UNIT - III (Degeneracy & Optimization techniques of Transportation Problem)

Examining the Initial Basic Feasible Solution for Non-Degeneracy

Examine the initial basic feasible solution for non-degeneracy. If it is said to be non-degenerate
then it has the following two properties
 Initial basic feasible solution must contain exactly m + n – 1 number of individual
allocations.
 These allocations must be in independent positions
Independent Positions
  
  
 

 
 
 

Non-Independent Positions

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Finding the Optimal Solution
Once an initial solution has been found, the next step is to test that solution for optimality. The
following two methods are widely used for testing the solutions:
 Stepping Stone Method
 Modified Distribution Method
The two methods differ in their computational approach but give exactly the same results and use
the same testing procedure.
Stepping-Stone Method
In this method we calculate the net cost change that can be obtained by introducing any of the
unoccupied cells into the solution.
The Stepping Stone Method
1. Make sure that the number of occupied cells is exactly equal to m=n-1, where m=number of rows
and n=number of columns.
2. Evaluate each unoccupied cells by following its closed path and determine its net cost change.
3. Determine the quality to be shipped to the selected unoccupied cell. Trace the closed path for the
unoccupied cell and identify the minimum quality by considering the minus sign in the closed
path.
Modified Distribution (MODI) Method
The MODI method is a more efficient procedure of evaluating the unoccupied cells. The
modified transportation table of the initial solution is shown below

Transportation Algorithm for Minimization Problem (MODI Method)

Step 1
Construct the transportation table entering the origin capacities ai, the destination requirement bj
and the cost cij
Step 2
Find an initial basic feasible solution by vogel’s method or by any of the given method.
Step 3
For all the basic variables xij, solve the system of equations ui + vj = cij, for all i, j for which cell
(i, j) is in the basis, starting initially with some u i = 0, calculate the values of ui and vj on the
transportation table
Step 4
Compute the cost differences dij = cij – ( ui + vj ) for all the non-basic cells
Step 5
Apply optimality test by examining the sign of each dij
 If all dij ≥ 0, the current basic feasible solution is optimal
 If at least one dij < 0, select the variable xrs (most negative) to enter the basis.
 Solution under test is not optimal if any dij is negative and further improvement is
required by repeating the above process.

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Step 6
Let the variable xrs enter the basis. Allocate an unknown quantity Ө to the cell (r, s). Then
construct a loop that starts and ends at the cell (r, s) and connects some of the basic cells. The
amount Ө is added to and subtracted from the transition cells of the loop in such a manner that
the availabilities and requirements remain satisfied.
Step 7
Assign the largest possible value to the Ө in such a way that the value of at least one basic
variable becomes zero and the other basic variables remain non-negative. The basic cell whose
allocation has been made zero will leave the basis.
Step 8
Now, return to step 3 and repeat the process until an optimal solution is obtained.
Worked Examples
Example 1
Find an optimal solution
W1 W2 W3 W4 Availability
F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Requirement 5 8 7 14

Solution
1. Applying vogel’s approximation method for finding the initial basic feasible solution
W1 W2 W3 W4 Availability Penalty
F1 5(19) (30) (50) 2(10) X X
F2 (70) (30) 7(40) 2(60) X X
F3 (40) 8(8) (70) 10(20) X X
Requirement X X X X
Penalty X X X X

Minimum transportation cost is 5 (19) + 2 (10) + 7 (40) + 2 (60) + 8 (8) + 10 (20) = Rs. 779

2. Check for Non-degeneracy

The initial basic feasible solution has m + n – 1 i.e. 3 + 4 – 1 = 6 allocations in independent
positions. Hence optimality test is satisfied.

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3. Calculation of ui and vj : - ui + vj = cij

ui
(19) (10) u1= -10
(40) (60) u2 = 40
(8) (20) u3 = 0
vj v1 = 29 v2 = 8 v3 = 0 v4 = 20
Assign a ‘u’ value to zero. (Convenient rule is to select the u i, which has the largest number of
allocations in its row)
Let u3 = 0, then
u3 + v4= 20 which implies 0 + v4 = 20, so v4 = 20
u2 + v4= 60 which implies u2 + 20 = 60, so u2 = 40
u1 + v4= 10 which implies u1 + 20 = 10, so u1 = -10
u2 + v3= 40 which implies 40 + v3 = 40, so v3 = 0
u3 + v2= 8 which implies 0 + v2 = 8, so v2 = 8
u1 + v1= 19 which implies -10 + v1= 19, so v1 = 29
4. Calculation of cost differences for non basic cells dij = cij – ( ui + vj )
cij ui + vj
(30) (50) -2 -10
(70) (30) 69 48
(40) (70) 29 0

dij = cij – ( ui + vj )
32 60
1 -18
11 70

5. Optimality test
dij < 0 i.e. d22 = -18
so x22 is entering the basis
6. Construction of loop and allocation of unknown quantity Ө

