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Transportation Model and Applications: Mr. B. B. Tripathy Siom 1

The document describes transportation models and applications. It discusses: 1) The transportation problem involves transporting quantities of a homogeneous product from origins to destinations in a way that minimizes total transportation costs. 2) The mathematical model involves minimizing the sum of transportation costs subject to supply and demand constraints. 3) Several methods are described for obtaining an initial basic feasible solution for a transportation problem, including the North-West Corner Rule, Minimum Matrix Method, and Vogel's Approximation Method.

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Ajay Kaushik
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39 views25 pages

Transportation Model and Applications: Mr. B. B. Tripathy Siom 1

The document describes transportation models and applications. It discusses: 1) The transportation problem involves transporting quantities of a homogeneous product from origins to destinations in a way that minimizes total transportation costs. 2) The mathematical model involves minimizing the sum of transportation costs subject to supply and demand constraints. 3) Several methods are described for obtaining an initial basic feasible solution for a transportation problem, including the North-West Corner Rule, Minimum Matrix Method, and Vogel's Approximation Method.

Uploaded by

Ajay Kaushik
Copyright
© © All Rights Reserved
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
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Transportation Model and Applications

Mr. B. B. Tripathy SIOM 1


What is a Transportation Problem?

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.

Mr. B. B. Tripathy SIOM 2


Mathematical Model of Transportation Problem

Let ai = quantity of the commodity available at the origin i,


bj = quantity of the commodity needed at destination j,
cij = transportation cost of one unit of a commodity from
origin i to destination j,
and xij = quantity transported from origin i to the destination j.

Mathematically, the problem is

Minimize z = ∑∑ xij cij

Subject to
∑xij = ai, i = 1,2,…..m
∑xij = bj, j = 1,2,…..,n

and x j ≥ 0 for all i and j .Mr. B. B. Tripathy SIOM 3


Destination
Supply
X11 X12 …. X1n a1
c12 C1n
C11 Xij – Units
X21 X22 ….. X2n a2 Cij - Cost
Origin
C22 C2n
C21

: : : : :
Xm1 Xm2 ….. Xmn am
Cmn
Demand Cm1 Cm2
Mr. B. B. Tripathy SIOM 4
Example :
The sources of supply can be production facilities,
warehouse or supply point, characterized by available
capacity.
The destination are consumption facilities, warehouse or
demand point, characterized by required level of demand.

Let P denote the plant (factory) where the goods are being
manufactured & W denote the warehouse (godown) where the
finished products are stored by the company before shipping
to various destinations.

Mr. B. B. Tripathy SIOM 5


Xij = quantity (amount of goods) shipped from plant Pi to the
warehouse Wj, and
Cij= transportation cost per unit of shipping from plant Pi to
the warehouse Wj

Minimize z = c11 x11 + c12 x12 + c13 x13


+ c21 x21 + c22 x22 + c23 x23
+ c31 x31 + c32 x32 + c33 x33
(i.e. cost of shipping from a plant to the ware house)

Supply constraints

x11+x12+x13 = S1
x21+x22+x23 = S2
x31+x32+x33 = S3
Mr. B. B. Tripathy SIOM 6
Demand constraints
x11 + x21 + x31 = D1
x12 +x22 + x32 = D2
x13+ x23 + x33 = D3
xij ≥ 0 for all values of i and j
It is assume that S1+S2+S3 = D1+D2+D3
Existence of Solution in T.P.

A necessary and sufficient condition for the existence of


feasible solution to the general transportation problem
is that
Total supply = Total demand
Such type of problems where supply and demand are
exactly equal are known as Balanced Transportation
Problem. Mr. B. B. Tripathy SIOM 7
Basic feasible solution:

In general, if a transportation problem has m rows an n


column, then the problem is solvable if there are exactly
(m + n –1) basic variables.

A transportation problem is said to be unbalanced if the


supply and demand are not equal.

Mr. B. B. Tripathy SIOM 8


Example 1 : A firm has 3 factories located at A, E, and K which
produce the same product. There are four major product district
centers situated at B, C, D, and M. Average daily product at A,
E, K is 30, 40, and 50 units respectively. The average daily
requirement of this product at B, C, D, and M is 35, 28, 32, 25
units respectively. The cost in $ of transportation per unit of
product from each factory to each district centre is given in table

Factories B C D M Supply

A 6 8 8 5 30
E 5 11 9 7 40
K 8 9 7 13 50

Demand 35 28 32 25

Mr. B. B. Tripathy SIOM 9


Factories B C D M Supply

A x11 x12 x13 x14 30


E x21 x22 x23 x24 40
K x31 x32 x33 x34 50

Demand 35 28 32 25

Mr. B. B. Tripathy SIOM 10


Total transportation cost:

