) Basic variables

If unit cost of loaded cell i.e. basic variable is changed, it affects the opportunity costs of several cells.
Now let us take the same solution shown above for our discussion. In case the unit cost of transportation
for the cell XE is θ instead of 16, and other values remaining unchanged. Now let us workout the
opportunity costs of other cells.

Cells XA and XB is positive when θ is > than 19. Cell XC is positive when θ is > 17 and cell XD
is positive when θ is > 27. Other cells are not influenced by θ .
If unit cost of transportation increase and becomes 17, the present optimum may change. In
case the unit cost of transportation of the cell XA is reduced, the solution will still remain optimum, as
our objective is to minimize the total transportation cost.
A point to note here is we have used Northwest corner method and Vogel’s approximation method
to get basic feasible solution. Also we have discussed the least cost method and there are some methods
such as row minimum and column minimum methods. These methods attempt to optimize the sub-
system and do not consider marginal trade-offs. Therefore, such methods have no merit to serve
useful purpose.

4.14. SUMMARY

1. Read the statement of the problem. Confirm whether you have to maximize the objective
function or minimize the objective function.
2. Construct the transportation matrix.
3. Check whether the given problem is balanced or not.
4. If balanced proceed further. If not balanced, balance the problem by opening a dummy row
or a dummy column depending on the need. Let the unit cost of transportation of cells of
dummy row or column be zero.
Linear Programming: II Transportation Model 201

5. If the problem is maximization one convert that into a minimization problem by multiplying
the matrix by –1 or by subtracting all the elements of the matrix form the highest element in
the matrix.
6. Find the basic feasible solution. The characteristics of the basic feasible solution are it must
have (m + n – 1) allocations, where m is the number of rows and n is the number of columns.
7. The basic feasible solution may be obtained by (a) Northwest corner method, (b) Least Cost
method or Matrix minimum method, or (c) Vogel's approximation method or Opportunity
cost method.
8. If initial allocations are equal to (m + m – 1) proceed to next step. If it is not equal to (m + n
- 1) it is known as degenerate solution.
9. To solve degeneracy, add a small and negligible element ∈ to empty cells. Take care to see
that the ∈ loaded cell do not make closed loop with other loaded cells when lines are drawn
from epsilon loaded cells to other loaded cells by travelling vertically and horizontally by
taking turns at loaded cells.
10. Write allocations and calculate the total cost of transportation.
11. Give optimality test to the basic feasible solution. Optimality test can be given by (a) Stepping
stone method or (b) Modified distributing method or MODI method.
13. The characteristic of optimal solution is the opportunity costs of all empty cells are either
negatives or zeros.
14. Remember if any empty cell has zero as its opportunity cost, then we can write alternate
optimal solutions.
15. Write the allocations and calculate total transportation cost.
16. In case, the unit cost of transportation of any cell is zero or negative elements, take the same
into considerations for further calculations. Suppose nothing is given in the cell as the unit
cost of transportation, then presume that the route connecting the origin and the destination
through that cell is not existing and cancel that cell and do not consider it at all while solving
the problem, or else allocate very high cost of unit cost of transportation (infinity or any
number which is greater than all the elements in the matrix), so that that cell will not enter
into programme. (In maximization problem allocate a negative profit or return to the cell).
Problem 4.13. A company has three factories X, Y, and Z and four warehouses A, B, C, and D. It is
required to schedule factory production and shipments from factories to warehouses in such a manner
so as to minimize total cost of shipment and production. Unit variable manufacturing costs (UVMC)
and factory capacities and warehouse requirements are given below:

From UVMC To warehouses Capacity in units per month.

Factories. Rs. Unit shipping costs in Rs.
A B C D
X 10 0 1 1 2 75
Y 11 1 2 3 1 32
Z 12 4 3 3 6 67
Requirement: 65 24 16 15

Find the optimal production and transportation schedule.

202 Operations Research

Solution: We have to optimize production and shipment cost. Hence the transportation matrix elements
are the total of manufacturing cost plus transportation cost. For example, the manufacturing cost of
factory X is Rs. 10. Hence the transportation and shipment cost will be equal to 10 + 0, 10 +1, 10 +1
and 10 +2 respectively for warehouses A, B, C and D respectively. As the total available is 174 units
and the total demand is 120 units we have to open a dummy column with requirement of 54 units. The
production cum transportation matrix is given below:
Production cum transportation cost per unit in Rs.

(1) Initial basic feasible solution by VAM :

A B C D DC Avail Roc
X 10 11 11 11 0 75 10
Y 12 13 14 12 0 32 12
Z 16 15 15 18 0 67 15
54
Req 65 24 16 15 54 174
Coc 2 2 3 1 0

(2) A B C D Avail Roc

X 10 11 11 11 75 0
16
Y 12 13 14 12 32 0
Z 16 15 15 18 13 0
Req 65 24 16 15 124
Coc 2 2 3 0
Linear Programming: II Transportation Model 203

(3)
A B D Avail Roc
X 10 11 11 75 0
24
Y 12 13 12 32 1
Z 16 15 18 13 0
Req 65 24 15 104
Coc 2 2 0

(4)

A D Avail Roc
X 10 11 35 2
35
Y 12 12 32 0
Z 16 18 13 2
Req 65 15 80
Coc 2 0

(5)
A D Avail Roc
Y 12 12 32 0
15
Z 16 18 13 2
Req 30 15 45
Coc 4 6

(6)

A Avail Roc
Y 12 17 0
17
Z 16 13 2
13
Req 30 30
Coc 4
204 Operations Research

Production cum transportation cost per unit in Rs.

As there are m + n – 1 allocations and all the opportunity costs of empty cells are negative, the
solution is optimal.
The optimal allocations are:

Cell Load Cost in Rs. Rs.

XA 48 48 × 10 = 480
XB 24 24 × 11 = 264
XC 29 29 × 11 = 319
YA 17 17 × 12 = 204
YB 15 15 × 12 = 180
ZC 13 13 × 15 = 195
Z DC 54 54 × 0 = 0
Total cost in RS. = 1642

QUESTIONS

1. Explain the process of solving a transportation problem.

2. List out the differences and similarities between Resource allocation model and Transportation
model in linear programming.
3. Explain the procedure of getting basic feasible solution by using VAM.
4. Explain what are degeneracy and redundancy in transportation problem. How do you solve
degeneracy in transportation problem? Distinguish between tie and degeneracy in linear
programming problem.
5. Is transportation problem is of maximization type or minimization type problem? If it is one
of the two, how do you solve the other version of the transportation model?
Linear Programming: II Transportation Model 205

6. How do you say that a transportation model has an alternate solution? In case it has an
alternate optimal solution, how do you arrive at alternate solution?
7. What is transshipment problem? In what way it differs from general transportation problem?
8. Explain the terms: (a) Opportunity cost, (b) Implied cost, (c) Row opportunity cost,
(d) Column opportunity cost.
9. The DREAM - DRINK Company has to work out a minimum cost transportation schedule
to distribute crates of drinks from three of its factories X, Y, and Z to its three warehouses A,
B, and C. The required particulars are given below. Find the least cost transportation schedule.
Transportation cost in Rs per crate.

From / To A B C Crates Available.

X 75 50 50 1040
Y 50 25 75 975
Z 25 125 25 715
Crates required. 1300 910 520 2730

10. The demand pattern for a product at for consumer centers, A, B, C and D are 5000 units,
7000 units, 4000 units and 2000 units respectively. The supply for these centers is from
three factories X, Y and Z. The capacities for the factories are 3000 units, 6000 units and
9000 units respectively. The unit transportation cost in rupees from a factory to consumer
center is given below in the matrix. Develop an optimal transportation schedule and find the
optimal cost.
From: To
A B C D
X 8 9 12 8
Y 3 4 3 2
Z 5 3 7 4

11. From three warehouses, A, B, and C orders for certain commodities are to be supplied to
demand points X, Y, and Z. Find the least cost transportation schedule with relevant information
given below:

From To demand points

Warehouses (Transportation cost in Rs. per units). Availability in units.

X Y Z
A 5 10 2 100
B 3 7 5 25
C 6 8 4 75
Units demand: 105 30 90
206 Operations Research

12. From three warehouses A, B, and C orders for certain commodities are to be supplied to
demand points 1, 2, 3, 4 and 5 monthly. The relevant information is given below:
Warehouses Demand points (Transportation cost in Rs per unit. Availability in units.
1 2 3 4 5
A 4 1 2 6 9 100
B 6 4 3 5 7 120
C 5 2 6 4 8 120
Units demand: 40 50 70 90 90

During certain month a bridge on the road-connecting warehouse B to demand point 3 is closed
for traffic. Modify the problem suitably and find the least cost transportation schedule. (The demand
must be complied with).
13. A tin box company has four factories that supply to 5 warehouses. The variable cost of
manufacturing and shipment of one ton of product from each factory to each warehouse are
shown in the matrix given below, Factory capacities and warehouse requirements are shown
in the margin. After several iterations the solution obtained is also shown.

(a) Is this an optimal solution? How do you know?

(b) Is there an alternate solution? If so find it.
(c) Suppose some new equipment was installed that reduces the variable operation cost by
Rs. 2/- per ton in factory X, is the shipping schedule remain optimum? If not what is
the new optimum?
(d) Suppose the freight charges from W to A were reduced by Rs.2/- would this change
the shipping schedule? If so what is the new optimum?
(e) How much would the manufacturing cost have to be reduced in W before production
would be increased beyond 55 tons?
Linear Programming: II Transportation Model 207

14. A company has a current shipping schedule, which is being questioned by the management
as to whether or not it is optimal. The firm has three factories and five warehouses. The
necessary data in terms of transportation costs in Rs. per unit from a factory to a destination
and factory capacities and warehouse requirements are as follows:

Factories. (Transportation costs in Rs. per unit.)

