Proceedings of the Postgraduate Annual Research Seminar 2005 140

Optimization of Transportation Problem with Computer Aided Linear

Programming
Saravanan Dharma, Abd. Manan Bin Ahmad
Software Engineering Department, Information Systems and Computer Science Faculty, Universiti
Teknologi Malaysia
[email protected]

ABSTRACT

Theory of Optimizations is to make a better use of resources and existing technology at the best possible
way. One way of optimization is to have a better planning and put it into practice. Precise and quantitative
models, and advanced mathematical tools such as linear programming allows for provable and reproducible
conclusions. Modern computing equipment is suited to put such methods into practice. At present,
mathematical methods contribute, in particular, to the solution of various problems of operational planning
for transportation problems. Most of these transportation problems are often modeled in linear
programming method or in integer programming method. In this paper we investigate these two models for
a real world application of a transportation problem that involves transporting iron ore from two iron ore
mines to three steel plants using linear programming method and integer programming method. The models
are then further applied into the computer to do the analytical task to generate an optimized solution that
minimizes the transportation cost. We have compared the results to find out the most practical model for a
real world situation and how significant the difference would be. Then finally we are able to make a
conclusion on which model would generate a feasible optimal solution for transportation problems and
what are the differences.

KEYWORDS
linear programming, integer programming, optimization, transportation problem

1. Introduction that minimizes the transportation cost. We have

compared the results to find out the most
Transportation problems have been widely practical model for a real world situation and
studied in Computer Science and Operations how significant the difference would be.
Research. Many of these problems are NP-hard,
and a lot of research has been done on modeling This research is necessary because there is a
the problems to find “good” solutions. These need to know how we should model the
transportation problems occur in real life in areas transportation problem. Researchers in this field
such as robotics and transportation of goods. often use these two models to model and solve
Methods for obtaining “good” solutions to the the problem but they should also know how
problems are of great practical significance. For these models influences the outcome of the same
example, Casco et al [1] report that combining problem.
deliveries and pickups for supermarkets led to an
industry wide savings of $160 million a year. 2. Methodology
The transportation problems are normally
modeled in either in linear programming method This paper has taken a transportation problem
or integer programming method. example from [5] and further modeled it in
integer programming model and linear
In this paper we investigate these two models for programming model. Then the model has been
a real world application of a transportation coded in computer programming language to be
problem that involves transporting iron ore from compiled in Xpress MP Optimization software to
two iron ore mines to three steel plants[5] using get the outcome of these models. Finally the
linear programming method and integer perspective answers are analyzed and discussed.
programming method. The models are then
further applied into the computer to do the
analytical task to generate an optimized solution
Proceedings of the Postgraduate Annual Research Seminar 2005 141

3. Transportation Problem Further, the amount of ore available at the mines

and the Million tons of ore required at each steel
The Transportation Problem is a classic plant are given in the Tables 2.2 and 2.3.
Operations Research problem where the
objective is to determine the schedule for Table 3.2: Amount of ore available at the mines
transporting goods from source to destination in (Million tons)
a way that minimizes the shipping cost while
satisfying supply and demand constraints [3]. Mine 1 103.4450
Mine 2 197.3350
A typical Transportation Problem has the
following elements:

