TRANSPORTATION MODEL

Learning Objectives
By the end of this lecture, the students are expected to:
▪ Model appropriate situations as transportation, transshipment, and
assignment problems
▪ Solve the given model using at least one software
▪ Solve the given model using the appropriate manual solution
algorithm

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TRANSPORTATION MODEL
Example 1
Three storage locations of a poultry feeds company have the following
stocks of quail layer feeds: S1 - 2,000 bags; S2, 1,500 bags, and; S3, 1,500
bags. Four major clients have requested the following deliveries for the
month: D1, 1,200 bags; D2, 1,500 bags; D3, 1,000 bags, and; D4, 700
bags. The cost, in pesos, of shipping a bag of feeds is shown in the table
below. The company wishes to determine how it should transport the bags
to its client.

Storage / Client D1 D2 D3 D4
S1 12 11 14 16
S2 22 12 13 11
S3 16 17 13 14

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TRANSPORTATION MODEL
Example 1: Graphical Representation

1,200
D1
12
2,000
22
S1 11
14 1,500
16 D2
12
1,500
S2 13 17
11 1,000
D3
16
1,500 13
S3
14 700
D4

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TRANSPORTATION MODEL
Example 1: Linear Program
Decision Variables:
Let Xij be the number of bags shipped from storage i to
destination j; i = 1, 2, 3; j = 1, 2, 3, 4.

Objective Function:
Min Z (Cost) = 12X11 + 11X12 + 14X13 + 16X14 + 22X21 + 12X22 +
13X23 + 11X24 + 16X31 + 17X32 + 13X33 + 14X34

Subject to:
X11 + X12 + X13 + X14 ≤ 2000
X21 + X22 + X23 + X24 ≤ 1500 Capacity constraints
X31 + X32 + X33 + X34 ≤ 1500
X11 + X21 + X31 ≥ 1200
X12 + X22 + X32 ≥ 1500
X13 + X23 + X33 ≥ 1000 Demand constraints
X14 + X24 + X34 ≥ 700

Xij ≥ 0 for all i and j Non-negativity constraints

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TRANSPORTATION MODEL
Description
The transportation model is concerned with the shipment of goods from
sources to destinations, with the objective of minimizing total transportation
cost. The details of the problem include:
▪ There are m sources. The maximum that source i can provide is si, i = 1, 2,
…, m.
▪ There are n destinations. Destination j requires dj units, j = 1, 2, … n.
▪ A unit shipped from source i to destination j incurs cost of cij. Thus, total
transportation cost from source i to destination j is directly proportional to
the number of units transported for the said source-destination
combination.
▪ The problem is said to be a balanced transportation problem if total
supply equals total demand.
𝑚 𝑛

෍ 𝑠𝑖 = ෍ 𝑑𝑗
𝑖=1 𝑗=1

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TRANSPORTATION MODEL
General LP Formulation
The model aims to determine the optimal number of items to be shipped
from source i to destination j, denoted by xij.

Unbalanced Model Balanced Model

𝑚 𝑛 𝑚 𝑛

𝑀𝑖𝑛 𝑍 = ෍ ෍ 𝑐𝑖𝑗 𝑥𝑖𝑗 𝑀𝑖𝑛 𝑍 = ෍ ෍ 𝑐𝑖𝑗 𝑥𝑖𝑗

𝑖=1 𝑗=1 𝑖=1 𝑗=1

𝑛 𝑛

෍ 𝑥𝑖𝑗 ≤ 𝑠𝑖 ∀𝑖 ෍ 𝑥𝑖𝑗 = 𝑠𝑖 ∀𝑖
𝑗=1 𝑗=1
𝑚 𝑚

෍ 𝑥𝑖𝑗 ≥ 𝑑𝑗 ∀𝑗 ෍ 𝑥𝑖𝑗 = 𝑑𝑗 ∀𝑗
𝑖=1 𝑖=1

𝑥𝑖𝑗 ≥ 0 ∀ 𝑖, 𝑗 𝑥𝑖𝑗 ≥ 0 ∀ 𝑖, 𝑗

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TRANSPORTATION MODEL
Format of the Tableau

Destinations

1 2 3 4

6 4 7 8
A 100
50 50

Capacity (si)
Sources

10 8 11 9
B 100
50 50
7 5 6 5
C 100
70 30

50 120 80 50

Demand (dj)

unit transportation cost (cij) amount transported (xij)

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TRANSPORTATION MODEL
Example 2
A transportation model (tableau) is used to answer how many products
should be produced by each department. There are 3 departments (rows) –
A, B, and C – that can produce 4 product types (columns) – 1, 2, 3, 4.
Department B cannot produce product 3. The capacity and demand are
likewise presented. Find the optimal solution.

