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Cha-3 OR

Chapter Three discusses transportation and assignment models in linear programming, focusing on minimizing transportation costs while satisfying supply and demand constraints. It outlines the assumptions, formulation, and methods for finding initial feasible solutions, including the northwest-corner method and the intuitive approach. Additionally, it introduces the assignment problem and the Hungarian method for optimizing resource allocation to tasks.

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10 views22 pages

Cha-3 OR

Chapter Three discusses transportation and assignment models in linear programming, focusing on minimizing transportation costs while satisfying supply and demand constraints. It outlines the assumptions, formulation, and methods for finding initial feasible solutions, including the northwest-corner method and the intuitive approach. Additionally, it introduces the assignment problem and the Hungarian method for optimizing resource allocation to tasks.

Uploaded by

ade.asu.2015
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Chapter Three

Transportation and Assignment Models

Amanuel E.
Transportation Model
 The transportation problem is one of the subclasses of
linear programming problem where the objective is to
transport various quantities of a single homogeneous
product that are initially stored at various origins, to
different destinations in such a way that the total
transportation is minimum.
 The transportation method is similar in certain respects
to the simplex technique because both involve an initial
feasible solution that is evaluated to determine if it can be
improved.
 Moreover, both involve displaying initial and improved
solutions in a series of tableaus or tables.
Assumptions

1. All goods be homogeneous so that any origin is capable of


supplying any destination.

2. Transportation costs are a direct linear function of the


quantity shipped over any route.

3. The total quantity available at origin is equal to the total


demand at destinations.
Formulating the Model
 A transportation problem typically involves a set of
sending locations, which are referred to as origins, and
 A set of receiving locations, which are referred to as
destinations.
 In order to develop a model of a transportation problem,
it is necessary to have the following information:
A. Supply quantity (capacity) of each origin.
B. Demand quantity (capacity) of each destination.
C. Unit transportation cost for each origin-destination route.
Transportation Model
Transportation Model
 The transportation model involving the objective
function, the demand and supply constraints are given
below.
Objective Function:
Zmin = C11X11 + C12X12 + C12X13+ C21X21 + C22X22 + C23X23 + C31X31 + C32X32 + C33X33
Example
Harley’s Sand and Gravel Pit has contracted to provide
topsoil for three residential housing development projects.
Topsoil can be supplied from three different “farms” as
follows:
Cont’d…
 The manager of the sand and gravel pit has estimated the
cost per cubic yard to ship over each of the possible routes:

 This constitutes the information needed to solve the


problem.
 The next step is to arrange the information into a
transportation table.
Cont’d…
Model Formulation
FINDING INITIAL FEASIBLE SOLUTION
 The starting point of the transportation method is a
feasible solution.
 For an assignment to be feasible, two conditions must be
fulfilled:
 A feasible solution is one in which assignments are made in
such a way that all supply and demand requirements are
satisfied.
 The number of nonzero (occupied) cells should equal one
less than the sum of the number of rows and the number of
columns in a transportation table.
 In the case of a table with 3 rows and 3 columns, the
number of occupied cells should be 3 + 3 -1 = 5 in order to
be able to use the transportation algorithm.
Methods of Finding Initial Feasible Solution
 Transportation models do not start at the origin where all
decision values are zero; they must instead be given an
initial feasible solution.
 Initial feasible solution determination methods include:
1. The northwest-corner method.
2. An intuitive approach/Least cost method
3. Vogel’s / Penalty Method
1. The Northwest-Corner method
 The northwest corner method gets its name because the
starting point for the allocation process is the upper left-
hand (Northwest) corner of the transportation table.
 The following set of principles guides the allocation:
1. Begin with the upper left-hand cell and allocate as many
units as possible to that cell.
 This will be the smaller of the row supply and the
column demand.
 Adjust the row and column quantities to reflect the
allocation.
FINDING INITIAL FEASIBLE SOLUTION
2. Remain in a row or column until its supply or demand is
completely exhausted or satisfied, allocating the maximum
number of units to each cell in turn, until all supply has
been allocated (and all demand has been satisfied because
we assume total supply and demand are equal).
2. The Intuitive Approach
 This approach, also known as the minimum-cost method.
It uses lowest cell cost as the basis for selecting routes.
The procedure is as follows:
1. Identify the cell that has the lowest unit cost.
 If there is a tie, select one arbitrarily.
 Allocate a quantity to this cell that is equal to the lower of
the available supply for the row and the demand for the
column.
2. Cross out the cells in the row or column that has been
exhausted (or both, if both have been exhausted), and
adjust the remaining row or column total accordingly.
Cont’d…

3. Identify the cell with the lowest cost from the remaining
cells.
 Allocate a quantity to this cell that is equal to the lower of the
available supply of the row and the demand for the column.
4. Repeat steps (ii) and (iii) until all supply and demand have
been exhausted.
Assignment Model

Introduction
 The assignment problem refers to the class of LP problems
that involve determining the most efficient assignment of
resources to tasks
 Allocating one person to one job and minimizing the time
or cost of problem is solved by ASSIGNMENT MODEL.
 The objective is most often to minimize total costs or total
time to perform the tasks at hand.
Assumptions
1. Number of jobs equal to number of machines or persons.
2. Each man or machine is loaded with one and only one job.
3. Each man or machine is independently capable of handling
any of the jobs being presented.
4. Loading criteria must be clearly specified such as “
minimizing operating time or “ minimizing production cost”
or minimizing production cycle time e.t.c.
Hungarian Method
• The Hungarian method is an efficient method of finding the
optimal solution to an assignment problem without having to
make direct comparisons of every option
• It operates on the principle of matrix reduction
• By subtracting and adding appropriate numbers in the cost
table or matrix, we can reduce the problem to a matrix of
opportunity costs
• Opportunity costs show the relative penalty associated with
assigning any person to a project as opposed to making the
best assignment
• We want to make assignment so that the opportunity cost
for each assignment is zero
Steps…..

• Step 1: Perform Row Reduction


• Step 2: Perform Column Reduction
• Step 3. Draw the minimum number of horizontal and
vertical lines (not diagonal ones) that are required to cover
the entire ‘zero’ elements.
• If the number of lines drawn is equal to n (the number of
rows/columns) the solution is optimal, and proceeds to step
6.
• If the number of lines drawn is smaller than n, go to step 4.
Cont’d…

 Step 4. Select the smallest uncovered (by the lines) cost


element.
 Subtract this element from all uncovered elements including
itself and add this element to each value located at the
intersection of any lines.
 The cost elements through which only one line passes remain
unaltered.
 Step 5. Repeat steps 3 and 4 until an optimal solution is
obtained.
 Step 6. Given the optimal solution, make the job
assignments as indicated by the ‘zero’ elements.
Example

Example: Using the following cost matrix, determine;


(a) optimal assignment, and
(b) the cost of assignments.

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