Unit II 2 TP

The document discusses transportation problems and their formulation and solution. It describes how transportation problems are a special type of linear programming problem with unique characteristics. Several algorithms are presented for solving transportation problems, including the Northwest Corner Rule, Least Cost Method, Vogel's Approximation Method, Stepping Stone Method, and Modified Distribution Method. An example transportation problem is also provided and solved using the Northwest Corner Rule to demonstrate the application of these concepts.

Uploaded by

Pravah Shukla

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PPT, PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

51 views153 pages

Unit II 2 TP

Uploaded by

Pravah Shukla

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PPT, PDF, TXT or read online on Scribd

You are on page 1/ 153

Operations Research

MBA-024
UNIT II

TRANSPORTATION PROBLEM
Transportation Model/Problem
• TP is essentially an LPP.
• But because of certain special characteristics
associated with the problem, we have a
special algorithm to solve a TP.
• It is not solved by applying the simplex
method.
Transportation Model/Problem
• Although in principle it can be solved by the
simplex method but its application would
make the problem very unmanageable.
• The TP, along with the assignment problem is
a special type of LPP, therefore we have
special purpose algorithms for them.
TP: Important Features
• TP normally used for minimising
transportation cost, although the algorithm
can be applied on some other types of
problems also.
• A TP deals with problems related to
minimisation of cost when goods have to be
transported from different points of supply to
different points of demand.
TP: Important Features
• The amounts available at different points of
supply and amounts required at different
points of demand are known to us.
• The unit cost of transportation is also known
to us.
• In a general TP we may assume m points of
supply and n points of demand.
TP: Important Features
• We have to design a transportation plan
which would minimise the total cost of
transportation.
• Total number of variables = m x n.
TP: Formulation
• General notation of variable: xij (amount of goods
transported from ith point of supply to jth point of
demand).
• Cij = cost coefficient attached with xij.
• Total number of constraints = m+n.
• There would be m supply and n demand
constraints.
• Availability at supply points: b1, b2, b3, …, bm.
• Requirement at demand points: d1, d2, d3, …, dn.
TP: Formulation
TP: Formulation
• This is a balanced TP because total supply is
equal to total demand.

• Because total supply = total demand, therefore

one constraint becomes redundant.
• Total number of effective constraints = m+n-1.
• Number of basic variables = number of
constraints = m+n-1
There are 3 coalieries which can supply coal in
the following quantities:
a: 14 tonnes, b: 12 tonnes, c: 5 tonnes.
There are 3 consumers who require coal in the
following quantities:
A: 6 tonnes, B: 10 tonnes, C: 15 tonnes.
The cost of transporting 1 tonne of coal from
any one point a, b or c to any other point A, B or
C are as follows:
6 4 1 a
8 9 2 b
4 3 6 c
A B C

The problem is to minimise total cost of

transportation.
North West Corner Rule
1. Select the north-west (upper left) corner cell.
2. Allocate as many units as possible.
3. Adjust supply and demand figures in the
respective row and column.
4. If row supply is exhausted, move down one row.
5. If column demand is exhausted, move right one
column.
6. Repeat steps 2-5 till total available quantity is
fully allocated.
Least Cost Method
1. Select the cell with the lowest transportation
cost.
2. Allocate as many units as possible.
3. Adjust supply and demand figures in the
respective row and column.
4. Repeat steps 1-3 till total available quantity is
fully allocated.
Vogel’s Approximation Method
• Best method of obtaining initial solution.
• Consists of determining (row and column)
penalties.
• Row penalty is calculated by subtracting the
minimum cost element from the second least
cost element in the row.
• Column penalty is calculated by subtracting
the minimum cost element from the second
least cost element in the column.
Stepping Stone Method
• Determine an initial basic feasible solution
using any of the above three methods.
• Make sure that the number of occupied cells
is m+n-1.
• Select an unoccupied cell.
• Beginning at this cell, trace a closed path.
• Move only horizontally or vertically.
• Turn only at occupied cells.
Stepping Stone Method
• The cells at the turning points are called the
stepping stones.
• Assign plus and minus signs alternatively to
each stepping stone, starting with a plus sign
at the unoccupied cell to be evaluated.
Stepping Stone Method
• Compute the net change in cost along the
closed path by finding the algebraic sum of
the unit costs of the stepping stones,
considering the plus/minus signs assigned in
the previous step.
• A negative sum indicates a decrease in
transportation cost.
• Repeat these steps for all the unoccupied
cells.
Modified Distribution Method
• Determine an initial basic feasible solution.
• Compute the values of the row and column
variables (ui and vj).
• Compute the improvement index for each
unoccupied cell,

• If all improvement indices are positive or zero,

the optimum solution has been reached.
Factory Warehouse Capacity
W1 W2 W3 W4 (Supply)

F1 21 16 25 13 11
F2 17 18 14 23 13
F3 32 27 18 41 19
Requirement 6 10 12 15 43
(Demand)
W1 W2 W3 W4
21 16 25 13
F1 11

17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15 43
North West Corner Rule

NWCR
W1 W2 W3 W4
21 16 25 13
F1 11

17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15
W1 W2 W3 W4
21 16 25 13
F1 11
6
17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15
W1 W2 W3 W4
21 16 25 13
F1 5
6
17 18 14 23
F2 13
X
32 27 18 41
F3 19
X
0 10 12 15
W1 W2 W3 W4
21 16 25 13
F1 5
6 5
17 18 14 23
F2 13
X
32 27 18 41
F3 19
X
0 10 12 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 13
X
32 27 18 41
F3 19
X
0 5 12 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 13
X 5
32 27 18 41
F3 19
X
0 5 12 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 8
X 5
32 27 18 41
F3 19
X X
0 0 12 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 8
X 5 8
32 27 18 41
F3 19
X X
0 0 12 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 0
X 5 8 X
32 27 18 41
F3 19
X X
0 0 4 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 0
X 5 8 X
32 27 18 41
F3 19
X X 4
0 0 4 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 0
X 5 8 X
32 27 18 41
F3 15
X X 4
0 0 0 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 0
X 5 8 X
32 27 18 41
F3 15
X X 4 15
0 0 0 15
W1 W2 W3 W4
21 16 25 13
F1 0
6 5 X X
17 18 14 23
F2 0
X 5 8 X
32 27 18 41
F3 0
X X 4 15
0 0 0 0
Least Cost Method

LCM
W1 W2 W3 W4
21 16 25 13
F1 11

17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15
W1 W2 W3 W4
21 16 25 13
F1 11
11
17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 13
12
32 27 18 41
F3 19

6 10 12 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 1
12
32 27 18 41
F3 19
X
6 10 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 1
1 12
32 27 18 41
F3 19
X
6 10 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 19
X
5 10 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 19
10 X
5 10 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 9
10 X
5 0 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 9
5 10 X
5 0 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 4
5 10 X
0 0 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 4
5 10 X 4
0 0 0 4
W1 W2 W3 W4
21 16 25 13
F1 0
X X X 11
17 18 14 23
F2 0
1 X 12 X
32 27 18 41
F3 0
5 10 X 4
0 0 0 0
Vogel’s Approximation Method

VAM
W1 W2 W3 W4
21 16 25 13
F1 11

17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15
W1 W2 W3 W4 Row
Penalty

21 16 25 13

F1 11 3

17 18 14 23
F2 13

32 27 18 41
F3 19

6 10 12 15 43

Column
Penalty
W1 W2 W3 W4 Row
Penalty