Operations Research

CHAPTER 3

TRANSPORTATION

Generally transportation problem deals with the distribution of commodities from one
place to another. The distribution centres are known as sources and the receiving
centres are known as destinations. If there are i sources and j destinations and c ij is the
cost of transportation per unit, the aim of transportation problem is to arrive at an
optimum solution. That is to determine the least cost of transportation to distribute the
commodities from the sources to the different destinations.
In transportation problem there are two types, (1) Balanced transportation problems,
and (2) unbalanced transportation problems.

Balanced transportation problems

The balanced transportation problem is the one where the total availability is equal to
the total requirement.
ΣAvailability = ΣRequirements

Unbalanced transportation problems

On the other hand if the total availability is not equal to the total requirement it is
known as the unbalanced transportation problem.
ΣAvailability ≠ ΣRequirements
Surplus = ΣAvailability - ΣRequirements
Deficit = ΣRequirements - ΣAvailability

Feasible solution

A set of non-negative individual allocations which simultaneously removes

deficiencies is called a feasible solution.
A feasible solution is that which satisfies the row and column sum restrictions and
also the non negativity restrictions – balanced problem always

Basic feasible solution

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

A feasible solution to a m origins, n destinations problem is said to be basic if the

number of positive allocations are m + n -1, i.e. one less than the sum of rows and
columns.
If the number of allocations in a basic feasible solution is less than m + n – 1, it is
called degenerate basic feasible solution otherwise non-degenerate basic feasible
solution.
The basic feasible solution is one of the possible solutions which may or may not be
optimum.
The initial feasible solution is determined by 3 methods.
(i) Northwest corner method
(ii) Least cost or matrix minima method
(iii) Vogel’s approximation or unit penalty method

Northwest corner method

In this method the first allotment is made to the left hand top corner cell depending
upon the supply and demand conditions. The successive allotments are towards the
right hand bottom cell in a stepped fashion. In this case it is allotted irrespective of the
cost of transportation.

Least cost or matrix minima method

In this method the cell with least cost of transportation is selected from the entire
matrix and the first allotment is made to that cell depending upon the supply and
demand conditions. The second allotment is made to the cell with the next least cost
of transportation. The least cost method gives a better solution than the northwest
corner method.

Vogel’s approximation or unit penalty method

In this method penalties are calculated both for columns and rows. Penalty is the
difference between the two least costs of transportation. Select the row or column
which has got the highest penalty. In that row or column select the cell with the least
cost of transportation. To that cell allot the maximum depending upon the supply and
demand conditions. Calculate the second set of penalties and continue the procedure
till the demand and supply conditions of all the destinations and sources are satisfied.

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Optimal solution

A feasible solution (not necessarily basic) is said to be optimum if it minimizes the

total transportation cost.

Optimality test

Required number of allocations = (m + n) – 1, where m = number of rows, n =

number of columns
Required number of allocations in a BFS less than (m+n–1), the solution is generate
BFS, otherwise non degenerate BFS.
If the number of allocations is less than (m + n – 1), allocate a small value  or  to
the cell with least cost of transportation without any loop formation, where there are
(m+n–1) allocations determine the values of u and v. To start with assume any one of
the values equal to zero. (Assume a row or column which contains maximum number
of allocations {stones}). If there is any loop formation, select the next least cost and
proceed in this way.
Calculate the values of other variables using the relation
Row/Column values cij = ui + vj
Where cij is the cost of transportation
After calculating the values of u and v, calculate the values of waters (empty cells)
using the relation
Values of waters = cij – (ui + vj)
Form the loop for the cell with most negative value. Assign alternate “+” and “-”
signs starting with most negative value cell. Select the least allocation in the loop
which as assigned negative sign. Add the selected least allocation to the cells with
positive sign and subtract it from the cells with negative sign. Leave other allocations
which are not in the loop unchanged.

Degeneracy

Whenever a number of occupied cells is less than m + n -1 degeneracy will occur. To

resolve degeneracy, allocate an extremely small amount of goods to one or more of
the empty cells so that a number of occupied cells becomes m + n – 1 (Δ or ε is
introduced in the least cost independent cell).
Allocate Δ to one or more of recently vacated cells.
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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Worked Examples

1) Consider the transportation problem having the following cost and requirement.

Destination
1 2 3 4 5 Supply
1 8 6 3 7 5 20
Source 2 5 6 8 4 7 30
3 6 3 9 6 8 30
Demand 25 25 20 10 20 100\80

Obtain an initial basic feasible solution by

(i) Northwest corner rule
(ii) Matrix minima method
(iii) Vogel’s approximation method and obtain an optimal solution
Solution:
(i) Northwest corner method

Destination
1 2 3 4 5 Supply
1 20 8 6 3 7 5 20

Source 2 5 25 6 8 4 7 30
5
3 6 3 20 9 10 6 8 30

4 0 0 0 0 20 0 20

Demand 25 25 20 10 20

(ii) Matrix minima method

Destination
1 2 3 4 5 Supply
1 8 6 20 3 7 5 20

Source 2 5 6 8
5 10 4 15 7 30
3 6 3 9 6 8 30
25 5
4 20 0 0 0 0 0 20

Demand 25 25 20 10 20

(iii) Vogel’s approximation method

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Destination
1 2 3 4 5 Supply Penalties
1 8 6 20 3 7 5 20 2, 2

Source 2 5 6 8 4 7 30 1, 2, 1, 1, 2
5 10 15
3 6 3 9 6 8 30 3, 3, 3, 0, 2
25 5
4 0 0 0 0 0 20 0
20
Demand 25 25 20 10 20
Penalties 5, 1, 1, 3, 3, 3 3, 5 4, 2, 2, 5, 2, 1,
1, 1 2 1, 1

2) Consider the transportation problem having the following cost and requirements.

1 2 3 4 5 Available
A 8 10 12 17 15 75
B 15 13 18 11 9 100
C 14 20 6 10 13 225
D 13 19 7 6 12 150
Required 250 100 50 75 75

Obtain an initial basic feasible solution by

(i) Northwest corner method
(ii) Least cost method
(iii) Vogel’s approximation method
Solution:
(i) Northwest corner method

1 2 3 4 5 Available
8 10 12 17 15
A 75 75
15 13 18 11 9
B 100 100
14 100 20 6 10 13
C 75 50 225
13 19 7 6 12
D 75 75 150
Required 250 100 50 75 75 550\550

Cost of transportation = 75 × 8 + 100 × 15 + 75 × 14 + 100 × 20 + 50 × 6 + 75 × 6 +

75 × 12 = 600 + 1500 + 1050 + 2000 + 300 + 450 + 900 = 6800

(ii) Least cost method

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

1 2 3 4 5 Available
8 10 12 17 15
A 75 75
15 13 18 11 9
B 25 75 100
14 20 6 10 13
C 100 75 50 225
13 19 7 6 12
D 75 75 150
Required 250 100 50 75 75 550\550

Cost of transportation = 75 × 8 + 25 × 13 + 75 × 9 + 100 × 14 + 75 × 20 + 50 × 6 + 75

× 13 + 75 × 6 = 600 + 325 + 675 + 1400 + 1500 + 300 + 975 + 450 = 6225

(iii) Vogel’s approximation method

1 2 3 4 5 Available Penalties
8 10 12 17 15 2
A 75 75
15 100 13 18 11 9 2, 2
B 100
14 20 6 10 13 4, 4, 4, 3, 1
C 175 50 225
13 19 7 6 12 1, 1, 1, 6, 1
D 75 75 150
Required 250 100 50 75 75 550\550
Penalties 5, 1, 1, 3, 6 1, 1, 1 4, 4, 4, 3, 3, 1,
1, 1 4 1, 1

Cost of transportation = 75 × 8 + 100 × 13 + 175 × 14 + 50 × 6 + 75 × 6 + 75 × 12 =

600 + 1300 + 2450 + 300 + 450 + 900 = 6000

or

1 2 3 4 5 Available Penalties
8 10 12 17 15 2
A 75 75
15 100 13 18 11 9 2, 2
B 100
14 20 6 10 13 4, 4, 4, 3, 1
C 100 50 75 225
13 19 7 6 12 1, 1, 1, 6, 1
D 75 75 150
Required 250 100 50 75 75 550\550
Penalties 5, 1, 1, 3, 6 1, 1, 1 4, 4, 4, 3, 3, 1,
1, 1 4 1, 1

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Cost of transportation = 75 × 8 + 100 × 13 + 100 × 14 + 50 × 6 + 75 × 13 + 75 × 13 +

75 × 6 = 600 + 1300 + 1400 + 300 + 975 + 975 + 450 = 6000

3) Find the initial basic feasible solution for the following transportation problem by
using Vogel’s approximation method.

Destination
A B C D Supply
I 1 5 3 3 34
Origin II 3 3 1 2 15
III 0 2 2 3 12
IV 2 7 2 4 19
Demand 21 25 17 17

Solution: By Vogel’s approximation method

Destination
A B C D Supply Penalties
1 5 3 3
I 21 13 34 2, 0, 2, 2
Origin 3 3 1 2
II 13 2 15 1, 1, 1, 1, 1
0 2 2 3
III 12 12 2, 0, 1, 1, 1
2 7 2 4
IV 17 2 19 0, 2, 3
Demand 21 25 17 17 80\80
Penalties 1 1, 1, 1, 1, 1 1, 1, 1,
1, 1 1, 1

Total cost of transportation = 21 × 1 + 13 × 3 +13 × 3 + 2 × 2 + 12 × 2 + 17 × 2 + 2 ×

4 = 169Determine the optimal solution to the problem given below. Obtain the initial
basic solution by Vogel’s approximation method.
To Market
M1 M2 M3 M4 Supply
P1 6 4 9 1 40
From Plant P2 20 6 11 3 40
P3 7 1 0 14 50
P4 7 1 12 6 90
Demand 90 30 50 30

M1 M2 M3 M4 M5 Supply Penalties
P1 6 4 9 1 0 40 1, 1, 1, 5

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
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40
20 6 11 3 0 3, 3, 3, 17
P2 10 30 40
7 1 0 14 0 0
P2 50 50
7 1 12 6 0 1, 1, 6, 1
P4 40 30 75 20 90
Demand 90 30 50 30 20 220\220
Penalties 1, 1, 1, 1 0, 3 9 2, 2, 2, 2 0, 0, 0

or

M1 M2 M3 M4 M5 Supply Penalties
30 6 4 9 10 1 0 1, 1, 3, 5, 5
P1 40
20 6 11 3 0 3, 3, 3, 17
P2 20 20 40
7 1 0 14 0 0
P2 50 50
7 1 12 6 0 1, 1, 5, 1, 1
P4 60 30 90
Demand 90 30 50 30 20 220\220
Penalties 1, 1, 1, 1, 0, 3, 3 9 2, 2, 2, 2, 0, 0
1 5

Optimality test
Required number of allocations = m + n – 1 = 4 + 5 – 1 = 8, Number of allocations =
6. The solution is degenerate basic feasible solution

v1 = 6 v2 = 0 v3 = -2 v4 = 1 v5 = -2 Supply
30 6 4 9 10 1 0
u1 = 0 4 11 2 40
20 6 11 3 0
u2 = 2 12 4 11 20 20 40
7 1 0 14 0
u3 = 2 -1 -1 50 11 Δ 50
7 1 12 6 0
u4 = 1 60 30 13 4 1 90
Demand 90 30 50 30 20 220\220

v1 = 0 v2 = -6 v3 = -7 v4 = -5 v5 = -8 Supply
30 6 4 9 10 1 0
u1 = 6 4 10 2 40
20 6 11 3 0
u2 = 8 12 4 10 20 20 40

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

7 1 0 14 0
u3 = 7 Δ 0 50 12 1 50
7 1 12 6 0
u4 = 7 60 30 12 4 1 90
Demand 90 30 50 30 20 220\220

All the values of waters (empty cells) are positive, the solution is optimum. One of the
values of water is zero which indicates that alternate solution exists.
Optimum transportation cost = 30 × 6 + 10 × 1 + 20 × 3 + 60 × 7 + 30 × 1 = 180 + 10
+ 60 + 420 + 30 = 700

4) Solve the following transportation problem

1 2 3 4 5 Available
A 8 10 12 17 15 75
B 15 13 18 11 9 100
C 14 20 6 10 13 225
D 13 19 7 6 12 150
Required 250 100 50 75 75

Solution: By Vogel’s approximation method

1 2 3 4 5 Available Penalties
8 10 12 17 15 2
A 75 75
15 100 13 18 11 9 2, 2
B 100
14 20 6 10 13 4, 4, 4, 3, 1
C 175 50 225
13 19 7 6 12 1, 1, 1, 6, 1
D 75 75 150
Required 250 100 50 75 75 550\550
Penalties 5, 2, 1, 3, 6 1, 1, 1 4, 4, 4, 3, 3, 1,
1, 1 4 1, 1

Optimality test
Required number of allocations = m + n – 1 = 4 + 5 – 1 = 8, Number o f allocations = 6.
The solution is degenerate basic feasible solution

v1 = 15 v2 = 16 v3 = 7 v4 = 6 v5 = 12 Available
75 8 10 12 17 15
u1 = -7 1 12 18 10 75
15 100 13 18 11 9
u2 = -3 3 14 8 Δ 100
u3 = -1 14 20 6 10 13 225

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

175 5 50 5 2
13 19 7 6 12
u4 = 0 -2 3 Δ 75 75 150
Required 250 100 50 75 75 550\550

v1 = 13 v2 = 16 v3 = 5 v4 = 6 v5 = 12 Available
75 8 -1 10 12 17 15
u1 = -5 12 16 8 75
15 100 13 18 11 9
u2 = -3 5 16 8 Δ 100
14 20 6 10 13
u3 = 1 175 3 50 3 0 225
13 19 7 6 12
u4 = 0 Δ 3 2 75 75 150
Required 250 100 50 75 75 550\550

v1 = 13 v2 = 15 v3 = 5 v4 = 6 v5 = 11 Available
8 75 10 12 17 15
u1 = -5 Δ 12 16 9 75
15 13 18 11 9
u2 = -2 4 25 15 7 75 100
14 20 6 10 13
u3 = 1 175 4 50 3 1 225
13 19 7 6 12
u4 = 0 75 4 2 75 1 150
Required 250 100 50 75 75 550\550

All the values of waters (empty cells) are positive, the solution is optimum.
Optimum transportation cost = 75 × 10 + 25 × 13 + 75 × 9 + 175 × 14 + 50 × 6 + 75 ×
13 + 75 × 6 = 750 + 325 + 675 + 2450 + 300 + 975 + 450 = 5925

5) Solve the following transportation problem starting with Northwest corner method

D1 D2 D3 D4 D5 D6 Available
O1 1 2 3 4 5 2 30
O2 3 3 2 1 4 3 50
O3 4 2 5 9 6 2 75
O4 3 1 7 3 4 6 20
Required 20 40 30 10 50 25 175\175

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Solution:

D1 D2 D3 D4 D5 D6 Available
1 2 3 4 5 2
O1 20 10 30
3 3 2 1 4 3
O2 30 20 50
4 2 5 9 6 2
O3 10 10 50 5 75
3 1 7 3 4 6
O4 20 20
Required 20 40 30 10 50 25