8 11 19 9
400

12 13 a 10
320

11 16 22 14
350

250 100 260 300

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TRANSPORTATION MODEL
Example 3
Royal Printing Corp (RSC) receives an order to print 100 pcs of Math books,
250 pcs of Science books, and 150 pcs of Reading books. RSC has 2
machines where these books can be printed. The older machine A produces
a book at a rate of 6 pcs per hour, while the new machine B can print 10
books per hour. Assume that there are only 3.5 available working days to
print all these books before its deadline. At 10 working hours per day, this
translates to 35 hours availability of each machine.
As a result of different book features (e.g., Science has a lot of colored
pictures, while Reading is usually black-and-white text), cost of printing
these books also depends on which machine they are printed. The cost per
piece is shown below, in PhP. Find the best book printing setup.

Machine / Book Math Science Reading

Machine A 21 27 19
Machine B 25 30 23

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TRANSPORTATION MODEL
Example 4
With the expected uptick of demand during the month of December for
pasta noodles, Pinoy Premium Pasta, plans to determine the least-cost
aggregate plan for the next four months. Backlog is strictly not allowed as
competitors will surely take any unfulfilled demand for the product offered
by the company. Furthermore, hiring of part-time workers are not allowed.
The demand and the relevant costs are given in the table below.

Unit Cost
Mode of Production Monthly Capacity
(labor + material)
Regular 500 boxes / worker PhP 2,000 / box
Overtime 100 boxes / worker PhP 2,500 / box
Subcontracting Not applicable PhP 3,200 / box

Month September October November December

Demand (in boxes) 35,000 45,000 60,000 70,000

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TRANSPORTATION MODEL
Example 4
Holding cost per month is PhP 50 per box. Initial inventory at the start of
September is 5,000 boxes. At the end of December, at least 6,000 boxes
should be available as buffer inventory. The company has 85 workers. Find
the optimal production plan for the company.

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TRANSPORTATION SIMPLEX ALGORITHM
Steps
1. Convert an unbalanced transportation problem to a balanced
transportation problem by adding a dummy source or a dummy
destination.
2. Find an initial basic feasible solution using one of the following
methods.
a. Northwest Corner Method
b. Least Cost Method
c. Vogel’s Approximation Method
3. Using one of the two methods below, check if the current tableau is
optimal. If not, identify entering variable and leaving variable. Perform
necessary iteration.
a. Stepping Stone Method
b. Method of Multipliers

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Consider the transportation tableau of Example 1 below, with demand of D1
at only 1,000 units, instead of the original 1,200 units.

D1 D2 D3 D4
12 11 14 16
S1 2,000

22 12 13 11
S2 1,500

16 17 13 14
S3 1,500

Demand 1,000 1,500 1,000 700

Total Demand = 4,200, Total Supply = 5,000

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 1. Convert an unbalanced transportation problem to a balanced
transportation problem by adding a dummy source or a dummy destination.

D1 D2 D3 D4 D5 (dummy)
12 11 14 16 0
S1 2,000

22 12 13 11 0
S2 1,500

16 17 13 14 0
S3 1,500

Demand 1,000 1,500 1,000 700 800 5,000

The dummy destination (D5) represents an imaginary destination

that takes excess supply.
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2. Find an initial basic feasible solution using one of the following
methods.
a. Northwest Corner Method
b. Least Cost Method
c. Vogel’s Approximation Method

Remarks:
a. A feasible solution must satisfy all the equality constraints of the
balanced transportation problem.
b. There are m + n functional constraints, but 1 of them is redundant.
Hence, there are m + n – 1 independent functional constraints.
Consequently, there are m + n – 1 basic variables in each iteration.

