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Transportation Problems

The transportation problem is a specific type of linear programming that addresses the optimal distribution of resources from multiple sources to various destinations, minimizing transportation costs while meeting supply and demand constraints. It involves methods for initial feasible solutions, such as the Northwest-Corner Rule and Least Cost Method, and optimal solution techniques like the Stepping Stone Method and Modified Distribution Method. The document includes examples and exercises illustrating the application of these methods in real-world scenarios, particularly in construction and supply chain management.
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0% found this document useful (0 votes)
3 views9 pages

Transportation Problems

The transportation problem is a specific type of linear programming that addresses the optimal distribution of resources from multiple sources to various destinations, minimizing transportation costs while meeting supply and demand constraints. It involves methods for initial feasible solutions, such as the Northwest-Corner Rule and Least Cost Method, and optimal solution techniques like the Stepping Stone Method and Modified Distribution Method. The document includes examples and exercises illustrating the application of these methods in real-world scenarios, particularly in construction and supply chain management.
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TRANSPORTATION PROBLEMS

Transportation problem is one of the important and special types of linear programming which is
very much applicable to construction problems. Quite often a contractor working on different sites
is usually confronted with the issue of procurement of resources such as cement, gravels, roofing
sheet, doors and windows, form a number of local and national markets. The transport model under
such a situation involves interplay of demand and supply constraints and limitations. This situation
generally creates problems for the project manager/ quantity surveyor because it is always difficult
to achieve optimum distribution of resources. An algorithm has therefore been developed such that
an optimum distribution can be reached and hence transportation cost can be minimized.

Transportation problem is a special form of general linear programming problem. It is applicable to


problems with the following characteristics;

a. Sources: quantity of resources exists at a finite number of sources and these sources are
available for allocation. A source is sometimes referred to as an origin.
b. Destination: a finite number of destinations exist each which needs to be supplied with a
specified quantity of resources that are available from different sources or origins
c. The available resources are assumed to be homogeneous.
d. Costs and rates: the cost of allocating a unit of resource from each origin (source) to a
destination which is the transportation cost or rate is known and is constant.
Generally, a transportation problem is completely defined by Table 5.1 and Table 5.2 below.
Table 5.2: Simplifies Transportation Tableau
DESTINATION

Source or Origin 2 3 ……………. SUPPLY


1 C11 C12 C13 ………….C1 S1
2 C21 C22 C23 ………….C S2
3 C31 C32 C33 ………….C S3
. . . . . .
. . . . . .
. . . . . .
M Cm1 Cm2 Cm3 ……..……C Sm
Demand d1 D2 d1 …………..d1 .

The transportation problem is to minimize total cost subject to the following constraints or
conditions:

a. All destinations needs (demands) must be met.


b. No source may allocate more units than it has available
c. Total units demanded must be watch total units supplied
d. Non-negative requirements

There are several approaches to solving transportation problems Many of these problems can
however be put into two major groups. The first group which normally referred to initial solution
methods does not guarantee optimal solution although they are feasible. The second group that
ususally takes off from the first group can be used to obtain the optimal solution.

The initial solution methods include the following: (i) Northwest-Corner Rule (ii) Least Cost
Method (or Low Cost First) and (iii) Vogel’s Approximation Method (VAM). Under the optimal
solution group, we have (i) Stepping Stone Method (ii) Modified Distribution Method (MODI) and
(iii) Simplex Method. For the purpose of this course, we shall limited to (i) Northwest-Corner Rule
and (ii) Least Cost Method (or Low Cost First

Example 1

A paint manufacturing firm owns facilities at seven place. It has manufacturing plants at Places A,
B, and C, with daily output of 500, 300 and 200 drums respectively. It has warehouses at places P, Q,
R, AND S with daily requirements of 180, 150, 350 and 320 drums respectively.

The unit cost of transportation on different routes is given below.

Solution:
Least Cost method (LCM)
Table 5.4 is reproduced below as Table 5.5 and the feasible is calculated.
Exercise

A contractor is organizing the supply of ready-mixed concrete to four sites. He estimates that the
total daily requirement- amounts to twenty four (24) lorry loads and he finds thrice suppliers who
are able to meet his demand between items. The separate amounts available from the suppliers
from the suppliers are (inn lorry loads)

A =4, B = 8, C =12

And the quantities needed at the four sites are

K =5, L =2, M =10, N=7

The distances involved are

K L M N

A 6 12 2 5

B 18 21 13 12

C 11 16 5 6

Show, on the suitable matrix, an allocation schedule that matches these amounts. In the price
negotiation, it is agreed that the transport cost will be changed to the contractor in proportion to
the mileage incurred. Calculate the total one-way daily distance for the allocations made and obtain
the schedule that gives the minimum total distance.

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