UNIT II TRANSPORTATION AND ASSIGNMENT PROBLEMS 12 Hrs.

Transportation Problems - Initial Solution by North West Corner Method, Least Cost
Method and VAM Method; MODI Method of Deriving Optimum Solution. Assignment
Problems-Hungarian Method of Solving Minimization and Maximization Problems –
Restricted Assignment problems – Travelling Salesman Problem.

1. TRANSPORTATION PROBLEMS

1.1. INTRODUCTION
quantities to be shifted from each source to destination, so that the total transportation cost is
minimum.
Suppose a factory owns ware houses in 3 different locations in a city and has to dispatch the
monthly requirement of the product manufactured by them to 5 different wholesale markets located
in the same city. The cost of transporting one unit of the product from the i-th warehouseto the j-
th market is known and is cij. It is assumed that the total cost is a linear function so that the total
transportation cost of transporting xij, units of the product from the i-th warehouse to the j-th
market is given by Σcijxij.
It is clear that the factory management will be interested in obtaining a solution that minimizes the
total cost of transportation. During the process of transportation they will also face the constraints
that from a warehouse they cannot transport more than what is stored or available in the warehouse
(supply) and that they need to transport to a market the total monthly requirement of the market
(demand).
1.2. ASSUMPTIONS
Quantity of supply at each source is known.
Quantity demanded at each destination is known.

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 The cost of transportation of a commodity from each source to destination is known.
1.3. PROCEDURE TO SOLVE TRANSPORTATION PROBLEM
Step I : Deriving the initial basic feasible solution.
Step II : Deriving the final optimal solution.
1.4 DERIVING THE INITIAL BASIC FEASIBLE SOLUTION
North West corner method.
Matrix minimum method.
Vogel’s approximation method (VAM Method) penalty method.
1.5 DERIVING THE FINAL SOLUTION
Modified distribution method / Modi method / UV method.
If total demand = total supply, then it is a balanced transportation problem.
□ If the total supply not equal to total demand, then the transportationproblem is
unbalanced transportation problem.
2. NORTH WEST CORNER METHOD
1. Check if Demand=Supply. If not add dummy row or column.
2. Select the North West (upper left hand) corner cell.
3. Allocate as large as possible in the North West corner cell.
4. If demand is satisfied, strike off the respective column and deduct supply accordingly
If supply is exhausted, strike off the respective row and deduct demand accordingly
5. From the resultant array, locate the North West corner cell and repeat the procedure
Note : The assignment done is not taking cost into consideration.
6. Continue allocation until all demand is satisfied and all supply is exhausted.
7. Multiply the allocated quantity *cost of transportation for each occupied cell and add it
to find the total cost.
3. LEAST COST METHOD
1. Check if Demand=Supply. If not add a dummy row /column.
2. The lowest cost cell in the matrix is allocated as much as possible based on demand
and supply requirement.
 If there are more than one least cost cell, select the one where maximum units can
be allocated.

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  If the tie exist, follow the serial order.
3. If demand is satisfied, strike off the respective column and deduct supply accordingly.
If supply is exhausted, strike off the respective row and deduct demand accordingly.
4. From the resultant array, locate the least cost cell and repeat the procedure.
5. Continue allocation until all demand is satisfied and all supply is exhausted.
6. Find total cost.
4. VOGEL’S APPROXIMATION METHOD (VAM)
This method gives better initial solution in terms of less transportation cost through the concept of
‘penalty numbers' which indicate the possible cost penalty associated with not assigning an
allocation to given cell.
4.1. STEPS IN VOGEL’S APPROXIMATION METHOD (VAM)
1. Check if demand = supply, if not add a dummy row or column.
2. Calculate penalty of each row & column by taking the difference between the lowest
unit transportation cost. This difference indicates the penalty or extra cost which has to be
paid for not assigning an allocation to the cell with the minimum transportation cost.
3. Select the row or column which has got the largest penalty number.(If there is a tie it
can be broken by selecting the cell where the maximum allocation can be made.)
4. In that row or column choose the minimum cost cell and allocate accordingly.
 If there are more than one minimum cost cell, select the one where maximumunits
can be allocated.
 If the tie exists, follow the serial order.
5. If demand is satisfied, strike off the respective column and deduct supply accordingly.
If supply is exhausted, strike off the respective row and deduct demand accordingly.
6. From the resultant array, calculate penalty and repeat the procedure.
7. Continue allocation until all demand is satisfied and all supply is exhausted.
8. Find the total cost.
4.2. OPTIMAL SOLUTION
Work out the basic feasible solution using by any one method
a) Northwest corner method
b) Least cost method