i. Source(s) Table 3.3: Ore requirements at the steel plants

ii. Destination(s) (Million tons)
iii. Weighted edge(s)
Plant 1 71.3500
The objective of a Transportation Problem is to Plant 2 133.4980
find a minimal cost path from source nodes to
Plant 3 96.1005
destination nodes and meet supply and demand
constraints.
All the information in the tables for this
In this research paper the transportation problem transportation problem is illustrated in figure 2.3.
that we would like to take as an example to
compare the outcome of the two programming Figure 3.3: Illustration of the transportation
model have a set of nodes or places called problem.
sources, which have a commodity available for .
shipment, and another set of places called
demand centers, or sinks, which require this Plant 1
Mine 1 X11
commodity. The amount of commodity available X12
at each source and the amount required at each X13 Plant 2
demand center are specified, as well as the cost X21
Mine 2 X22
per unit of transporting the commodity from X23
each source to each demand center. The problem Plant 3
is to determine the quantity to be transported
from each source to each demand center, so as to
meet all the requirements at minimum total 4. Linear Programming (LP) and
shipping cost[4]. The commodity of this problem Integer Programming (IP)
is iron ore, the sources are found at mines 1 and
2, where the ore is produced, and the demand
centers are three steel plants. The unit costs of A Linear Program (LP) is a problem that can be
shipping ore from each mine to each steel plant expressed as follows (the so-called Standard
Form):
are given in Table 2.1.

Table 3.1: Unit cost of shipping ore from mine Minimize cx

to steel plant (Hundred Million ringgit per Subject to Ax = b
Million ton) x >= 0
Where x is the vector of variables to be solved
Plant 1 2 3 for, A is a matrix of known coefficients, and c
and b are vectors of known coefficients. The
Mine 9.4590 16.4415 28.3995 expression "cx" is called the objective function,
1 and the equations "Ax=b" are called the
Mine 14.3440 29.2110 19.1010 constraints. All these entities must have
2 consistent dimensions and can be added with
"transpose" symbols to taste. The matrix A is
generally not square, hence you don't solve an
Proceedings of the Postgraduate Annual Research Seminar 2005 142

LP by just inverting A. Usually A has more Basic solutions represent extreme boundary
columns than rows, and Ax=b is therefore quite points of the feasible region defined by Ax = b, x
likely to be under-determined, leaving great >= 0, and the simplex method can be viewed as
latitude in the choice of x with which to moving from one such point to another along the
minimize cx[5]. edges of the boundary. Barrier or interior-point
methods, by contrast, visit points within the
The word "Programming" is used here in the interior of the feasible region. These methods
sense of "planning"; the necessary relationship to derive from techniques for nonlinear
computer programming was incidental to the programming that were developed and
choice of name [5]. Hence the phrase "LP popularized in the 1960s by Fiacco and
program" to refer to a piece of software is not a McCormick, but their application to linear
redundancy, although I tend to use the term programming dates back only to Karmarkar's
"code" instead of "program" to avoid the innovative analysis in 1984[3].
possible ambiguity.
The related problem of integer programming (or
Although all linear programs can be put into the integer linear programming, strictly speaking)
Standard Form, in practice it may not be requires some or all of the variables to take
necessary to do so. For example, although the integer (whole number) values. Integer programs
Standard Form requires all variables to be non- (IPs) often have the advantage of being more
negative, most good LP software allows general realistic than LPs, but the disadvantage of being
bounds l <= x <= u, where l and u are vectors of much harder to solve. The most widely used
known lower and upper bounds. Individual general-purpose techniques for solving IPs use
elements of these bounds vectors can even be the solutions to a series of LPs to manage the
infinity and/or minus-infinity. This allows a search for integer solutions and to prove
variable to be without an explicit upper or lower optimality.
bound, although of course the constraints in the
A-matrix will need to put implied limits on the Linear and integer programming have proved
variable or else the problem may have no finite valuable for modeling many and diverse types of
solution. Similarly, good software allows b1 <= problems in planning, routing, scheduling,
Ax <= b2 for arbitrary b1, b2; the user need not assignment, and design. Industries that make use
hide inequality constraints by the inclusion of of LP and its extensions include transportation,
explicit "slack" variables, nor write Ax >= b1 energy, telecommunications, and manufacturing
and Ax <= b2 as two separate constraints. of many kinds [2].