Warehouses. X Y Z Requirement of warehouses in units.
A 5 4 8 400
B 8 7 4 400
C 6 7 6 500
D 6 6 6 400
E 3 5 4 800
Factory capacities. 800 600 1100

Solve for an optimal shipping schedule in terms of lowest possible shipping costs.
15. Solve the following transportation problem.

Destination
Source A B C D E Supply
W 20 19 14 21 16 40
X 15 20 13 19 16 60
Y 18 15 18 20 70
Z 0 0 0 0 0 50
Demand. 30 40 50 40 60

(Note: Nothing is given in cell YE. So you have to ignore it).

16. A manufacturing organization has 3 factories located at X, Y and Z. The centralized planning
cell has to decide on allocation of 4 orders over the 3 factories with a view to minimizing the
total cost to the organization, Demand and capacity and cost details are given as under:
Customer Demand per month in units.
A 960
B 380
C 420
D 240

Capacities and Costs (Rs.).

Factories Capacity units per month Overhead costs in Rs, per month Direct cost in Rs. per unit.
X 400 400 2.50
Y 900 720 3.00
Z 640 320 3.50
208 Operations Research

Shipping cost in Paise per unit dispatch.

To
From A B C D
X 50 70 40 35
Y 45 75 40 55
Z 70 65 60 75

It is also possible to produce 25% higher than the capacity in each factory by working overtime
at 50% higher in direct costs.
(a) Build a transportation model so that the total demand is met with.
(b) Do the allocation of factory capacity by minimum cost allocation and check the solution
for optimality.
16. In a transportation problem the distribution given in the table below was suggested as an
optimal solution. The capacities and requirement are given. The number in bold are allocations.
The transportation costs given in Rs, per unit from a source to a destination.
(a) Test whether the given distribution is optimal?
(b) If not optimal obtain all basic optimal solution.

17. A department stores wishes to purchase 7,500 purses of which 2,500 are of style X, 2,500
are of style Y and 2,500 are of style Z. Four manufacturers A, B, C and D bid to supply not
more than the following quantities, all styles combined. A = 1,000, B = 3,000, C = 2, 100
and D = 1,900. The following table gives the cost per purse of each style of the bidders in
Rs. per purse.
MANUFACTURER.
Style A B C D
X 10 4 9 5
Y 6 7 8 7
Z 3 8 6 9
Linear Programming: II Transportation Model 209

(a) How should orders to be placed by the department store to minimize the total cost?
(b) If the store were to introduce a new style W, which manufacturer can supply it? How
many of W can he supply?

MULTIPLE CHOICE QUESTIONS

1. Transportation problem is basically a
(a) Maximization model
(b) Minimization model
(c) Transshipment problem
(d) Iconic model ( )
2. The column, which is introduced in the matrix to balance the rim requirements, is known as:
(a) Key column
(b) Idle column
(c) Slack column
(d) Dummy Column ( )
3. The row, which is introduced in the matrix to balance the rim requirement, is known as:
(a) Key row
(b) Idle row
(c) Dummy row
(d) Slack row ( )
4. One of the differences between the Resource allocation model and Transportation Model is:
(a) The coefficients of problem variables in Resource allocation model may be any number
and in transportation model it must be either zeros or ones.
(b) The coefficients of problem variable in Resource allocation model must be either zeros
or ones and in Transportation model they may be any number.
(c) In both models they must be either zeros or ones only.
(d) In both models they may be any number. ( )
5. To convert the transportation problem into a maximization model we have to
(a) To write the inverse of the matrix
(b) To multiply the rim requirements by –1
(c) To multiply the matrix by –1
(d) We cannot convert the transportation problem in to a maximization problem, as it is
basically a minimization problem. ( )
6. In a transportation problem where the demand or requirement is equals to the available
resource is known as
(a) Balanced transportation problem,
(b) Regular transportation problem,
(c) Resource allocation transportation problem
(d) Simple transportation model. ( )
210 Operations Research

7. The total number of allocation in a basic feasible solution of transportation problem of

m × n size is equal to:
(a) m × n (b) (m / n ) – 1
(c) m + n +1 (d) m + n – 1 ( )
8. When the total allocations in a transportation model of m × n size is not equals to m + n – 1
the situation is known as:
(a) Unbalanced situation (b) Tie situation
(c) Degeneracy (d) None of the above ( )
9. The opportunity cost of a row in a transportation problem is obtained by:
(a) Deducting the smallest element in the row from all other elements of the row,
(b) Adding the smallest element in the row to all other elements of the row,
(c) Deducting the smallest element in the row from the next highest element of the row
(d) Deducting the smallest element in the row from the highest element in that row.
( )
10. In Northwest corner method the allocations are made
(a) Starting from the left hand side top corner,
(b) Starting from the right hand side top corner
(c) Starting from the lowest cost cell
(d) Starting from the lowest requirement and satisfying first. ( )
11. VAM stands for:
(a) Value added method (b) Value assessment method
(c) Vogel Adam method, (d) Vogel’s approximation method. ( )
12. MODI stands for
(a) Modern distribution, (b) Mendel's distribution method
(c) Modified distribution method (d) Model index method ( )
13. In the optimal solution, more than one empty cell have their opportunity cost as zero, it
indicates
(a) The solution is not optimal (b) The problem has alternate solution
(c) Something wrong in the solution (d) The problem will cycle. ( )
14. In case the cost elements of one or two cells are not given in the problem, it means:
(a) The given problem is wrong
(b) We can allocate zeros to those cells
(c) Allocate very high cost element to those cells
(d) To assume that the route connected by those cells are not available. ( )
15. To solve degeneracy in the transportation problem we have to:
(a) Put allocation in one of the empty cell as zero
(b) Put a small element epsilon in any one of the empty cell
Linear Programming: II Transportation Model 211

(c) Allocate the smallest element epsilon in such a cell, which will not form a closed loop
with other loaded cells.
(d) Allocate the smallest element epsilon in such a cell, which will form a closed loop with
other loaded cells. ( )
16. A problem where the produce of a factory is stored in warehouses and then they are transported
to various demand point as and when the demand arises is known as:
(a) Transshipment problem
(b) Warehouse problem
(c) Storing and transport problem
(d) None of the above ( )
17. Implied Cost in transportation problem sets (in the existing program):
(a) The lowest limit for the empty cell beyond which it is not advisable to include in the
programme,
(b) The highest limit for the empty cell beyond which it is not advisable to include in the
programme,
(c) The opportunity cost of the empty cell,
(d) None of the above. ( )
18. In transportation model, the opportunity cost is given by
(a) Implied cost + Actual cost of the cell
(b) Actual cost of the cell – Implied cost,
(c) Implied cost – Actual cost of the cell
(d) Implied cost × Actual cost of the cell ( )
19. If ui and vj are row and column numbers respectively, then the implied cost is given by:
(a) ui + vj (b) ui – vj
(c) ui × vj (d) ui /vj ( )
20. If a transportation problem has an alternate solution, then the other alternate solutions are
derived by:
(Given that the two matricides of alternate solutions are A and B, and d is any positive
fraction number)
(a) A + (1 – d) × B (b) A ( 1 – d) + B
(c) dA + dB (d) dA + (1 – d) × B ( )

ANSWERS

1. (b) 2. (d) 3. (d) 4. (c)

5. (a) 6. (c) 7. (a) 8. (d)
9. (c) 10. (a) 11. (d) 12. (a)
13. (b) 14. (d) 15. (c) 16. (a)
17. (b) 18. (b) 19. (a) 20. (a)
 CHAPTER – 5

Linear Programming : III

Assignment Model

5.1. INTRODUCTION
In earlier discussion in chapter 3 and 4, we have dealt with two types of linear programming problems,
i.e. Resource allocation method and Transportation model. We have seen that though we can use
simplex method for solving transportation model, we go for transportation algorithm for simplicity.
We have also discussed that how a resource allocation model differ from transportation model and
similarities between them. Now we have another model comes under the class of linear programming
model, which looks alike with transportation model with an objective function of minimizing the time
or cost of manufacturing the products by allocating one job to one machine or one machine to one job
or one destination to one origin or one origin to one destination only. This type of problem is given the
name ASSIGNMENT MODEL. Basically assignment model is a minimization model. If we want to
maximize the objective function, then there are two methods. One is to subtract all the elements of the
matrix from the highest element in the matrix or to multiply the entire matrix by –1 and continue with
the procedure. For solving the assignment problem we use Assignment technique or Hungarian method
or Flood's technique. All are one and the same. Above, it is mentioned that one origin is to be assigned
to one destination. This feature implies the existence of two specific characteristics in linear programming
problems, which when present, give rise to an assignment problem. The first one being the pay of
matrix for a given problem is a square matrix and the second is the optimum solution (or any
solution with given constraints) for the problem is such that there can be one and only one assignment
in a given row or column of the given payoff matrix. The transportation model is a special case of
linear programming model (Resource allocation model) and assignment problem is a special case of
transportation model, therefore it is also a special case of linear programming model. Hence it must
have all the properties of linear programming model. That is it must have: (i) an objective function, (ii)
it must have structural constraints, (iii) It must have non-negativity constraint and (iv) The relationship
between variables and constraints must have linear relationship. In our future discussion, we will see
that the assignment problem has all the above properties.