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2 (Northwest Corner Method). Find initial basic feasible solution using
Northwest Corner Method.
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000 1,000
1,000 1,000
22 12 13 11 0
S2 1,500 1,000
500 1,000 0
16 17 13 14 0
S3 1,500 800
700 800

Demand 1,000 1,500 1,000 700 800 5,000

500

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2 (Northwest Corner Method). Find initial basic feasible solution using
Northwest Corner Method.
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000
22 12 13 11 0
S2 1,500
500 1,000 0
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

Total Cost = 12(1,000) + 11(1,000) + … + 14(700) + 0(800) = 51,800

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2 (Least-Cost Method). Find initial basic feasible solution using Least-
Cost Method.
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000 1,200
1,200 800
22 12 13 11 0
S2 1,500 800 500
300 500 700
16 17 13 14 0
S3 1,500 1,000
1,000 500

Demand 1,000 1,500 1,000 700 800 5,000

300 500

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2 (Least-Cost Method). Find initial basic feasible solution using Least-
Cost Method.
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,200 800
22 12 13 11 0
S2 1,500
300 500 700
16 17 13 14 0
S3 1,500
1,000 500

Demand 1,000 1,500 1,000 700 800 5,000

Total Cost = 11(1,200) + 0(800) + … + 16(1,000) + 13(500) = 53,500

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2 (VAM). Find initial basic feasible solution using Vogel’s Approximation
Method (VAM).
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000 11 1 3 X
1,000 1,000 1,000
22 12 13 11 0
S2 1,500 11 1 1 2
500 300 700 1,000
300
16 17 13 14 0
S3 1,500 13 1 1 1
700 800 700

Demand 1,000 1,500 1,000 700 800 5,000

500 700

4 1 0 3 0
X 5 0 3 X

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 2 (VAM). Find initial basic feasible solution using Vogel’s Approximation
Method (VAM).
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000
22 12 13 11 0
S2 1,500
500 300 700
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

Total Cost = 12(1,000) + 11(1,000) + … + 13(700) + 0(800) = 49,700

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3. Using one of the two methods below, check if the current tableau is
optimal. If not, identify the entering variable and the leaving variable.
Perform necessary iteration.
a. Stepping Stone Method
b. Method of Multipliers (also known as Modified Distribution or MODI
Method)

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3a. Choose an empty cell (non-basic decision variable) to evaluate.
Starting with the said cell, trace a closed loop whose corners are the filled
cells (basic variables). The cell corresponding to x13 is evaluated below.
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000 θ
22 12 13 11 0
S2 1,500
500 1,000 0
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3b. Alternately indicate plus (+) or minus (-) in the cells corresponding
to the corners of the loop, with a plus (+) for the empty cell being evaluated.

D1 D2 D3 D4 D5

12 - 11 + 14 16 0
S1 2,000
1,000 1,000 θ

S2
22 + 12 - 13 11 0
1,500
500 1,000 0
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3c. Compute Improvement Index by adding unit transportation costs of
cells with plus sign and subtracting unit transportation costs of those with
minus sign.
D1 D2 D3 D4 D5

12 - 11 + 14 16 0
S1 2,000
1,000 1,000 θ

S2
22 + 12 - 13 11 0
1,500
500 1,000 0
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

I13 = 14 – 11 + 12 – 13 = +2
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x14

D1 D2 D3 D4 D5

12 - 11 14 + 16 0
S1 2,000
1,000 1,000 θ

S2
22 + 12 13 - 11 0
1,500
500 1,000 0
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

I14 = 16 – 11 + 12 – 11 = +6
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x15

D1 D2 D3 D4 D5

12 - 11 14 16 + 0
S1 2,000
1,000 1,000 θ

S2
22 + 12 13 - 11 0
1,500
500 1,000 0
16 17 13 + 14 - 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

I15 = 0 – 11 + 12 – 11 + 14 – 0 = +4
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x21

D1 D2 D3 D4 D5

- 12 + 11 14 16 0
S1 2,000
1,000 1,000

S2
+ 22 - 12 13 11 0
1,500
θ 500 1,000 0
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