The importance of linear programming derives in 5. Solving the Transportation Problem

part from its many applications and in part from as a LP or IP
the existence of good general-purpose techniques
for finding optimal solutions. These techniques The transportation problem has been modeled as
take as input only an LP in the above Standard a Linear Programming problem and Integer
Form, and determine a solution without reference Programming. To set up the Transportation
to any information concerning the LP's origins or Problem as a LP or IP problem, the following
special structure. They are fast and reliable over elements need to be considered:
a substantial range of problem sizes and
applications. 5.1 Variables

Two families of solution techniques are in wide The variables in the LP or IP model of the
use today. Both visits a progressively improving transportation problem will hold the values for
series of trial solutions, until a solution is the number of units shipped from one source to a
reached that satisfies the conditions for an destination. A variable with double subscripts is
optimum. Simplex methods, introduced by used for this problem.
Dantzig [3] about 50 years ago, visit "basic"
solutions computed by fixing enough of the Xij = Number of units shipped from Source i to
variables at their bounds to reduce the constraints Destination j
Ax = b to a square system, which can be solved
for unique values of the remaining variables.
Proceedings of the Postgraduate Annual Research Seminar 2005 143

5.2 Objective Function x11 + x21 ≥ 71,

x12 + x22 ≥ 133,
The objective function contains costs associated x13 + x23 ≥ 96,
with each of the variables. It is a minimization x11, x12, x13, x21, x22, x23 ≥ 0.
problem.
7.0 Findings
Let Cij denote the cost of shipping one unit from
Source i to Destination j. The models have been coded in computer
m n programming language and were compiled in
Xpress MP Software to generate the optimized
Minimize Z = ∑ ∑ Cij Xij answer that minimizes the cost of the
i=1 j=1 transportation problem for the respective models.
The generated answers are shown in the table
5.3 Constraints
6.1.
The constraints are the conditions that force
Table 6.1: Generated answer by the Xpress MP
supply and demand needs to be satisfied. In the
software
transportation problem, there is one constraint
for each node. Let Si denote source capacity and
Dj denote destination needs. Model The Minimized Cost
(hundred million
Ringgit)
n
Integer 5336
∑ Xij ≤ Si for i = 1, 2, …, m Programming
j=1 Linear 5437.73
m
Programming
.
∑ Xij ≥ Dj for j = 1, 2, …, n 8.0 Conclusion
i=1

Xij ≥ 0 for all i and j The cost that was minimized in the integer
programming model is far more minimized than
the linear programming model but this shows
6.0 Mathematical Model that in real scenario integer programming model
have changed the input data to an integer format
The Linear Programming model that has been and produces the answer that is far more
used for this transportation problem is as minimized than the answer that was produced
follows: from linear programming model. This shows that
in real world scenario, integer programming
Minimize z = 9.4590 x11 + 16.4415 x12 + produces an outcome that has vast different than
28.3995 x13 + 14.9440 x21 + 29.2110 x22 + the real optimized answer that was produced by
19.1010x23 the linear programming method. Therefore,
Subject to x11 + x12 + x13 ≤ 103.4450, linear programming should be used for
x21 + x22 + x23 ≤ 197.3350, projecting a real world optimization because
x11 + x21 ≥ 71.3500, when considering the outcomes of both of the
x12 + x22 ≥ 133.4980, models, the different are 101.73 Hundred Million
x13 + x23 ≥ 96.1005, Ringgit is very big to taken into account.
x11, x12, x13, x21, x22, x23 ≥ 0.
9.0 Acknowledgements
The Integer Programming model that has been
used for this transportation problem is as This research paper has been studied as a part of
follows: ship routing optimization problem. This research
paper was fully guided, supported and all the
Minimize z = 9x11 + 16x12 + 28x13 + 14x21 + credits should be given to Associate Professor
29x22 + 19x23 Abd. Manan Ahmad. He has always with me to
Subject to x11 + x12 + x13 ≤103,
x21 + x22 + x23 ≤197,
Proceedings of the Postgraduate Annual Research Seminar 2005 144

guide me and advice me to complete the research [3] Blum, C., Roli, A. Metaheuristics in
paper successfully. Thank you very much “PM”. combinatorial optimization: Overview and
conceptual comparison. ACM Computing
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