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 c) VAM/Penalty method. (preferably VAM)

STEP 1:
Check if the number of occupied cells is m+n-1 (i.e., number of rows +number of
columns-1) Note : Rows & columns include dummy rows & columns.
• If number of occupied cells = m+n-1, then the solution to the transportation problem is
basic feasible solution.
• If number of occupied cells < m+n-1, then the solution is degenerate solution.
Degeneracy may occur either at the initial stage or at an intermediate stage at some
subsequent iteration.
• In case of degeneracy, we allocate an extremely small amount, close to zero [(ξ) epsilon]
to one or more empty cells of the transportation table (unoccupied least cost cell). So that
total no of occupied cells equals to m+n-1.
STEP 2:
If the basic feasible solution is achieved then MODI method is used to obtain final
optimal solution
Defining the occupied cells.
cij= ui +vj where, cij co st.
ui row.
Vj column.
Assume any one ui or vj is to be zero such that max. no of allocaitons are done in that
row(i) or column (j) & find value of all other ui's & vj's
STEP 3:
Evaluate the unoccupied cells.
dij= ui +vj - cij
If all evaluation values are either negative or zero, then the initial solution is optimal
solution.
If any positive value exist, initial solution is not an optimal solution.
STEP 4:

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 Identify the entering variable.
The highest positive evaluated value (dij) cell is treated as entering variable cell.

STEP 5:
Identify leaving variable.
• To identify the leaving variable, construct a closed loop.
• Loop starts at the entering variable cell.
• Loop can go clockwise or anticlockwise.
• The turning point should be occupied cell.
• Loop can cross each other.
STEP 6:
Start assigning positive & negative.
Assign positive (+) for the entering variable & negative ( -) alternatively. Where is
the minimum allocation quantity among the negative cells.
Add to the allocated va lue in the positive cells and deduct to the allocated value
in the negative cells.
Cell/cells which have zero allocation (after deducting ) is the leaving rviable.
STEP 7:
Prepare a new transportation table.
The values in the loop will get c hanged as per the step 6 and all other allocations not ni
the loop remains the same.
STEP 8:
Check for optimality using step 1 to step 3
• If the solution is optimal calculate the minimum transportation cost from the
allocations and the unit costs given.
• Repeat the procedure from step 4 to step 8, if the solution is not optimal.
5. ASSIGNMENT
In a printing press there is one machine and one operator is there to operate. How would
you employ the worker? Your immediate answer will be, the available operator will operate the
machine. Again suppose there are two machines in the press and two operators are engaged at

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different rates to operate them. Which operator should operate which machine for maximizing
profit?
Similarly, if there are n machines available and n persons are engaged at different rates to operate
them. Which operator should be assigned to which machine to ensure maximum efficiency? While
answering the above questions we have to think about the interest of the press, so we have to find
such an assignment by which the press gets maximum profit on minimum investment. Such
problems are known as "assignment problems".
Assignment problem is a particular case of the transportation problem in which objective is to
assign number of task to equal number of facilities at minimum cost and maximum profit.
Suppose there are ‘m' facilities and ‘n' jobs and the effectiveness of each facility for each job are
given, the objective is to assign one facility to one job so that the given measure of effectiveness
is optimized.
If the matrix contains the cost involved in assignment the aim is to minimize the cost.
If the matrix contains revenue or profit the aim is to maximize the revenue or profit.

5.1. HUNGARIAN METHOD OR ASSIGNMENT ALGORITHM

STEP 1: Balancing the problem

 Check if the No. of Rows is equal to the No. of Columns, if not add a dummy row or
a dummy column.