5.2. The Problem

There are some types in assignment problem. They are:
Linear Programming - III Assignment Model 213

(i) Assigning the jobs to machines when the problem has square matrix to minimize the time
required to complete the jobs. Here the number of rows i.e. jobs are equals to the number of
machines i.e. columns. The procedure of solving will be discussed in detail in this section.
(ii) The second type is maximization type of assignment problem. Here we have to assign
certain jobs to certain facilities to maximize the returns or maximise the effectiveness. This
is also discussed in problem number 5.2.
(iii) Assignment problem having non-square matrix. Here by adding a dummy row or dummy
columns as the case may be, we can convert a non-square matrix into a square matrix and
proceed further to solve the problem. This is done in problem number.5.9.
(iv) Assignment problem with restrictions. Here restrictions such as a job cannot be done on a
certain machine or a job cannot be allocated to a certain facility may be specified. In such
cases, we should neglect such cell or give a high penalty to that cell to avoid that cell to enter
into the programme.
(v) Traveling sales man problem (cyclic type). Here a salesman must tour certain cities starting
from his hometown and come back to his hometown after visiting all cities. This type of
problem can be solved by Assignment technique and is solved in problem 5.14.
Let us take that there are 4 jobs, W, X, Y and Z which are to be assigned to four machines, A, B,
C and D. Here all the jobs have got capacities to machine all the jobs. Say for example that the job W is
to drill a half and inch hole in a Wooden plank, Job X is to drill one inch hole in an Aluminum plate and
Job Y is to drill half an inch hole in a Steel plate and job Z is to drill half an inch hole in a Brass plate.
The machine A is a Pillar type of drilling machine, the machine B is Bench type of drilling machine,
Machine C is radial drilling machine and machine D is an automatic drilling machine. This gives an
understanding that all machines can do all the jobs or all jobs can be done on any machine. The cost or
time of doing the job on a particular machine will differ from that of another machine, because of
overhead expenses and machining and tooling charges. The objective is to minimize the time or cost of
manufacturing all the jobs by allocating one job to one machine. Because of this character, i.e. one to
one allocation, the assignment matrix is always a square matrix. If it is not a square matrix, then the
problem is unbalanced. Balance the problem, by opening a dummy row or dummy column with its
cost or time coefficients as zero. Once the matrix is square, we can use assignment algorithm or
Flood's technique or Hungarian method to solve the problem.
Jobs Machines (Time in hours) Availability
A B C D
W C 11 C 12 C 13 C 14 1
X C 21 C 22 C 23 C 24 1
Y C 31 C 32 C 33 C 34 1
Z C 41 C 42 C 43 C 44 1
Requirement: 1 1 1 1

Mathematical Model:
n n

Minimize Z = ∑ ∑C
i =1 j =1
ij × ij Objective Constraint.
214 Operations Research

Subject to: Xij = (Xij)2 i and j = 1 to n

n n

∑
J =1
X ij = 1 (d ) and
j ∑X
i =1
ij = 1 (bi) Structural Constraints.

For i and j = 1 to n
(Each machine to one job only) (Each job to one machine only)
And
Xij = 0 for all values of j and i. Non-negativity constraint.

5.3. COMPARISION BETWEEN TRANSPORTATION PROBLEM AND ASSIGNMENT

PROBLEM
Now let us see what are the similarities and differences between Transportation problem and Assignment
Problem.

Similarities
1. Both are special types of linear programming problems.
2. Both have objective function, structural constraints, and non-negativity constraints. And
the relationship between variables and constraints are linear.
3. The coefficients of variables in the solution will be either 1 or zero in both cases.
4. Both are basically minimization problems. For converting them into maximization problem
same procedure is used.

Differences
Transportation Problem Assignment Problem.
1. The problem may have rectangular matrix 1.The matrix of the problem must be a square matrix.
or square matrix. 2.The rows and columns must have one to one
2.The rows and columns may have any allocation. Because of this property, the matrix must
number of allocations depending on the rim be a square matrix.
conditions. 3.The basic feasible solution is obtained by Hungarian
3.The basic feasible solution is obtained by method or Flood's technique or by Assignment
northwest corner method or matrix minimum algorithm.
method or VAM 4.Optimality test is given by drawing minimum
4.The optimality test is given by stepping number of horizontal and vertical lines to cover all
stone method or by MODI method. the zeros in the matrix.
5.The basic feasible solution must have m + 5.Every column and row must have at least one zero.
n – 1 allocations. And one machine is assigned to one job and vice versa.
6.The rim requirement may have any 6. The rim requirements are always 1 each for every
numbers (positive numbers). row and one each for every column.
7.In transportation problem, the problem 7.Here row represents jobs or machines and columns
deals with one commodity being moved from represents machines or jobs.
various origins to various destinations.
Linear Programming - III Assignment Model 215

5.4. APPROACH TO SOLUTION

Let us consider a simple example and try to understand the approach to solution and then discuss
complicated problems.

1. Solution by visual method

In this method, first allocation is made to the cell having lowest element. (In case of maximization
method, first allocation is made to the cell having highest element). If there is more than one cell
having smallest element, tie exists and allocation may be made to any one of them first and then second
one is selected. In such cases, there is a possibility of getting alternate solution to the problem. This
method is suitable for a matrix of size 3 × 4 or 4 × 4. More than that, we may face difficulty in
allocating.

Problem 5.1.
There are 3 jobs A, B, and C and three machines X, Y, and Z. All the jobs can be processed on all
machines. The time required for processing job on a machine is given below in the form of matrix.
Make allocation to minimize the total processing time.
Machines (time in hours)

Jobs X Y Z
A 11 16 21
B 20 13 17
C 13 15 12

Allocation: A to X, B to Y and C to Z and the total time = 11 + 13 +12 = 36 hours. (Since 11 is

least, Allocate A to X, 12 is the next least, Allocate C to Z)

2. Solving the assignment problem by enumeration

Let us take the same problem and workout the solution.
Machines (time in hours)

C 13 15 12
Jobs X Y Z
A 11 16 21
B 20 13 17
C 13 15 12

S.No Assignment Total cost in Rs.

1 AX BY CZ 11 + 13 + 12 = 36
2 AX BZ CY 11 + 17 + 15 = 43
3 AY BX CZ 16 + 20 + 12 = 48
4 AY BZ CX 16 + 17 + 13 = 46
5 AZ BY CX 21 + 13 + 13 = 47
6 AZ BX CY 21 + 20 + 15 = 56
216 Operations Research

Like this we have to write all allocations and calculate the cost and select the lowest one. If more
than one assignment has same lowest cost then the problem has alternate solutions.

3. Solution by Transportation method

Let us take the same example and get the solution and see the difference between transportation
problem and assignment problem. The rim requirements are 1 each because of one to one allocation.
Machines (Time in hours)
Jobs X Y Z Available
A 11 16 21 1
B 20 13 17 1
C 13 15 12 1
Req 1 1 1 3

By using northwest corner method the assignments are:

Machines (Time in hours)

Jobs X Y Z Available
A 1 E 1
B 1 ∈ 1
C 1 1
Req 1 1 1 3

As the basic feasible solution must have m + n – 1 allocations, we have to add 2 epsilons. Next we
have to apply optimality test by MODI to get the optimal answer.
This is a time consuming method. Hence it is better to go for assignment algorithm to get the
solution for an assignment problem.

4. Hungarian Method / Flood's technique / Assignment algorithm: (opportunity

cost method)
Let us once again take the same example to workout with assignment algorithm.
Machines (time in hours)

Jobs X Y Z
A 11 16 21
B 20 13 17
C 13 15 12

Step 1. Deduct the smallest element in each row from the other elements of the row. The matrix
thus got is known as Row opportunity cost matrix (ROCM). The logic here is if we
assign the job to any machine having higher cost or time, then we have to bear the
penalty. If we subtract smallest element in the row or from all other element of the
row, there will be at least one cell having zero, i.e zero opportunity cost or zero
penalty. Hence that cell is more competent one for assignment.
Linear Programming - III Assignment Model 217

Step 2. Deduct the smallest element in each column from other elements of the column. The matrix
thus got is known as Column opportunity cost matrix (COCM). Here also by creating
a zero by subtracting smallest element from all other elements we can see the penalty
that one has to bear. Zero opportunity cell is more competent for assignment.
Step 3. Add COCM and ROCM to get the Total opportunity cost matrix (TOCM).
Step 4. (modified): Total opportunity cost matrix can be got by simplify doing row operation on
Column opportunity matrix or column operation on row opportunity cost matrix. This method
is simple one and saves time. (Doing row operation on column opportunity matrix means:
Deduct the smallest element in the row from all other elements in the row in column opportunity
matrix and vice versa).
The property of total opportunity cost matrix is that it will have at least one zero in
every row and column. All the cells, which have zero as the opportunity cost, are
eligible for assignment.
Step 5. Once we get the total opportunity cost matrix, cover all the zeros by MINIMUM NUMBER
OF HORIZONTAL AND VERTICAL LINES. (First cover row or column, which is having
maximum number of zeros and then next row or column having next highest number of
zeros and so on until all zeros are covered. Remember, only horizontal and vertical lines are
to be drawn.
Step 6. If the lines thus drawn are equal to the number of rows or columns (because of square
matrix), we can make assignment. If lines drawn are not equal to the number of rows or
columns go to step 7.
Step 7. To make assignment: Search for a single zero either row wise or column wise. If you start
row wise, proceed row by row in search of single zero. Once you find a single zero; assign
that cell by enclosing the element of the cell by a square. Once all the rows are over, then
start column wise and once you find single zero assign that cell and enclose the element of
the one cell in a square. Once the assignment is made, then all the zeros in the row and
column corresponding to the assigned cell should be cancelled. Continue this procedure until
all assignments are made. Some times we may not find single zero and find more than one
zero in a row or column. It indicates, that the problem has an alternate solution. We can
write alternate solutions. (The situation is known as a TIE in assignment problem).
Step 8. If the lines drawn are less than the number of rows or columns, then we cannot make
assignment. Hence the following procedure is to be followed:
The cells covered by the lines are known as Covered cells. The cells, which are not covered
by lines, are known as uncovered cells. The cells at the intersection of horizontal line and
vertical lines are known as Crossed cells.
(a) Identify the smallest element in the uncovered cells.
(i) Subtract this element from the elements of all other uncovered cells.
(ii) Add this element to the elements of the crossed cells.
(iii) Do not alter the elements of covered cells.
(b) Once again cover all the zeros by minimum number of horizontal and vertical lines.
(c) Once the lines drawn are equal to the number of rows or columns, assignment can be made
as said in step (6).
218 Operations Research

(d) If the lines are not equal to number of rows or columns, repeat the steps 7 (a) and 7 (b) until
we get the number of horizontal and vertical lines drawn are equal to the number of rows or
columns and make allocations as explained in step (6).
Note: For maximization same procedure is adopted, once we convert the maximization problem
into minimization problem by multiplying the matrix by (-1) or by subtracting all the elements of the
matrix from highest element in the matrix. Once we do this, the entries in the matrix gives us relative
costs, hence the problem becomes minimisaton problem. Once we get the optimal assignment, the
total value of the original pay off measure can be found by adding the individual original entries for
those cells to which assignment have been made.
Now let us take the problem given above and solve.

