The Transportation Problem

• The problem of finding the minimum-cost distribution of

a given commodity
from a group of supply centers (sources) i=1,…,m
to a group of receiving centers (destinations) j=1,…,n
• Each source has a certain supply (si)
• Each destination has a certain demand (dj)
• The cost of shipping from a source to a destination is
directly proportional to the number of units shipped

Transportation-1
Simple Network Representation
Sources Destinations

Supply s1 1 Demand d1
1

Supply s2 2
2 Demand d2
…

…
xij

n Demand dn
Supply sm m

Costs cij

Transportation-2
• Transportation minimization problem - based on cost

• Transportation maximization problem - based on profit

Transportation-6
North west corner method

Procedure :
1.
2.
North west corner method

Transportation-8
 Least Cost Method

Procedure :
1.
2.

Transportation-9
Least cost method

Transportation-10
 Formulate the given problem

• Holiday shipments of mobiles to distribution centers

• Production at 3 facilities,
– A, supply 200
– B, supply 350
– C, supply 150
• Distribute to 4 centers,
– N, demand 100
– S, demand 140
– E, demand 300
– W, demand 250
• Total demand vs. total supply cost values are given in
table below
Transportation-11
 Formulation
Destination/ware house
Supply/
Source /
N S E W capacity
Plant
16 13 22 17
A 200

14 13 19 15
B 350

9 20 23 10
C 150

Demand 100 140 300 250 Z=

 Imp points to remember

• If supply is more introduce

dummy destination or column

• If demand is more introduce

dummy source or row
„cij‟ Values are kept zero
 Formulation
Destination Supply
Source capacit
N S E W
Plant y
16 13 22 17
A 200

14 13 19 15
B 350

9 20 23 10
C 150

0 0 0 0
Dummy 90

Demand 100 140 300 250 790

• Solve this by north west
corner method
 The Northwest Corner Rule(NWCM)
• Start with north west corner square (upper left hand
square) of matrix
• Look into demand and capacity ,allocate units which
ever is less
• If demand is satisfied move towards next column
• If capacity is satisfied move towards next row
• If both are satisfied move diagonal
• Repeat steps until all conditions satisfied

Transportation-16
 The Northwest Corner Rule
Destination
Supply
Source N S E W
16 13 22 17
A 200
100 100
14 13 19 15
B 350
40 300 10
9 20 23 10
C 150
150
0 0 0 0
Dummy 90
90
Demand 100 140 300 250

Z = 10770
Vogel‟s Approximation
Method (VAM)
 Vogel’s approximation Method-
VAM
• For each row and column, calculate its difference:
= (Second smallest cij in row/col) - (Smallest cij in row/col)
minimization
= (first highest “p” in row/col) - (second highest “p” in row/col)
maximization
• For the row/coloumn with the largest difference,
select entry with minimum cost cij as basic
(minimization) and highest profit for maximization.
for tie select arbitrarily
• Eliminate row/col with supply/demand satisfied
• Repeat the above steps
 We will solve previous problem
Destination
Supply ui
Source N S E W
16 13 22 17
A 200

14 13 19 15
B 350

9 20 23 10
C 150

0 0 0 0
Dummy 90

Demand 100 140 300 250

Z=
vj
Vogel‟s Method (1): calculate differences
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 3

14 13 19 15
B 350 1

9 20 23 10
C 150 1

0 0 0 0
Dummy 90 0

Demand 100 140 300 250

diff 9 13 19 10
Vogel‟s Method (2): select xDummy as basic
variable
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 3

14 13 19 15
B 350 1

9 20 23 10
C 150 1

0 0 0 0
Dummy 90
90 0

Demand 100 140 300 250

diff 9 13 19 10

Transportation-22
Vogel‟s Method (3): update supply, demand
and differences
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 3

14 13 19 15
B 350 1

9 20 23 10
C 150 1

0 0 0 0
Dummy 90
--- ---

Demand 100 140 210 250

diff 5 0 3 5

Transportation-23
Vogel‟s Method (4): select xCN as basic
variable
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 3

14 13 19 15
B 350 1

9 20 23 10
C 100 150 1

0 0 0 0
Dummy 90
--- ---

Demand 100 140 210 250

diff 5 0 3 5

Transportation-24
Vogel‟s Method (5): update supply, demand
and differences
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 4

14 13 19 15
B 350 2

9 20 23 10
C 100 50 10

0 0 0 0
Dummy 90
--- ---

Demand --- 140 210 250

diff --- 0 3 5

Transportation-25
Vogel‟s Method (6): select xCW as basic
variable
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 4

14 13 19 15
B 350 2

9 20 23 10
C 100 50
50 10

0 0 0 0
Dummy 90
--- ---

Demand --- 140 210 250

diff --- 0 3 5

Transportation-26
Vogel‟s Method (7): update supply, demand
and differences
Destination
Supply diff
Source N S E W
16 13 22 17
A 200 4