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We allocate Ө to the cell (2, 2). Reallocation is done by transferring the maximum possible
amount Ө in the marked cell. The value of Ө is obtained by equating to zero to the corners of the
closed loop. i.e. min(8-Ө, 2-Ө) = 0 which gives Ө = 2. Therefore x24 is outgoing as it becomes
zero.
5 (19) 2 (10)
2 (30) 7 (40)
6 (8) 12 (20)

Minimum transportation cost is 5 (19) + 2 (10) + 2 (30) + 7 (40) + 6 (8) + 12 (20) = Rs. 743
7. Improved Solution

ui
(19) (10) u1= -10
(30) (40) u2 = 22
(8) (20) u3 = 0
vj v1 = 29 v2 = 8 v3 = 18 v4 = 20
cij ui + vj
(30) (50) -2 8
(70) (60) 51 42
(40) (70) 29 18

dij = cij – ( ui + vj )
32 42
19 18
11 52

Since dij > 0, an optimal solution is obtained with minimal cost Rs.743

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Example 2
Solve by lowest cost entry method and obtain an optimal solution for the following problem
Available
50 30 220 1
From 90 45 170 3
250 200 50 4
Required 4 2 2
Solution
By lowest cost entry method
Available
1(30) 1/0
From 2(90) 1(45) 3/2/0
2(250) 2(50) 4/2/0
Required 4/2/2 2/1/0 2/0

Minimum transportation cost is 1 (30) + 2 (90) + 1 (45) + 2 (250) + 2 (50) = Rs. 855
Check for Non-degeneracy
The initial basic feasible solution has m + n – 1 i.e. 3 + 3 – 1 = 5 allocations in independent
positions. Hence optimality test is satisfied.
Calculation of ui and vj : - ui + vj = cij

ui
(30) u1= -15
(90) (45) u2 = 0
(250) (50) u3 = 160
vj v1 = 90 v2 = 45 v3 = -110
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )
cij ui + vj
50 220 75 -125
170 -110
200 205

dij = cij – ( ui + vj )
-25 345
280
-5

Optimality test
dij < 0 i.e. d11 = -25 is most negative

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So x11 is entering the basis
Construction of loop and allocation of unknown quantity Ө

min(2-Ө, 1-Ө) = 0 which gives Ө = 1. Therefore x12 is outgoing as it becomes zero.

1(50)

1(90) 2(45)

2(250) 2(50)
Minimum transportation cost is 1 (50) + 1 (90) + 2 (45) + 2 (250) + 2 (50) = Rs. 830
II Iteration
Calculation of ui and vj : - ui + vj = cij

ui
(50) u1= -40
(90) (45) u2 = 0
(250) (50) u3 = 160
vj v1 = 90 v2 = 45 v3 = -110
Calculation of dij = cij – ( ui + vj )
cij ui + vj
30 220 5 -150
170 -110
200 205

dij = cij – ( ui + vj )
25 370
280
-5

Optimality test
dij < 0 i.e. d32 = -5

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So x32 is entering the basis

Construction of loop and allocation of unknown quantity Ө

2 – Ө = 0 which gives Ө = 2. Therefore x 22 and x31 is outgoing as it becomes zero.

1(50)

3(90) 0(45)

2(200) 2(50)
Minimum transportation cost is 1 (50) + 3 (90) + 2 (200) + 2 (50) = Rs. 820
III Iteration
Calculation of ui and vj : - ui + vj = cij

ui
(50) u1= -40
(90) (45) u2 = 0
(200) (50) u3 = 155
vj v1 = 90 v2 = 45 v3 = -105
Calculation of dij = cij – ( ui + vj )
cij ui + vj
30 220 5 -145
170 -105
250 245

dij = cij – ( ui + vj )
25 365
275
5

Since dij > 0, an optimal solution is obtained with minimal cost Rs.820

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Example 3
Is x13 = 50, x14 = 20, x21 = 55, x31 = 30, x32 = 35, x34 = 25 an optimal solution to the
transportation problem.
Available
6 1 9 3 70
From 11 5 2 8 55
10 12 4 7 90
Required 85 35 50 45
Solution
Available
50(9) 20(3) X
From 55(11) X
30(10) 35(12) 25(7) X
Required X X X X
Minimum transportation cost is 50 (9) + 20 (3) + 55 (11) + 30 (10) + 35 (12) + 25 (7) = Rs. 2010
Check for Non-degeneracy
The initial basic feasible solution has m + n – 1 i.e. 3 + 4 – 1 = 6 allocations in independent
positions. Hence optimality test is satisfied.
Calculation of ui and vj : - ui + vj = cij

ui
(9) (3) u1= -4
(11) u2 = 1
(10) (12) (7) u3 = 0
vj v1 = 10 v2 = 12 v3 = 13 v4 = 7
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )
cij ui + vj
6 1 6 8
5 2 8 13 14 8
4 13

dij = cij – ( ui + vj )
0 -7
-8 -12 0
-9

Optimality test
dij < 0 i.e. d23 = -12 is most negative
So x23 is entering the basis

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Construction of loop and allocation of unknown quantity Ө

min(50-Ө, 55-Ө, 25-Ө) = 25 which gives Ө = 25. Therefore x 34 is outgoing as it becomes zero.

