M C S D 11 3 3 O p e r a t i o n s R e s e a r c h & O p t i m i z a t i o n

CHAPTER 7: ILP -
TRANSPORTATION MODEL
(PART 2)

[email protected](S1)

UTM JOHOR BAHRU

 The Transportation Algorithm
The basic steps of the transportation algorithm are exactly those of the simplex method. However,
instead of using the regular simplex tableau, we take advantage of the special structure of the
transportation model to carry out the algorithmic computations more conveniently.
Step 1. Determine a starting basic feasible solution using one of the three methods.
𝑚 + 𝑛 − 1 = basic variables
After determining the starting solution, use the following algorithm to determine the optimum
solution:
Step 2: Use the optimality condition of the simplex method to determine the entering variable
from among all the non-basic variables. If the optimality condition is satisfied, stop. Otherwise, go
to Step 3.

Step 3. Use the feasibility condition of the simplex method to determine the leaving variable from
among all the current basic variables and find the new basic solution. Return to Step 2.

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 Example 1
SunRay Transport Company ships truckloads of grain from three silos to four mills. The supply (in
truckloads) and the demand (also in truckloads) together with the unit transportation costs per truckload
on the different routes are summarized in Table 1.

Table 1

The unit transportation costs, cij (shown in the northeast corner of each box), are in hundreds of dollars.
The model seeks the minimum cost shipping schedule between the silos and the mills.

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 STEP 1: Determination of the Starting Basic Solution

§ The special structure of the transportation problem allows securing a non-artificial

starting basic solution using one of three methods:
i. Northwest-corner method
ii. Least-cost method
iii. Vogel approximation method
§ The first method is “mechanical” in nature in that its main purpose is to provide a
starting (basic feasible) solution regardless of the cost.
§ The remaining two are heuristics that seek a better-quality (smaller objective value)
starting solution. In general, the Vogel heuristic is best, and the northwest-corner
method is the worst.

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 Northwest-Corner Method

The method starts at the northwest-corner cell (route) of the tableau (variable 𝑥11)
Step 1. Allocate as much as possible to the selected cell, and adjust the associated
amounts of supply and demand by subtracting the allocated amount.

Step 2. Cross out the row or column with zero supply or demand to indicate that no
further assignments can be made in that row or column. If both a row and a
column net to zero simultaneously, cross out one only, and leave a zero supply
(demand) in the uncrossed-out row (column).

Step 3. If exactly one row or column is left uncrossed out, stop. Otherwise, move to the
cell to the right if a column has just been crossed out or below if a row has been
crossed out. Go to step 1.
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 Northwest-Corner Method

• The first allocation is x11 = 5, which exactly uses up the demand in column 1, and cross out column 1.
• This first iteration leaves a supply of 10 (15-5) remaining in row 1, so next move to the cell to the right
x1,1+1 = x12 and allocate x12=10. Then, cross out row 1.
• Next, move to the cell to the below x1+1, 2 = x22 and allocate x22 = (15-10 = 5). Cross out column 2.
• Move to the cell to the right x2, 2+1 = x23 and allocate x23 = 15. Cross out column 3.
• Move to the cell to the right x2, 3+1 = x24 and allocate x24 = 5
• Allocate x34 = 10 and stop.

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 Least-Cost Method

Finds a better starting solution by targeting the cheapest routes.

Step 1: Assigns as much as possible to the cell with the smallest unit cost.

Step 2: Next, the satisfied row or column is crossed out and the amounts of supply and
demand are adjusted accordingly. If both a row and a column are satisfied
simultaneously, only one is crossed out, the same as in the northwest-corner method.

Step 3: Select the uncrossed-out cell with the smallest unit cost and repeat the process
until exactly one row or column is left uncrossed out.

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 Least-Cost Method

1. Cell (1, 2) has the least unit cost in the tableau 1 ($2). The most
that can be shipped through (1, 2) is x12 = 15 truckloads, which
happens to satisfy both row 1 and column 2 simultaneously. We
arbitrarily cross out column 2 and adjust the supply in row 1 to 0.
2. Cell (3, 1) has the smallest uncrossed-out unit cost ($4). Assign x31
= 5, and cross out column 1 because it is satisfied, and adjust the
demand of row 3 to 10 - 5 = 5 truckloads.
3. Continuing in the same manner, we successively assign 15
truckloads to cell (2, 3), 0 truckloads to cell (1, 4), 5 truckloads to
cell (3, 4), and 10 truckload to cell (2, 4)

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 Least-Cost Method

§ The resulting starting solution is summarized in Table 2. The arrows show the order in which the
allocations are made.
§ The starting solution (consisting of six basic variables (3 + 4 - 1) is x12 = 15, x14 = 0, x23 = 15, x24 = 10,
x31 = 5, x34 = 5.
§ The associated objective value is
z = (15 * $2) + (0 *$11) + (15 * $9) + (10 * $20) + (5 * $4) + (5 * $18) = $475
Table 2

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 Vogel Approximation Method

Step 1:
§ For each row (column), determine a penalty measure by subtracting the smallest unit cost in the row
(column) from the next smallest unit cost in the same row (column).
§ This penalty is actually a measure of lost opportunity one forgoes if the smallest unit cost cell is not
chosen.
Table 3

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 Vogel Approximation Method
Step 2:
§ Identify the row or column with the largest penalty, breaking ties arbitrarily. Allocate as much as possible to the
variable with the least unit cost in the selected row or column.
§ Adjust the supply and demand and cross out the satisfied row or column. If a row and a column are satisfied
simultaneously, only one of the two is crossed out, and the remaining row (column) is assigned zero supply
(demand).
§ Because row 3 has the largest penalty (10) and cell (3, 1) has the smallest unit cost in that row, the amount 5 is
assigned to x31. Column 1 is now satisfied and must be crossed out and leaves 5 units in row 3. Next, new penalties
are recomputed as in Table 4.
Table 4

