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Transportation Simplex Steps

This project encompasses a detailed outline of the various steps that are necessary in order to effectively solve a transportation problem. Each step is designed to address specific aspects that contribute to the overall resolution of the issue at hand.

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Ayush YaDav
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42 views3 pages

Transportation Simplex Steps

This project encompasses a detailed outline of the various steps that are necessary in order to effectively solve a transportation problem. Each step is designed to address specific aspects that contribute to the overall resolution of the issue at hand.

Uploaded by

Ayush YaDav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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To solve the transportation problem using Simplex Method in MS Excel, you

can use the Solver add-in, which allows you to solve optimization problems like
transportation problems. Here's a step-by-step guide:
Step-by-Step Instructions for Solving a Transportation Problem in Excel
using Solver:

Step 1: Setup the Problem in Excel


1. Open a new Excel worksheet.
2. Enter your transportation problem data in a tabular format.
Example Data Entry:

D E F Supply

A 8 7 3 10

B 3 8 9 70

C 11 3 5 80

Demand 50 30 80

 Enter the supply values (10, 70, 80) in a column.


 Enter the demand values (50, 30, 80) in a row.
 Enter the costs for each cell (e.g., 8 for A → D, 7 for A → E, etc.).
Step 2: Create a Matrix for Variables (Shipments)
 Create an empty matrix of the same size (3 x 3), where the shipments
(units transported) will be entered by the solver. These are your decision
variables.
For example:

D E F Supply

A X1 X2 X3 10

B X4 X5 X6 70

C X7 X8 X9 80

Demand 50 30 80

 These cells (X1, X2, X3, etc.) will represent the number of units shipped
from each factory to each warehouse and will be filled by the solver.
Step 3: Setup the Objective Function (Minimize Cost)
 In another cell, calculate the total transportation cost using the following
formula:
Total Cost=(X1×8)+(X2×7)+(X3×3)+(X4×3)+(X5×8)+(X6×9)+(X7×11)+
(X8×3)+(X9×5)\text{Total Cost} = (X1 \times 8) + (X2 \times 7) + (X3 \times 3)
+ (X4 \times 3) + (X5 \times 8) + (X6 \times 9) + (X7 \times 11) + (X8 \times 3)
+ (X9 \times 5)Total Cost=(X1×8)+(X2×7)+(X3×3)+(X4×3)+(X5×8)+(X6×9)+
(X7×11)+(X8×3)+(X9×5)
o In Excel, this is done by multiplying the cost values with the
corresponding decision variables (shipment values), and summing
them up.
Step 4: Setup Constraints
You need to ensure that the supply and demand constraints are met:
 Supply Constraints: The total shipments from each source (factory)
should be equal to the available supply.
For Factory A:
X1+X2+X3=10X1 + X2 + X3 = 10X1+X2+X3=10
Similarly, for Factories B and C.
 Demand Constraints: The total shipments to each destination
(warehouse) should satisfy the demand.
For Warehouse D:
X1+X4+X7=50X1 + X4 + X7 = 50X1+X4+X7=50
Similarly, for Warehouses E and F.
Step 5: Use Solver to Minimize the Cost
1. Enable Solver: Go to File → Options → Add-ins. Select Solver Add-in
and click OK. Then, go to Data tab, and click Solver.
2. Set Objective:
o Set the Objective Cell as the cell where you calculated the total
transportation cost.
o Select Min to minimize the total cost.

3. Set Decision Variables:


o In the By Changing Variable Cells box, select the cells where you
have entered the shipment values (X1, X2, X3, etc.).
4. Set Constraints:
o Click Add to add constraints.

 Add supply constraints: For each source (A, B, and C), make
sure the sum of shipments equals the available supply.
 Add demand constraints: For each destination (D, E, and F),
ensure that the sum of shipments meets the demand.
 Add non-negativity constraints (i.e., the shipment values
must be ≥ 0).
 Ensure that the shipment cells (X1, X2, etc.) are all ≥ 0
by adding a constraint.
5. Choose the Solving Method:
o Select Simplex LP as the solving method in Solver.

6. Solve:
o Click Solve, and Excel will find the optimal solution.

o If Excel finds a solution, you’ll be presented with the option to keep


the solution. Select Keep Solver Solution.

Step 6: Review the Solution


Once Solver has run, it will populate the shipment matrix (X1, X2, X3, etc.) with
the optimal solution. You can check:
 The optimal transportation cost (in the objective cell).
 The shipments from each factory to each warehouse.

By following these steps, you will solve the transportation problem using the
Simplex Method in Excel.

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