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STEP 2: Row wise calculation (row reduced matrix)
 Select the min cost element from each row and subtract it from all the elements in the
same row.
STEP 3: Column wise calculation (column reduced matrix)
 From the resultant matrix, select the minimum cost element from each column and
subtract it from all the other elements in the same column.
STEP 4: Assigning the zeroes
 Starting with first row of the resultant matrix received in first step, examine the rows
one by one until a row containing exactly one zero is found. Then an experimental assignment
indicated by ‘ ' is marked to that zero. Now cross all the zeros in the column in which the
assignment is made. This procedure should be adopted for each row assignment.
 When the set of rows has been completely examined, an identical procedure is applied
successively to columns. Starting with column 1, examine all columns until a column containing
exactly one zero is found. Then make an experimental assignment in that position and cross other
zeros in the row in which the assignment was made. Continue these successive operations on rows
and columns until all zero's have either been assigned or crossed-out.
 If all the zeros are assigned or crossed out, i.e., we get the maximal assignment.
Note: In case, if two zeros are remained by assignment or by crossing out in each row or column.
In this situation we try to exclude some of the zeros by trial and error method.

STEP 5: Check for optimality

.
 If each job is assigned to each facility, then assignment is optimal. If any job or
facility is left without assignment move to step 6

STEP 6: Draw of minimum lines to cover zeros

Draw the minimum possible straight lines covering all the zeros in the matrix by the
following procedure
 Mark () rows in which the assignment has not been done.
 Locate zero in marked () row and then mark () the corresponding column.

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  In the marked () column, locate assigned zeros & then mark () the corresponding
rows.
 Repeat the procedure, till the completion of marking.
 Draw the lines through unmarked rows and marked columns.
Note: If the above method does not work then make an arbitrary assignment. If the
number of these lines is equal to the order of the matrix then it will be an optimal solution
and then go to step9 Otherwise proceed to step 7.

STEP 7: Modified Matrix

 Identify covered elements, uncovered elements and junction point
 Covered Elements – where the lines passes through
 Uncovered Elements – where the line does not pass through.
 Junction Point- where the lines intersects
 Select the smallest element from the uncovered elements.
 Subtract this smallest element from the uncovered elements.
 Add this smallest element to the junction point
 Covered elements remain untouched
Thus we have increased the number of zero's
STEP: 8
 Repeat the procedure of assigning the zeroes as step 4.
 Repeat the procedure of checking for optimality as step 5.
 If optimality is arrived move to step 9 otherwise repeat steps 6 to 8.
STEP : 9
 Write separately the assignment (ONE TO ONE) and calculate the total cost taking
corresponding values from the problem data.
NOTE:
Multiple optimal solutions
 If the final matrix (for zero assignment) is having more than one zero on rows and
columns at independent positions (not possible to assign or cancel row-wise or column-

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 wise) choose arbitrarily one zero for assignment and cancel all zeros in the corresponding
rows and columns.
 Repeat the procedure by choosing another zero for assignment till all such zeroes are
considered.
 Each assignment by this procedure will provide different set of assignments keeping
the total minimum cost as constant. This implies multiple optimal solutions with the same
optimal assignment cost.

5.2. SOLVING MAXIMISATION PROBLEMS IN ASSIGNMENT USING HUNGARIAN

METHOD
 The maximization problem can be converted in to a minimization problem by
subtracting all the elements of the matrix from the highest value.
 Follow the steps 1 to 9 of Hungarian Algorithm.

Note: While calculating the total profits take corresponding values from initial assignment
problem (data before conversion of the problem)

5.3. RESTRICTED ASSIGNMENT PROBLEMS

The assignment technique assumes that the problem is free from practical restrictions and
any task could be assigned to any facility. But in some cases, it may not be possible to assign a
particular task to a particular facility due to space, size of the task, process capability of the facility,
technical difficulties or other restrictions. This can be overcome by assigning a very high
processing time of cost element ( infinity) to the corresponding cell.

 Use Hungarian method for assignment steps 1 to 9.

NOTE:
 For maximization problems in restricted assignments, convert the problem in to a
minimization problems given in the procedure above.
 Substitute  (infinity) in the matrix for the restricted assignments.