Cost of transportation = 20 × 1 + 10 × 2 + 30 × 3 + 20 × 2 + 10 × 5 + 10 × 9 + 50 × 6
+ 5 × 2 + 20 × 6 = 20 + 20 + 90 + 40 + 50 + 90 + 300 + 10 + 120 = 740
Optimality test: Required number of allocations = m + n – 1 = 4 + 6 – 1 = 9, Number
of allocations = 9, solution is non-degenerate basic feasible solution.
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

v1=5 v2=6 v3=5 v4=9 v5=6 v6=2 Available

20 1 2 3 4 5 2
u1=-4 10 2 -1 3 4 30
3 3 2 1 4 3
u2=-3 1 30 20 -5 1 4 50
4 2 5 9 6 2
u3=0 -1 -4 10 10 50 5 75
3 1 7 -10 3 4 20 6
u4=4 -6 -9 -2 -6 20
Required 20 40 30 10 50 25

v1=5 v2=6 v3=5 v4=-1 v5=6 v6=2 Available

20 1 2 3 4 5 2
u1=-4 10 2 9 3 4 30
3 3 2 1 4 3
u2=-3 1 30 20 5 1 4 50
4 2 5 9 6 2
u3=0 -1 -4 10 10 50 15 75
3 1 7 3 4 6
u4=4 -6 -9 -2 10 -6 10 20
Required 20 40 30 10 50 25

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

v1=2 v2=3 v3=2 v4=1 v5=4 v6=0 Available

20 1 2 3 4 5 2
u1=-1 10 2 4 2 3 30
3 3 2 1 4 3
u2=0 1 20 30 0 Δ 3 50
4 2 5 9 6 2
u3=2 0 -3 1 6 50 25 75
3 1 7 3 4 6
u4=2 -1 10 3 10 -2 4 20
Required 20 40 30 10 50 25

v1=1 v2=2 v3=4 v4=4 v5=6 v6=2 Available

20 1 2 3 4 5 2
u1=0 10 -1 0 -1 0 30
3 3 2 1 4 3
u2=-2 4 3 30 -1 20 3 50
4 2 5 9 6 2
u3=0 3 20 1 5 30 25 75
3 1 7 3 4 6
u4=-1 3 10 4 10 -1 5 20
Required 20 40 30 10 50 25

v1=1 v2=2 v3=4 v4=3 v5=6 v6=2 Available

20 1 2 3 4 5 2
u1=0 10 -1 1 -1 0 30
3 3 2 1 4 3
u2=-2 4 3 30 10 10 3 50
4 2 5 9 6 2
u3=0 3 10 1 6 40 25 75
3 1 7 3 4 6
u4=-1 3 20 4 1 -1 5 20
Required 20 40 30 10 50 25

v1=2 v2=2 v3=4 v4=3 v5=6 v6=2 Available

20 1 2 3 4 5 2
u1=-1 1 10 2 0 1 30
3 3 2 1 4 3
u2=-2 3 3 20 10 20 3 50
4 2 5 9 6 2
u3=0 2 20 1 6 30 25 75
3 1 7 3 4 6
u4=-1 2 20 4 1 -1 5 20

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Required 20 40 30 10 50 25

v1=2 v2=2 v3=4 v4=3 v5=6 v6=2 Available

20 1 2 3 4 5 2
u1=-1 1 10 2 0 1 30
3 3 2 1 4 3
u2=-2 3 3 20 10 20 3 50
4 2 5 9 6 2
u3=0 2 40 1 6 10 25 75
3 1 7 3 4 6
u4=-2 3 1 5 2 20 6 20
Required 20 40 30 10 50 25

All the values of waters (empty cells) are positive, the solution is optimum. One of the
values of water is zero which indicates that alternate solution exists.
Optimum transportation cost = 20 × 1 + 10 × 3 + 20 × 2 + 10 × 1 + 20 × 4 + 40 × 2 +
10 × 6 + 25 × 2 + 20 × 4 = 20 + 30 + 40 + 10 + 80 + 80 + 60 + 50 + 80 = 450

6) Obtain an optimal solution to the following transportation problem (cell entries

represent unit cost of shipping), using the table below as a starting point (feasible
solution). Use MODI method

1 2 3 4 5 6 Available
A 9 12 9 6 9 10 5
B 7 3 7 7 5 5 6
C 6 5 9 11 3 11 2
D 6 8 11 2 2 10 9
Required 4 4 6 2 4 2

Solution: (a) By Vogel’s approximation method

1 2 3 4 5 6 Available Penalties
9 12 9 6 9 10 3, 3, 0, 0, 0
A 5 5
7 3 7 7 5 5 2, 2, 2, 4
B 4 2 6
6 5 9 11 3 11 2, 2, 2, 1, 3
C 1 1 2
6 8 11 2 2 10 0, 0, 4, 2, 5
D 3 2 4 9
Required 4 4 6 2 4 2 22\22
Penalties 0, 0, 0, 2, 2, 2, 2, 2, 2, 4, 4 1, 1, 1 5
0, 0 2 2, 0

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

Cost of transportation = 5 × 9 + 4 × 3 + 2 × 5 + 1 × 6 + 1 × 9 + 3 × 6 + 2 × 2 + 4 × 2 =
112
(b) By least cost method

1 2 3 4 5 6 Available
9 12 9 6 9 10
A 5 5
7 3 7 7 5 5
B 4 2 6
6 5 9 11 3 11
C 2 2
6 8 11 2 2 10
D 2 1 2 4 9
Required 4 4 6 2 4 2

or

1 2 3 4 5 6 Available
9 12 9 6 9 10
A 5 5
7 3 7 7 5 5
B 4 2 6
6 5 9 11 3 11
C 1 1 2
6 8 11 2 2 10
D 3 2 4 9
Required 4 4 6 2 4 2

Optimality test: Starting from Vogel’s approximation method

Required number of allocations = m + n – 1 = 4 + 6 – 1 = 9, Number of allocations =
8, solution is degenerate basic feasible solution.
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

v1=6 v2=0 v3=9 v4=2 v5=2 v6=2 Available

9 12 5 9 6 9 10
u1=0 3 12 4 7 8 5
7 3 7 7 5 5
u2=3 -2 4 -5 2 Δ 2 6
6 5 9 11 3 11
u3=0 1 5 1 9 1 9 2
6 8 11 2 2 10
u4=0 3 8 2 2 4 8 9
Required 4 4 6 2 4 2

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

v1=6 v2=5 v3=9 v4=2 v5=2 v6=7 Available

9 12 9 6 9 10
u1=0 3 7 5 4 7 3 5
7 3 7 7 5 5
u2=-2 3 4 Δ 7 5 2 6
6 5 9 11 3 11
u3=0 1 0 1 9 1 4 2
6 8 11 2 2 10
u4=0 3 3 2 2 4 3 9
Required 4 4 6 2 4 2

v1=6 v2=5 v3=9 v4=2 v5=2 v6=7 Available

9 12 9 6 9 10
u1=0 3 7 5 4 7 3 5
7 3 7 7 5 5
u2=-2 3 4 0 7 5 2 6
6 5 9 11 3 11
u3=0 1 Δ 1 9 1 4 2
6 8 11 2 2 10
u4=0 3 3 2 2 4 3 9
Required 4 4 6 2 4 2

All the values of waters (empty cells) are positive, the solution is optimum. One of the
values of water is zero which indicates that alternate solution exists.
Optimum transportation cost = 5 × 9 + 4 × 3 + 2 × 5 + 1 × 6 + 1 × 9 + 3 × 6 + 2 × 2 +
4 × 2 = 112
The alternate solution is

v1=6 v2=5 v3=9 v4=2 v5=2 v6=7 Available

9 12 5 9 6 9 10
u1=0 3 7 4 7 3 5
7 3 7 7 5 5
u2=-2 3 3 1 7 5 2 6
6 5 9 11 3 11
u3=0 1 1 0 9 1 4 2
6 8 11 2 2 10
u4=0 3 3 2 2 4 3 9
Required 4 4 6 2 4 2

Optimality test: Starting from least cost method

v1=6 v2=0 v3=11 v4=2 v5=2 v6=2 Available

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

9 12 9 6 9 10
u1=-2 5 14 5 6 9 10 5
7 3 7 7 5 5
u2=3 -2 4 -7 2 Δ 2 6
6 5 9 11 3 11
u3=0 2 5 -2 9 1 9 2
6 8 11 2 2 10
u4=0 2 8 1 2 4 8 9
Required 4 4 6 2 4 2

v1=6 v2=7 v3=11 v4=2 v5=2 v6=9 Available

9 12 5 9 6 9 10
u1=-2 5 7 6 9 3 5
7 3 7 7 5 5
u2=-4 5 4 Δ 9 7 2 6
6 5 9 11 3 11
u3=0 2 -2 -2 9 1 2 2
6 8 11 2 2 10
u4=0 2 1 1 2 4 1 9
Required 4 4 6 2 4 2

v1=6 v2=5 v3=9 v4=2 v5=2 v6=7 Available

9 12 5 9 6 9 10
u1=0 3 7 4 7 3 5
7 3 7 7 5 5
u2=-2 3 3 1 7 5 2 6
6 5 9 11 3 11
u3=0 1 1 0 9 1 4 2
6 8 11 2 2 10
u4=0 3 3 2 2 4 3 9
Required 4 4 6 2 4 2

All the values of waters (empty cells) are positive, the solution is optimum. One of the
values of water is zero which indicates that alternate solution exists.
Optimum transportation cost = 5 × 9 + 3 × 3 + 1 × 7 + 2 × 5 + 1 × 6 + 1 × 5 + 3 × 6 +
2 × 2 + 4 × 2 = 112
The alternate solution is

v1=6 v2=5 v3=9 v4=2 v5=2 v6=7 Available

9 12 5 9 6 9 10
u1=0 3 7 4 7 3 5
u2=-2 7 3 7 7 5 5 6

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

3 4 0 7 5 2
6 5 9 11 3 11
u3=0 1 Δ 1 9 1 4 2
6 8 11 2 2 10
u4=0 3 3 2 2 4 3 9
Required 4 4 6 2 4 2

7) Determine the optimal transportation cost for the following problem:

A B C
6 8 4
1 1 10 3
4 9 3
2 12
1 2 6
3 5

Optimality test
Required number of allocations = m + n -1 = 3 + 3 – 1 = 5, Number of allocations = 5,
Solution is non-degenerate basic feasible solution.
,

v1 = 6 v2 = 8 v3 = 4
1 6 10 8 4
u1 = 0 3
4 9 3
u2 = -1 -1 2 12
1 2 6
u3 = -5 5 -1 7

v1 = 5 v2 = 8 v3 = 4
6 10 8 4
u1 = 0 1 4
4 9 3
u2 = -1 1 2 11
1 2 6
u3 = -4 5 -2 6

v1 = 5 v2 = 8 v3 = 4

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

6 8 4
u1 = 0 1 5 9
4 9 3
u2 = -1 6 2 6
1 2 6
u3 = -6 2 5 8

Optimum transportation cost = 5 × 8 + 9 × 4 + 6 × 4 + 6 × 3 + 5 × 2 = 40 + 36 + 24 +

18 + 10 = 128

8) Consider the following unbalanced transportation problem.

To Supply
1 2 3
1 5 1 7 10
From 2 6 4 6 80
3 3 2 5 15
Demand 75 20 50

(i) Solve the above problem

(ii) Source 1 must supply only 5 units to destination 2. Determine the optimum
solution
(iii) Source 1 should supply minimum of 5 units to destination 2. Determine the
optimum solution.
(iv) If source 1 cannot supply more than 5 units to destination 2, what is the optimal
solution?
(v) What is the optimal solution, if the demand at destination 3 must be satisfied?
(vi) Since there is not enough supply, some of the demands at these destinations may
not be satisfied. Suppose that there are penalty costs for every unsatisfied
demand per unit which are given by 5, 3, and 2 at destinations 1, 2, and 3
respectively. Find the optimal solution.
(vii) There is a penalty cost for every unsatisfied demand at destinations 1 and 2. But
the demand at destination 3 must be satisfied. The penalty costs are 5 and 3
respectively at destinations 1 and 2. Find the optimal solution.
(viii) Source 2 must supply at least 10 units to destination 2. Determine the optimum
solution
Solution:
(i)

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 Operations Research

1 2 3 Supply Penalties
5 1 7 10
1
6 4 6 80
2
3 2 5 15
3
0 0 0 40
4
Demand 75 20 50 145\145
Penalties

(ii) Source 1 must supply only 5 units to destination 2

Supply 5 units with cost 1 from source 1 to destination 2

1 2 3 Supply Penalties
5 M 7 10 – 5 = 5
1
6 4 6 80
2
3 2 5 15
3
0 0 0 40
4
Demand 75 20 – 5 = 15 50 140\140
Penalties

(iii) Source 1 should supply minimum of 5 units to destination 2

Supply 5 units with cost 1 from source 1 to destination 2

1 2 3 Supply Penalties
5 1 7 10 – 5 = 5
1
6 4 6 80
2
3 2 5 15
3
0 0 0 40
4
Demand 75 20 – 5 = 15 50 140\140
Penalties

(iv)Source 1 cannot supply more than 5 units to destination 2

1 2 3 Supply Penalties
5 1 7 5
1

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 Operations Research

5 M 7 5

6 4 6 80
2
3 2 5 15
3
0 0 0 40
4
Demand 75 20 50 145\145
Penalties

(v) The demand at destination 3 must be satisfied

1 2 3 Supply Penalties
5 1 7 10
1
6 4 6 80
2
3 2 5 15
3
0 0 M 40
4
Demand 75 20 50 145\145
Penalties

(vi)Since there is not enough supply, some of the demands at these destinations may
not be satisfied. Suppose that there are penalty costs for every unsatisfied demand
per unit which are given by 5, 3, and 2 at destinations 1, 2, and 3 respectively.

1 2 3 Supply Penalties
5 1 7 10
1
6 4 6 80
2
3 2 5 15
3
5 3 2 40
4
Demand 75 20 50 145\145
Penalties

(vii) There is a penalty cost for every unsatisfied demand at destinations 1 and 2. But
the demand at destination 3 must be satisfied. The penalty costs are 5 and 3
respectively at destinations 1 and 2.

1 2 3 Supply Penalties

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
 Operations Research

5 1 7 10
1
6 4 6 80
2
3 2 5 15
3
5 3 M 40
4
Demand 75 20 50 145\145
Penalties

(viii) Source 2 must supply at least 10 units to destination 2.

1 2 3 Supply Penalties
5 1 7 10
1
M 4 M 10
2
6 4 6 80 - 10 = 70

3 2 5 15
3
0 0 0 40
4
Demand 75 20 50 145\145
Penalties

9) A company has three plants at locations A, B and C which supply to warehouses located
at D, E, F, G and H. Monthly plant capacities are 800, 500 and 900 units respectively.
Monthly warehouse requirements are 400, 400, 500, 400 and 800 units respectively. Unit
transportation costs are given below. Determine an optimum distribution for the company
in order to minimize the total transportation cost.