I21 = 22 – 12 + 11 – 12 = +9
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x25

D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000
22 12 13 - 11 + 0
S2 1,500
500 1,000 0 θ

S3
16 17 13 + 14 - 0
1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

I25 = 0 – 11 + 14 – 0 = +3
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x31

D1 D2 D3 D4 D5

- 12 + 11 14 16 0
S1 2,000
1,000 1,000
22 - 12 13 + 11 0
S2 1,500
500 1,000 0
+ 16 17 13 - 14 0
S3 1,500
θ 700 800

Demand 1,000 1,500 1,000 700 800 5,000

I31 = 16 – 12 + 11 – 12 + 11 – 14 = 0
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x32

D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000
22 - 12 13 + 11 0
S2 1,500
500 1,000 0
16 + 17 13 - 14 0
S3 1,500
θ 700 800

Demand 1,000 1,500 1,000 700 800 5,000

I32 = 17 – 12 + 11 – 14 = +2
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3d. Perform steps a to c to all empty cells.
Empty Cell (non-basic variable): x33

D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000
22 12 - 13 + 11 0
S2 1,500
500 1,000 0
16 17 + 13 - 14 0
S3 1,500
θ 700 800

Demand 1,000 1,500 1,000 700 800 5,000

I33 = 13 – 13 + 11 – 14 = -3
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3e. If all improvement indices are greater than or equal to zero, the
current tableau is optimal. Otherwise, select the non-basic variable that
yields the most negative improvement index as entering variable. Break ties
arbitrarily.
I13 = +2 I14 = +6 I15 = +4 I21 = +9
I25 = +3 I31 = 0 I32 = +2 I33 = -3

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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3f. Referring back to the loop created by the entering variable, the
leaving variable corresponds to the variable with the smallest value in the
loop with a minus sign. That value is added and subtracted to all basic
variables in the loop with a plus (+) and minus (-) sign, respectively, to get
their new values in the next iteration.

Leaving Variable: x34

current
next iteration
iteration
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone)
Step 3g. Repeat steps a to f until an optimal tableau is found.
D1 D2 D3 D4 D5

12 11 14 16 0
S1 2,000
1,000 1,000
22 12 13 11 0
S2 1,500
500 300 700
16 17 13 14 0
S3 1,500
700 800

Demand 1,000 1,500 1,000 700 800 5,000

I13 = +2 I14 = +6 I15 = +1 I21 = +9

Optimal!
I25 = 0 I31 = +3 I32 = +5 I33 = +3
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TRANSPORTATION SIMPLEX ALGORITHM
Example S1
Step 3 (Stepping Stone).
Remarks:
a. Segments of the loop can only be horizontal and vertical. Diagonal
lines are not allowed.
b. An improvement index of 0 in the optimal tableau signals that an
alternative optimum is present. If desired, the variable with
improvement index of 0 may be entered to find the alternative
answer.
c. If there is a tie in the leaving variable, degeneracy is present.
Arbitrarily choose the leaving variable that will be empty in the next
iteration. The other variable will remain as basic with a value of 0.
This will ensure that m + n – 1 variables are basic.

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Consider the transportation tableau of Example 2. Solve using the
transportation simplex employing Least-Cost Method and Method of
Multipliers. Use a relatively large value for a (i.e., a = 100) to ensure that
Department B will not be producing Product 3.
1 2 3 4
8 11 19 9
A 400

12 13 a 10
B 320

11 16 22 14
C 350

250 100 260 300

Total Demand = 910, Total Supply = 1,070

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 1. Convert an unbalanced transportation problem to a balanced
transportation problem by adding a dummy source or a dummy destination.

1 2 3 4 5 (dummy)
8 11 19 9 0
A 400

12 13 100 10 0
B 320

11 16 22 14 0
C 350

250 100 260 300 160

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 2. Find initial basic feasible solution using Least-Cost Method.