Solution

Machines (time in hours)

Jobs X Y Z
A 11 16 21
B 20 13 17
C 13 15 12
Step1: To find ROCM.
Machines (time in hours)

Jobs X Y Z
A 0 5 10
B 7 0 4
C 1 3 0

Step 2. To find TOCM (do column operation in ROCM)

Machines (time in hours)

Jobs X Y Z
A 0 5 10
B 7 0 4
C 1 3 0

Because in each column, zero is the lowest element, the matrix remains unchanged, i.e. The
COCM itself TOCM.
Step 3. To cover all the zeros by minimum number of horizontal and vertical lines.
Machines (time in hours)
○
○

Jobs X Y Z
○

A 0 5 10
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

○ ○
B
○ ○ ○ ○ ○ ○
7
○ ○ ○ ○
0
○ ○ ○ ○ ○
4
○ ○ ○ ○
○
○

C 1 3 0
○
○
Linear Programming - III Assignment Model 219

Assignment is:
Machines (time in hours)

Jobs X Y Z
A 0 5 10
B 7 0 4
C 1 3 0

Assignment Time in hours.

A TO X 11
B TO Y 13
C TO Z 12
Total: 36 hours.

Problem 5.2.
A company has five jobs V, W, X, Y and Z and five machines A, B, C, D and E. The given matrix
shows the return in Rs. of assigning a job to a machine. Assign the jobs to machines so as to maximize
the total returns.
Machines.
Returns in Rs.

Jobs A B C D E
V 5 11 10 12 4
W 2 4 6 3 5
X 3 12 5 14 6
Y 6 14 4 11 7
Z 7 9 8 12 5

Solution
As the objective function is to maximize the returns, we have to convert the given problem into
minimization problem.
Method 1. Here highest element in the matrix is 14, hence subtract all the element form 14 and write the
relative costs. (Transformed matrix).
Machines
Returns in Rs.

Jobs A B C D E
V 9 3 4 2 10
W 12 10 8 11 9
X 11 2 9 0 8
Y 8 0 10 3 7
Z 7 5 6 2 9
220 Operations Research

ROCM:
Machines
Returns in Rs.

Jobs A B C D E
V 7 1 2 0 8
W 4 2 0 3 1
X 11 2 9 0 8
Y 8 0 10 3 7
Z 5 3 4 0 7

By doing column operation on ROCM, we get the total opportunity cost matrix.
TOCM:
Machines
Returns in Rs.
○
○

Jobs A B C D E
○
○

V 3 1 2 0 7
○

W 0 2 0 3 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

X 7 2 9 0 7
○
○

Y 4 0 10 3 6
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

Z 1 3 4 0 6
○
○
○

Only three lines are there. So we have to go to step 7. The lowest element in uncovered cell is 1,
hence subtract 1 from all uncovered cells and add this element to crossed cells and write the matrix.
The resultant matrix is:
Machines
Return in Rs.
○
○

Jobs A B C D E
○
○

V 2 0 1 0 6
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

W 0 3 0 4 0
○
○

X 6 1 8 0 6
○
○

Y 4 0 10 4 6
○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Z 0 2 3 0 5
○
○
○

Only foor lines are there, hence repeat the step 7 until we get 5 lines.
Linear Programming - III Assignment Model 221

Machines
Return in Rs.

○
○
Jobs A B C D E

○
○
V 1 0 0 0 5

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

W 0 3 0 5 0

○
○
X 5 1 7 0 5

○
○
Y 3 0 9 4 5

○
○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Z 0 3 3 1 5

○
○
○

All zeros are covered by 5 lines, Hence assignment can be made. Start row wise or column wise
and go on making assignment, until all assignments are over.
Machines
Return in Rs.

Jobs A B C D E
V 2 1 0 x0 5
W 1 4 0x 5 0
X 6 2 7 0 5
Y 3 0 8 3 4
Z 0 3 2 0x 4

Job Machine Return in Rs.

V C 10
W E 5
X D 14
Y B 14
Z A 7
Total in Rs. 50

Problem 5.3.
Five jobs are to be assigned to 5 machines to minimize the total time required to process the jobs
on machines. The times in hours for processing each job on each machine are given in the matrix
below. By using assignment algorithm make the assignment for minimizing the time of processing.
Machines (time in hours)

Jobs V W X Y Z
A 2 4 3 5 4
B 7 4 6 8 4
C 2 9 8 10 4
D 8 6 12 7 4
E 2 8 5 8 8
222 Operations Research

Solution
Machines (time in hours)

Jobs V W X Y Z
A 2 4 3 5 4
B 7 4 6 8 4
C 2 9 8 10 4
D 8 6 12 7 4
E 2 8 5 8 8

COCM
Machines (time in hours)
○

○
Jobs V W X Y Z
○

○
○

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

A 0 0 0 0 0
○

○
○

○
B 5 0 3 3 0
○

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

○
C 0 5 5 5 0
○

D 6 2 9 2 ○
0
○

○
○

E 0 4 2 3 4
○

○
○

○
○

As the COCM has at least one zero in every column and row, this itself can be considered as
TOCM, because as the zero is the lowest number in each column, the matrix remains unchanged. If we
cover all the zeros by drawing horizontal and vertical lines, we get only four lines. Applying step 7 we
get the following matrix.
Machines (time in hours)
○
○

○
○

Jobs V W X Y Z
○
○

A 2 0 0 0 2
○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○
○

B 7 0 3 3 2
○
○

○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

C 0 3 3 3 0
○
○

○
○

○ ○ ○ ○ D ○ ○ ○ ○ 6
○ ○ ○ 0
○ ○ ○ ○ 7 ○ ○ ○ ○ 0 ○ ○ ○ 0 ○ ○ ○ ○
○
○
○

E 0 2 0 1 4
○

○
○

As there are five lines that cover all zeros, we can make assignment.
Machines (time in hours)

Jobs V W X Y Z
A 2 0 0 0 2
B 7 0 3 3 2
C 0 3 3 3 0
D 6 0 7 0 0
E 0 2 0 1 4
Linear Programming - III Assignment Model 223

Alternate solution:
Machines (time in hours)

Jobs V W X Y Z
A 2 0 0 0 2
B 7 0 3 3 2
C 0 3 3 3 0
D 6 0 7 0 0
E 0 2 0 1 4

First Solution: A to X, B to W, C to Z, D to Y and E to V Cost is: 3 + 4 + 4 + 7 + 2 = 20 hours.

Second Solution: A toY, B to W, C to V, D to Z and E to X. Cost is: 5 + 4 + 2 + 4 + 5 = 20 Hours.
When there is a tie, make assignment arbitrarily first to one of the zeros and then proceed, we will
get the assignment. When there is a tie, there exists an alternate solution.

Problem 5.4.
A manager has 4 jobs on hand to be assigned to 3 of his clerical staff. Clerical staff differs in
efficiency. The efficiency is a measure of time taken by them to do various jobs. The manager wants
to assign the duty to his staff, so that the total time taken by the staff should be minimum. The matrix
given below shows the time taken by each person to do a particular job. Help the manager in assigning
the jobs to the personnel.
Jobs. Men (time taken to do job in hours).
X Y Z
A 10 27 16
B 14 28 7
C 36 21 16
D 19 31 21

Solution
The given matrix is unbalanced. To balance the matrix, open a dummy column with time coefficients
as zero.
(DC = Dummy column).
Men (Time taken in hours)

X Y Z DC
A 10 27 16 0
B 14 28 7 0
C 36 21 16 0
D 19 31 21 0
224 Operations Research

As every row has a zero, we can consider it as ROCM and by doing column operation, we can
write TOCM. Now apply step 7.
Men (Time taken in hours).

○
○
Jobs X Y Z DC

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

A 0 6 9 0

○
○
B 4 7 0 0

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○
○ ○ ○ C ○ ○ ○ 26
○ ○ ○ ○ ○ 0○ ○ ○ ○ 9○ ○ ○ ○ 0○ ○ ○ ○

○
○
D 9 10 14 0

○
○
Men (Time taken in hours).
Jobs X Y Z DC
A 0 6 9 0
B 4 7 0 0
C 26 0 9 0
D 9 10 14 0

The assignment is: A to X, B to Z, and C to Y and D is not assigned.

Total time required is: 10 + 7 + 21 = 38 Hours.

Problem 5.5.
A company has four market segments open and four salesmen are to be assigned one to each
segment to maximize the expected total sales. The salesmen differ in their ability and the segments also
differ in their sales potential. The details regarding the expected sales in each segment by a typical
salesman under most favourable condition are given below.
Segment A = Rs. 60,000, Segment B = Rs. 50,000, Segment C = Rs. 40,000 and Segment D =
Rs. 30,000. It is estimated that working under same condition, the ability of salesmen in terms of
proportional yearly sales would be as below:
Salesman W = 7, Salesman X = 5, Salesman Y = 5 and Salesman Z = 4.
Assign segments to salesmen for maximizing the total expected sales.