To
D E F G H
From A 5 8 6 6 3
B 4 7 7 6 6
C 8 4 6 6 3

Solution: Capacity is less than the requirements hence introduce a dummy row with a
capacity of 300 units. By Vogel’s approximation method

D E F G H Capacity Penalties
5 8 6 6 3 800 2, 2, 2, 2, 1, 0
A 500 300
B 4 7 7 6 6 500 2, 2, 2, 2, 2, 1

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 Operations Research

400 100
8 400 4 6 6 3 900 1, 1, 3
C 500
0 0 0 300 0 0 300 0
Dummy
Requirements 400 400 500 400 800 2500\2500
Penalties 4, 1, 1, 4, 3 6, 0, 0, 6, 0, 0, 3, 0, 0,
1, 1 1, 1, 1 0, 0, 0 3

Cost of transportation = 500 × 6 + 300 × 3 + 400 × 4 + 100 × 6 + 400 × 4 + 500 × 3 +

300 × 0 = 3000 + 900 + 1600 + 600 + 1600 + 1500 = 9200
Optimality test
Required number of allocations = m + n – 1 = 4 + 5 – 1 = 8. Number of allocations are less
than required number of allocations, solution is degenerate basic feasible solution.

v1=2 v2=4 v3=6 v4=4 v5=3 Capacity

5 4 8 6 6 3 800
u1=0 3 500 2 300

400 4 7 7 100 6 6 500

u2=2 1 -1 1
8 400 4 6 2 6 3 900
u3=0 6 0 500
0 0 0 300 0 0 300
u4=-4 2 Δ -2 1
Requirements 400 400 500 400 800

v1=4 v2=4 v3=6 v4=6 v5=3 Capacity

5 4 8 6 6 3 800
u1=0 1 500 0 300

400 4 7 7 100 6 6 500

u2=0 3 1 3
8 400 4 6 0 6 3 900
u3=0 2 0 500
0 0 0 300 0 0 300
u4=-6 2 2 Δ 3
Requirements 400 400 500 400 800

Optimum transportation cost = 500 × 6 + 300 × 3 + 400 × 4 + 100 × 6 + 400 × 4 +

500 × 3 + 300 × 0 = 3000 + 900 + 1600 + 600 + 1600 + 1500 = 9200
Answer: x15 = 800, x21 = 400, x24 = 100, x32 = 400, x33 = 200, x34 = 300, x43 =
300 check, Cost = 9200

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10) Solve the following transportation problem

A B C D E Availability
W 2.75 3.50 4.25 2.25 1.50 300
Manufacturers X 3.00 3.25 4.50 1.75 1.00 250
Y 2.50 3.50 4.75 2.00 1.25 150
Z 3.25 2.75 4.00 2.50 1.75 200
Requirement 150 100 75 250 200

Cell entries cij indicate the profit when dress j is purchased from manufacturer
Solution:

A B C D E Availability
W 2.75 3.50 4.25 2.25 1.50 300
Manufacturers X 3.00 3.25 4.50 1.75 1.00 250
Y 2.50 3.50 4.75 2.00 1.25 150
Z 3.25 2.75 4.00 2.50 1.75 200
Requirement 150 100 75 250 200 775\900

Since the supply and demand are not equal, it is not a balanced problem. Here total
supply is 900 and total demand is 775, hence surplus demand is 125.
We have to create dummy destination (store). The profit associated with store will be
taken zero as the surplus quantity manufactured remains in the factory and is not
transported at all, so the new matrix is

A B C D E F Availability
W 2.75 3.50 4.25 2.25 1.50 0 300
Manufacturers X 3.00 3.25 4.50 1.75 1.00 0 250
Y 2.50 3.50 4.75 2.00 1.25 0 150
Z 3.25 2.75 4.00 2.50 1.75 0 200
Requirement 150 100 75 250 200 125

Multiply by 4 to avoid fraction

A B C D E F Availability
W 11 14 17 9 6 0 300
Manufacturers X 12 13 18 7 4 0 250
Y 10 14 19 8 5 0 150
Z 13 11 16 10 7 0 200
Requirement 150 100 75 250 200 125

Convert the problem to minimization type

A B C D E F Availability
W 8 5 2 10 13 19 300

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Manufacturers X 7 6 1 12 15 19 250
Y 9 5 0 11 14 19 150
Z 6 8 3 9 12 19 200
Requirement 150 100 75 250 200 125

Initial feasible solution by Vogel’s approximation method

A B C D E F Availabil Penalties
ity
8 5 2 10 13 19 3, 3, 2, 3,
W 250 50 300
6
7 6 1 12 15 19 5, 1, 5, 3,
X 150 75 25 250
4
9 100 5 0 11 14 19 5, 4, 2, 3,
Y 50 150
5
6 8 3 9 12 19 3, 2, 3, 3,
Z 200 200
7
Requirem 150 100 75 250 200 125
ent
Penalties 1, 1, 1 0, 0 1 1, 1, 1, 1 1, 1, 1, 1, 0, 0, 0, 0,
1 0

Profit = 250 × 2.25 + 150 × 3 + 75 × 4.5 + 100 × 3.5 + 200 × 1.75 = 2050

or

A B C D E F Availability Penalties
8 25 5 2 10 13 19 3, 3, 3, 2,
W 250 25 300
3, 6
7 6 1 12 15 19 5, 1, 1, 5,
X 150 100 250
3, 4
9 75 5 0 11 14 19 5, 4
Y 75 150
6 8 3 9 12 19 3, 2, 2, 3,
Z 200 200
3, 7
Requirement 150 100 75 250 200 125
Penalties 1, 1, 1, 0, 0, 1 1 1, 1, 1, 1, 1, 1, 1, 1, 0, 0, 0, 0,
1 1 1 0

By least cost method

A B C D E F Availability
8 25 5 2 10 13 19
W 200 75 300
7 6 1 12 15 19
X 125 125 250
9 75 5 0 11 14 19
Y 75 150

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
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6 8 3 9 12 19
Z 150 50 200
Requirement 150 100 75 250 200 125

or

A B C D E F Availability
8 100 5 2 10 13 19
W 200 300
7 6 1 12 15 19
X 125 125 250
9 5 0 11 14 19
Y 75 75 150
6 8 3 9 12 19
Z 150 50 200
Requirement 150 100 75 250 200 125

Optimality test
Required number of allocations = m + n – 1 = 4 + 6 – 1 = 9, Number of allocations =
8. The solution is degenerate basic feasible solution
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

v1=7 v2=5 v3=1 v4=10 v5=10 v6=19 Availabil

ity
u1=0 8 5 2 10 13 19 300
1 0 1 250 3 50
u2=0 7 6 1 12 15 19 250
150 1 75 2 5 25
u3=0 9 100 5 0 11 14 19 150
2 -1 1 4 50
u4=2 -3 6 8 3 9 12 19 200
1 Δ -3 200 -2
Requirem 150 100 75 250 200 125
ent

v1=7 v2=5 v3=1 v4=10 v5=13 v6=19 Availabil

ity
u1=0 8 5 2 10 13 19 300
1 0 1 250 0 50
u2=0 7 6 1 12 15 19 250
150 1 75 2 2 25
u3=0 9 100 5 -1 0 11 14 19 150
2 1 1 50

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
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u4=-1 6 8 3 9 12 19 200
Δ 4 3 0 200 1
Requirem 150 100 75 250 200 125
ent

v1=7 v2=6 v3=1 v4=10 v5=13 v6=19 Supply

u1=0 8 -1 5 2 250 10 13 50 19 300
1 1 0
u2=0 7 6 1 12 15 19 250
150 0 25 2 2 75
u3=-1 9 100 5 0 11 14 19 150
3 50 2 2 1
u4=-1 6 8 3 9 12 19 200
Δ 3 3 0 200 1
Demand 150 100 75 250 200 125

v1=7 v2=5 v3=0 v4=10 v5=13 v6=19 Availabil

ity
u1=0 8 25 5 2 10 13 19 300
1 2 250 0 25
u2=0 7 6 1 12 15 19 250
150 1 1 2 2 100
u3=0 9 75 5 0 11 14 19 150
2 75 1 1 0
u4=-1 6 8 3 9 12 19 200
Δ 4 4 0 200 1
Requirem 150 100 75 250 200 125
ent

All the values of waters (empty cells) are ≥ 0, the solution is optimum
Optimum profit = 25 × 3.5 + 250 × 2.25 + 150 × 3 + 75 × 3.5 + 75 × 4.75 + 200 ×
1.75 = 2068.75

11) The following information is available concerning the operation of a manufacturing

company.

Units on Production capacity Excess cost per Storage cost

Period
order Regular time Over time unit over time ( ) per unit ( )
Month 1 800 920 920 1.25 0.5
Month 2 1400 250 250 1.25 0.5

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 Operations Research

Formulate the above problem as transportation problem and determine the optimal
solution.
Solution:

Month 1 2 Capacity
1 1.00 1.50 920
1' 2.25 2.75 920
2 M 1.00 250
2' M 2.25 250
Demand 800 1400

Demand is less than the capacity hence introduce a dummy column with a demand of
140 units

Month 1 2 3 Capacity
1 1.00 1.50 0 920
1' 2.25 2.75 0 920
2 M 1.00 0 250
2' M 2.25 0 250
Demand 800 1400 140 2340\2340

Multiply the cost matrix by 4 to avoid fraction

By Vogel’s approximation method

Month 1 2 3 Capacity Penalties

4 6 0 4, 2, 2, 2
1 800 120 920
9 11 0 9, 2, 2, 2
1' 780 140 920
M 4 0 4, M-4
2 250 250
M 9 0 9, M-9, M-9
2' 250 250
Demand 800 1400 140
Penalties 5, 5, 5, 5 2, 2, 3, 5 0

Cost of transportation = 800 × 1 + 120 × 1.5 + 780 × 2.75 + 250 × 1 + 250 × 2.25 =
3937.50
Optimality test
Required number of allocations = m + n – 1 = 4 + 3 – 1 = 6, Number of allocations =
6. The solution is non degenerate basic feasible solution

Month v1=-2 v2=0 v3=-11 Capacity

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4 6 0
u1=6 800 120 5 920
9 11 0
u2=11 0 780 140 920
M 4 0
u3=4 M-2 250 7 250
M 9 0
u4=9 M-7 250 2 250
Demand 800 1400 140

All the values of waters (empty cells) are ≥ 0, the solution is optimum
Optimum transportation cost = 800 × 1 + 120 × 1.5 + 780 × 2.75 + 250 × 1 + 250 ×
2.25 = 3937.50

12) Three warehouses supply five stores. The table below shows the cost of shipment
per unit between the warehouses and stores, and also ware house capacities and
requirements of the stores. Determine the optimum delivery scheme.

Stores
1 2 3 4 5 Supply
A 8 6 9 10 5 230
Warehouses B 9 7 8 7 3 180
C 10 12 5 6 7 330
Requirement 100 140 80 220 200

Solution: By Vogel’s approximation method

Stores
1 2 3 4 5 Supply Penalties
A 8 140 6 9 10 5 230 1, 1, 3, 3, 3
70 20
Warehouses B 9 7 8 7 3 180 4
180
C 10 12 5 220 6 7 330 1, 1, 1, 1, 3
30 80
Requirement 100 140 80 220 200 740\740
Penalties 1, 2, 2, 1, 6 3, 4, 4 1, 4, 4, 2, 2, 2,
2, 2 4 2, 2

or

Stores
1 2 3 4 5 Supply Penalties
A 8 140 6 9 10 5 230 1, 1, 3, 3, 3
70 20
Warehouses B 9 7 8 7 3 180 4

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180
C 10 12 5 220 6 7 330 1, 1, 1, 2, 3
30 80
Requirement 100 140 80 220 200 740\740
Penalties 1, 2, 2, 1, 6 3, 4, 4, 1, 4, 4 2, 2, 2,
2, 2 4 2, 2

Cost of transportation = 70 × 8 + 140 × 6 + 20 × 5 + 180 × 3 + 30 × 10 + 80 × 5 + 220 × 6 =

4060
Optimality test
Required number of allocations = m + n – 1 = 3 + 5 – 1 = 7, Number of allocations = 7,
Solution is non-degenerate basic feasible solution.

Stores
v1=8 v2=6 v3=3 v4=4 v5=5 Supply
u1=0 8 140 6 9 10 20 5 230
70 6 6
Warehouses u2=-2 9 7 8 5 7 3 180
3 3 7 180
u3=2 10 4 12 5 220 6 7 330
30 80 0
Requirement 100 140 80 220 200 740\740

All the values of waters (empty cells) are positive, the solution is optimum, Optimum
cost = 4060
Alternate solution is

Stores
1 2 3 4 5 Supply
A 8 6 9 10 5 230
90 140
Warehouses B 9 7 8 7 3 180
180
C 10 12 5 6 7 330
10 80 220 20
Requirement 100 140 80 220 200

Optimum cost = 90 × 8 + 140 × 6 + 180 × 3 + 10 × 10 + 80 × 5 + 220 × 6 + 20 × 7 =

4060

13) Three warehouses supply five stores. The table below shows the cost of shipment
per unit between the warehouses and stores, and also ware house capacities and
requirements of the stores. However a major bridge has been damaged preventing

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 Operations Research

deliveries from warehouse A to stores 5, from warehouse B to store 2 and from

warehouse C to store 4 with these limitations, determine the optimum delivery
scheme.

Stores
1 2 3 4 5 Supply
A 8 6 9 10 5 230
Warehouses B 9 7 8 7 3 180
C 10 12 5 6 7 330
Requirement 100 140 80 220 200

Solution:

Stores
1 2 3 4 5 Supply Penalties
A 8 140 6 9 90 10 M 230 2, 1, 1, 1

Warehouses B 9 M 8 7 3 180 4, 4
180
C 100 10 12 5 130 M 7 330 2, 2, 2, 5
80 20
Requirement 100 140 80 220 200 740\740
Penalties 1, 1, 2, 6 3, 3, 4, 3, 3, 4, 4,
2 4 M-10, M-7
M-10

Optimality test

Stores
1 2 3 4 5 Supply
A 8 6 9 10 M 230
50 140 40
Warehouses B 9 M 8 7 3 180
180
C 10 12 5 M 7 330
50 80 200
Requirement 100 140 80 220 200

Optimum cost = 50 × 8 + 140 × 6 + 40 × 10 + 180 × 7 + 50 × 10 + 80 × 5 + 200 × 7 =

5200

14) A company has four factories F 1, F2, F3 and F4 manufacturing the same product.
Production and raw material cost differ from factory to factory and are given in the
following table in the first two rows. The transportation costs from factory to Sale
depots, S1, S2 and S3 are given. The last two columns in the table give the sales price and

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 Operations Research
the total requirement at each depot. The production capacity of each factory is given in the
last row.

F1 F2 F3 F4 Selling Requirement
Price/unit in units
Production 15 18 14 13
cost/unit
Raw material 10 9 12 9
cost/unit
Transportation S1 3 9 5 4 34 80
cost/unit S2 1 7 4 5 32 120
S3 5 8 3 6 31 150
Production 10 150 50 100
capacity in
units

Determine the most profitable production and distribution schedule and the
corresponding profit. The deficit production should be taken to yield zero profit.
Solution: Total production cost/unit at plants

Plants F1 F2 F3 F4
Total production cost 25 27 26 22

Total cost/unit at different sales departments = Total production cost + transportation cost

F1 F2 F3 F4
S1 28 36 31 26
S2 26 34 30 27
S3 30 35 29 28

Profit/Loss = Selling price – Total cost

F1 F2 F3 F4
S1 6 -2 3 8
S2 6 -2 2 5
S3 1 -4 2 3

Convert the problem to minimization type. Production capacity is less than the
requirement, introduce a dummy factory with a production capacity of 40 units. By
Vogel’s approximation method

F1 F2 F3 F4 F5 Requirements Penalties
S1 -6 2 -3 -8 0 80 2
80
S2 -6 2 -2 -5 0 120 1, 1, 3, 2, 2
10 40 50 20

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 Operations Research

S3 -1 4 -2 -3 0 150 1, 1, 1, 2, 4
110 40
Production 10 150 50 100 40 350\350
capacity
Penalties 0, 5 0, 2, 2, 1, 0, 0, 3, 2, 2 0, 0, 0,
2, 2 0 0, 0

Total profit = 80 × 8 + 10 × 6 + 40 × (- 2) + 50 × 2 + 20 × 5 + 110 × (-4) = 900 – 520

= 380
Optimality test
Required number of allocations = m + n – 1 = 3 + 5 – 1 = 7, Number of allocations =
7, Solution is non-degenerate basic feasible solution.

v1 = -4 v2 = 4 v3 = -2 v4 = -3 v5= 0 Requirements
u1 = -5 -6 2 -3 80 -8 0 80
3 3 4 5
u2 = -2 -6 2 -2 -5 0 120
10 90 2 20 2
u3= 0 -1 4 -2 -3 0 150
3 60 50 0 40
Production 10 150 50 100 40 350\350
capacity

Optimum profit = 80 × 8 + 10 × 6 + 90 × (-2) + 20 × 5 + 60 × (-4) + 50 × 2 = 900 –

420 = 480

15) A company is spending Rs.1000 on transportation of its units from the plants to
distribution centers. The supply and demand of units, with unit cost of transportation
are given as:

Distribution centers
D1 D2 D3 D4 Availability
P1 19 30 50 12 7
Plants P2 70 30 40 60 10
P3 40 10 60 20 18
Demand 5 8 7 15

What could be the maximum saving by optimum scheduling?