1 2 3 4 5 (dummy)
8 11 19 9 0
A 400
240 160
12 13 100 10 0
B 320
20 300
11 16 22 14 0
C 350
10 80 260

250 100 260 300 160

Total Cost = 12,290

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3a. Associate multiplier ui with row i and multiplier vj with column j.
Find the values of the multipliers that satisfy the equations: ui + vj = cij for all
basic variables xij, with one multiplier (usually the first row’s multiplier)
arbitrarily set to 0.
Basic Equation Solution and
v1 v2 v3 v4 v5 Variable (ui + vj = cij) multiplier value
8 11 19 9 0 xA1 uA + v1 = cA1 0 + v1 = 8 → v1 = 8
uA
240 160 xA5 uA + v5 = cA5 0 + v5 = 0 → v5 = 0
12 13 100 10 0
uB xC1 uC + v1 = cC1 uC + 8 = 11 → uC = 3
20 300
11 16 22 14 0
xC2 uC + v2 = cC2 3 + v2 = 16 → v2 = 13
uC
10 80 260 xC3 uC + v3 = cC3 3 + v3 = 22 → v3 = 19
xB2 uB + v2 = cB2 uB + 13 = 13 → uB = 0
uA = 0 xB4 uB + v4 = cB4 0 + v4 = 10 → v4 = 10

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3b. For each non-basic variable xij (empty cell), compute ui + vj – cij and
indicate the value at the upper-left corner of the cell.

Non-basic
Computation of ui + vj – cij
Variable
v1 = 8 v2 = 13 v3 = 19 v4 = 10 v5 = 0 xA2 uA + v2 -- cA2 = 0 + 13 – 11 = +2
uA 8 2 11 0 19 1 9 0
xA3 uA + v3 – cA3 = 0 + 19 – 10 = 0
=0 240 160
uB –4 12 13 –81 100 10 0 0 xA4 uA + v4 – cA4 = 0 + 10 – 9 = +1
=0 20 300 xB1 uB + v1 – cB1 = 0 + 8 – 12 = –4
uC 11 16 22 –1 14 3 0
xB3 uB + v3 – cB3 = 0 + 19 – 100 = –81
=3 10 80 260
xB5 uB + v5 – cB5 = 0 + 0 – 0 = 0
xC4 uC + v4 – cC4 = 3 + 10 – 14 = –1
xC5 uC + v5 – cC5 = 3 + 0 – 0 = +3
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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3c. If all ui + vj – cij are smaller than or equal to zero, the current
tableau is optimal. Otherwise, select the non-basic variable with the most
positive ui + vj – cij as entering variable. Break ties arbitrarily.

v1 = 8 v2 = 13 v3 = 19 v4 = 10 v5 = 0
8 2 11 0 19 1 9 0
uA = 0
240 160
–4 12 13 –81 100 10 0 0
uB = 0
20 300
11 16 22 –1 14 3 0
uC = 3
10 80 260

Entering Variable: xC5

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3d. Starting from the entering variable cell, trace a closed loop whose
other corners are the filled cells (basic variables). Alternately indicate plus
(+) or minus (-) in the cells corresponding to the corners of the loop, with a
plus (+) for the entering variable cell. The leaving variable corresponds to
the variable with the smallest value in the loop with a minus sign.

8 2 11 0 19 1 9 0
+ 240 - 160
–4 12 13 –81 100 10 0 0
20 300
11 16 22 –1 14 3 0
- 10 80 260 + θ
Leaving Variable: xC1
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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3e. To get the values of basic variables in the next iteration, add the
value of the leaving variable to the cells with plus (+) sign and subtract the
same value from the cells with minus (-) sign.

New iteration
Current iteration(Iteration
(Iteration2)1)

8 2 11 0 19 1 9 0
+ 250
240 - 150
160
–4 12 13 –81 100 10 0 0
20 300
11 16 22 –1 14 3 0
- 10 80 260 + 10
θ
Leaving Variable: xC1
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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3f. Return to Step 3a. Continue until an optimal iteration is found.
Iteration 2
v1 = 8 v2 = 16 v3 = 22 v4 = 7 v5 = 0
8 5 11 3 19 -2 9 0
uA = 0
250 + - 150
-7 12 13 -81 100 10 -3 0
uB = -3
20 300
-3 11 16 22 -7 14 0
uC = 0
- 80 260 + 10

