MODULE - 1: Mathematical Formulation and Initial BFS of Transportation Problem 1,1 Mathematical Formulation of TP The transportation problem (TP) is concerned with determining an optimal strategy for transporting a commodity from a number of origins or sources to various destina- tions in such a way that the total transportation cost is minimized. Each origin has its ‘own capacity or availability and each destination has its individual requirement. Destination Dy | Dz [+ | Dy | Availability O1 en | a2 ein 4a O2 ca | ¢22 Con ay Origin Om mt_| Cm2 Coun Am Requirement | b, by |e | bn ‘Table 1.1: Transportation table 2p. (Table 1.1). The ith origin’s capacity (availability) is a; units and the jth destination's Suppose that there are m origins O;, i = 1,2,...,m and m destinations Dj, j requirement (demand) is bj units. Let ci; be the cost of shipping one unit of the com- modity from the ith origin to the jth destination. If x,; represents the number of units shipped from the ith source to the jth destination, the problem is to determine the transportation schedule so as to minimize the total transportation cost while satisfy- ing the supply and demand conditions (rim conditions). Mathematically, a TP may be Scanned with CamScannerstated as follows: Minimize (total cost) Z = Ly ais (a) ipa subject to the constraints dx jt >= 8 i xij 20. for all i and j. (1.4) 2sum (supply or availability constraints) (1.2) 2suntt (demand or requirement constraints) (1.3) If Ya; = YD; then the transportation problem is called balanced. a Scanned with CamScanner1.2 Algorithm to Solve A TP The solution of a TP may be summarized in the following steps : Step 1: For the given TP, examine whether the total supply equals the total demand. If not, introduce a dummy row/column having all its cost elements zero, and supply/demand as positive difference of supply and demand. Step 2: Find an initial BFS which must satisfy all the supply and demand conditions. Step 3: Examine the solution for optimality, i.e., examine whether an unoccupied cell whose inclusion may result in an improved solution. Step 4: If the solution is not optimal, modify the shipping schedule by including that unoccupied cell whose inclusion may result in an improved solution. Step 5: Repeat Steps 3 and 4 until no further improvement is possible. ind An Initial BFS There are several methods available to obtain an initial BFS for a TP: 1,3 Method to 1. North-West (N-W) Corner Rule Steps involved in the N-W corner rule are given below: Step 1: Make the maximum possible allocation to the upper left (north-west) corner cell in the first row depending upon the availability of supply for that row and demand requirement for the column containing that cell, ic., min (a),b;). Step 2: Move to the next cell of the first row depending upon the remaining supply for that row and the demand requirement for the next column. Proceed till the row total is exhausted. There arise three possible cases to move to the next cell : (i) by > 4,: If the allocation made in step 1 is equal to the supply available at the first source (a;, in the first row), then move vertically down to the cell (2, 1). Apply step 1 again, for the next allocation. (ii) by ,D,). These adjustments are shown in Table 2.3. Following the closed path, the increase in the transportation cost per unit quantity of reallocation is observed as 2-1 +3-7 = -3. This indicates that shift of 1 unit into unoccupied cell (0},Dj) decreases the transportation cost by Rs. 3. Obviously, cell (0;,D;) is to be included in the assignment. Now assign as much as possible in this, Scanned with CamScanner(10) oO (10) o,| G)el< CD 2 1 5 |10 412 TOI 510 13, 12) o,|( 2 7 3 4)25 (as) alee 6 5 3 |20 b 15228 