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  Use Hungarian method for assignment steps 1 to 9.

5.4. TRAVELLING SALESMAN PROBLEM

A salesman normally visits numbers of cities starting from high head quarters. The distance (or
time or cost) between every pair of cities are assumed to be known. If a salesman has to visit ‘n'
cities, then he will have a total of (n-1)! Possible round trips. The problem of finding the shortest
distance (or minimum time or minimum cost) if the salesman starts from his headquarters and
passes through each city under his jurisdiction exactly once and returns to the headquarters is called
the Travelling salesman problem or A Travelling Salesperson problem. A travelling salesman
problem is very similar to the assignment problem with the additional constraints.
a) Route Conditions:
 The salesman should go through every city exactly once except the starting city
(headquarters).
 The salesman starts from one city (headquarters) and comes back to that city
(headquarters).
b) Obviously going from any city to the same city directly is not allowed (i.e., no
assignments should be made along the diagonal line).

5.2.1. Steps to solve travelling salesman problem:

i. Assigning an infinitely large element () in each of the squares along the diagonal line
in the cost matrix.
ii. Solving the problem as a routine assignment problem.
iii. Scrutinizing the solution obtained under (ii) to see if the ‘route' conditions are
satisfied.
iv. If not, making adjustments in assignments to satisfy the condition with minimum
increase in total cost (i.e. to satisfy route condition, ‘next best solution' may require to be
considered).
i.

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 Problems

Problem 1. Find the optimum solution to the following problem.

Solution:

1. Make a transportation model

Find basic feasible solution (VAM method)

1.
3. Check for optimality (MODI Test) m (a) Cost matrix of allocated cell.

+ n - 1 = 8 (no. of allocation)

Since all the elements of cell evaluation matrix are positive so optimality test is passed.

Minimum Transportation Cost = Rs. 321.

Problem 2. Solve the following cost-minimizing transportation problem.

Ans. 1. Make a transportation model.

1. Find basic feasible solution

Check for optimality test (m + n -1) > no. of allocation (8)

m + n- 1 = no. of allocation 9

9. Cost matrix of allocated cell

(c) Cell evaluation matrix

Iteration for optimal solution.

1.

(a). Cost matrix of allocated cell.

 Since all elements of cell evaluation matrix are non negative so 2hldI feasible solution is the
optimum solution.

Transportation cost
 Problem 3.

3. Optimality test

(a) Cost matrix of allocated cell

1. Opp. cost matrix
 Cell evaluation matrix

Iteration for optimal solution.

Check for optimality test (a)

Cost matrix of allocated cell

Since all elements of cell evaluation matrix are non negative. Hence 3rd feasible solution is the
optimum solution.
 Problem 4.

Solution:

1. Prepare a square matrix.

2. Reduce the matrix

3. Check if optimal assignment can be made in the current solution or not

Since there is one assignment in each row and each column, the optimal assignment can be
made in the current solution.
 Problem 5. . Find the optimal assignment for the assignment problem with the following
Problem3.23
cost matrix.

Solution: 1. Prepare a square matrix

2. Prepare a reduced matrix.

3. Check if optimal assignment can be made in the current solution.

since each row and each column have assignment so optimal assignment can be made.
 Problem3.24.
Problem 6. Four different jobs are to be done on four different machines. Table below
indicate the cost of producing job i on machine j in rupees.

Solution : 1. Reduced matrix

3. Check if optimal assignment can be made in the current solution or not

 QUESTIONS BANK
TRANSPORTATION
INITIAL SOLUTION
NORTH WEST CORNER METHOD
1.
Destination Supply
Sources D1 D2 D3 D4
S1 2 4 6 2 100
S2 8 6 5 2 60
S3 9 10 7 5 40
Demand 40 60 80 20

Destination Supply
2. Sources D1 D2 D3 D4
S1 2 4 6 2 70
S2 8 6 5 2 30
S3 9 10 7 5 50
Demand 80 10 20 30