25(9) 45(3)
30(11) 25(2)
55(10) 35(12)
Minimum transportation cost is 25 (9) + 45 (3) + 30 (11) + 25 (2) + 55 (10) + 35 (12) = Rs. 1710
II iteration
Calculation of ui and vj : - ui + vj = cij

ui
(9) (3) u1= 8
(11) (2) u2 = 1
(10) (12) u3 = 0
vj v1 = 10 v2 = 12 v3 = 1 v4 = -5
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )
cij ui + vj
6 1 18 20
5 8 13 -4
4 7 1 -5

dij = cij – ( ui + vj )
-12 -19
-8 12
3 12

Optimality test
dij < 0 i.e. d12 = -19 is most negative
So x12 is entering the basis

Construction of loop and allocation of unknown quantity Ө

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min(25-Ө, 30-Ө, 35-Ө) = 25 which gives Ө = 25. Therefore x 13 is outgoing as it becomes zero.

25(1) 45(3)
5(11) 50(2)
80(10) 10(12)
Minimum transportation cost is 25 (1) + 45 (3) + 5 (11) + 50 (2) + 80 (10) + 10 (12) = Rs. 1235
III Iteration
Calculation of ui and vj : - ui + vj = cij

ui
(1) (3) u1= -11
(11) (2) u2 = 1
(10) (12) u3 = 0
vj v1 = 10 v2 = 12 v3 = 1 v4 = 14
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )
cij ui + vj
6 9 -1 -10
5 8 13 15
4 7 1 14

dij = cij – ( ui + vj )
7 19
-8 -7
3 -7

Optimality test
dij < 0 i.e. d22 = -8 is most negative
So x22 is entering the basis

Construction of loop and allocation of unknown quantity Ө

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min(5-Ө, 10-Ө) = 5 which gives Ө = 5. Therefore x21 is outgoing as it becomes zero.

25(1) 45(3)
5(5) 50(2)
85(10) 5(12)
Minimum transportation cost is 25 (1) + 45 (3) + 5 (5) + 50 (2) + 85 (10) + 5 (12) = Rs. 1195
IV Iteration
Calculation of ui and vj : - ui + vj = cij

ui
(1) (3) u1= -11
(5) (2) u2 = -7
(10) (12) u3 = 0
vj v1 = 10 v2 = 12 v3 = 9 v4 = 14
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )
cij ui + vj
6 9 -1 -2
11 8 3 7
4 7 9 14

dij = cij – ( ui + vj )
7 11
8 1
-5 -7

Optimality test
dij < 0 i.e. d34 = -7 is most negative
So x34 is entering the basis

Construction of loop and allocation of unknown quantity Ө

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min(5-Ө, 45-Ө) = 5 which gives Ө = 5. Therefore x32 is outgoing as it becomes zero.

30(1) 40(3)
5(5) 50(2)
85(10) 5(7)
Minimum transportation cost is 30 (1) + 40 (3) + 5 (5) + 50 (2) + 85 (10) + 5 (7) = Rs. 1160
V Iteration: -Calculation of ui and vj : - ui + vj = cij

ui
(1) (3) u1= -4
(5) (2) u2 = 0
(10) (7) u3 = 0
vj v1 = 10 v2 = 5 v3 = 2 v4 = 7
Calculation of cost differences for non-basic cells dij = cij – ( ui + vj )
cij ui + vj
6 9 6 -2
11 8 10 7
12 4 5 2

dij = cij – ( ui + vj )
0 11
1 1
7 2
Since dij > 0, an optimal solution is obtained with minimal cost Rs.1160. Further more d 11 = 0
which indicates that alternative optimal solution also exists.

Exercise
1. Determine the optimal solution of the given transportation problem

To Supply
2 3 11 7 6
1 0 6 1 1
From
5 8 15 10 10
Demand 7 5 3 2 17

[Ans. x12 = 5, x13 = 1, x24 = 1, x31 = 7, x33 = 2, x34 = 1 Min cost = Rs 102]

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 2. Using North-West Corner rule for initial basic feasible solution, obtain an optimum basic
feasible solution to the following problem

To Available
7 3 4 2
From 2 1 3 3
3 4 6 5
Demand 4 1 5 10

[Ans. x13 = 2, x22 = 1, x23 = 2, x31 = 4, x33 = 1 Min cost = Rs 33]

3. Determine the optimal solution of the given transportation problem

To Supply
10 7 3 6 3
1 6 7 3 5
From
7 4 5 3 7
Demand 3 2 6 4
[Ans. x13 = 3, x21 = 3, x24 = 2, x32 = 2, x33 = 3, x34 = 2, Min cost = Rs 47]

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