Entering Variable: xA2 Leaving Variable: xC2

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3f. Return to Step 3a. Continue until an optimal iteration is found.
Iteration 3
v1 = 8 v2 = 11 v3 = 22 v4 = 8 v5 = 0
8 11 3 19 -1 9 0
uA = 0
250 80 + - 70
-2 12 13 -76 100 10 2 0
uB = 2
20 300
-3 11 -5 16 22 -6 14 0
uC = 0
- 260 + 90

Entering Variable: xA3 Leaving Variable: xA5

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TRANSPORTATION SIMPLEX ALGORITHM
Example S2
Step 3 (Method of Multipliers)
Step 3f. Return to Step 3a. Continue until an optimal iteration is found.
Iteration 4
v1 = 8 v2 = 11 v3 = 19 v4 = 8 v5 = -3
8 11 19 -1 9 -3 0
uA = 0
250 80 70
-2 12 13 -79 100 10 -1 0
uB = 2
20 300
0 11 -2 16 22 -3 14 0
uC = 3
190 160

Optimal! Total Cost = 11,650

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TRANSSHIPMENT MODEL
Description
In some cases, direct shipments from sources to destinations are not
always possible or economical. In these situations, goods are first shipped
to intermediate locations before reaching the final destinations.
When illustrated in a network, these intermediate nodes are called
transshipment nodes. These nodes can receive goods from other points.
At the same time, they can send good to other points.
Optimal solution to a transshipment model can be identified by solving an
equivalent transportation problem.

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TRANSSHIPMENT MODEL
Example 1
Solve the transshipment problem below. Since the supply cannot
completely fulfill the demand, every unit of unmet demand for Node 6 and
8 is given a penalty of 4 and 6, respectively. The management deems it
necessary, however, that node 7’s demand of 300 should be completely
fulfilled. Provided in the figure below are the capacity, demand, and unit
transportation costs.
4 250
3 6
6
400 8
1 5

7 300
4 4 7
3
300 6
2 2
9
7 200
5 8
6

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TRANSSHIPMENT MODEL
Example 1
Network Representation

4 250
3 6
6
400 8
1 5

7 300
4 4 7
3
300 6
2 2
9
7 200
5 8
6
4
50
D 6

Total Original Supply: 700 Total Original Demand: 750

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TRANSSHIPMENT MODEL
Example 1
Constructing the Equivalent Transportation Tableau:
▪ The rows include pure source nodes and transshipment nodes.
▪ Supply of pure source node: original supply of the node
▪ Supply of transshipment node: original supply of the node + buffer
▪ The columns include pure destination nodes and transshipment nodes.
▪ Demand of pure destination node: original demand of the node
▪ Demand of transshipment node: original demand of the node +
buffer
▪ Do not forget dummy source or destination to balance the model.
▪ Let the value of the buffer be the maximum of total supply or total
demand.

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TRANSSHIPMENT MODEL
Example 1
Initial Tableau of the Equivalent Transportation Problem
3 4 5 6 7 8 Supply
6 5 M M M M
1 400

4 6 7 M M M
2 300

M M M 4 M 6
D 50

0 M M 4 8 M
3 0+750

M 0 2 M 7 9
4 0+750

M M 0 M 3 6
5 0+750

Demand 0+750 0+750 0+750 250 300 200

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TRANSSHIPMENT MODEL
Example 1
Final Tableau of the Equivalent Transportation Problem (Cost = 7,250)
3 4 5 6 7 8 Supply
6 5 M M M M
1 400
400
4 6 7 M M M
2 300
250 50
M M M 4 M 6
D 50
50
0 M M 4 8 M
3 750
500 250
M 0 2 M 7 9
4 750
350 400
M M 0 M 3 6
5 750
300 300 150
Demand 750 750 750 250 300 200
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TRANSSHIPMENT MODEL
Example 2
A sugar milling company has two plants (located in A and B, supply of 150
tons each) that can supply sugar to its three distribution centers (in F, G,
and H, with demand of 100 tons each). However, the shipment must pass
through C, D, and E, as no direct path exists between the plants and
distribution centers. Given below are the costs (in thousand pesos) to
transport a ton of commodity between pairs of locations. Find the best
routing configuration that will minimize .

