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Transportation and Assignment Models

University Mathematics I: Olaniyi Evans

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21 views3 pages

Transportation and Assignment Models

University Mathematics I: Olaniyi Evans

Uploaded by

Olaniyi Evans
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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18

TRANSPORTATION &
ASSIGNMENT MODELS

CONTENTS
Nature of a Transportation Model 159
Solution of Transportation Problems 159
Special Issues in Modeling 165
Assignment Model 166

N A TU R E OF A T R A N S PO R T A T IO N M O D E L
The transportation model is a special case of linear programming problem, in
which the objective is to transport a product from various sources/origins to
different destinations at a minimum total cost. It is widely used in logistics and
supply chain management to optimize the distribution of goods, in
manufacturing to allocate resources efficiently, and in public transportation
planning to minimize operational costs.
Table 18.1 is an example of a transportation problem. It gives the cost of
transportation from each source to destination.
Table 18.1 Transportation Matrix

A transportation problem is deemed balanced when the total quantity


demanded at the destination equals the total quantity available at the origin;
otherwise, it is considered unbalanced.
S O LU T IO N OF T R A N S PO R T A T IO N P R O B LE M S
The solution to a transportation problem consists of two key phases:
A. Obtaining the initial basic feasible solution. Three methods used to
obtain the initial basic feasible solution are:
i. North-West Corner Rule ii. Least Cost Method
iii. Vogel’s Approximation (or Penalty) Method.
B. Achieving the optimal solution: Methods used to achieve optimality
include:
i. Stepping Stone Method ii. Modified Distribution Method (MODI)
160 Olaniyi Evans | University Mathematics

This chapter focuses on the first phase, detailing the three methods used to
obtain the initial basic feasible solution.
Conditions for Obtaining the Initial Solution:
To obtain the initial solution using any of the three methods, two essential
conditions must be satisfied:
i. Balanced Problem: The transportation problem must be balanced,
meaning that the total supply equals the total demand. This ensures a
feasible solution is possible.
ii. Cell Allocation Constraint: The number of cell allocations must be equal to
m + n – 1, where m and n represent the numbers of rows and columns,
respectively. This constraint ensures that the allocation process follows a
systematic approach.
Non-Degenerate Basic Feasible Solution vs. Degenerate Solution: Any solution
meeting the balanced problem and cell allocation constraints is termed a "Non-
Degenerate Basic Feasible Solution." Conversely, if these conditions are not
met, the solution is labeled as a "Degenerate Solution."
North-West Corner Rule
The North-West Corner Rule is a simple method used to find an initial feasible
solution for a transportation problem.
Algorithm:
1. Begin by allocating the allowable minimum of the supply and demand
capacities to the North-West cell (top left-hand cell) of the transportation
matrix.
2. Check if the allocation made in the first step equals the supply or demand
available in the first row or column. If so, cross out the exhausted row or
column, preventing further assignments to it. Move vertically or
horizontally to the next cell and repeat Step 1.
3. Continue Step 2 until exactly one row or column remains uncrossed in the
transportation matrix. Make the allowable allocation to that row or column
and stop. If not, return to Step 1.
This method is considered inefficient due to its tendency to yield a higher total
transportation cost compared to other methods. This inefficiency arises from its
failure to consider the transportation costs of all possible alternative routes.
Least Cost Method
This method focuses on selecting the cheapest route for allocation. It is a more
favorable option to North-West Corner Rule due to its consideration of costs.
Algorithm:
1. Assign as much as possible to the smallest unit cost, considering the
concept of allowable minimum supply and demand capacities, similar to
North-West Corner Rule.
2. Cross out the exhausted row or column and adjust the supply and demand
accordingly. If both row and column are exhausted simultaneously, only
one is crossed out to avoid degeneration.
3. Look for the smallest cost in the uncrossed row or column and assign the
allowable quantity. Repeat this process until only one uncrossed row or
column remains.
Vogel’s Approximation Method
Vogel’s Approximation Method, also known as the penalty method, represents
an improvement over the Least Cost Method, providing a better initial solution
by incorporating opportunity cost principles.
Chapter 18| Transportation & Assignment Models 161

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