14 13 19 15
B 350 2

9 20 23 10
C 100 50
--- ---

0 0 0 0
Dummy 90
--- ---

Demand --- 140 210 200

diff --- 0 3 2

Transportation-27
Vogel‟s Method (8): select xAS as basic
variable
Destination
Supply diff
Source N S E W
16 13 22 17
A 140 200 4

14 13 19 15
B 350 2

9 20 23 10
C 100 50
--- ---

0 0 0 0
Dummy 90
--- ---

Demand --- 140 210 200

diff --- 0 3 2

Transportation-28
Vogel‟s Method (9): update supply, demand
and differences
Destination
Supply diff
Source N S E W
16 13 22 17
A 140 60 5

14 13 19 15
B 350 4

9 20 23 10
C 100 50
--- ---

0 0 0 0
Dummy 90
--- ---

Demand --- --- 210 200

diff --- --- 3 2

Transportation-29
Vogel‟s Method (10): select xAW as basic
variable
Destination
Supply diff
Source N S E W
16 13 22 17
A 140 60 60 5

14 13 19 15
B 350 4

9 20 23 10
C 100 50
--- ---

0 0 0 0
Dummy 90
--- ---

Demand --- --- 210 200

diff --- --- 3 2

Transportation-30
 Vogel‟s Method (11): update supply,
demand and differences
Destination
Supply diff
Source N S E W
16 13 22 17
A 140 60 --- ---

14 13 19 15
B 350 4

9 20 23 10
C 100 50
--- ---

0 0 0 0
Dummy 90
--- ---

Demand --- --- 210 140

diff --- ---

Transportation-31
Vogel‟s Method (12): select xBW and xBE as
basic variables
Destination
Supply diff
Source N S E W
16 13 22 17
A 140 60 --- ---

14 13 19 15
B 210 140 ---

9 20 23 10
C 100 50
--- ---

0 0 0 0
Dummy 90
--- ---

Demand --- --- --- ---

Z = 10330
diff --- ---

Transportation-32
Solve by VAM
VAM method
Acceptability and Optimality Test
for initial feasible solution
of transportation problem
Acceptability for testing initial solution

 The number of allocations in initial solution should be m+n-1

 Allocations should be in independent positions such that they do
not make closed loop
If above 2 conditions are not met in initial solution it is called
degeneracy
Optimality test for Initial Solution by
other methods of TP

 Stepping stone method

 Modified distribution method

Allocated cells are called stone
squares
Unallocated cells are water
squares
Each allocation is called stone
Stepping Stone Method- Procedure
Prepare transportation problem matrix
Solve by NWCM
Total cost is Rs 1490=00
Check for optimality for the given solution
The Assignment Problem
 The Assignment Problem

• The problem of finding the minimum-costly assignment

of a set of tasks (i=1,…,m) to a set of agents (j=1,…,n)
• Each task should be performed by one agent
• Each agent should perform one task
• A cost cij associated with each assignment

• We should have m=n (if not…?)

• A special type of linear programming problem, and

• A special type of transportation problem,
with si=dj= ?
 Prototype Problem

• Assign students to mentors

• Each assignment has a „mismatch‟ index
• Minimize mismatches
Mentor
Supply
Student Snape McGonagall Lupin
5 2 3
Harry 1

1 4 5
Draco 1

2 4 4
Goyle 1

Demand 1 1 1
 Hungarian method

Hungarian method works on the principle of reducing

the given cost matrix to the matrix of „opportunity costs‟
 Applications

• Workers to machine
• Product to factories
• Jobs to machine
• Class to rooms
Sample problem
 The Hungarian Method
 If number of rows not equal to number of columns, „Dummy‟ is
included by keeping cost values zero
 Subtract row smallest from each other elements in the row
 Subtract column smallest from each other element in the column
 Each row and each column should have one zero

 Assign the zero cost in the row by and other zeros

 Continue until every row and every column has exactly one
assignment and so has been crossed out.
 If the number of assignments equals to number of rows and column
„optimal is reached „ other wise go to next step
Row reduction
Column reduction

Transportation-65
 The Hungarian Method
 Subtract row smallest from each other elements in the row
 Subtract column smallest from each other element in the column
 Each row and each column should have one zero

 Assign the zero cost in the row by and other zeros

 Continue until every row and every column has exactly one
assignment and so has been crossed out.
 If the number of assignments equals to number of rows and column
„optimal is reached „ other wise go to next step
Zero assignment
 The Hungarian Method
 Marks for each row that do not have any assigned zero
 Examine the mark row and mark the column that have zeros in the
marked row
 Examine the marked columns and mark the rows that have
assigned zeros in marked columns
 Repeat the process
 Draw lines through all unmarked rows and marked columns.
 If the number of lines drawn or assignments = number of rows
/columns , then its is optimal solution
 Otherwise, go to next step
Marking and Crossing of lines
 The Hungarian Method – final step

• From among the cells not covered by any line, find the
smallest element say „k‟
• Subtract „k‟ from all the uncovered elements and add „k‟
to every element in the cells covered by 2 lines
(intersection).
• Elements in the cells covered by one line unchanged.
• Assignment continues as done at the first stage
ie Each row and each column should have one zero
3 step revised
Final assignment
Solve by Hungarian method