Path Cost / ton Path Cost / ton Path Cost / ton

A to C 8 C to D 12 E to F 11
A to D 14 C to F 6 E to G 10
A to E 7 C to G 14 E to H 4
B to C 5 D to F 9 G to H 3
B to D 15 D to G 11 H to G 3
B to E 8 D to H 7

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TRANSSHIPMENT MODEL
Example 2
Network Representation

6 100
C F
14
8
150
A 14 12
9
7
11 100
D G
5 7
150
B 15 3
11
8
10 100
E H
4

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TRANSSHIPMENT MODEL
Example 2
Initial Tableau of the Equivalent Transportation Problem
C D E F G H Supply
8 14 7 M M M
A 150

5 15 8 M M M
B 150

0 12 M 6 14 M
C 0+300

M 0 M 9 11 7
D 0+300

M M 0 11 10 4
E 0+300

M M M M 0 3
G 0+300

M M M M 3 0
H 0+300

Demand 0+300 0+300 0+300 100 100+300 100+300

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TRANSSHIPMENT MODEL
Example 2
Final Tableau of the Equivalent Transportation Problem (Cost = )
C D E F G H Supply
8 14 7 M M M
A 150
150
5 15 8 M M M
B 150
100 50
0 12 M 6 14 M
C 300
200 100
M 0 M 9 11 7
D 300
300
M M 0 11 10 4
E 300
100 200
M M M M 0 3
G 300
300
M M M M 3 0
H 300
100 200
Demand 300 300 300 100 400 400
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ASSIGNMENT MODEL
Description
Assignment model is a special type of transportation model where each
“source” is assigned or matched to one “destination”. The balanced
assignment model assumes that each source (row) has a supply of 1 unit.
Each destination (column) also has a demand of 1 unit.

Linear Program of the Balanced Model

𝑛 𝑛

𝑀𝑖𝑛 𝑍 = ෍ ෍ 𝑐𝑖𝑗 𝑥𝑖𝑗 Minimizing total cost of assignment

𝑖=1 𝑗=1
𝑛

෍ 𝑥𝑖𝑗 = 1 ∀𝑖 Each row is assigned to one column

𝑗=1
𝑛

෍ 𝑥𝑖𝑗 = 1 ∀𝑗 Each column is assigned to one row

𝑖=1

𝑥𝑖𝑗 = 0 𝑜𝑟 1 ∀ 𝑖, 𝑗 Decision variables are binary

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ASSIGNMENT MODEL
Example 1
In a factory floor, eight machines may be used to perform different jobs.
Currently, there are eight pending jobs. Find the optimal assignment of
jobs to machines to minimize the machining time to finish all the jobs. A
machine can only handle a single job. Given below are the processing
times, in hrs, of the jobs in the machines.

Machine / Job 1 2 3 4 5 6 7 8
A 1.4 1.6 1.0 2.4 2.1 0.8 1.4 1.7
B 1.3 0.9 1.0 1.7 1.1 1.3 2.3 2.3
C 1.2 1.9 2.2 2.0 2.0 -- 1.3 2.0
D 1.8 1.4 -- 1.6 2.2 -- 1.0 2.4
E 0.9 2.0 2.4 0.8 0.6 1.6 0.7 2.5
F 0.5 1.4 1.2 2.1 1.0 -- 1.3 1.1
G 1.6 0.8 1.4 0.9 1.6 0.6 1.3 1.0
H 2.0 -- 1.0 2.0 -- 1.3 1.2 2.3
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ASSIGNMENT MODEL
Example 2
Four different subjects should be assigned to different professors. Given
below are the suitability ratings (up to 10) of the professors when
assigned to the subjects. Find the best assignment that will maximize the
total suitability rating.

Teacher / Subject Math English Science History

Prof. Manzano 8 7 6 5
Prof. dela Pena 7 5 7 9
Prof. Sta Rosa 7 4 9 6
Prof. Santiago 4 8 7 9
Prof. Guzman 5 8 7 7

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Step 1. Ensure that the problem is a balanced minimization assignment
model.