LEAST COST METHOD

3.
Destination Supply
Sources D1 D2 D3 D4
S1 2 4 6 2 100
S2 8 6 5 2 60
S3 9 10 7 5 40
Demand 40 60 80 20

4. .
Destination Supply
Sources D1 D2 D3 D4
S1 6 1 9 3 70
S2 11 5 2 8 55
S3 10 12 14 7 70
Demand 85 35 50 45

VOGEL’S APPROXIMATION METHOD

5. Destination Supply
Sources D1 D2 D3 D4
S1 7 3 6 8 60
S2 4 2 5 0 100
S3 2 6 5 1 40
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Demand 20 50 50 80

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6.
Destination Supply
Sources D1 D2 D3 D4
S1 6 1 9 3 70
S2 11 5 2 8 55
S3 10 12 14 7 70
Demand 85 35 50 45

7.
Destination Supply
Sources D1 D2 D3
S1 2 7 4 5
S2 3 3 1 8
S3 5 4 7 7
S4 1 6 2 14
Demand 7 9 18

FINAL OPTIMAL SOLUTION (UV METHOD)

8.
Destination Supply
Sources D1 D2 D3 D4
S1 7 3 8 6 60
S2 4 2 5 10 100
S3 2 6 5 1 40
Demand 20 50 50 80

9.
Destination Supply
Sources D1 D2 D3
S1 5 1 7 10
S2 6 4 6 80
S3 3 2 5 15
S4 5 3 2 40
Demand 75 20 50

10.
Destination Supply
Sources D1 D2 D3 D4
S1 6 1 9 3 70
S2 11 5 2 8 55
S3 10 12 4 7 70
Demand 85 35 50 45

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11.
Destination Supply
Sources D1 D2 D3 D4 D5
S1 3 5 8 9 11 20
S2 5 4 10 7 10 40
S3 2 5 8 7 5 30
Demand 10 15 25 30 40

DEGENERACY
12.
Destination Supply
Sources D1 D2 D3
S1 16 20 12 50
S2 14 8 18 50
S3 26 24 16 50
Demand 50 50 50

13.
Destination Supply
Sources D1 D2 D3 D4
S1 13 25 12 21 18
S2 18 23 14 9 27
S3 23 15 12 16 21
Demand 14 12 23 27

14.
Destination Supply
Sources D1 D2 D3 D4
S1 42 48 38 37 160
S2 40 49 52 51 150
S3 39 38 40 43 190
Demand 80 90 110 160

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 ASSIGNMENT

1. Persons
JOBS 1 2 3 4

A 10 5 13 15
B 3 9 18 3
C 10 7 3 2
D 5 11 9 7

2. Persons
JOBS 1 2 3 4

A 5 8 4 2
B 1 4 6 3
C 0 4 2 6
D 4 7 5 4

3. Persons
JOBS 1 2 3 4

A 8 8 4 3
B 4 2 1 6
C 6 8 10 12
D 14 18 20 22

UNBALANCED ASSIGNMENT MODELS

4.
Persons
JOBS 1 2 3 4

A 24 27 18 20
B 26 23 20 31
C 24 22 34 26
D 19 21 21 22
E 30 25 28 27

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 MAXIMIZATION CASE IN ASSIGNMENT PROBLEMS
5.
Territories
T1 T2 T3 T4