Solution
To simplify the calculations, let us consider sales of Rs.10, 000/- as one unit of sale, then salesman
W ’s annual sales in four segments are:
His proportionate sale is seven out of 21 (7 + 5 + 5 + 4 = 21). In case the annual sales is 6 units
(Rs.60, 000), then his proportional sales would be (7 / 21) × 6 = 42 / 21 similarly his sales in all
the segments would be (7/21) × 6, (7/21) × 5, (7/21) × 5, and (7/21) × 4 i.e. 42/21, 35/21, 35/21 and
28/21. Like wise we can calculate the proportional sales of all salesmen and write the matrix showing
the sales of each salesman in different market segments. The matrix is given below:
Linear Programming - III Assignment Model 225

Market segments.

Sales (x1000) 6 5 4 3
Salesproportion Salesmen W X Y Z
7 W 42/21 3 5/21 28/21 21/21
5 X 30/21 25/21 20/21 15/21
5 Y 30/21 25/21 20/21 15/21
4 Z 24/21 20/21 16/21 12/21

Multiply the matrix by21 to avoid the denominator. As the problem is maximization one, convert
the problem into minimization problem by multiplying by (-1) (Second method). The resultant matrix
is:
Market segments.

SalesMen A B C D
W –42 –35 –28 –21
X –30 –25 –20 –15
Y –30 –25 –20 –15
Z –24 –20 –16 –12

ROCM:
Market segments.

SalesMen A B C D
W 0 7 14 21
X 0 5 10 15
Y 0 5 10 15
Z 0 4 8 12

TOCM:
Market segments.
○

SalesMen A B C D
○
○

W 0 3 6 9
○
○

X 0 1 2 3
○
○

Y 0 1 2 3
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Z 0 0 0 0
○
○
○
226 Operations Research

TOCM:
Market segments.

○
SalesMen A B C D

○
○
W 0 2 5 8

○
○
X 0 0 1 2

○
○
Y 0 0 1 2

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○
Z 1 0 0 0

○
○
TOCM:
○
Market segments.○

○
○

○
SalesMen A B C D

○
○

○
○

W 0 2 4 7
○

○
○

○
X 0 0 0 1
○

○
○

Y 0 0 0 1
○

○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

Z 2 1 0 0
○
○

○
○

Assignment (First solution)

○

Market segments.

SalesMen A B C D
W 0 2 4 7
X 0x 0 0x 1
Y 0x 0x 0 1
Z 2 1 0x 0

(Alternate Solution)
Market segments.

SalesMen A B C D
W 0 2 4 7
X 0x 0x 0 1
Y 0x 0 0x 1
Z 2 1 0x 0

Solution I: W to A, X to B, Y to C and Z to D. Sales: 42 + 25 + 20 + 12 = Rs. 99 x 10, 000

Solution II: W to A, X to C, Y to B and Z to D Sales: 42 + 20 + 25 + 12 = Rs. 99 x 10,000

Problem 5.6.
The city post office has five major counters namely, Registration (R), Savings (S), Money –
Order (M), Postal stationary (P) and Insurance / license (I). The postmaster has to assign five counters
Linear Programming - III Assignment Model 227

to five clerks A, B, C, D and E one for each counter. Considering the experience and ability of these
clerks he rates their suitability on a certain 10 - point scale of effectiveness of performance for
accomplishing different counter duties, as listed below. Assign the counters to the clerks for maximum
effective performance.
Clerks (effective performance)

Counters A B C D E
R 6 6 4 6 7
S 5 4 3 6 8
M 7 6 3 5 5
P 7 5 6 8 8
I 4 3 6 7 6

Convert the problem into minimization problem. (We can deduct all other elements form highest
element).
Note : As every row has a zero, we can consider it as Row Opportunity Cost Matrix.
ROCM
Clerks (effective performance)

Counters A B C D E
R 1 1 3 1 0
S 3 4 5 2 0
M 0 1 4 2 2
P 1 3 2 0 0
I 3 4 1 0 1

TOCM:
Clerks (effective performance)
○

Counters A B C D E
○

○
○

R 1 0 2 1 0
○

○
○

S 3 3 4 2 0
○

○
○

M 0 0 3 2 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

P 1 2 1 0 0
○

○ ○ ○
I ○ ○ ○ ○ ○ ○ ○
3
○ ○ ○
3
○ ○ ○ ○
0
○ ○ ○
0
○ ○ ○
1
○ ○ ○ ○ ○
○

○
○

○
○

○
228 Operations Research

As five lines are there we can make assignment.

Clerks (effective performance)

Counters A B C D E
R 1 0 2 1 0x
S 3 3 4 2 0
M 0 0x 3 2 2
P 1 2 1 0 0x
I 3 3 0 0x 1

Assignment: R to B, S to E, M to A, P to D and I to C. Total effectiveness: 6 + 8 + 7 + 8 + 6 = 35

points.

Problem 5.7.
There are 5 jobs namely, A, B, C, D, and E. These are to be assigned to 5 machines P, Q, R, S and
T to minimize the cost of production. The cost matrix is given below. Assign the jobs to machine on
one to one basis.
Jobs (Cost in Rs.)

Machines A B C D E
P 8 7 4 11 6
Q 10 5 5 13 7
R 6 9 8 7 12
S 6 7 2 3 2
T 7 8 8 10 5
ROCM:
Jobs (Cost in Rs.)

Machines A B C D E
P 4 3 0 7 2
Q 5 0 0 8 2
R 0 3 2 1 6
S 4 5 0 1 0
T 2 3 3 5 0
Linear Programming - III Assignment Model 229

TOCM:
Jobs (Cost in Rs.)

○
○

○
Machines A B C D E

○
○

○
P 4 3 0 6 2

○
○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Q 5 0 0 7 2

○
○

○
R 0 3 2 0 6

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○
S 4 5 0 0 0

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○
○

○
T 2 3 3 4 0

○
○

○
○
There are five lines and hence we can make assignment.

○
Jobs (Cost in Rs.)

Machines A B C D E
P 4 3 0 6 2
Q 5 0 0 7 2
R 0 3 2 0 6
S 4 5 0 0 0
T 2 3 3 4 0

Assignment: P to C, Q to B, R to A, and S to D and T to E. Total cost = 4 + 5 + 6 + 3 + 5 = Rs.23/-

Problem 5.8.
Four different jobs are to be done on four machines, one job on each machine, as set up costs and
times are too high to permit a job being worked on more than one machine. The matrix given below
gives the times of producing jobs on different machines. Assign the jobs to machine so that total time
of production is minimized.
Machines (time in hours)

Jobs A B C D
P 10 14 22 12
Q 16 10 18 12
R 8 14 20 14
S 20 8 16 6
230 Operations Research

Solution
ROCM:
Machines (time in hours)

Jobs A B C D
P 0 4 12 2
Q 6 0 8 2
R 0 6 12 6
S 14 2 10 0
TOCM:
Machines (time in hours)
○

Jobs A B C D
○
○

P 0 4 4 2
○
○

Q 6 0 0 2
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

R 0 6 4 6
○
○

S 14 2 2 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

TOCM:
○

Machines (time in hours)

○

Jobs A B C D
○
○

P 0 4 4 2
○
○

Q 6 0 0 2
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

R 0 6 4 6
○
○

S 14 2 6 0
○

TOCM:
○

Machines (time in hours)

○

Jobs A B C D
○
○

P 0 2 2 0
○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Q 8 0 0 2
○
○

R 0 4 2 4
○
○

S 16 2 4 0
○
○
Linear Programming - III Assignment Model 231

TOCM:
Machines (time in hours)

Jobs A B C D
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

P 0 0 0 0
○ ○
Q
○ ○ ○ ○
10
○ ○ ○ ○
0
○ ○ ○
0
○ ○ ○ ○
4 ○ ○ ○

○ ○

R
○ ○ ○ ○

0
○ ○ ○ ○

2
○ ○ ○

0
○ ○ ○

0
○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

S 16 0 0 0

Four lines are there hence we can make assignment. As there is a tie, we have more than one
solution.

Solution I.
TOCM:
Machines (time in hours)

Jobs A B C D
P 0 0 0 0
Q 10 0 0 4
R 0 2 0 0
S 14 0 4 0

Assignment: P to A, Q to B, R to C and S to D.
Time: 10 + 10 + 20 + 06 = 46 hours.

Solution II.
TOCM:
Machines (time in hours)

Jobs A B C D
P 0 0 0 0
Q 10 0 0 4
R 0 2 0 0
S 14 0 4 0

Assignment: P to B, Q to C, R to A and S to D.
Time: 14 + 18 + 8 + 6 = 46 hours.
We can write many alternate solutions.
232 Operations Research

Problem 5.9.
On a given day District head quarter has the information that one ambulance van is stationed at each of
the five locations A, B, C, D and E. The district quarter is to be issued for the ambulance van to reach
6 locations namely, P, Q, R, S, T and U, one each. The distances in Km. between present locations of
ambulance vans and destinations are given in the matrix below. Decide the assignment of vans for
minimum total distance, and also state which destination should not expect ambulance van to arrive.
To (distance in Km.)

From P Q R S T U
A 18 21 31 17 26 29
B 16 20 18 16 21 31
C 30 25 27 26 18 19
D 25 33 45 16 32 20
E 36 30 18 15 31 30

Solution
As the given matrix is not square matrix, balance the same by opening one dummy row (DR),
with zero as the elements of the cells.
To (distance in Km.)

From P Q R S T U
A 18 21 31 17 26 29
B 16 20 18 16 21 31
C 30 25 27 26 18 19
D 25 33 45 16 32 20
E 36 30 18 15 31 30
DR 0 0 0 0 0 0

As every column has got one zero, we can take it as COCM. Now doing row operation on
COCM, we get TOCM.
TOCM
○
○

P Q R S T U
○

A 1 4 14 0 9 12
○
○

○ ○ ○ ○

B ○ ○ ○ ○

0 ○ ○ ○ ○

4 ○ ○ ○

2 ○ ○ ○ ○

0 ○ ○ ○

5 ○ ○ ○

15 ○ ○ ○ ○ ○
○
○

C 12 7 9 8 0 1
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

D 9 17 29 0 16 4
○

E 21 15 3 0 16 15
○
○

DR 0 0 0 0 0 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○
○
Linear Programming - III Assignment Model 233

As there are only four lines, we cannot make assignment.