Solution: By Vogel’s approximation method

Distribution centers
D1 D2 D3 D4 Availability Penalties
P1 5 19 30 50 2 12 7 7, 18, 38,
38

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 Operations Research

Plant P2 70 30 40 60 10 10, 10, 20,

7 3
s 20
P3 40 10 60 20 18 10, 10, 40
8 10
Demand 5 8 7 15 35\35
Penalties 21 20, 20 10, 10, 8, 8, 8,
10, 10 48

Optimality test

Distribution centers
D1 D2 D3 D4 Availability
P1 19 30 50 12 7
5 2
Plants P2 70 30 40 60 10
3 7
P3 40 10 60 20 18
5 13
Demand 5 8 7 15

Total cost 799, maximum saving = 1000 – 799 = 201

16) A company is spending 1000 on transportation of its units from the plants to
distribution centers. The supply and demand of units, with unit cost of transportation
are given as:

Distribution centers
D1 D2 D3 D4 Availability
P1 19 30 50 10 7
Plants P2 70 30 40 60 9
P3 40 8 70 20 18
Demand 5 8 7 14

What could be the maximum saving by optimum scheduling?

Solution: By Vogel’s approximation method

Distribution centers
D1 D2 D3 D4 Availability Penalties
P1 5 19 30 50 2 10 7 9, 9, 40, 40

Plant P2 70 30 40 60 9 10, 20, 20,

7 2
s 20
P3 40 8 70 20 18 12, 20, 50
8 10
Demand 5 8 7 14 34\34
Penalties 21, 21 22 10, 10, 10, 10,

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Compiled by Dr. B. Jayashankara, Professor (Retd.), Dept. of Automobile Engineering, P.E.S. College of Engineering, Mandya
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10, 10 10, 50

Cost of transportation = 5 × 19 + 2 × 10 + 7 × 40 + 2 × 60 + 8 × 8 + 10 × 20 = 95 + 20
+ 280 + 120 + 64 +200 = 779
Optimality test
Required number of allocations = m + n – 1 = 3 + 4 – 1 = 6, solution is non
degenerate basic feasible solution since number of allocations is equal to required
number of allocations.

Distribution centers
v1=9 v2=-12 v3=-20 v4=0 Availability
u1=10 19 30 50 10 7
5 32 60 2
Plants u2=60 70 -18 30 40 60 9
1 7 2
u3=20 40 8 70 20 18
11 8 70 10
Demand 5 8 7 14

Distribution centers
v1=29 v2=8 v3=18 v4=20 Availability
u1=-10 19 32 30 42 50 10 7
5 2
Plants u2=22 70 30 40 18 60 9
19 2 7
u3=0 11 40 6 8 52 70 12 20 18

Demand 5 8 7 14

Optimum transportation cost = 5 × 19 + 2 × 10 + 2 × 30 + 7 × 40 + 6 × 8 + 12 × 20 =

95 + 20 + 60 + 280 + 48 +240 = 743
Cost of transportation = 799, maximum saving = 1000 – 743 = 257

17) A company has four factories from which it ships its products to four warehouses
which are the distribution centers. Transportation cost/unit between various factories
and warehouses are as follows:

Warehouses
W1 W2 W3 W4 Availability
F1 44 56 52 54 140
Factories F2 41 51 49 56 260

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 Operations Research

F3 46 61 56 58 360
F4 48 60 51 57 220
Requirement 200 320 250 210

(a) Find the optimum transportation schedule and cost.

(b) Is the solution unique? If not, find the alternate solution.
Solution: By Vogel’s approximation method

Warehouses
W1 W2 W3 W4 Availability Penalties
44 56 30 52 54 8, 2, 2, 2, 2
F1 60 50 140
Factories 41 51 49 56 8, 2, 2
F2 260 260
46 61 56 58 10, 2, 2, 2, 2
F3 200 160 360
48 60 51 57 3, 6
F4 220 220
Requirement 200 320 250 210 980\980
Penalties 3 5, 5, 5, 5 2, 2, 3, 4, 4 2, 2, 2, 4, 4

or

Warehouses
W1 W2 W3 W4 Availability Penalties
44 56 52 54 8, 2, 2, 2, 2
F1 60 80 140
Factories 41 51 49 56 8, 2, 2
F2 260 260
46 61 56 58 10, 2, 2, 2, 2
F3 200 30 130 360
48 60 51 57 3, 6
F4 220 220
Requirement 200 320 250 210 980\980
Penalties 3 5, 5, 5, 5 2, 2, 3, 4, 4 2, 2, 2, 4, 4

Optimality test
Required number of allocations = m + n – 1 = 4 + 4 – 1 = 7, Number of
allocations = 7, Solution is non-degenerate basic feasible solution.

Warehouses
v1 = 42 v2 = 56 v3 = 52 v4 = 54 Availability
44
u1 = 0 2 60 56 30 52 50 54 140
Factories u2 = -5 41 51 49 56 260
4 260 2 7

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 Operations Research

46 61 56 58
u3 = 4 200 1 0 160 360
48 60 51 57
u4 = -1 7 5 220 4 220
Requirement 200 320 250 210

All the values of waters (empty cells) are positive, the solution is optimum. One of the
values of water is zero which indicates that alternate solution exists.
Alternate solution is

Warehouses
v1 = 46 v2 = 60 v3 = 56 v4 = 58 Availability
44 60 56 52
u1 = -4 2 0 80 54 140
Factories 41 51 49 56
u2 = -9 4 260 2 7 260

200 46 1 61 30 56 130 58
u3 = 0 360
48 60 51 57
u4 = -5 7 5 220 4 220
Requirement 200 320 250 210 980\980

Optimum cost = 60 × 56 + 80 × 54 + 260 × 51 + 200 × 46 + 30 × 56 + 130 × 58 + 220

× 51 = 50580

18) A company has four plants at locations A, B, C and D which supply to four warehouses
located at E, F, G and H. Transportation cost per unit between various plants and
warehouses are as follows:

Warehouse
E F G H Supply
A 48 60 56 58 140
B 45 55 53 60 260
Plants
C 50 65 60 62 360
D 52 64 55 61 220
Demand 200 320 250 210

(i) Find the optimum transportation schedule and cost.

(ii) Is the solution unique? If not, find the alternate solution.
Solution: By Least cost method

Warehouses
W1 W2 W3 W4 Availability Penalties
F1 48 60 56 58 140 8, 2, 2, 2, 2
140

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Plants 45 55 53 60 8, 2, 2
F2 200 60 260
50 65 60 62 10, 2, 2, 2, 2
F3 320 40 360
52 64 55 61 3, 6
F4 190 30 220
Requirement 200 320 250 210 980\980
Penalties 3 5, 5, 5, 5 2, 2, 3, 4, 4 2, 2, 2, 4, 4

By Vogel’s approximation method

Warehouses
W1 W2 W3 W4 Availability Penalties
48 60 30 56 58 8, 2, 2, 2, 2
F1 60 50 140
Plants 45 55 53 60 8, 2, 2
F2 260 260
50 65 60 62 10, 2, 2, 2, 2
F3 200 160 360
52 64 55 61 3, 6
F4 220 220
Requirement 200 320 250 210 980\980
Penalties 3 5, 5, 5, 5 2, 2, 3, 4, 4 2, 2, 2, 4, 4

Optimality test
Required number of allocations = m + n – 1 = 4 + 4 – 1 = 7, Number of
allocations = 7, Solution is non-degenerate basic feasible solution.

Warehouses
v1 = 46 v2 = 60 v3 = 56 v4 = 58 Availability
48
u1 = 0 2 60 60 30 56 50 58 140
Plants 45 55 53 60
u2 = -5 4 260 2 7 260
50 65 60 62
u3 = 4 200 1 0 160 360
52 64 55 61
u4 = -1 7 5 220 4 220
Requirement 200 320 250 210

All the values of waters (empty cells) are positive, the solution is optimum. One of the
values of water is zero which indicates that alternate solution exists.
Alternate solution is

Warehouses
v1 = 50 v2 = 64 v3 = 60 v4 = 62 Availability

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48 60 56 58
u1 = -4 2 60 0 80 140
Plants 45 55 53 60
u2 = -9 4 260 2 7 260
50 65 60 62
u3 = 0 200 1 30 130 360
52 64 55 61
u4 = -5 7 5 220 4 220
Requirement 200 320 250 210 980\980

Optimum cost = 60 × 60 + 80 × 58 + 260 × 55 + 200 × 50 + 30 × 60 + 130 × 62 +

220 × 55 = 54500

19) A product is produced by four factories F1, F2, F3 and F4. The unit production
costs are 2, 3, 1 and 5 respectively. Production capacities are 50, 70, 40 and
50 units respectively. The product is supplied to four stores S1, S2, S3 and S4. The
requirements of which are 25, 35, 105 and 20 units respectively. Unit cost of
transportation are given below:

Factories Stores
S1 S2 S3 S4
F1 2 4 6 11
F2 10 8 7 5
F3 13 3 9 13
F4 4 6 8 3

Find the transportation plan such that the total production and transportation cost is
minimum.
Solution: By Least cost method

Stores
S1 S2 S3 S4 S5 Supply
F1 25 4 6 8 13 25 0 50

Factories F2 13 11 50 10 20 8 0 70

F3 14 35 4 10 14 0 40
5
F4 9 11 50 13 8 0 50

Requirement 25 35 105 20 25 210\210

Total Cost = 25 × 4 + 50 × 10 + 20 × 8 + 35 × 4 + 5 × 10 + 50 × 13 = 100 + 500 +

160 + 140 + 50 + 650 = 1600

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Optimality test
Required number of allocations = m + n – 1 = 4 + 5 – 1 = 8, Number of allocations =
7, solution is degenerate basic feasible solution.
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

v1=4 v2=4 v3=10 v4=8 v5=0 Supply

u1=0 25 4 2 6 -2 8 5 13 25 0 50
u2=0 13 7 11 50 10 20 8 0 70
9 Δ
u3=0 10 14 35 4 10 6 14 0 40
5 0
u4=3 9 11 50 13 -3 8 0 50
2 4 -3
Requirement 25 35 105 20 25

Total Cost = 25 × 4 + 50 × 10 + 20 × 8 + 35 × 4 + 5 × 10 + 50 × 13 = 100 + 500 +

160 + 140 + 50 + 650 = 1600

20) Solve the transportation problem using North-west corner method and then optimize
the solution using U-V method.

Destination
1 2 3 Supply
1 3 7 4 300
Source 2 2 5 9 400
3 8 3 2 500
Demand 250 350 200

Solution:

1 2 3 4 Supply
3 7 4 0
1 250 50 300
2 5 9 0
2 300 100 400
8 3 2 0
3 100 400 500
Demand 250 350 200 400

Optimality test
Required number of allocations = m + n – 1 = 3 + 4 – 1 = 6, Number of allocations =
6. The solution is non-degenerate basic feasible solution

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Row/Column values cij = ui + vj

Values of waters = cij – (ui + vj)

v1=3 v2=7 v3=11 v4=9 Supply

250 3 7 4 0
u1=0 50 -7 -9 300
2 5 9 0
u2=-2 1 300 100 -7 400
8 3 2 0
u3=-9 14 5 100 400 500
Demand 250 350 200 400

21) Solve the transportation problem using North-west corner method and then optimize
the solution using U-V method.

Destination
1 2 3 4 Supply
1 3 1 7 4 300
Source 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200

Solution:

1 2 3 4 Supply
3 1 7 4
1 250 50 300
2 6 5 9
2 300 100 400
8 3 3 2
3 300 200 500
Demand 250 350 400 200

250 × 3 + 50 × 1 + 300 × 6 + 100 × 5 + 300 × 3 + 200 × 2 = 750 + 50 + 1800 + 500 +

900 + 400 = 4400
Optimality test
Required number of allocations = m + n – 1 = 3 + 4 – 1 = 6, Number of allocations =
6. The solution is non-degenerate basic feasible solution
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

v1=6 v2=4 v3=3 v4=2 Supply

250 3 1 7 4
u1=-3 50 7 5 300

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2 6 5 9
u2=2 -6 300 100 5 400
8 3 3 2
u3=0 2 -1 300 200 500
Demand 250 350 400 200

v1=2 v2=6 v3=5 v4=4 Supply

3 1 7 4
u1=-5 6 300 7 5 300
2 6 5 9
u2=0 250 50 100 5 400
8 3 3 2
u3=-2 8 -1 300 200 500
Demand 250 350 400 200

v1=0 v2=3 v3=3 v4=2 Supply

3 1 7 4
u1=-2 5 300 6 4 300
2 6 5 9
u2=2 250 1 150 4 400
8 3 3 2
u3=0 8 50 250 200 500
Demand 250 350 400 200

300 × 1 + 250 × 2 + 150 × 5 + 50 × 3 + 250 × 3 + 200 × 2 = 300 + 500 + 750 + 150 +

750 + 400 = 2850

22) A company has factories at A, B and C which supply warehouses at D, E, F, and

G. Monthly factory capacities are 160, 150, and 190 units respectively, Monthly
warehouse requirements are 80, 90, 110 and 160 units respectively. Unit shipping
costs (in ) are as follows. Determine the optimum distribution for this company to
minimize shipping costs. Also find the minimum cost.

To
D E F G
From A 42 48 38 37
B 40 49 52 51
C 39 38 40 43

Solution: By Vogel’s approximation method

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D E F G H Capacity Penalties
A 42 48 38 160 37 0 160 37, 1, 1, 1

B 40 49 52 51 0 150 40, 9, 11, 1

80 10 60
C 39 38 100 40 43 0 190 38, 1, 1, 3
90
Requiremen 80 90 110 160 60 500\500
t
Penalties 1, 1, 1 10, 10 2, 2, 2, 2 6, 6, 6, 6 0

Optimality test
Required number of allocations = m + n – 1 = 3 + 5 – 1 = 7, Number of allocations =
7, Solution is non-degenerate basic feasible solution.
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

v1=40 v2=50 v3=52 v4=37 v5=0 Capacity

u1=0 42 48 38 37 ∆ 0 160
2 -2 -14 160
u2=0 40 -1 49 52 14 51 0 150
80 10 60
u3=-12 39 38 100 40 43 0 190
11 90 18 12
Requirement 80 90 110 160 60 500\500

v1=40 v2=50 v3=52 v4=51 v5=0 Capacity

u1=-14 42 48 38 37 14 0 160
16 12 ∆ 160
u2=0 40 -1 49 52 0 51 0 150
80 10 60
u3=-12 39 38 100 40 43 0 190
11 90 4 12
Requirement 80 90 110 160 60 500\500

v1=40 v2=49 v3=51 v4=50 v5=0 Capacity

u1=-13 15 42 12 48 ∆ 38 160 37 13 0 160

u2=0 40 49 52 1 51 0 150
80 10 1 60
u3=-11 39 38 110 40 43 0 190
10 80 4 11

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Requirement 80 90 110 160 60 500\500

All the values of waters (empty cells) are positive, the solution is optimum, Optimum
cost = 160 × 37 + 80 × 40 + 10 × 49 + 80 × 38 + 110 × 40 = 17050

23) A company has four plants at locations A, B, C and D which supply to warehouses
located at E, F, G and H. Transportation cost per unit between various plants and
warehouses are as shown below.