P1 60 50 40 30
P2 40 30 20 15
P3 40 20 35 10
P4 30 30 25 20

6. Territories
T1 T2 T3 T4

P1 10 22 12 4
P2 16 18 22 10
P3 24 20 12 18
P4 16 14 24 20

RESTRICTED ASSIGNMENT MODEL

7.
Territories
T1 T2 T3 T4

R1 4 - - 8
R2 9 - 4 3
R3 8 1 2 -

TRAVELLING SALESMAN PROBLEM

8.
TO
A B C D

A - 46 16 40
B 41 - 50 40
FROM C 82 32 - 60
D 40 40 36 -

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 9. TO
A B C D E

A - 3 6 2 3
B 3 - 5 2 3
FROM C 6 5 - 6 4
D 2 2 6 - 6
E 3 3 4 6 -

PROBLEMS FOR PRACTICE

10.
Persons
JOBS 1 2 3 4 5

A 8 4 2 6 1
B 0 9 5 5 4
C 3 8 9 2 6
D 4 3 1 0 3
E 9 5 8 9 5

11. Persons
1 2 3 4
JOBS
A 8 3 2 1
B 4 5 6 3
C 2 2 9 4
D 1 3 6 5
E 9 3 6 5

MAXIMIZATION CASE IN ASSIGNMENT PROBLEMS

12. Territories
T1 T2 T3

S1 80 40 30
S2 20 10 10
S3 40 40 60
S4 90 30 40

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 13. Territories
T1 T2 T3

P1 20 26 42
P2 24 32 50
P3 32 34 44

RESTRICTED ASSIGNMENT MODEL

14.
Territories
R1 R2 R3 R4

C1 4000 5000 - -
C2 - 4000 - 4000
C3 3000 - 2000 -
C4 - - 4000 5000

TRAVELLING SALESMAN PROBLEM

15. TO
A B C D E

A - 4 7 3 4
B 4 - 6 3 4
FROM C 7 6 - 7 5
D 3 3 7 - 7
E 4 4 5 7 -

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 UNIT – II – TRANSPORTATION AND ASSIGNMET MODEL
MODEL QUESTION PAPER
PART - A
1. Define and specify the objective of transportation model.
2. What is meant by unbalanced problem in transportation? How will you
convert unbalanced problem into balanced problem in transportation?

3. List the methods used to find initial solution in transportation?

4. What is degeneracy in transportation?
5. Define and list out the objectives of assignment?
6. Specify the route conditions in travelling salesman problem.
7. How to convert maximization problem into minimization problem in assignment?
8. Differentiate between assignment problem and transportation problem.
9. Find the initial solution for the given transportation problem using North-West
corner method.
Destination
D1 D2 D3 D4 Supply
O1 6 1 9 3 100
Origins O2 11 5 2 8 60
O3 10 12 4 7 40
Demand 40 60 80 20

10. A Computer centre has got 4 programmers. The centre needs 4 application programmes
to be developed. The centre head, after studying carefully the programmes to be developed,
estimates the computer time (in minutes) required by the respective experts to develop the
application programmes as follows:
Programmes
A B C D
1 120 100 80 90
Programmers 2 80 90 110 70
3 110 140 120 100
4 90 90 80 90
Assign the programmers to the programmes in such a way that the total computer time
gets minimized.
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 PART - B

1. What is meant by transportation? Specify the objectives of transportation tool. Write

the procedure for making unbalanced problem into balanced problem with an example.
OR
2. Solve the transportation problem using MODI method.
Destination
Sources D1 D2 D3 D4 Supply
S1 7 3 8 6 60
S2 4 2 5 10 100
S3 2 6 5 1 40
Demand 20 50 50 80

3. Write the procedure to solve transportation problem using MODI method.

OR
4. For the given transportation problem, find the initial solution using North-west corner
method and final optimal solution using MODI method.
Destination
Sources D1 D2 D3 D4 Supply
S1 6 1 9 3 70
S2 11 5 2 8 55
S3 10 12 4 7 70
Demand 85 35 50 45

5. Write the procedure for a) North-West corner method b) Least-Cost method c) Vogel's
approximation method.
OR
6. Using U-V method, solve the given transportation problem.
Destination
Sources D1 D2 D3 Supply
S1 5 1 7 10
S2 6 4 6 80
S3 3 2 5 15
S4 5 3 2 40
Demand 75 20 50
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7. Write Hungarian algorithm.
OR
8. Given are the costs for assigning jobs to the persons working in an organization, find
the minimum cost using the given information.
Persons
P1 P2 P3 P4
A 8 8 4 3
Jobs B 4 2 1 6
C 6 8 10 12
D 14 18 20 22

9. Write the procedure for a) Maximization problem in assignment with an example b)

Restricted assignment problem with an example c) Conditions to solve Travelling
salesman assignment problem.
OR
10. Solve the given assignment problem in which profits are given for various territories.
Territories
T1 T2 T3 T4
P1 10 22 12 4
Profits P2 16 18 22 10
P3 24 20 12 18
P4 16 14 24 20

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