TOCM

○
○

○
P Q R S T U

○
○

○
A 0 3 13 0 8 11

○
○
B 0 4 2 0 5 15

○
○

○
○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

C 12 7 9 9 0 1

○
○

○
○
D 8 16 28 0 15 3

○
○
○

○
E 20 14 2 0 15 14
○

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

○
DR 0 ○

0 0 1 0 0

○
○

○
As there are four lines, we cannot make an assignment.
To (Distance in Km.)
○

○
○

○
○

P Q R S T U
○

○
○

A 0 1 11 0 6 9
○
○

○
○

B 0 2 0 1 3 13
○
○

○
○
○

C 14 7 9 11 0 1
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

○
○
○

D 8 14 26 0 13 1
○
○

○
○
○

E 20 12 0 0 13 12
○
○

○
○
○

○ ○ DR ○ ○ ○ ○ 2
○ ○ ○ ○ 0 ○ ○ ○ 0 ○ ○ ○ ○ 3 ○ ○ ○ 0 ○ ○ ○ ○ 0 ○ ○ ○
○
○

○
○
○

As there are only 5 lines we cannot make assignment.

○
○

P Q R S T U
○
○

○ ○ ○
A ○ ○ ○ ○ ○
0 ○ ○ ○
0 ○ ○ ○
11 ○ ○ ○ ○
0 ○ ○ ○
5 ○ ○ ○ ○
8 ○ ○ ○ ○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

B 0 1 0 1 2 12
○
○

C 15 7 10 12 0 1
○
○

○ ○ ○

D ○ ○ ○ ○

8 ○ ○ ○

13 ○ ○ ○

26
○ ○ ○ ○

0
○ ○ ○ ○

12 ○ ○ ○

0
○ ○ ○ ○
○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

E 20 11 0 0 12 11
○
○

○ ○ DR ○ ○ ○ ○ 3 ○ ○ ○ 0
○ ○ ○ ○ 1 ○ ○ ○ 4 ○ ○ ○ 0
○ ○ ○ ○ 0 ○ ○ ○
○
○

As there are 6 lines, we can make assignment. As there is a tie, we have alternate solutions.
To (Distance in Km.)

From P Q R S T U
A 0 0 11 0 5 8
B 0 1 0 1 2 12
C 15 7 10 12 0 1
D 8 13 26 0 12 0
E 20 11 0 0 12 11
DR 4 0 1 4 0 0
234 Operations Research

Assignment: A to P, B to R, C to T, D to U, E to S and DR to Q i.e the van at Q will not go to any

destination.
Total Distance: 18 + 18 + 18 + 20 + 15 = 89 Km.
Other alternative assignments are:
From: A B C D E DR Station for which no van Total Distance in Km.
To: Q P T S U R R 89
S P T U R Q Q 89

Brain tonic:
a) In case the cost of dispatching an ambulance is 3 times the distance, determine the assignment
of ambulances to destinations.
(b) In case the operating cost of a van is proportional to the square of the distance decide the
assignment.
(Note: a) By multiplying the entire matrix by 3 we get the cost matrix. This does not have any effect
on the final solution. Hence the same solution will hold good.
(b) We have to write the elements by squaring the elements of the original matrix and make fresh
assignment.)

Problem 5.10.
A job order company has to work out the assignment of 5 different jobs on five different machines.
The cost of machining per unit of job and set up cost of the job on a machine are as given in the matrix
A and B given below. The jobs are to be made in bathe sizes show against them. Set up cost is
independent of previous set up.
Matrix A. (Operating cost in Rs)
Jobs (machining cost in Rs)

Machines. A B C D E
P 0.80 1.10 0.70 1.60 6.20
Q 1.20 0.90 1 .20 0.80 5.40
R 2.10 2.00 1.00 2.20 4.90
S --- 1.60 2.00 1.90 3.60
T 3.20 2.00 2.00 2.00 2.60
Batch size in units. 100 100 150 100 50

Matrix B (Set up cost in Rs)

Jobs (cost in Rs)

Machines A B C D E
P 60 70 70 30 40
Q 40 50 50 20 80
R 30 40 40 40 100
S --- 90 60 50 60
T 80 100 80 60 60
Linear Programming - III Assignment Model 235

Solution
Multiply the Matrix A by 100 and add it to the matrix B we get the matrix given below. For the element
SA as nothing is given, we can eliminate it for further consideration or assign a very high cost for the
element so as to avoid it from further calculations.
Jobs (combined setup and processing cost in Rs)

Machines A B C D E
P 140 180 175 190 350
Q 160 140 230 100 350
R 240 240 190 260 255
S 1000 250 360 240 240
T 400 300 380 260 190

ROCM:
Machines A B C D E
P 0 40 35 50 210
Q 60 40 130 0 250
R 50 50 0 70 65
S 760 10 120 0 0
T 210 110 190 70 0

TOCM:
Machines A B C D E
P 0 30 35 50 210
Q 60 30 130 0 250
R 50 40 0 70 65
S 760 0 120 0 0
T 210 100 190 70 0

Assignment: P to A, Q to D, R to C, S to B and T to E.
Total cost = 140 + 100 + 190 + 250 + 190 = Rs. 870/-

Problem 5.11.
There are five major projects namely, Fertiliser plants, Nuclear poser plants, Electronic park, Aircraft
complex and Heavy machine tools. These five plants are to be assigned to six regions namely A, B, C,
D, E and F, insisting on allocation of as many number of projects as possible in their region. The state
department has evaluated the effectiveness of projects in different regions for (a) Employment potential,
(b) Resource utilization potential, (c) Economic profitability and (d) Environmental degradation index
as given below in
236 Operations Research

Tableau I. (The ranking is on a 20 point scale). Assign one project to one region depending on the
maximum total effectiveness. (Plants are given serial numbers 1 to 5)

Tableau I.
Local Employment Resource Allocation Economic Profitability Environmental
Potential. Potential. Index. Degradation index.
Reg. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
long.
A 16 10 8 12 11 7 6 4 5 3 11 13 14 15 10 15 14 5 3 2
B 18 15 12 10 7 11 4 3 2 1 10 15 17 11 16 13 14 5 3 2
C 12 16 12 5 8 16 5 4 3 2 13 14 16 12 11 12 11 5 4 2
D 14 10 13 6 8 15 3 2 4 1 7 10 5 11 8 12 11 5 4 2
E 15 17 11 18 11 8 3 4 2 4 10 12 7 11 16 9 6 5 4 3
F 12 18 11 15 1 4 17 5 2 1 3 5 10 12 13 12 6 3 5 5 2

Solution
In this problem, for maximization of total effectiveness, the first three i.e. Employment potential,
Resource utilization potential and economic profitability index are to be added and the environmental
degradation is to be subtracted from the sum to get the total effectiveness. Once we get the effectiveness
matrix, then the projects are to be assigned to the regions for maximization of total effectiveness.
The total effectiveness matrix: (Note: The matrix is of the order 5 × 6, hence it is to be balanced
by opening a dummy column - DC). The first element of the matrix can be worked out as: 16 + 7 + 11
– 15 = 19. Other elements can be worked out similarly.
Total effectiveness matrix:
Plants.

Regions 1 2 3 4 5 DC
A 19 15 21 29 22 0
B 26 20 27 20 22 0
C 29 24 27 16 19 0
D 24 12 15 17 15 0
E 24 26 17 27 28 0
F 28 30 20 24 27 0

As there is a dummy column the same matrix may be considered as ROCM. By deducting all the
elements of a column from the highest element of the column, we get the Total Opportunity Cost
Matrix.
Linear Programming - III Assignment Model 237

TOCM:
Plants.

Regions 1 2 3 4 5 DC
A 10 15 6 0 6 0x
B 3 10 0 9 6 0x
C 0 6 0x 13 11 0x
D 5 18 12 12 13 0
E 5 4 10 2 0 0x
F 2 0 7 5 1 0x

Allocation: Fertilizer: C, Nuclear Plant: F, Electronic Park: B,

Aircraft Complex: A, Heavy Machine Tools: E

5.5. SCHEDULING PROBLEM

Now let us work scheduling problem. This type of problems we can see in arranging air flights or bus
transport or rail transport. The peculiarities of this type of problem is that one flight / train / bus leaves
form a station with some flight number / train number / bus number. After reaching the destination, the
same plane / train/bus leaves that place (destination) and reaches the hometown with different number.
For example plane bearing flight number as 101 leaves Bangalore and reaches Bombay and leaves
Bombay as flight number 202 and reaches Bangalore. Our problem here is how to arrange a limited
number of planes with crew / trains with crew / bus with crew between two places to make the trips
without inconvenience, by allowing required lay over time. Lay over time means the time allowed for
crew to take rest before starting.

Problem 5. 12. (Scheduling Problem).