3120 Table 2.2: Initial BFS by 18 Matrix minima method Dy D3 4; Di Ds (10) aa (a) | en) oO (10) ba tT 5/10 7 5 12) T 0» — (+1) t 3) — (2) 3 t 4/25 05 & = 18) T a 45450 ij 15 22 5 3120 Table 2.4 22 os Table 2.5 cell. The maximum amount that can be allocated to (0;,D,) is 10 and this will make the current basic variable corresponding to cell (0,D,) non basic. Table 2.4 shows the optimal results after reallocation. Similarly, we can draw a closed path for the other unoccupied cells (O;,D3), (02,D3), (03,D,) which are shown in Tables 2.5, 2.6 and 2.7, respectively. The corresponding changes in cost for allocations in unoccupied cells are shown in Table 2.8. Since costs increase or remain unaltered for other unoccupied cells, after reallocation of a unit allocation, no optimal solution can not be obtained for these reallocations. Thus the improved solution is obtained as x1 = 10, x21 = 3, X37 = 22, x51 = 2 and x35 = 18, see Table 2.4, and the corresponding minimum transportation cost is Rs 173. Scanned with CamScannerDi D> Dye Di Ds a (0) oO oO 2 1 5 |10 2 1 5|10 (a3) @ (a3) (a2) a) Cele ee]e oH) of (+1) (-1) 0;| (-I)>] > G1) 6 5 3 |20 6 5 3 |20 15 22 18 15 22 18 Table 2.6 ‘Table 2.7 Unoccupied cell Change in cost Remarks (O1,Ds) +5-14+3-74+6-3=3 Cost increases (02,Ds) +4-74+6-3=0 Neither increase nor decrease (05,D2) +5-347-6 Cost increases ‘Table 2.8 2.1.2 Modified Distribution (MODI) Method ‘The modified distribution method, also known as MODI method or (u,v) method pro- vides a minimum cost solution to the transportation problem. In the stepping stone method, we have to draw as many closed paths as equal to the unoccupied cells for their evaluation. To the contrary, in MODI method, only closed path for the unoc- cupied cell with highest opportunity cost is drawn. The method is outlined in the followin 1. After getting an initial BFS, determine the values of u; and vj so that 1; + », for the occupied cells. 2. For the unoccupied cells, compute the opportunity cost d;j = ¢,;—(u; +¥)- 3. If lll d;; > 0, the solution is optimal. On the other hand, if at least one dj; <0, the solution is not optimal and further saving in transportation cost is possible. 4 Select the unoccupied cell with the smallest negative opportunity cost as this cell is to be included in the next solution. Scanned with CamScanner5. Draw a loop for the unoccupied cell selected in the previous step. The right angle turn in this path is permitted only at occupied cells and at the original unoccupied cell. 6. Assign alternate ‘+’ and ‘”’ signs on the corner points of the closed path, starting from the unoccupied selected cell. 7. Determine the maximum number of units that should be shipped to this unoc- cupied cell. The smallest value with a negative position on the loop indicates the number of units that can be shipped to the entering cell. Now, add this quantity toall the cells on the corner points of the loop marked with ‘+’ sign, and subtract it from those cells marked with ‘~’ sign. In this way, an unoccupied cell becomes an occupied cell. 8. Repeat the whole procedure unt an optimal solution is obtained. Example 2.2: Solve the following transportation problem: Destination D, | D2 | Ds [Ds | Availability O {19 | 30] 50] 12 7 Origin | _0, | 70 | 30 | 40 | 60 10 03 | 40 | 10 | 60 | 20 18 Demand | 5 [8 [7 [15 ‘Table 2.9: Transportation table for Example 2.2 Solution: An initial BFS obtained by Matrix minima method is shown in Table 2.10. dD, Dy 4 oO 19 30 7 3 @ a 3 @ 70 30 40 60 | 10 2|2 |e a 3 40 10 60 20 | 18 bj 5 15 ‘Table 2.10; Initial BFS by Matrix minima method. Scanned with CamScannerWe now test the optimality by MODI method. For this, we calculate the values of 1;'s (i= 1,2,3) and v's (j = 