Warehouse
E F G H Supply
A 48 60 56 56 140
B 45 55 53 60 260
Plants
C 50 65 60 62 360
D 52 64 55 61 220
Demand 200 320 250 210

(i) Find the transportation schedule which minimizes the distribution cost.
(ii) Is the solution Unique? If not find the alternative schedule.
Solution: By Vogel’s approximation method

Warehouses
W1 W2 W3 W4 Availability Penalties
48 60 56 140 56 8, 0, 0, 0
F1 140
Factories
45 260 55 53 60 8, 2, 2
F2 260

200 50 60 65 30 60 70 62 10, 2, 2, 2, 2
F3 360

52 64 220 55 61 3, 6
F4 220

Requirement 200 320 250 210 980\980

Penalties 3 5, 5, 5, 5 2, 2, 3, 4 4, 4, 4, 6

Optimality test
Required number of allocations = m + n – 1 = 4 + 4 – 1 = 7, Number of
allocations = 7, Solution is non-degenerate basic feasible solution.

Warehouses

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v1 = 50 v2 = 65 v3 = 60 v4 = 62 Availability
48 60 56 140 56
u1 = - 6 4 1 2 140
Factories
5 45 260 55 3 53 8 60
u2 = - 10 260

200 50 60 65 30 60 70 62
u3 = 0 360

52 4 64 220 55 4 61
u4 = - 5 7 220

Requirement 200 320 250 210

All the values of waters (empty cells) are positive, the solution is optimum and
unique.
Optimum cost = 140 × 56 + 260 × 55 + 200 × 50 + 60 × 65 + 30 × 60 + 70 × 62 + 220
× 55 = 54280

24) There are three factories A, B and C which supply goods to four dealers D 1, D2, D3
and D4. The production capacities of these factories are 1000, 700 and 900 units per
month respectively. The requirements from the dealers are 900, 800, 500 and 400
units per month respectively. The per unit return (excluding transportation cost) are
8, 7 and 9 at the factories. The following table gives unit transportation costs from
the factories to the dealers.

Dealers
D1 D2 D3 D4
A 2 2 2 4
Factories B 3 5 3 2
C 4 3 2 1

Determine the optimum solution to maximize the total return

Solution:

Dealers
D1 D2 D3 D4 Capacities
A 6 6 6 4 1000
Factories B 4 2 4 5 700
C 5 6 7 8 900
Requirement 900 800 500 400

Convert the problem to minimization type

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Dealers
D1 D2 D3 D4 Capacities
A 2 2 2 4 1000
Factories B 4 6 4 3 700
C 3 2 1 0 900
Requirement 900 800 500 400

By Vogel’s approximation method

D1 D2 D3 D4 Capacities Penalties
A 200 2 800 2 2 4 1000 0, 0, 0

B 700 4 6 4 3 700 1, 0, 2

C 3 2 500 1 0 900 1, 1
400
Requirements 900 800 500 400 2600\2600
Penalties 1, 1, 2 0, 0, 4 1, 1 3

Total return = 200 × 6 + 800 × 6 + 700 × 4 + 500 × 7 + 400 × 8 = 1200 + 4800 + 2800
+ 3500 + 3200 = 15500

or

D1 D2 D3 D4 Capacities Penalties
A 900 2 100 2 2 4 1000 0, 0, 0

B 4 200 6 500 4 3 700 1, 0, 2

C 3 500 2 1 0 900 1, 1, 1
400
Requirements 900 800 500 400 2600\2600
Penalties 1, 1 0, 0, 0 1, 1, 1 3

Total return = 900 × 6 + 100 × 6 + 200 × 2 + 500 × 4 + 500 × 6 + 400 × 8 = 5400 +

600 + 400 + 2000 + 3000 + 3200 = 14600
Optimality test
Required number of allocations = m + n – 1 = 3 + 4 – 1 = 6, solution is degenerate
basic feasible solution since number of allocations is not equal to required number of
allocations.

v1 = 2 v2 = 2 v3 = 2 v4 = 1 Capacities
u1 = 0 200 2 800 2 Δ 2 4 1000
3
u2 = 2 4 6 4 3 700

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700 2 0 0
u3 = -1 3 2 500 1 0 900
2 1 400
Requirements 900 800 500 400 2600\2600

Optimum return = 200 × 6 + 800 × 6 + 700 × 4 + 500 × 7 + 400 × 8 = 1200 + 4800 +

2800 + 3500 + 3200 = 15500

or

v1 = 0 v2 = 0 v3 = -2 v4 = -2 Capacities
u1 = 2 900 2 100 2 2 4 1000
2 4
u2 = 6 4 200 6 500 4 3 700
-2 -1
u3 = 2 3 500 2 1 0 900
1 1 400
Requirements 900 800 500 400 2600\2600

v1 = 2 v2 = 2 v3 = 2 v4 = 0 Capacities
u1 = 0 700 2 300 2 2 4 1000
0 4
u2 = 2 200 4 6 500 4 3 700
2 1
u3 = 0 3 500 2 1 0 900
1 -1 400
Requirements 900 800 500 400 2600\2600

v1 = 2 v2 = 2 v3 = 1 v4 = 0 Capacities
u1 = 0 200 2 800 2 2 4 1000
1 4
u2 = 2 700 4 6 4 3 700
2 1 1
u3 = 0 3 2 500 1 0 900
1 Δ 400
Requirements 900 800 500 400 2600\2600

Optimum return = 200 × 6 + 800 × 6 + 700 × 4 + 500 × 7 + 400 × 8 = 1200 + 4800 +

2800 + 3500 + 3200 = 15500

25) A manufacturer of Jeans is interested in developing an advertising campaig n that

will reach four different age groups. Advertising campaign can be conducted through TV,

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radio and magazines. The following table gives the estimated cost in paise per exposure for
each age group according to the media employed. In addition maximum exposure levels
possible in each of the media namely TV, radio and magazines are 40, 30 and 20 millions
respectively. Also the minimum derived exposures within each age group namely 13 – 18, 19
– 25, 26 – 35, 36 and olders are 30, 25, 15 and 10 millions. The objective is to minimize the
cost of assigning the minimum exposure levels in each age group.

Age Groups
Media 13-18 19-25 26-35 36 and
older
TV 12 7 10 10
Radio 10 9 12 10
Magazine 14 12 9 12

(i) Formulate the above as a transportation problem and find the optimal solution,

(ii) Solve the problem if the policy is to provide at least 4 million exposures through
TV in the 13 – 18 age group and at least 8 million exposures through TV in the
age group 19 – 25.
Solution: By Vogel’s approximation method

Age Groups
Media 13-18 19-25 26-35 36 and Dummy Maximum Penalties
older Exposures
Available
12 7 10 10 0 40 7, 3, 0, 2
TV 5 25 10
10 9 12 10 0 30 9, 1, 0, 0
Radio 20 10
14 12 9 12 0 20 9, 3, 3, 2
Magazine 5 15
Minimum 30 25 15 10 10 90\90
Exposures
Required
Penalties 2, 2, 1 2, 2 1, 1, 1 0, 0, 0 0

Cost of transportation = 5 × 12 + 25 × 7 + 10 × 10 + 20 × 10 + 5 × 14 + 15 × 9 = 60 +
175 + 100 + 200 + 70 + 135 = 740
Required number of allocations = m + n – 1 = 3 + 5 – 1 = 7
Row/Column values cij = ui + vj
Values of waters = cij – (ui + vj)

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V1=0 V2=-5 V3=-5 V4=-2 V5=-10 Maximum

Exposures
Available
12 7 10 10 0 40
U1=12 5 25 3 10 -2
10 9 12 10 0 30
U2=10 20 4 7 2 10
14 12 9 12 0 20
U3=14 5 3 15 0 -4
Minimum 30 25 15 10 10 90\90
Exposures
Required

V1=12 V2=7 V3=11 V4=10 V5=2 Maximum

Exposures
Available
12 7 10 10 0 40
U1=0 5 25 -1 10 -2
10 9 12 10 0 30
U2=-2 25 4 3 2 5
14 12 9 12 0 20
U3=-2 4 7 15 4 5
Minimum 30 25 15 10 10 90\90
Exposures
Required

V1=10 V2=7 V3=9 V4=10 V5=0 Maximum

Exposures
Available
12 7 10 10 0 40
U1=0 2 25 1 10 5
10 9 12 10 0 30
U2=0 30 2 3 0 ∆
14 12 9 12 0 20
U3=0 4 5 15 2 5
Minimum 30 25 15 10 10 90\90
Exposures
Required

Optimum transportation cost = 25 × 7 + 10 × 10 + 30 × 10 + 15 × 9 = 175 + 100 +

300 + 135 = 710

Age Groups
Media 13-18 19-25 26-35 36 and Dummy Maximum Penalties

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older Exposures
Available
12 7 10 10 0 28 7, 3, 0, 2
TV 1 17 10
10 9 12 10 0 30 9, 1, 0, 0
Radio 20 10
14 12 9 12 0 20 9, 3, 3, 2
Magazine 5 15
Minimum 26 17 15 10 10 78\78
Exposures
Required
Penalties 2, 2, 2, 2 2, 2 1, 1, 1 0, 0, 0, 0 0

Cost of transportation = 1 × 12 + 17 × 7 + 10 × 10 + 20 × 10 + 5 × 14 + 15 × 9 + 4 ×
12 + 8 × 7 = 12 + 119 + 100 + 200 + 70 + 135 + 48 + 56 = 740

V1=12 V2=7 V3=7 V4=10 V5=2 Maximum

Exposures
Available
12 7 10 10 0 28
U1=0 1 17 3 10 -2
10 9 12 10 0 30
U2=-2 20 4 7 2 10
14 12 9 12 0 20
U3=2 5 3 15 0 -4
Minimum 26 17 15 10 10 78\78
Exposures
Required

V1=12 V2=7 V3=11 V4=10 V5=2 Maximum

Exposures
Available
12 7 10 10 0 28
U1=0 1 17 -1 10 -2
10 9 12 10 0 30
U2=-2 25 4 3 2 5
14 12 9 12 0 20
U3=-2 4 7 15 4 5
Minimum 26 17 15 10 10 78\78
Exposures
Required

V1=10 V2=7 V3=9 V4=10 V5=0 Maximum

Exposures

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Available
12 7 10 10 0 28
U1=0 2 17 3 10 1
10 9 12 10 0 30
U2=0 26 2 3 0 4
14 12 9 12 0 20
U3=0 4 5 15 2 5
Minimum 26 17 15 10 10 78\78
Exposures
Required

Optimum transportation cost = 17 × 7 + 10 × 10 + 26 × 10 + 15 × 9 + 4 × 12 + 8 × 7=

119 + 100 + 260 + 135 + 48 + 56 = 718

or

By Vogel’s approximation method

Age Groups
Media 13-18 19-25 26-35 36 and Dummy Maximum Penalties
older Exposures
Available
12 7 10 10 0 40 7, 3, 0, 2, 0
TV 25 5 10
10 9 12 10 0 30 9, 1, 0, 0
Radio 30
14 12 9 12 0 20 9, 3, 3, 2
Magazine 10 10
Minimum 30 25 15 10 10 90\90
Exposures
Required
Penalties 2, 2, 2 2, 2 1, 1, 1 0, 0, 0 0

Questions

1) What is the need for transportation models? Write the North West comer algorithm.
2) What is degeneracy in transportation problem? Discuss.
3) What is degeneracy in transportation problem? Explain.
4) What is degeneracy? How is it resolved?
5) What is degeneracy in transportation problem? How is it resolved?
6) What is degeneracy in transportation problem? How is it resolved? Explain
7) What is degeneracy in transportation problem? How do you resolve it? Explain
8) What is degeneracy? Discuss how to resolve degeneracy in transportation problem.
9) What is degeneracy in transportation models? How such problems are solved.
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10) What is cycling in transportation problem? How to resolve it?

11) What is meant by unbalanced transportation problem? Explain how an unbalanced
transportation problem can be balanced.
12) What is meant by unbalanced transportation problem? Explain the method of solving
such problems.
13) What is an unbalanced transportation problem? How do you solve such problems?
14) What do you mean by degeneracy in transportation problems?
15) What are the unbalanced transportation problems? How do you modify these
problems to balanced type?
16) What are the additional constraints that reduce the general linear programming
problem to the transportation problem?
17) How do you determine alternative solutions in a transportation problem?
18) How are alternate optimal solution detected in transportation problem?
19) How are alternative optimal solutions detected in transportation problem?
20) How are alternate solution detected in transportation problem? Explain how to
determine alternate solution.
21) How many variables are required to check optimality in transportation problem?
Why? Give an example.
22) How many allocations are required in transportation problem to check the optimality?
Explain why?
23) How to resolve degeneracy in transportation Problem?
24) How does the MODI method differ from the stepping stone method?
25) Define balanced transportation problem.
26) Define the following with respect to transportation problem: (i) Feasible solution, (ii)
Basic feasible solution, (iii) Optimal solution.
27) Define the following terms related to transportation: (i) Basic feasible solution, (ii)
Degeneracy
28) List the methods to obtain initial basic feasible solution for a transportation problem.
29) List the steps involved in Vogel's approximation method.
30) List the steps involved in North-West corner method.
31) Enumerate the steps involved in VAM method of obtaining initial basic feasible
solution.
32) Briefly explain the different methods of obtaining initial feasible solution to a
transportation problem.
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33) Explain clearly unbalanced transportation problems

34) Explain degeneracy in transportation problems.
35) Explain how to solve the degeneracy in transportation problems.
36) Explain how to overcome degeneracy in transportation problems.
37) Explain MODI method for obtaining optimum solution of a transportation problem.
38) Explain the following: (i) Feasible solution, (ii) Optimum solution.
39) Describe unbalanced transportation problems.
40) Differentiate between balanced and unbalanced transportation problems.
41) Give the general form of a transportation problem. What is an unbalanced
transportation problem?
42) Give a mathematical formulation of transportation model.
43) Write transportation problem in linear programming format.
44) With respect to transportation problems, what is degeneracy and how is it tackled?
45) Write a note on degeneracy in transportation problems.
46) Write the standard format of a balanced transportation prob1em
47) Write a note on degeneracy in transportation problems.
48) Write a note on unbalanced transportation problem.
49) Write a note on Vogel’s approximation method.
50) Write an explanatory note on unbalanced transportation problem
51) Write a note on VAM, Degeneracy in transportation problems, Degeneracy in
transportation models

Exercises

1) Convert the transportation problem shown in Table in to a balanced transportation problem.

Destination
D E F Supply
A 30 50 15 300
Source B 35 70 20 200
C 20 45 60 500
Demand 300 200 400
Hints:
Destination
D E F G Supply
A 30 50 15 0 300
Source B 35 70 20 0 200
C 20 45 60 0 500
Demand 300 200 400 100

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2) Find an initial feasible solution by matrix minima method for the following
transportation problem.
To
D1 D2 D3 D4 Available
O1 1 2 1 4 30
From O2 3 3 2 1 50
O3 4 2 5 9 20
Demand 20 40 30 10
3) Find initial basic feasible solution for the following transportation.
Destination
A B C D Supply
I 1 5 3 3 34
Origin II 3 3 1 2 15
III 0 2 2 3 12
IV 2 7 2 4 19
Demand 21 25 17 17
4) Find initial basic feasible solution for the following transportation problem by using
Vogel’s approximation method.
Destination
A B C D Supply
I 1 5 3 3 34
Origin II 3 3 1 2 15
III 0 2 2 3 12
IV 2 7 2 4 19
Demand 21 25 17 17
5) Find the optimal solution to the following transportation problem.
Markets
A B C D Availability
X 19 30 50 10 7
Plants Y 70 30 40 60 9
Z 40 8 70 20 18
Requirement 5 8 7 14
6) Obtain an initial basic feasible solution to the following transportation problem using Vogel’s
approximation method and check for optimality.
To
D1 D2 D3 D4 D5 D6 Available
9 O1 12 9 6 9 10 5
From 7 O2 3 7 7 5 5 6
6 O3 5 9 11 3 11 2
6 O4 8 11 2 2 10 9
Demand 4 4 6 2 4 2
7) Obtain the basic feasible solution by Vogel's approximation method and find the
optimal basic feasible solution.
To

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 Operations Research

A B C Available
I 50 30 220 1
From II 90 45 170 3
III 250 200 50 4
Required 4 2 2
8) Obtain an optimal solution to the following transportation problem. Cell entries
represent unit cost of transportation.
1 2 3 4 5 6 Available
A 9 12 9 6 9 10 5
B 7 3 7 7 5 5 6
C 6 5 9 11 3 11 2
D 6 8 11 2 2 10 9
Required 4 4 6 2 4 2
9) Obtain an optimal solution to the following transportation problem. Cell entries are
unit cost of transportation.
W1 W2 W3 W4 Supply
F1 19 30 50 10 17
F2 70 30 40 60 9
F3 40 8 70 20 18
Demand 5 8 7 14
10) Obtain the optimum solution to the following transportation problem, cell entries c ij
indicate the profit when dress j is purchased from manufacturer.