For the following Airline time table between Banglore and Mumbai it is required to pair to and for
flights for the same crew, so as to minimize the lay over time of the crew on ground away from Head
quarters. It is possible to assign Banglore or Bombay as the head quarter. Decide the pairing of flights
and head quarters of the concerned crew. It is stipulated that the same crew cannot undertake next
flight, within one hour of the arrival. That is one hour is the layover time.
Flight No. Departure Arrival Flight No. Departure Arrival.
Mumbai Bangalore Bangalore Mumbai
101 6-30 a.m 7.45 a.m 102 7.00 a.m 8.00 a.m
103 9.00 a.m. 10.30 a.m 104 11.00 a.m. 12.15 p.m
105 1.00 p.m. 2.15 p.m. 106 3.00 p.m. 4.15 p.m.
107 4.00 p.m. 5.30 p.m 108 5.45 p.m 7.15 p.m
109 8.00 p.m 9.30 p.m. 110 8.30 p.m. 9.45 p.m.
238 Operations Research

Solution
Now let us consider the layover times separately for crew based at Mumbai and crew based at
Bangalore.
Let us consider one flight and discuss how to calculate layover time. For example, flight No. 101
leaves Mumbai at 6.30 a.m and reaches Bangalore at 7.45 a.m. Unless the crew takes one our rest, they
cannot fly the airplane. So if the crew cannot leave Bangalore until 8.45 a.m. So there is no chance for
the crew to go for flight No. 102. But they can go as flight Nos. 103, 106, 108 and 110. As we have
to minimize the flyover time, we can take the nearest flight i.e. 103. The flight 103 leaves Bangalore at
11.00 a.m. By 11.00 a.m the crew might have spent time at Bangalore from 7.45 a.m to 11.00 a.m.
That is it has spent 3 hours and 15 minutes. If we convert 3 hours and 15 minutes in terms of quarter
hours, it will become 13-quarter hours. Similarly the flight 102 which arrives at Mumbai at 8.00 a.m.
wants to leave as flight 101 at 6.30 a.m. it has to leave next day morning. Hence the layover time will
be 22 hours and 30 minutes. Like wise, we can workout layover time for all flights and we can write
two matrices, one for crew at Mumbai and other for crew at Bangalore.
Tableau I. Lay over time for Mumbai based crew:

Flight numbers. (Quarter hours)

Flight No. 102 104 106 108 110

101 23.25 3.25 7.25 10.00 11.75
103 18.50 24.50 4.50 7.25 10.00
105 16.75 20.75 24.75 3.50 5.25
107 13.50 17.50 21.50 24.25 3.00
109 9.50 13.50 17.50 20.25 23.00

Tableau II. Lay over time for Bangalore based crew:

Layover time in quarter hours.

Flight No. 102 104 106 108 110

101 23.50 18.25 14.25 11.75 8.75
103 1.00 20.75 16.75 13.75 13.25
105 5.00 24.75 20.75 17.75 15.25
107 8.00 3.75 23.75 20.75 18.25
109 12.00 7.75 7.75 24.25 22.25

The matrices can be multiplied by four to convert decimals into whole numbers for convenience
of calculations.
Linear Programming - III Assignment Model 239

Tableau II. Bombay based layover times

Flight No. 102 104 106 108 110

101 93 13 29 40 47
103 74 98 14 29 40
105 67 83 97 14 21
107 54 70 86 97 12
109 38 54 70 81 92

Layover time of crew stationed at Bangalore. (*)

Flight No. 102 104 106 108 110
101 90 73 57 67 35
103 4 83 67 55 53
105 20 97 83 71 61
107 32 15 95 83 73
109 48 31 15 97 89

Now let us select the minimum elements from both the matrices and write another matrix with
these elements. As our objective is to minimize the total layover time, we are selecting the lowest
element between the two matrices. Also, let us mark a * for the entries of the matrix showing layover
time of the crew at Bangalore.
Matrix showing the lowest layover time
(The elements marked with * are from Bangalore matrix)
Flight No. 102 104 106 108 110
101 90* 13 29 40 35*
103 4* 83* 14 29 40
105 20* 83 83* 14 21
107 32* 15* 86 83* 12
109 38 31* 15* 81 89*

ROCM: As every column has got a zero, this may be considered as TOCM and assignment can be
made. Note that all zeros in the matrix are in independent position we can make assignment.
Flight No. 102 104 106 108 110
101 77* 0 16 27 22*
103 0* 79* 10 25 36
105 6* 69 69* 0 7
107 20* 3* 74 71* 0
109 23 16* 0* 65 74*
240 Operations Research

Assignment and pairing:

Flight No. Leaves as Crew based at.
101 104 Bombay
103 102 Bangalore
105 108 Bombay
107 110 Bombay
109 106 Bangalore.
Total Layover time is: 3.25 + 1.00 + 3.50 + 3.0 + 17.50 = 28 hours and 15 minutes.

Problem 5.13.
An airline that operates seven days a week has the timetable shown below. Crews must have a
minimum layover time 5 hours between flights. Obtain the pairing of flights that minimises layover
time away from home. For any given pairing, the crew will be based at the city that results in the
smaller layover. For each pair also mention the town where crew should be based.
Chennai - Bangalore Bangalore - Chennai.
FlightNo. Departure Arrival Flight No. Departure Arrival
101 7.00 a.m 8.00 a.m 201 8.00 a.m 9.00 a.m
102 8.00 a.m 9.00 a.m 202 9.00 a.m 10.00 a.m
103 1.00 p.m 2.00 p.m 203 12.00 noon 1.00 p.m.
104 6.00 p.m. 7.00 p.m 204 8.00 p.m 9.00 p.m

Let us write two matrices one for layover time of Chennai based crew and other for Bangalore
based crew.
As explained in the example 5.11 the departure of the crew once it reaches the destination, should
be found after taking the minimum layover time given, i.e. 5 hours. After words, minimum elements
from both the matrices are to be selected to get the matrix showing minimum layover times. Finally, we
have to make assignment for minimum layover time.
Layover time for Chennai based crew in hours.
Tableau I.
FlightNo. 201 202 203 203
101 24 25 28 12
102 23 24 27 11
103 20 19 22 6
104 13 14 17 25
Linear Programming - III Assignment Model 241

Layover time for Bangalore based crew in hours.

Tableau I.
FlightNo. 201 202 203 203
101 22 21 18 10
102 23 22 19 11
103 28 27 24 16
104 9 8 5 21

Minimum of the two matrices layover time. The Bangalore based times are marked with a (*).
Tableau I.
FlightNo. 201 202 203 203
101 22* 21* 18* 10*
102 23** 22* 19* 11**
103 20 19 22 6
104 9* 8* 5* 21*

The elements with two stars (**) appear in both the matrices.
ROCM
Tableau I.
FlightNo. 201 202 203 203
101 12 11 8 0
102 12 11 8 0
103 14 13 16 0
104 4 3 0 16

TOCM:
○
○

FlightNo. 201 202 203 203

○

101 8 8 8 0
○
○

102 8 8 8 0
○
○

103 6 10 16 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

104 0 0 0 16
○
○
○

FlightNo. 201 202 203 203

○
○

101 2 2 2 0
○
○

102 2 2 2 0
○
○

○ ○
103
○ ○ ○ ○ ○ ○ ○ ○
0 ○ ○ ○ ○
4 ○ ○ ○ ○
10 ○ ○ ○ ○
0
○ ○ ○ ○ ○
○
○

○ ○
104 ○ ○ ○ ○ ○ ○ ○
0 ○ ○ ○ ○
0
○ ○ ○ ○ ○
0 ○ ○ ○ ○
22 ○ ○ ○ ○ ○
○
○
○
242 Operations Research

○
○
FlightNo. 201 202 203 203

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

101 0 0 0 0

○
○
102 0 0 0 0

○
○
○ ○ 103
○ ○ ○ ○ ○ ○ ○ ○ 0 ○ ○ ○ ○ 4 ○ ○ ○ ○ 10 ○ ○ ○ ○ 2
○ ○ ○ ○ ○

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○
104 0 0 0 24

○
○
FlightNo. 201 202 203 204
101 0 0 0 0*
102 0 0* 0 0
103 0 4 10 2
104 0 0 0* 24
Assignment:
Flight No. Leaves as Based at
101 204 Bangalore
102 202 Bangalore
103 201 Chennai
104 203 Bangalore.

Total layover time: 10 + 22 + 20 + 5 = 67 hours.

5.6. TRAVELING SALESMAN PROBLEM

Just consider how a postman delivers the post to the addressee. He arranges all the letters in an order
and starts from the post office and goes from addressee to addressee and finally back to his post
office. If he does not arrange the posts in an order he may have to travel a long distance to clear all the
posts. Similarly, a traveling sales man has to plan his visits. Let us say, he starts from his head office
and go round the branch offices and come back to his head office. While traveling he will not visit the
branch already visited and he will not come back until he visits all the branches.
There are different types of traveling salesman's problems. One is cyclic problem. In this problem,
he starts from his head quarters and after visiting all the branches, he will be back to his head quarters.
The second one is Acyclic problem. In this case, the traveling salesman leaves his head quarters and
after visiting the intermediate branches, finally reaches the last branch and stays there. The first type of
the problem is solved by Hungarian method or Assignment technique. The second one is solved by
Dynamic programming method.
Point to Note: The traveling salesman's problem, where we sequence the cities or branches
he has to visit is a SEQUENCING PROBLEM. But the solution is got by Assignment technique.
Hence basically, the traveling salesman problem is a SEQUENCING PROBLEM; the objective
is to minimize the total distance traveled.
The mathematical statement of the problem is: Decide variable xij = 1 or 0 for all values of I and
j so as to:
Linear Programming - III Assignment Model 243

n n

Minimise Z = ∑ ∑C ij for all i and j = 1,2…..n Subject to

i =1 j =1

∑X
J =1
ij = 1 for i = 1,2,….n (Depart from a city once only)

∑X
i =1
ij = 1 for j = 1,2,….n (Arrive at a city once only)

And all xij ≥ 0 for all i and j

This is indeed a statement of assignment problem, which may give to or more disconnected
cycles in optimum solution. This is not permitted. That is salesman is not permitted to return to the
origin of his tour before visiting all other cities in his itinerary. The mathematical formulation above
does not take care of this point.
A restriction like Xab + Xbc + Xca ≤ 2 will prevent sub-cycles of cities A, B, C and back to A. It
is sufficient to state at this stage that all sub- cycles can be ruled out by particular specifications of
linear constraints. This part, it is easy to see that a variable xij = 1, has no meaning. To exclude this
from solution, we attribute very large cost to it i.e. infinity or big M, which is very larger than all the
elements in the matrix.
In our solutions big M is used.