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 Vogel Approximation Method

Step 2 (cont’d):
§ Next, row 1 has the highest penalty (i.e., 9). Hence, we assign the maximum amount possible to cell
(1, 2), which yields x12 = 15 and simultaneously satisfies both row 1 and column 2.
§ Cross out column 2 and adjust the supply in row 1 to zero.
§ Continuing in the same manner, row 2 will produce the highest penalty (11), and assign x23 = 15

2 0 9
15
7 11

14
5

__

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 Vogel Approximation Method

Step 2 (cont’d):
§ Crosses out column 3 and leaves 10 units in row 2.

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 Vogel Approximation Method

Step 3:
a) If exactly one row or column with zero supply or demand remains uncrossed out,
stop.
b) If one row (column) with positive supply (demand) remains uncrossed out,
determine the basic variables in the row (column) by the least-cost method. Stop.
c) If all the uncrossed-out rows and columns have (remaining) zero supply and
demand, determine the zero basic variables by the least-cost method. Stop.
d) Otherwise, go to step 1.

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 Vogel Approximation Method

Only column 4 is left, and it has a positive supply of 15 units. Applying the least-cost
method to that column:
o Assign x14 = 0, x34 = 5, and x24 = 10
o The associated objective value for this solution is
z = (15 * $2) + (0 * $11) + (15 * $9) + (10 * $20) + (5 * $4) + (5 * $18) = $475.

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 Exercise 1

Consider the transportation models in Table 1. Compare the starting solutions

obtained by the northwest-corner, least-cost, and Vogel methods.

Table 1

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 STEP 2 (Iteration 1): Determine the Entering Basic Variable

In the method of multipliers, the multipliers ui and vj is associate with row-i and column-j of the
transportation tableau:
ui + vj = cij, for each basic
then evaluate the non-basic variables by computing:
ui + vj - cij, for each nonbasic xij (southeast corner of each cell)

set u1 = 0 u1 + v1 = 10; u1=0, v1=10

u1 + v2 = 2 ; u1=0, v2=2
u2 + v2 = 7 ; u2=5, v2=2
u2 + v3 = 9 ; u2=5, v3=4
u2 + v4 = 20 ; u2=5, v4=15
u3 + v4 = 18; u3=3, v4=15

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 STEP 2 (Iteration 1): Determine the Entering Basic Variable

Find the Entering Basic Variable. The preceding information, together with the fact
that ui + vj - cij = 0 for basic xij, is equivalent to computing the z-row of the simplex
tableau.

Because the transportation model minimizes cost, the entering variable is the one having
the most positive coefficient in the z-row—namely, x31 is the entering variable.

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 STEP 3: Determine the Leaving Variable

§ Construct a closed loop that starts and ends at the entering variable cell (3, 1). The
loop consists of connected horizontal and vertical segments only (no diagonals are
allowed).
§ Alternate between subtracting (-) and adding (+) the amount q at the
successive corners of the loop.
§ Determine the maximum value of q

For q ≥ 0, the new values of

all the variables remain
. nonnegative if

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 STEP 3: Determine the Leaving Variable (cont’d)

§ The corresponding maximum value of q is 5, which occurs when both x11 and x22
reach zero level. (Select the variable with the higher unit cost). Hence choose x11 with
c11 = 10 as opposed to c22 = 7, as the leaving variable.
§ The values of the basic variables at the corners of the closed loop are adjusted to
accommodate setting x31 = 5,

0 15

0 10

5 5

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 STEP 2 (Iteration 2): Determine the Entering Basic Variable (cont’d)

§ Given the new basic solution, repeat the computation of the multipliers u and v and
evaluate the non-basic variables .

15 u1 + v2 = 2; u1=0, v2=2
u2 + v2 = 7; u2=5, v2=2
0 15 10 u2 + v3 =9; u2=5, v3=4
u2 + v4 = 20; u2=5, v4=15
u3 + v4 = 18; u3=3, v4=15
5 u3 + v1 = 4; u3=3, v1=1

§ The entering variable is x14 (most positive coefficient in the z-row).

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 STEP 2 (Iteration 2): Determine the Entering Basic Variable (cont’d)

§ Construct a closed loop that starts and ends at the entering variable cell (1, 4). The
corresponding maximum value of q is 10.
§ The leaving variable is x24.

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 STEP 2 (Iteration 2): Determine the Entering Basic Variable (cont’d)

§ The values of the basic variables at the corners of the closed loop are adjusted to
accommodate setting x14 = 10,

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 STEP 2 (Iteration 3): Optimal Solution

§ Given the new basic solution, repeat the computation of the multipliers u and v.

u1 + v2 = 2; u1=0, v2=2
u2 + v2 = 7 ; u2=5, v2=2
u2 + v3 =9 ; u2=5, v3=4
u1 + v4= 11; u1=0, v4=11
u3 + v4 = 18; u3=7, v4=11
u3 + v1 = 4; u3=7, v1=-3

§ The new values of ui + vj - cij are now negative for all non-basic xij. Thus, the solution
is optimal.

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Example 1: Computer Solution with Excel Solver

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 Exercise 2

Based on the result found in Exercise #1,

a) Determine the optimum solution based on the best starting solution obtained
by the northwest-corner, least-cost, and Vogel methods.
b) Validate the optimal solution obtain in (a) using Excel solver.

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