A B C D E Supply
W 2.75 3.50 4.25 2.25 1.50 300
Manufacturers X 3.00 3.25 4.50 1.75 1.00 250
Y 2.50 3.50 4.75 2.00 1.25 150
Z 3.25 2.75 4.00 2.50 1.75 200
Demand 150 100 75 250 200
11) Find the basic feasible solution of the transportation problem by north-west comer
rule. Also, determine the optimum transportation plan
Destination
1 2 3 4 5 Availability
A 4 3 1 2 6 80
Source B 5 2 3 4 5 60
C 3 5 6 3 2 40
D 2 4 4 5 3 20
Demand 60 60 30 40 10
12) Find out optimum transportation cost from the cost matrix given below
Destinations
I II III IV Supply
A 70 100 140 80 30
Sources B 70 110 120 60 40
C 50 80 150 90 30

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Demand 20 20 25 90
13) Find the optimum solution to the following transportation problem in which the cells
contain the transportation cost in
W1 W2 W3 W4 W5 Available
F1 7 6 4 5 9 40
F2 8 5 6 7 8 30
F3 6 8 9 6 5 20
F4 5 7 7 8 6 10
Required 30 30 15 20 5
14) Find the optimal solution for the following transportation problem. Use Vogel’s
approximation method to find the initial table. Verify for optimality
Destination
A B C D Availability
I 21 16 25 13 11
Source II 17 18 14 23 13
III 32 10 22 45 19
Requirement 6 10 12 15
15) Find the optimum transportation schedule and cost for the following transportation
problem. Is the solution is unique? If not, find the alternate solution.
Warehouses
W1 W2 W3 W4 Available
F1 42 54 50 52 120
Factories F2 39 49 47 54 240
F3 44 59 54 56 340
F4 46 58 49 55 200
Requirement 180 300 230 190
16) Solve the following transportation problem.
1 2 3 4 5 6 Available
A 9 12 9 6 9 10 5
B 7 3 7 7 5 5 6
C 6 5 9 11 3 11 2
D 6 8 11 2 2 10 3
Demand 4 4 6 2 4 2
17) Solve the following transportation problem.
To
1 2 3 4 Supply
A 15 10 17 18 2
From B 16 13 12 13 6
C 12 17 20 11 7
Demand 3 3 4 5
18) Solve the following transportation problem (cell entries represent unit costs).
1 2 3 4 5 6 Availability
A 5 3 7 3 8 5 3
B 5 6 12 5 7 11 4

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C 2 8 3 4 8 2 2
D 9 6 10 5 10 9
Requirement 3 3 6 2 1 2
What is the optimal transportation cost?
19) Solve the transportation problem by North-West corner method and find the optimal
solution.
D1 D2 D3 D4 D5 D6
1 O1
2 1 4 5 2 30
3 O2
3 2 1 4 3 50
4 O3
2 5 9 6 2 75
3 O4
1 7 3 4 6 20
20 40 30 10 50 25
20) Solve the following transportation problem. Use North-West corner method for
getting initial basic feasible solution.
Store
1 2 3 4 5 6 Supply
1 7 5 9 5 10 7 30
2 7 8 14 7 9 13 40
Warehouse 3 4 10 5 6 10 4 20
4 11 8 12 7 12 11 80
Requirement 30 30 60 20 10 20
21) Solve the following minimum transportation problem and find the optimal solution
To
D1 D2 D3 ai
O1 2 7 4 5
O2 3 3 1 8
From O3 5 4 7 7
O4 1 6 2 14
bj 7 9 18
22) Solve the following transportation problem where cell entries are unit costs and
optimize it.
D1 D2 D3 D4 D5 Available
O1 68 35 4 74 15 18
O2 57 88 91 3 8 17
O3 91 60 75 45 60 19
O4 52 53 24 7 82 13
O5 51 18 82 13 7 15
Required 16 18 20 14 14
Answer: Optimum Cost 2202
23) Solve the following transportation problem. The entry in the box gives the unit cost of
transportation.
Destination
X Y Z Supply

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 Operations Research

A 1 2 6 7
Source B 0 4 2 12
C 3 1 5 11
Demand 10 10 10
24) Solve the following transportation problem using North-west corner method and
optimize the solution using U-V method.
Destination
1 2 3 4 Supply
1 3 1 7 4 300
Source 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200
25) Solve the following minimum transportation problem and find the optimal solution
To
D1 D2 ai
O1 7 4 5
From O2 6 8 15
O3 3 9 9
bj 15 6
26) Solve the following transportation problem to maximize profit and give criteria for
optimality.
Profit ( )/unit
Origin Destination Supply
1 2 3 4
A 42 27 24 35 200
B 46 37 32 32 60
C 40 40 30 32 140
Demand 80 40 120 60
27) Solve the following transportation problem using Vogel/s approximation method and
optimize the solution using u-v method.
To Supply
D E F G
A 42 48 38 37 160
From B 40 49 52 51 150
C 39 38 40 43 190
Demand 80 90 110 160
28) Solve the following transportation problem by Vogel’s approximation method and
check for optimality by MODI method. Cell entries represent unit cost of shipping.
W1 W2 W3 W4 Capacity
F1 5 7 3 8 300
F2 4 6 9 5 500
F3 2 6 7 5 200
Demand 200 300 400 100

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29) Solve the following transportation problem for optimal allocation using MODI
(modified distribution) method. Cell entries represent unit cost of shipping.
1 2 3 4 5 6 Available
A 9 12 9 6 9 10 5
B 7 3 7 7 5 5 6
C 6 5 9 11 3 11 2
D 6 8 11 2 2 10 9
Required 4 4 6 2 4 2
30) Solve the following transportation problem for optimal allocation using MODI
method. Cell entries represent unit cost of shipping. (Take initial basic feasible
solution by Northwest corner rule).
P Q R S T Capacity
A 12 4 9 5 9 55
B 8 1 6 6 7 45
C 1 12 4 7 7 30
D 10 15 6 9 1 50
Demand 40 20 50 30 40
Answer: Northwest corner method 1095, Least cost method 706, Vogel’s
approximation method 695
31) Solve the following transportation problem to maximize profit and give criteria for
optimality. Profit ( )/Unit is given below.
Destination
1 2 3 4 Supply
A 42 27 24 35 200
Origin B 46 37 32 32 60
C 40 40 30 32 140
Demand 80 40 120 60
32) A company has three plants which supply to four markets W, X, Y and Z. The unit
profit when material is transported from ‘i’ to market ‘j’ along with the corresponding
supply and demand is given in the table.
Market
1 2 3 4 Supply
A 40 25 22 33 100
Plant B 44 35 30 30 30
C 38 38 28 30 70
Demand 40 20 60 30
Starting from Vogel’s approximation method, obtain an optimal solution to the
transportation problem to find the maximum profit. Is the solution obtained unique?
33) A company has 3 plants and 4 markets to supply. The supply from the 3 plants and the
demand at 4 markets along with the respective transportation cost is given below.
Markets

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M1 M2 M3 M4 Supply
P1 9 12 9 6 50
Plants P2 7 3 7 7 40
P3 6 5 9 11 30
Demand 25 32 40 28
The company has overtime production in plants P1 and P3. This increases the
production in plants P1 and P3 to 75 units and 50 units respectively. However the
incremental unit overtime cost in plants P1 and P3 will be 3 and 5 respectively.
Determine the optimal solution. Does the problem have any alternate solution, if so
justify.
Solution:
Markets
M1 M2 M3 M4 M5 Supply
P1 9 12 9 6 0 50
P1' 12 15 12 9 0 25
Plants
P2 7 3 7 7 0 40
P3 6 5 9 11 0 30
P3' 11 10 14 16 0 20
Demand 25 32 40 28 40
34) A company has 4 factories in 4 different locations in the country and 4 sales agencies
in 4 other locations in the country. The cost of production, the sale price, shipping
cost in the cells of the matrix, monthly capacities and monthly requirement are given
below:
Factory 1 2 3 4 Capacity Cost of production
A 7 5 6 2 10 10
B 3 5 4 2 15 15
C 4 6 4 5 20 16
D 8 7 6 5 15 15
Monthly requirement 8 12 18 22
Selling price 20 22 25 18
Find the monthly production and distribution schedule which will maximize profits.
Solution: By adding cost of production and shipping cost of each cell, the total cost of
matrix is
I II III IV
A 17 15 16 14
B 18 20 19 17
C 20 22 20 21
D 23 22 21 20
By deducting cost of production from sales price of each agency, of we get profit
matrix.
Profit matrix

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 Operations Research

I II III IV
A 3 7 9 4
B 2 2 6 1
C 0 0 5 -3
D -3 0 4 -2
Let us convert the matrix into a minimization matrix by deducting each element from
the maximum profit i.e. 9.
Factory\Sales I II III IV Capacity
A 6 2 0 5 10
B 7 7 3 8 15
C 9 9 4 12 20
D 12 9 5 11 15
Required 8 12 18 22 60
35) A company with factories A, B, C and D supply warehouses E, F, G and H. The
monthly capacities of factories are 80, 100, 120 and 190 for A, B, C and D
respectively. The monthly requirements are 110, 90, 150 and 130 for E, F, G and H
respectively. The unit transportation costs are given in the table below. The profits per
unit excluding transportation cost are 70, 50, 60 and 90 at factory A, B, C and
D respectively. Find the maximum profit production distribution schedule.
Warehouse
E F G H
A 15 20 25 30
Factory B 10 40 30 35
C 20 15 40 30
D 30 25 20 30
Solution:
Warehouse
E F G H I Capacities
A 15 20 25 30 80
Factory B 10 40 30 35 100
C 20 15 40 30 120
D 30 25 20 30 190
Requirement 110 90 150 130 10
36) Solve the following transportation problem for optimal allocation using MODI
method. Cell entries represent unit cost of shipping.
P Q R S T Available
A 12 4 9 5 9 55
B 8 1 6 6 7 45
C 1 12 4 7 7 30
D 10 15 6 9 1 50
Required 40 20 50 30 40
(i) What will be the distribution pattern according to VAM (Vogel’s approximation
method)

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(ii) What will be the cost difference between the North-West initial solution and the
optimal solution?
37) Solve the following transportation problem so as to minimize the distance travelled.
The figures shows the mileage between the distribution centers X, Y and Z and
dealers 1, 2, 3, 4 and 5 along with supply and demand quantities.
Dealers
1 2 3 4 5 Supply
100 150 X 200 140 35 400
50 Y
70 60 65 80 200
Distribution centers
40 Z
90 100 150 130 150
Demand 100 200 150 160 140
38) Solve the following transportation problem. The demand at destination 1 must be
shipped only from source 4. The entries in the table shows the cost of transportation
of one unit from source Si to destination Dj
Destination
D1 D2 D3 Supply
S1 5 1 0 20
Source S2 3 2 4 10
S3 7 5 2 15
S4 9 6 0 15
Requirement 5 10 15
39) Solve the following transportation problem. The demand at destination 1 must be
shipped only from source 4. The entries in the table give the cost of transportation of
one unit from source Si to destination Dj.
D1 D2 D3 Availability
S1 5 1 0 20
S2 3 2 4 10
S3 7 5 2 15
S4 9 6 0 15
Requirement 5 10 15
40) Consider the transportation problem having the following cost and requirement.
Destination
1 2 3 4 5 Supply
1 8 6 3 7 5 20
Source 2 5 M 8 4 7 30
3 6 3 9 6 8 30
4 0 0 0 0 0 20
Demand 25 25 20 10 20
Obtain an initial basic feasible solution by
(i) Northwest corner rule
(ii) Vogel’s approximation method

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(iii) Matrix minima method and obtain an optimal solution

41) Consider the following transportation problem.
To
1 2 3 Available
A 7 3 4 2
From B 2 1 3 3
C 3 4 6 5
Requirement 4 1 5
The shipping clerk has worked out the following schedule:
xA2 = 1, xA3 = l, xB3 = 3, xC1 = 4, xC3 = 6
(i) Check if the above schedule is the optimum one.
(ii) If not, find the optimum schedule and cost.
(iii) Does the problem has alternative solutions, if so, determine them.
(iv) If the clerk is approached by the operator of route B to 1 who offers to
reduce his rate to get some business, by how much the rate must be reduced
before he is given an order.
42) Consider the following transportation problem.
To
1 2 3 Available
A 7 3 4 2
From B 2 1 3 3
C 3 4 6 5
Requirement 4 1 5
The shipping clerk has worked out the following schedule:
xA2 = 1, xA3 = l, xB3 = 3, xC1 = 4, xC3 = 1
(i) Check if the above schedule is the optimum one.
(ii) If not, find the optimum schedule and cost.
(iii) Does the problem has alternative solutions, if so, determine them.
(iv) If the clerk is approached by the operator of route B to 1 who offers to
reduce his rate to get some business, by how much the rate must be
reduced before he is given an order.
43) Considering the following transportation model, find the solution and the value of the
associated objective function. Use least cost method
Mills
1 2 3 4 Supply
1 10 2 20 11 15
Godowns 2 12 7 9 20 25

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3 4 14 16 18 10
Demand 5 15 15 15
44) Consider the following unbalanced transportation problem.
To Supply
1 2 3
5 1 1 7 10
From 6 2 4 6 80
3 3 2 5 15
Demand 75 20 50
Since there is not enough supply, some of the demands at these destinations may not
be satisfied. Suppose there are penalty costs for every unsatisfied demand unit which
are given by 5 and 3 for destinations 1 and 2 respectively, but the demand at
destination 3 must be satisfied. Find the optimal solution starting from the feasible
solution obtained by North West corner method. Does the problem have alternate
solution, if so justify.
45) Consider the transportation problem from origins A, B and C to destinations 1, 2, and
3. The table below gives the unit transportation cost, availability and demand.
To Availability
1 2 3
1 5 1 7 10
From 2 6 4 6 80
3 3 2 5 15
Demand 75 20 50
(i) If the penalty cost per unit of unsatisfied demand is 5, 3 and 2 for
destinations 1, 2 and 3 respectively, find the optimal solution.
(ii) If there are no penalty costs, but the demand at destination 3 must be
satisfied exactly, find the optimal solution.
46) A company has three factories A, B, and C which supply warehouses at D, E and F.
Monthly factory capacities are 120, 80 and 80 units respectively. Monthly warehouse
requirements are 150, 80 and 50 units respectively. Unit shipping costs in are given
in the table below:
D E F
A 8 8 15
B 5 10 17
C 3 9 10
Determine the optimum distribution for the company to minimize the shipping cost.
47) A company has three factories A, B, and C which supply warehouses at D, E, F and
G. The factory capacities are 250, 300 and 200 respectively. The current warehouse

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requirements are 180, 190, 220 and 180 respectively. Unit shipping costs in
between factories and warehouses are given in the table below:
D E F G
A 8 9 10 12
B 6 12 9 8
C 5 14 4 13
Determine the optimum distribution for the company to minimize cost.
48) A company has factories at A, B and C which supply to warehouses at D, E, F and G.
The factory capacities are 230, 300 and 200 units respectively for regular production.
If overtime production is utilized the capacities can be increased to 280, 320 and 210
respectively. Incremental overtime costs are 6, 5 and 7 per unit respectively, The
current ware house requirements are 180, 190, 220 and 180 units respectively and the unit
shipping cost is tabulated below:
To
D E F G
From A 8 9 10 12
B 6 10 9 8
C 5 12 8 13
Determine the optimum shipping schedule and corresponding cost.
Hints: Overtime A, B, C
49) A company has factories A, B and C which supply to warehouses at D, E, F and G.
Monthly capacities are 150, 200 and 250 units respectively for regular production. If
overtime is used factories A and B can produce 50 and 100 units respectively. The
current requirements of the warehouses are 300, 200 and 200 units respectively. The
expected profits per unit for different combinations of factories to the warehouses are
given below. If overtime is utilised the expected profit per unit is decreased by 5
and 4 for A and B. Determine the optimum distribution plan for the company and the
maximum profit.
To
D E F
From A 11 13 17
B 16 18 14
C 21 20 23
50) A company has three plants at locations A, B and C which supply to warehouses located at D,
E, F, G and H. Monthly plant capacities are 800, 500, and 900 units respectively. Monthly
warehouse requirements are 400, 400, 500, 400 and 800 units respectively. Unit
transportation costs are given below. Determine optimal distribution for the company in
order to minimize the total transportation cost.