1,2,3,4) for each occupied cell such that uj +0) = ¢;;. We assign an arbitrary value 14 = and get mty=o4 > Us +4034 => gt. =C > wt =C > wInty=o > Wg t3=03 > vy =12 us =8 %=2 vy =32 uy =38 v3 =2 Now, we calculate the opportunity cost dj; = ¢;j — (1; + ¥)) for the unoccupied cells. Unoccupied cell Opportunity cost di (O,Di) —_ eu-(u +1) =-13 (O1,D2) Cag = (ty + V2) = 28 (O,,D3) €13 — (ty +03) = 48 (Q3,D2) C22 — (2 + 2) =—-10 (Oz, D4) 24 — (uz + V4) = 10 (O3,D3) 633 = (3 +03) = 50 D, D, Ds Dae @ aa 7a ya a 19 30 50 2/7 0 B 10 Ty O, 70 30 40 60 | 10 38 6 3) @ : 40 10 60 20} 18 8 b, 5 3 7 15 », 32 2 2 12 ‘Table 2.11: Optimality test by MODI method The opportunity costs are plotted in the transportation table within shadow boxes as shown in Table 2.11. Since all dj # 0, the current solution is not optimal. Now, we choose the most negative value (-13) from opportunity cost and draw a closed loop starting from (01,Dj) to this cell back through the cells (03,D,), (O3,D,) and (Oj, Dg) as shown in Table 2.12. Scanned with CamScannerDy D2 Ds Dg 4 By 23] 4B a Welle ecfeeeleu o 119 0 50. 1 12)7 a. [a a; oO. L t 2 170 0 40 160/10 @d 8 3) 1 Ox) 5 s3]/5 33/5 & 2 40 10 60 20}18 by 5 8 7 15 ‘Table 2.12: Loop for improving the solution Do Ds aj 23] ay oO 30 50 i se @ 7) 30 40 60} 10 51 a |@ Os 10 60 20/18 8 b; 5 8 Zz 15 vj 19 2 “ll 12 ‘Table 2.13: Revised solution and test for optimality The revised solution is shown in Table 2.13. The optimality test by MODI method shows that all d;; # 0. So, again we form a closed loop for the most negative oppor- tunity cost (-23) as shown in Table 2.14 and trace out the smallest possible allocation amongst the occupied cell in the closed loop, which is 3. We then obtain the fur- ther improved solution as shown in Table 2.15. The optimality test by MODI method shows that all the current opportunity costs are nonnegative (see the shadow boxes in Table 2.15). Hence the optimality allocation is x11 =5, x14 = 2, x22 = 3, x93 =7, X52 = 5, x34 = 13 and the corresponding minimum transportation cost is Rs.(19x5+12x 24+30x3+40x7+10x5+ 20x 13) = Rs.799. Scanned with CamScannerD; D Ds ao Wel e ce ef e ece ee 30 50 ped B) J -23 83) 4 70 cae 40 60 go. |e Oo. | 3) GG) 40 10 60 20 5 8 Ae 15 Table 2.14 Loop fr further improving the solution D D2 Ds De aj My 8 23] 38] o 19 30 50 Yoda) 20] 70 30 40 60} 10 28 40] 40 10 60 20/18 8 bj 5 7 15 vj 19 oe 12 2 ‘Table 2.15: Improved solution and test for optimality by MODI method Scanned with CamScanner 4 10 182.2.2 Unbalanced Transportation Problem A transportation problem is called unbalanced if be made balanced by introducing dummy source with zero costs of transporting from 4; # Ly bj. The problem can this source to all destinations, or dummy destination with zero costs of transporting to this destination. Example 2.3: Consider the transportation problem presented in the following table. Scanned with CamScannerDestination Di | Da | Ds | Supply oO; 28 i? 26 500 Origin | 0, | 19 | 12 | 16 | 300 Demand | 250 | 250 | 500 Table 2.20: Transportation table for Example 2.3 : The given transportation problem is unbalanced as Y?., 2 ae 4a; = 800 NORTH WEST CORNER METHOD QL. Solve the following transportation problem and obtain the initial feasible solution. > LEAS? COST METHOD Q3. Solve the following transportation problem and obtain the initial feasible solution. 5 14 7 16 2 4 5 35 Q4. Solve the following transportation problem and obtain the initial feasible solution. Scanned with CamScanner> VOGEL’S APPROXIMATION METHOD QS. Solve the following transportation problem and obtain the initial feasible solution. > MODIMETHOD Q7. Solve the following transportation problem and obtain the initial feasible solution. Scanned with CamScanner