Problem 5.14.
A salesman stationed at city A has to decide his tour plan to visit cities B, C, D, E and back to city
A I the order of his choice so that total distance traveled is minimum. No sub touring is permitted. He
cannot travel from city A to city A itself. The distance between cities in Kilometers is given below:
Cities A B C D E
A M 16 18 13 20
B 21 M 16 27 14
C 12 14 M 15 21
D 11 18 19 M 21
E 16 14 17 12 M

Instead of big M we can use infinity also. Or any element, which is sufficiently larger than all the
elements in the matrix, can be used.
Solution
COCM:
Cities A B C D E
A M 3 5 0 7
B 7 M 2 13 0
C 0 2 M 3 9
D 0 7 8 M 10
E 4 2 5 0 M
244 Operations Research

TOCM:

○
○
Cities A B C D E

○
A M 1 3 0 7

○
○
B 7 M 0 13 0

○
○
C 0 0 M 3 9

○
○
D 0 5 6 M 10

○
○
E 4 0 3 0 M

○
○
We can make only 4 assignments. Hence modify the matrix. Smallest element in the uncovered
cells is 3, deduct this from all other uncovered cells and add this to the elements at the crossed cells. Do
not alter the elements in cells covered by the line.
TOCM
○

○
Cities A B C D E
○

○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

○
A M 1 3 0 7
○

○
○

○
B 7 M 0 13 0
○

○
○

○
C 0 0 M 3 9
○

○
○

D 0 5 6 M 10
○

E 4 0 3 0 M
○

○
○

○
○

We can make only 4 assignments. Hence once again modify the matrix.
Sequencing: A to C, C to B, B to E, E to D, and D to A. As there is a tie
TOCM:
Cities A B C D E
A M 1 0 0 4
B 10 M 0 16 0
x
C 0x 0 M 3 6
D 0 5 3 M 7
E 4 0x 0 0 M

Sequencing: A to C, C to B, B to E, E to D and D to A. as there is a tie between the zero cells, the

problem has alternate solution. The total distance traveled by the salesman is: 18 + 14 + 14 + 11 + 12
= 69 Km.
A to C to B to E to D to A, the distance traveled is 69 Km.
Note: See that no city is visited twice by sales man.

Problem 5.15.
Given the set up costs below, show how to sequence the production so as to minimize the total
setup cost per cycle.
Linear Programming - III Assignment Model 245

Jobs A B C D E
A M 2 5 7 1
B 6 M 3 8 2
C 8 7 M 4 7
D 12 4 6 M 5
E 1 3 2 8 M

Solution
COCM:
Jobs A B C D E
A M 1 4 6 0
B 4 M 1 6 0
C 4 3 M 0 3
D 8 0 2 M 1
E 0 2 1 7 M

TOCM:
Jobs A B C D E
A M 1 3 6 0
B 4 M 0 6 0x
C 4 3 M 0 3
D 8 0 1 M 1
E 0 2 0x 7 M

We can draw five lines and make assignment. The assignment is:
From A to E and From E to A cycling starts, which is not allowed in salesman problem. Hence
what we have to do is to select the next higher element than zero and make assignment with those
elements. After assignment of next higher element is over, then come to zero for assignment. If we
cannot finish the assignment with that higher element, then select next highest element and finish
assigning those elements and come to next lower element and then to zero. Like this we have to finish
all assignments. In this problem, the next highest element to zero is 1. Hence first assign all ones and
then consider zero for assignment. Now we shall first assign all ones and then come to zero.
TOCM:
Jobs A B C D E
A M 1 3 6 0x
B 4 M 0 6 0x
C 4 3 M 0 3
D 8 0 1 M 1
E 0 2 0x 7 M
246 Operations Research

The assignment is A to B, B to C, C to D and D to E and E to A. (If we start with the element DC

then cycling starts.
Now the total distance is 5 + 3 + 4 + 5 + 1 = 18 + 1 + 1 = 20 Km. The ones we have assigned are
to be added as penalty for violating the assignment rule of assignment algorithm.

Problem 5.16.
Solve the traveling salesman problem by using the data given below:
C12 = 20, C13 = 4, C14 = 10, C23 = 5, C34 = 6, C25 = 10, C35 = 6, C45 = 20 and Cij = Cji . And there
is no route between cities 'i' and 'j' if a value for Cij is not given in the statement of the problem. (i and
j are = 1,2,..5)

Solution
Cities 1 2 3 4 5
1 M 20 4 10 M
2 20 M 5 M 10
3 4 5 M 6 6
4 10 M 6 M 20
5 M 10 6 20 M

Now let us work out COCM/ROCM and TOCM, and then make the assignment.
TOCM:
Cities. 1 2 3 4 5
1 M 12 0 0x M
2 11 M 0x M 0
3 0x 1 M 0 1
4 0 M 0x M 9
5 M 0 0x 8 M

The sequencing is: 1 to3, 3 to 4, 4 to 1 and 1 to 3 etc., Cycling starts. Hence we shall start
assigning with 1 the next highest element and then assign zeros. Here also we will not get the sequencing.
Next we have to take the highest element 8 then assign 1 and then come to zeros.
TOCM:
Cities. 1 2 3 4 5
1 M 12 0 0 M
2 11 M 0 M 0
3 0 1 M 0 1
4 0 M 0 M 9
5 M 0 0 8 M

Sequencing is: 1 to 3, 3 to 2, 2 to 5, 5 to 4 and 4 to 1.

The optimal distance is : 4 + 10 + 5 + 10 + 20 = 49 + 1 + 8 = 58 Km.
Linear Programming - III Assignment Model 247

Problem 5.17.
A tourist organization is planning to arrange a tour to 5 historical places. Starting from the head
office at A then going round B, C, D and E and then come back to A. Their objective is to minimize the
total distance covered. Help them in sequencing the cities. A, B, C, D and E as the shown in the figure.
The numbers on the arrows show the distances in Km.

Solution
The distance matrix is as given below:
Places A B C D E
A M 20 M 10 10
B 20 M 30 M 35
C M 30 M 15 20
D 10 M 15 M 20
E 10 35 20 20 M

COCM
Places A B C D E
A M 10 M 0 0
B 0 M 10 M 15
C M 15 M 0 5
D 0 M 5 M 10
E 0 25 10 10 M

TOCM:
○

○
○

Places A B C D E
○

○
○

○
○

A M 0 M 0 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○
○

○
○

B 0 M 5 M 15
○

○
○

○
○

C M 5 M 0 5
○

○
○

○
○

D 0 M 0 M 10
○

○
○

E 0 15 5 10 M
○
○

○
○

○
○

○
248 Operations Research

TOCM:

○
○
○
Places A B C D E

○
○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

A M 0 M 5 0

○
○

○
○
B 0 M 5 M 10

○
○

○
○
○ ○

C ○ ○ ○ ○ ○

M ○ ○ ○ ○

0 ○ ○ ○ ○

M ○ ○ ○ ○

0 ○ ○ ○

0 ○ ○ ○ ○

○
○

○
○
D 0 M 0 M 5

○
○

○
E 0 10 5 10 M

○
○

○
○
TOCM:

○
○
Places A ○
○
B C D E
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

A M 0 M 5 0
○
○

B 0 M 5 M 5
○
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

C M 0 M 0 0
○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○

D 0 M 0 M 0
○

E 0 5 5 5 M
○
○
○

Places A B C D E
A M 0 M 5 0x
B 0x M 0 M 0x
C M 0x M 0 0x
D 5 M 0x M 0
E 0 0x 0x 0x M

The sequencing is: A to B, B to C, C to D, D to E and E to A.

The total distance is: 20 +30 +15 + 20 + 10 = 95 Km.

5.7. SENSITIVITY ANALYSIS

In fact there is very little scope for sensitivity analysis in Assignment Problem because of the mathematical
structure of the problem. If we want to avoid high cost assigning a facility ( i th) to a job (j th), then we
can do it by giving a cost of assignmat say infinity or Big M to that cell so that it will not enter into
programme. In case of maximisaton model, we can allocate a negative element to that cell to avoid it
entering the solution. Further, if one facility (man) can do two jobs i.e. 2 jobs are to be assigned to the
facility, then this problem can be dealt with by repeating the man's or facility's column and introducing
a dummy row to maintain the square matrix. Similarly, if two similar jobs are there, write two identical
rows of the two jobs separately and then solve by making a square matrix. Besides these, the addition
of a constant throughout any row or column does not affect the optimal solution of the assignment
problem.
Linear Programming - III Assignment Model 249

QUESTIONS
1. Four engineers are available to design four projects. Engineer 2 is not competent to design
the project B. Given the following time estimates needed by each engineer to design a given
project, find how should the engineers be assigned to projects so as to minimize the total
design time of four projects.
Engineers. Projects
A B C D
1 12 10 10 8
2 14 NOT 15 11
ELIGIBLE
3 6 10 16 4
4 8 10 9 7

2. (a) Explain the differences and similarities between Assignment problem and Transportation
problem.
(b) Explain why VAM or any other methods of getting basic feasible solution to a transportation
problem is not used to get a solution to assignment problem. What difficulties you come
across?
3. Explain briefly the procedure adopted in assignment algorithm.
4. Is traveling salesman problem is an assignment problem? If yes how? If not what are the
differences between assignment problem and traveling salesman problem.
5. What do you mean by balancing an assignment problem? What steps you take to solve
maximization case in assignment problem? Explain.
6. A Computer center has got three expert programmers. The center needs three application
programmes to be developed. The head of the computer center, after studying carefully the
programmes to be developed estimate the computer time in minutes required by the experts
to the application programmes as given in the matrix below. Assign the programmers to the
programmes in such a way that the total computer time is least.
Programmers. Programme.
A B C
1 120 100 80
2 70 90 110
3 110 140 120

7. (a). A company is faced with the problem of assigning six different machines to five different
jobs. The costs are estimated as follows in hundreds of rupees. Assign the jobs to machines
to minimize the total cost.