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 Operations Research

To
D E F G H
A From
5 8 6 6 3
B 4 7 7 6 5
C 8 4 6 6 4
Answer: introduce dummy source with cost of transportation is 0 to all warehouses,
Optimum transportation cost is 9200
51) A company has three plants and five markets to supply. The supply from three plants and
the demand at five markets along with the respective unit transportation costs are given
below: Determine an optimum distribution for the company in order to minimize the total
transportation cost.
Markets
M1 M2 M3 M4 M5 Supply
Plants P1 5 8 6 6 3 800
P2 4 7 7 6 5 500
P3 8 4 6 6 4 900
Demand 400 400 500 400 800
52) Solve the following transportation problem using Vogel’s approximation method and
optimize the solution using u-v method.
To
D E F G
From A 42 48 38 37 160
B 40 49 52 51 150
C 39 38 40 43 190
80 90 110 160
53) A company has plants in cities W, X and Y. The company produces and distributes computers
to dealers in various cities A, B, C and D. On a particular day, the company produces 30
computers in city W, 40 in city X and 30 in city Y. The company plans to ship 20 computers to
city A, 20 to city B, 25 to city C and 30 to city D following the orders received from the
dealers. Each plants in different cities have different unit production related cost.
Plant in city Production cost ( )
W 50
X 51
Y 52
The transportation cost/unit (in ) between the cities are given below:
A B C D
W 7 10 14 8
X 7 11 12 6
Y 6 8 15 9
Obtain the basic feasible solution by Vogel’s approximation method. Find the optimal
allocation to minimize the total combined cost.

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54) A company has three factories A, B and C located in different parts of the country. It
has four supply points D, E, F and G also located in different parts of the country.
Monthly factory production capacities are 250, 300 and 400 units respectively with
regular production. If overtime facilities are utilized, the capacities of factories A and
B can be increased by 20% and 25% respectively, while there is no scope for
increasing production at factory C. Additional cost per unit of overtime production is
0.4 and 0.5 in factory A and B respectively, The current supply point
requirements are 200, 225, 275 and 300 units respectively and the unit transportation
cost in from factories to supply points are as follows:
Supply
points
D E F G
Factory A 1.10 1.30 1.70 1.40
B 1.60 1.50 1.40 1.00
C 2.10 2.40 1.30 1.00
Determine the optimum distribution schedule to minimize total cost.
55) A company has three plants and four markets to supply. The supply from three plants
and the demand at the four markets along with the respective unit transportation costs
is given below:
Markets
M1 M2 M3 M4 Supply (in units)
P1 8 10 7 6 50
Plants P2 12 9 4 7 40
P3 9 11 10 8 30
Demand (in units) 25 32 40 23
The company has overtime production in plant P1 and P3. This will increase the
production in plant P1 and P3 to 75 units and 50 units respectively. However the
incremental unit overtime cost in plant P 1 and P3 will be 3 and 5 respectively.
Determine the optimal solution by using transportation model. Does the problem have
alternate solution? If so justify.
56) A company has four ware houses and six stores. The ware houses altogether have a
surplus of 22 units of a given commodity divided among them as follows:
Ware houses 1 2 3 4
Surplus 5 6 2 9
The six stores altogether need 22 units of commodity. Individual requirements at
stores 1, 2, 3, 4, 5 and 6 are 4, 4, 6, 2, 4 and 2 units respectively. Cost of shipping one
unit of commodity from ware house i to store j in is given in the matrix below:
Stores

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 Operations Research

1 2 3 4 5 6
1 9 12 9 6 9 10
Ware house 2 7 3 7 7 5 5
3 6 5 9 11 3 11
4 6 8 11 2 2 11
How the products should be shipped from the ware house to the store so that the
transportation cost is minimum.
57) A company has three open hearth furnaces and five rolling mills. Transportation cost (
/ton) for shipping steel from furnaces to rolling mills are shown in the following table:
Mills
Furnaces M1 M2 M3 M4 M5 Capacity (tons)
F1 4 2 3 2 6 8
F2 5 4 5 2 1 12
F3 6 5 4 7 3 14
Requirement (tons) 4 4 6 8 8
Determine the optimum transportation schedule and the transportation cost.
58) A company has four factories from which it ships its products to four warehouses

which are the distribution centers. Transportation cost/unit between various factories

and warehouses are as follows:

Warehouses
W1 W2 W3 W4 Availability
F1 44 56 52 54 140
Factories F2 41 51 49 56 260
F3 46 61 56 58 360
F4 48 60 51 57 220
Requirement 200 320 250 210
(i) Obtain the initial basic feasible solution by Vogel’s approximation method

(ii) Find the optimum transportation schedule and cost.

(iii) Is the solution unique? If not, find the alternate solution.

59) A company has 4 factories from which it transports its products to 4 warehouses. The
production costs and the capacities in each of the four factories are
Factories F1 F2 F3 F4
Production cost per 40 43 39 45
unit in
Capacity 140 260 360 220
Demands for the product in each of the 4 warehouses are
Warehouses W1 W2 W3 W4
Demand 180 280 150 200

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The transportation cost in per unit between various combinations of factories and
warehouses are given in the following matrix.
W1 W2 W3 W4
F1 48 60 56 58
F2 47 57 53 59
F3 51 63 61 63
F4 51 63 55 61
What is the allocation capacity to demand, which minimizes the combined production
and distribution costs?
60) A company has 4 factories from which it transports its products to 4 warehouses. The
production costs and the capacities in each of the four factories are
Factories F1 F2 F3 F4
Cost per 100 in 40 43 39 45
Capacity in 100’s 14 26 36 22
Demands for the product in each of the 4 warehouses are
Warehouses W1 W2 W3 W4
Demand in 100’s 18 28 15 20
The transportation cost in per hundred between various combinations of factories
and warehouses are given in the following matrix.
W1 W2 W3 W4
F1 48 60 56 58
F2 47 57 53 59
F3 51 63 61 63
F4 51 63 55 61
What is the allocation capacity to demand, which minimizes the combined production
and distribution costs?
61) A company has two plants and three distribution centers in three cities. The supply
and demand of transportation for units are given below along with unit cost of
transportation. How the trips be scheduled, so that the cost of transportation is
minimized?
Distribution centers
A B C Capacity
Plants X 25 35 10 150
Y 20 5 80 100
Requirement 50 50 150
62) A product is manufactured by four factories A, B, C and D. The unit production costs
in them are 2, 3, 1 and 5 respectively. Their production capacities are 50, 70,
30 and 50 units respectively. These factories supply the product to four stores,
demands of which are 25, 35, 105 and 20 units respectively. Unit transportation cost
in from each factory to each store is given in the table below :

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 Operations Research

Factories Stores
1 2 3 4
A 2 4 6 11
B 10 8 7 5
C 13 3 9 12
D 4 6 8 3
Determine the extent of deliveries from each of the factories to each of the stores so
that the total production and transportation cost is minimum.
63) A problem of scheduling the weekly production of certain items for the next four
weeks is to be solved. The production cost of the item is 10 for the first two weeks
and 15 for the last two weeks. The weekly demands are 500, 800, 1000 and 900,
which must be met. The plant can produce a maximum of 700 units per week. In
addition, the company can use overtime during second and third week. This increases
the weekly production by an additional 200 units, but the production cost increases by
5. Excess production can be stored at a unit cost of 3 per week. How should the
production be scheduled so as to minimize the total cost?
Solution:
Week 1 2 3 4 Capacity
10 13 16 19
1 500 100 100 700
M 10 13 16
2 700 700
M 15 18 21
Production 2' 200 200
M M 15 18
3 700 700
M M 20 23
3' 200 200
M M M 15
4 700 700
Demand 500 800 1000 900
Answer: Production cost 43100
64) A manufacturer must produce a certain product in sufficient quantity to meet the
contracted sales in the next four months. The production facilities available for this
facilities is limited, but by different amount in respective months. The unit cost of
production also varies according to the facilities and personnel available. The product
may be produced in one month and then help for the sale in latter month with an
estimated storage cost of 1 per unit per month. No storage cost is incurred for goods
sold in the same month in which they are produced. There is presently no inventory of this

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product and none is desired at the end of four months. Given the following table show how
much to produce in each of the four months.
Month Contracted sales Maximum Unit cost of
(in units) production (in units) production ( )
1 20 40 14
2 30 50 16
3 50 30 15
4 40 50 17
65) A departmental store wishes to purchase the following quantity of dresses
Dress type A B C D
Quantity 150 100 75 250
Tenders are submitted by three different manufacturers who undertake to supply not
more than the quantity given below (all types of dresses combined)
Manufacturer W X Y
Total quantity 350 250 150
The store estimates that profit per dress will vary with the manufacturers as shown in
the matrix below. How should orders be placed?
Dress
A B C D
W 2.75 3.50 4.25 2.25
Manufacturer X 3.00 3.25 4.50 1.75
Y 2.50 3.50 4.75 2.00
Solution:
A B C D Supply
W 2.75 3.50 4.25 2.25 300
Manufacturer X 3.00 3.25 4.50 1.75 250
Y 2.50 3.50 4.75 2.00 150
Demand 150 100 75 250 575\700
Since the supply and demand are not equal, it is not a balanced problem. Here total
supply is 700 and total demand is 575, hence surplus supply is 125.
We have to create dummy destination (store). The cost associated with store will be
taken zero as the surplus quantity manufactured remains in the factory and is not
transported at all, so the new matrix is
A B C D E Supply
Manufacturer W 2.75 3.50 4.25 2.25 0 300
X 3.00 3.25 4.50 1.75 0 250
Y 2.50 3.50 4.75 2.00 0 150
Demand 150 100 75 250 125
66) A departmental stores wishes to stock the following quantities of a product in three types of
containers.
Container type A B C
Quantity 170 200 180
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Tenders are submitted by four dealers who undertake to supply not more than the
quantities shown below:
Dealer 1 2 3 4
Quantity 150 160 110 130
The store estimates that profit per unit will vary with the dealer as shown.
Dealer
Container Type
1 2 3 4
A 8 9 6 3
B 6 11 5 10
C 3 8 7 9
How should the orders be placed?
67) A departmental store wishes to purchase the following quantities of dresses:
Dress type A B C D E
Quantity 150 100 75 250 200
Tenders are submitted by four different manufacturers who undertake to supply not
more than the quantities indicated below:
Manufacturer W X Y Z
Quantity 300 250 150 200
The store estimates that its profit (in ) per dress will vary with the manufacturer as
shown in the following table. How should the orders be placed?
A B C D E
W 2.75 3.50 4.25 2.25 1.50
X 3.00 3.25 4.50 1.75 1.00
Y 2.50 3.50 4.75 2.00 1.25
Z 3.25 2.75 4.00 2.50 1.75
68) A mining company has three mines located at cities A, B and C. It has received a
contract to supply iron ore to three steel industries located at places x, y and z. The
amount of iron ore needed by the steel industries at x, y and z are 72, 102 and 41 tons
per day. The amount of iron ore that can be extracted from the mines located at cities
A, B and C are 76, 82 and 77 tons per day respectively. The cost of transporting one
ton of iron ore from each mine to each steel industry in hundreds of rupees are given
in the following matrix. Determine how much of iron ore is to be transported from
mines to steel industries to minimize total transportation cost.
Steel Industry
x y z
A 4 8 8
Mines B 16 24 16
C 8 16 24
69) The child fair company has 3 plants producing child push chairs that are to be shipped
to 4 distribution centers. Plants 1, 2 and 3 produce 12, 17, 11 shipments per month.

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Each distribution centre needs to receive 10 shipments/month. The distances (miles)

from each plant to the respective distribution centre is as follows:
Distribution Centres
1 2 3 4
1 800 1300 400 700
Plant 2 1100 1400 600 1000
3 600 1200 800 900
The freight cost for each shipment is $100 plus 5 cents/unit. Obtain optimal solution.
70) A company operates two canning plants. Three growers are willing to supply fresh
fruits in the following quantity and rate.
Grower I - 200 quintals at 10 per quintal

Grower II - 300 quintals at 9 per quintal

Grower ill - 400 quintals at 8 per quintal

Shipping costs in per quintal are as follows
From/To Plant A Plant B
Grower I 2.0 2.5
Grower II 1.0 1.5
Grower III 5.0 3.0
Plant capacity and labour costs are as follows
Plant A Plant B
Capacity in quantity 450 350
Labour cost /quintal 25 20
The canned fruits are sold at 50 per quintal to the distributors. How should the
company plan its operations at the two plants so as to maximize its profits?
71) A canning company operates two canning plants. Three growers are willing to supply
fresh fruits in the following quantity and rate.
Grower I - 200 quintals at 100 per quintal

Grower II - 300 quintals at 90 per quintal

Grower ill - 400 quintals at 80 per quintal

The Shipping costs in per quintal are as follows
From/To Plant A Plant B
Grower I 20 25
Grower II 10 15
Grower III 50 30
Plant capacity and labour costs are as follows
Plant A Plant B
Capacity in quantity 450 350

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Labour cost /quintal 25 20

The canned fruits are sold at 50 per quintal to the distributors. How should the
company plan its operations at the two plants so as to maximise its profits?
72) In the following transportation problem, the total demand exceeds total supply.
Suppose that the penalty costs per unit of unsatisfied demands are 5, 3 and 2 for
destinations 1, 2 and 3. Find the optimal solution.
To
T1 T2 T3
5 F1 1 7 10
From F2
6 4 6 80
3 F3 2 5 15
75 20 50
Suppose that there are no penalty costs and the demand at destination 3 must be
satisfied exactly. Formulate the problem and find the optimal solution.
73) In a factory there are three store rooms A, B, and C having 180, 270, and 210
containers respectively. The requirements of four centres W, X, Y, and Z are 140,
120, 230, and 170 containers respectively. The unit costs required to transport are
given in the matrix below. Using MODI method, obtain an optimal allocation.
W X Y Z
A 13 25 12 21
B 18 23 14 9
C 24 15 12 16
(i) What will be the distribution pattern according to VAM (Vogel’s approximation
method)
(ii) What will be the cost difference between the North-West initial solution and the
optimal solution?
74) A manufacturer wants to ship 8 loads of his product as shown in the table. The matrix
gives the mileage from origin 'O' to Destination 'D'. Shipping costs are 10 per load
per mile. What shipping schedule should be used?
D1 D2 D3 Loads
O1 50 30 220 1
O2 90 45 170 3
O3 250 200 50 4
Required 4 2 2
Answer: Total Mileage 820, Total Cost 8200
75) A steel company has three open hearth furnaces and five rolling mills. Transportation
cost ( /ton) for shipping steel from furnaces to rolling mills are shown in the
following table:

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 Operations Research

Mills
M1 M2 M3 M4 M5 Capacity (tons)
F1 4 2 3 2 6 8
Furnaces F2 5 4 5 2 1 12
F3 6 5 4 7 3 14
Requirement (tons) 4 4 6 8 8
Determine the optimum transportation schedule and the transportation cost.
76) A coffee manufacturer buys coffee at auctions held at four different centers and the
same is dispatched to five different factories for processing. The requirement of the
factories, per ton cost of transportation from different buying centers to factories and
the quantities purchased are given below.
Requirement at factories
Factories A B C D E
Requirement in tons 135 58 120 79 130
Transportation cost in /tone
A B C D E
P 20 25 31 35 52
Q 30 25 40 42 45
R 40 30 10 20 30
S 50 40 30 25 20
Purchases Made
Centers P Q R S
Purchase in tons 120 80 100 200
Prepare a logical schedule showing the quantities that should be moved from
the four centers to the different factories. What would be the minimum
transportation cost?
77) A coffee manufacturer buys coffee at auctions held at four different centers and the
same is dispatched to five different factories for processing. The requirement of the
factories, per ton cost of transportation from different buying centers to factories and
the quantities purchased are given below.
Requirement at factories
Factories A B C D E
Requirement in tons 135 58 120 79 108
Transportation cost in /tone
A B C D E
P 20 25 31 35 52
Q 30 25 40 42 45
R 40 30 10 20 30
S 50 40 30 25 20
Purchases Made

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Centers P Q R S
Purchase in tons 120 80 100 200
Prepare a logical schedule showing the quantities that should be moved from
the four centers to the different factories. What would be the minimum
transportation cost?
78) A firm produces four products A, B, C and D. There are four operators (I, II, III and
IV), who-are capable of producing any of these products. The processing time varies
from operator to operator. The firm records 8 hours of working per day and allows 30
minutes for lunch. The products A, B, C and D give a profit of 8, 6, 5 and 4
per product respectively. The processing time for each product is given below. Find
the optimum distribution schedule to maximize profit.
Products (processing
time in minutes)
A B C D
I 15 9 10 6
Operators II 10 6 9 6
III 25 15 15 9
IV 15 9 10 10
79) A firm produces a component and distributes it to 5 wholesalers at a fixed price of
10/unit. Sales forecast indicates that monthly demand will be 3000, 3000, 1000, 5000
and 4000 units at wholesale dealers a, b, c, d and e respectively. The monthly
production capacities are 5000, 1000, and 10000 at plants A, B and C respectively.
The production costs per unit are 2, 1 and 3 at plants A, B and C respectively.
The unit transportation cost in between the plants and wholesalers are given in the
following table:
Wholesalers
a b c d e
A 0.5 0.5 1.0 1.5 1.5
Plants
B 1.0 0.5 1.0 1.0 1.5
C 1.0 1.0 0.5 1.5 1.0
Determine the transportation schedule between plants and wholesales, in order to
maximize the total profit per month. Use Vogel’s approximation method to obtain the
initial basic feasible solution.
80) Fresh water is supplied through three reservoirs with daily supply capacities of 15, 20
and 25 million liters of fresh water respectively. On each day supply must be provided
to four cities A, B, C and D whose demands are 8, 10, 12 and 15 million liters
respectively. The cost of pumping per million liters is given below
Cities
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 Operations Research

A B C D
1 2 3 4 5
Reservoirs 2 3 2 5 2
3 4 1 5 2
Use the transportation algorithm to determine the cheapest pumping schedule, if
excess water can be disposed of at no cost.
81) A company produces small components and distributes them to 5 wholesalers at a
fixed price of 2.50/unit. Sales forecast indicates that monthly demand will be 3000,
3000, 1000, 5000 and 4000 units at wholesale dealers a, b, c, d and e respectively. The
monthly production capacities are 5000, 1000, and 12500 at plants A, B and C
respectively. The direct costs of production of each unit are 1.00, 0.90 and 0.80
at plants A, B and C respectively. The unit transportation cost in between various
combination of plants and wholesalers are given in the following table:
Wholesalers
a b c d e
A 0.05 0.07 0.10 0.15 0.15
Plants B 0.08 0.06 0.09 0.12 0.14
C 0.10 0.09 0.08 0.10 0.15
Find the optimum transportation schedule for the components.
82) A chemical corporation has three plants A, B and C. Each plant uses a certain
chemical, the requirements of which for next 3 months are 1200, 4800 and 3000 kg
respectively. Four vendors W, X, Y and Z have agreed to supply this material. The
maximum supply quantities and selling prices are as follows:
Vendor Capacity (kgs.) Price ( /kg.)
W 5000 30
X 2500 25
Y 1200 20
Z 1000 15
The cost of transportation from each vendor to each plant is as follows. Determine the
optimal transportation schedule which will minimize the overall cost
To
A B C
W 10 5 6
From X 4 3 5
Y 1 7 6
Z 4 9 3
Hint: Buying price at plants A, B and C is given, therefore total cost at A, B and C
are 40, 29, 21, 19, etc.
To
A B C

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 Operations Research

W 40 35 36
From X 29 28 30
Y 21 27 26
Z 19 24 18
83) A company is producing two products P1 and P2 at two of its plants in cities A and B.
As the present total capacity is insufficient, the company wants to start a new plant in
city C. The following estimates are made by the company
Profit due to
product ( /unit)
P1 P2 Total capacity
A 35 24 400
City B 30 28 600
C 25 37 700
Demand (units) 600 800
(i) What is the optimum policy at present when only plants A and B are available?
(ii) What is the optimum policy when the plant at C is started? What is the profit
compared to (i)?
84) Three plants A, B, C make two products X and Y and the production schedule for the
next 2 months is to be finalized. X requires 5 m/c hours per unit and Y requires 7 m/c
hours per unit for manufacture in any of the plants.
The supply commitments and the plant capacities are given below:
Supplies to be made per month
Product
Month 1 Month 2
X 200 250
Y 450 500

M/c hours available per Cost of production Per unit

Plant month
Month 1 Month 2 X Y
Regular 1000 1000 2.00 3.00
A
Overtime 500 500 2.50 3.80
Regular 1000 800 2.20 3.30
B
Overtime 500 400 2.80 4.20
C Regular 3000 1500 2.30 3.50
The m/c hours available during different months vary according to maintenance
requirements and expected m/c downtime.
If the product is manufactured in excess of its requirement during the month,
storage costs are incurred at the rate of 0.20 per unit per month. Determine the
optimal production schedule. What will be the total cost?
85) A job shop makes three products A, B, and C and demand for these products is 90,
210, and 120 units per week respectively. The products can be manufactured by any
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 Operations Research

of the methods 1, 2, and 3. The capacity of each method and the profits associated
with each product and each manufacturing method are as follows.
Method Capacity in units/week
1 160
2 120
3 140

Profit/unit in
Product
Method 1 Method 2 Method 3
A 139 140 137
B 209 207 210
C 254 255 255
Determine the optimum method of manufacturing the products so as to maximize the
profit. Also calculate the maximum profit.
86) Formulate the following transportation problem as a linear programming problem.
Destination
Origin D1 D2 D3 Capacity
O1 4 5 7 40
O2 6 3 8 50
O3 5 2 3 60
Demand 50 45 55
87) There are three parties who supply the following quantities of coal:
Party 1: 14 tons, Party 2: 12 tons, Party 3: 5 tons
There are three parties who require the coal as follows
Party A: 6 tons, Party B:10 tons, Party C: 15 tons
The cost matrix is as follows:
A B C
1 6 8 4
2 4 9 3
3 1 2 6
Find the schedule of a transportation policy which minimizes the cost.
88) A production control engineer on arriving at work finds the following pallet
information on his table.
Pallets Available Pallets required
Department
A B C G H I J
18 27 21 14 12 23 17
The time in minutes to move a pallet from one department to another is as shown
below:
G H I J
A 13 25 12 21
B 18 23 14 9

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C 23 15 12 13
Find the optimum distribution plan.
89) A production control engineer finds the following pallet information.
Pallets Available Pallets required
Department A B C G H I J
18 27 21 14 12 23 17
Distance in meters to move a pallet from one department to another is as shown
below:
G H I J
A 13 25 12 21
B 18 23 14 9
C 23 15 12 13
Find the optimum distribution plan.
90) A furniture manufacturing company has three plants which manufacture two principal
products, a standard card table and a deluxe card table. New deluxe card table will be
introduced which must be considered in terms of the selling price and cost. The
selling prices are:
Standard Deluxe New deluxe
15.25 19.15 21.95
Sales requirements in units of three models are:
Standard Deluxe New deluxe
459 1050 600
Variable costs of models and plant capacities are given below:
Variable cost Available
capacity
Standard Deluxe New deluxe
Plant A 8.00 8.50 9.25 800
Plant B 7.95 8.60 9.20 600
Plant C 8.10 1.45 9.30 700
Solve this problem by transportation method for the greatest contribution.
91) A furniture manufacturing company has three plants which manufacture two principal
products, a standard card table and a deluxe card table. New deluxe card table will be
introduced which must be considered in terms of the selling price and cost. The
selling prices are:
Standard Deluxe New deluxe
14.95 18.95 21.95
Sales requirements in units of three models are:
Standard Deluxe New deluxe
450 1050 600
Variable costs of models and plant capacities are given below:

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 Operations Research

Variable cost Available

capacity
Standard Deluxe New deluxe
Plant A 8.00 8.50 9.25 800
Plant B 7.95 8.60 9.20 600
Plant C 8.10 8.45 9.30 700
Solve this problem by transportation method for maximum profit.
92) The following table shows the availability of a product at three sources A, B and C
and demand for the same at four destinations W, X, Y and Z. the unit costs of
transportation between various sources and destinations are also given. Find the
optimum plan of transportation which minimizes the total transportation cost.
Destinations
W X Y Z Availability
A 1 2 3 1 40
Sources B 8 5 1 4 35
C 4 5 6 3 32
Demand 30 25 32 20
93) A given transportation problem has the following cost ( /unit), supply (units) and
demand (units) data.
From\To M1 M2 M3 M4 Supply
W1 7 6 2 12 70
W2 3 9 8 7 40
W3 20 4 11 5 120
Demand 30 60 90 30
Using Vogel’s approximation method initial solution, find the optimal solution.
Compute total minimum cost for the solution.
94) A dairy firm has three plants located throughout a state. Daily milk production at each
plant is as follows:
Plant 1 Plant 2 Plant 3
6 million liters 1 million liters 10 million liters
Each day the firm must fulfill the needs of its four distribution centers. Minimum
requirements at each center are as follows:
Distribution Distribution Distribution Distribution
center 1 center 2 center 3 center 4
7 million liters 5 million liters 3 million liters 2 million liters
Cost of shipping one million liters of milk from each plant to each distribution center
is given in the following table in hundreds of .
Distribution centers
1 2 3 4
1 2 3 11 7
Plants 2 1 0 6 1

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3 5 8 15 9
Formulate the problem as LPP and find its initial basic feasible solution by a) North
west corner method, b) Least cost method and c) Vogel’s approximation method.
Obtain the optimum solution using the best starting solution.
95) A textile firm has three factories F1, F2 and f3 and four warehouses W1, W2, W3 and
W4. The transportation costs, factory capacities and warehouse requirements are
given in the following table.
W1 W2 W3 W4 Capacity
F1 15 24 11 12 500
F2 25 20 14 16 400
F3 12 16 22 13 700
Requirements 300 250 350 400
Find the least cost transportation schedule.
96) A company has plants A, B and C, which have capacity to produce 300, 200 and 500
kg respectively of a particular chemical/day. The production cost per kg in their plants
is Rs.0.70, 0.60 and 0.66 respectively. Four bulk consumers have placed orders for the
products on the following: Table I. Shipping costs in paise/kg from plants to
consumers are given below. Table II. Workout the optimum schedule for the above
situation considering all the data given.
Table I
Kg required/day Price offered Rs/kg
I 400 1.00
Consumers II 250 1.00
III 350 1.02
IV 150 1.03

Table II
To consumers
I II III IV
From Plants A 3 5 4 6
B 8 11 9 12
C 4 6 2 8
97) A company has four factories F1, F2, F3 and F4 manufacturing the same product.
Production and raw material cost differ from factory to factory and are given in the
following table in the first two rows. The transportation costs from factory to Sale
depots, S1, S2 and S3 are given. The last two columns in the table give the sales price and

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the total requirement at each depot. The production capacity of each factory is given in the
last row.
F1 F2 F3 F4 Selling Requirement
Price/unit in units
Production 15 18 14 15
cost/unit
Raw material 10 9 12 9
cost/unit
Transportation S1 3 9 5 4 34 80
cost/unit S2 1 7 4 5 32 120
S3 5 8 3 6 31 150
Production 10 150 50 100
capacity in
units
Determine the most profitable production and distribution schedule and the
corresponding profit. The deficit production should be taken to yield zero profit.
98) A company has 3 plants and 4 warehouses. The shipping clerk has come up with a trial
solution.
Warehouses Supply
I II III IV
A 5 10 4 5 10
Plants B 6 8 7 2 25
C 4 2 5 7 20
Demand 25 10 15 5
A – III – 10 units, B – I – 20 units, B – IV – 5 units, C – I – 5 units, C – II – 10 units,
C – III - 5 units.
Answer the following:
(i) Is the solution feasible?
(ii) Is the solution degenerate?
(iii) Is the problem balanced?
(iv)Is there an alternate optimal? If yes, obtain the alternate optimal solution.
99) A company has four factories from which it ships its products to four warehouses
which are the distribution centers. Transportation cost/unit between various factories
and warehouses are as follows:
Warehouses
W1 W2 W3 W4 Availability
F1 44 56 52 54 140
Factories F2 41 51 49 56 260
F3 46 61 56 58 360
F4 48 60 51 57 220
Requirement 200 320 250 210
(i) Obtain the initial basic feasible solution by Vogel’s approximation method.
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(ii) Find the optimum transportation schedule and cost.

(iii) Is the solution unique? If not, find the alternate solution.
100) A Car rental agency has 8 outlets in a metropolitan city. The Agency found from
experience that is best to begin each day with all their cars evenly distributed among
the 8 outlets, assuming that all 80 cars are present. Suppose that at the end of a
particular day the no of cars at the outlets is as follows
Outlet A B C D E F G H
No. of cars 1 11 3 15 20 5 7 18
The agency wish to transport the cars from the surplus outlets to the deficit outlets to
attain an even distribution. The best set of movements is that which has the smallest
total distance travelled. The distance in kms between the outlets is given below.
Solve the problem by transportation algorithm.
A B C D E F G H
A - 13 3 11 12 5 8 7
B - 11 11 25 16 23 9
C - 19 11 16 7 15
D - 31 26 16 3
E - 4 9 12
F - 8 9
G - 14
H -
Solution:
A C F G Available
B 13 11 16 23 11 – 10 = 1
D 11 19 26 16 15 - 10 = 5
E 12 11 4 9 20 – 10 = 10
H 7 15 9 14 18 – 10 = 8
Required 10 – 1 = 9 10 – 3 = 7 10 – 5 = 5 10 – 7 = 3
Answer: 220

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