Math English Science History

Dummy
Prof. Manzano –8 8 –7 7 –6 6 –5 5 0
Prof. dela Pena –7 7 –5 5 –7 7 –9 9 0
Prof. Sta Rosa –7 7 –4 4 –9 9 –6 6 0
Prof. Santiago –4 4 –8 8 –7 7 –9 9 0
Prof. Guzman –5 5 –8 8 –7 7 –7 7 0

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Step 2. Row Reduction. Subtract the row minimum from every number in
the row.

Row Min
–8 –7 –6 –5 00 1 –8 2 3 8
–7 –5 –7 –9 20 4 –9 2 0 9
–7 –4 –9 –6 20 5 –9 0 3 9
–4 –8 –7 –9 50 1 –9 2 0 9
–5 –8 –7 –7 30 0 –8 1 1 8

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Step 3. Column Reduction. Subtract the column minimum from every
number in the column.

0 1 2 3 08 1 2 3 0
2 4 2 0 29 4 2 0 1
2 5 0 3 29 5 0 3 1
5 1 2 0 59 1 2 0 1
3 0 1 1 38 0 1 1 0
Col Min 0 0 0 0 8

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Step 4. Cover all zeros using the minimum number of horizontal and
vertical lines. An optimal assignment is now available if the number of
lines used equals the number of rows (or columns). Otherwise, proceed to
Step 5.

0 1 2 3 0
2 4 2 0 1
2 5 0 3 1
5 1 2 0 1
3 0 1 1 0

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Step 5. Find the smallest number uncovered by the drawn lines in the
previous step. Revise the table by (a) subtracting that number from all
uncovered elements of the table and (b) by adding the same number to all
elements corresponding to the intersections of two lines. Repeat Step 4.

0 1 2 30 01 3 4 0

2 4 2 01 13 2 0 0

2 5 0 31 14 0 3 0

5 1 2 04 10 2 0 0

3 0 1 13 00 2 2 0

Smallest uncovered number: 1

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Step 4 (repeat). Cover all zeros using the minimum number of horizontal
and vertical lines. An optimal assignment is now available if the number of
lines used equals the number of rows (or columns). Otherwise, proceed to
Step 5.

0 1 3 4 0
1 3 2 0 0
1 4 0 3 0
4 0 2 0 0
3 0 2 2 0

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Optimal Assignment
Final assignments are associated to the zeros in the reduced table.
Ensure that a row is matched to a single column and vice versa.

0 1 3 4 0 Teacher / Subject Subject Rating

Prof. Manzano Math 8
1 3 2 0 0
Prof. dela Pena History 9
1 4 0 3 0 Prof. Sta Rosa Science 9
Prof. Santiago English 8
4 0 2 0 0
Prof. Guzman None 0
3 0 2 2 0 Total 34

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ASSIGNMENT MODEL
Example 2: Hungarian Method
Optimal Assignment (alternative)
Final assignments are associated to the zeros in the reduced table.
Ensure that a row is matched to a single column and vice versa.

0 1 3 4 0 Teacher / Subject Subject Rating

Prof. Manzano Math 8
1 3 2 0 0
Prof. dela Pena None 0
1 4 0 3 0 Prof. Sta Rosa Science 9
Prof. Santiago History 9
4 0 2 0 0
Prof. Guzman English 8
3 0 2 2 0 Total 34

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ASSIGNMENT MODEL
Example 3
There are four tasks to be assigned to three operators. Only operator A
can perform two tasks, while the B and C are limited to one task each. The
goal is to minimize the processing time to finish all the tasks. Given below
are the task times, in mins, of the tasks given the operator.

Person / Task Task 1 Task 2 Task 3 Task 4

Person A 40 65 80 75
Person B 50 60 75 80
Person C 70 85 45 55

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ASSIGNMENT MODEL
Example 3: Hungarian Method

Row Min
40 65 80 75 40 0 25 40 35

40 65 80 75 40 0 25 40 35

50 60 75 80 50 0 10 25 30

70 85 45 55 45 25 40 0 10

Col Min 25 40 0 10

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ASSIGNMENT MODEL
Example 3: Hungarian Method

0 15 40 25 0 0 25 10
0 15 40 25 0 0 25 10
0 0 25 20 15 0 25 20
25 30 0 0 40 30 0 0

0 0 15 0
0 0 15 0
15 0 15 10
50 40 0 0
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 Thank you!

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