Minimize z = 6x11 + 8x12 + 8x13 + 5x14 + 5x21 + 11x22 + 9x23 +


7x24 + 8x31 + 9x32 + 7x33 + 13x34

subject to :

x11 + x12 + x13 + x14 = 30


x21 + x22 + x23 + x24 = 40
x31 + x32 + x33 + x34 = 50
x11 + x21 + x31 = 35
x12 + x22 + x32 = 28
x13 + x23 + x33 = 32
x14 + x24 + x34 = 25
Mr. B. B. Tripathy SIOM 11
xij ≥ 0
Solution for a transportation problem

Step 1. Formulate the problem and set up in the


matrix form.

Step 2. Obtain an initial basic feasible solution.


This initial basic solution can be obtained by using
any of the following methods:

i. North West Corner Rule (NWC)


ii. Matrix Minimum Method
iii. Vogel’s Approximation Method (VAM)

Mr. B. B. Tripathy SIOM 12


i. The solution must be feasible, i.e., it must satisfy
all the supply and demand constraints.

ii. The number of positive allocations must be equal


to m + n – 1, where, m is number of rows and n is
number of columns

The solution that satisfies both the above mentioned


conditions are called a non-degenerate basic
feasible solution.

Step 3. Test the initial solution for optimality.

Using Modified Distribution Method (MODI) methods


for test the optimality of obtained initial basic
solution:
Mr. B. B. Tripathy SIOM 13
If the solution is optimal then stop, otherwise,
determine a new improved solution.

Step 4. Updating the solution

Repeat Step 3 until the optimal solution is arrived at.

Mr. B. B. Tripathy SIOM 14


Methods of finding initial solution for a transportation Problem:

1. North-West corner method (NWCM):

1. Select the north west (upper left-hand) corner cell of the


transportation table and allocate as many units as possible equal to
the minimum between available supply and demand requirements,
i.e., min (s1, d1).
2. Adjust the supply and demand numbers in the respective rows and
columns allocation.
3. If the demand for the first cell is satisfied then move horizontally to
the next cell in the second column.
4. If for any cell supply equals demand then the next allocation can be
made in cell either in the next row or column.
5. Continue the procedure until the total available quantity is fully
allocated to the cells as required.
Mr. B. B. Tripathy SIOM 15
Retail shops

Factories A B C D Supply

1 3 5 7 6 50
2 2 5 8 2 75
3 3 6 9 2 25

Demand 20 20 50 60

Mr. B. B. Tripathy SIOM 16


Retail shops
Factories A B C D Supply

1 3 20 5 20 7 10 6 50 30 10

2 2 5 8 40 2 35 75 35

3 3 6 9 2 25 25

Demand 20 20 50 60
40 25

Mr. B. B. Tripathy SIOM 17


The solution is x11= 20, x12= 20, x13=10 ,x23= 40, x24= 35, x34=
25.

Here, number of retail shops (n) = 4, and Number of


factories (m) = 3
Number of basic variables = m + n – 1 = 3 + 4 – 1 = 6.
The problem is a non-degenerate basic solution.

Initial basic feasible solution:

20 * 3 + 20 * 5 + 10 * 7 + 40 * 8 + 35 * 2 + 25 * 2 = 670

Mr. B. B. Tripathy SIOM 18


2. Minimum Matrix Method (MMM)
Steps
1. Identify the box having minimum unit transportation cost (cij).
2. If there are two or more minimum costs, select the row and
the column corresponding to the lower numbered row.
3. If they appear in the same row, select the lower numbered
column.
4. Choose the value of the corresponding xij as much as
possible subject to the capacity and requirement constraints.
5. If demand is satisfied, delete the column .
6. If supply is satisfied, delete the row.
7. Repeat steps 1-6 until all restrictions are satisfied.

Mr. B. B. Tripathy SIOM 19


Retail shops

Factories 1 2 3 4 Supply

1 3 5 7 6 50
2 2 5 8 2 75
3 3 6 9 2 25

Demand 20 20 50 60

Mr. B. B. Tripathy SIOM 20


Retail shops

Factories 1 2 3 4 Supply

1 3 5 20 7 30 6 50 30
2 2 20 5 8 2 55 75 55
3 3 6 9 20 25 25 20

Demand 20 20 50 60
20 5
The solution is x12 =20 ,x13= 30,x21=20 x24= 55, x33= 20,x34 = 5.

Number of basic variables = m + n –1 = 3 + 4 – 1 = 6.

The initial basic feasible solution:


20 * 2 + 55 * 2 + 5 * 2 +Mr. B.20 * 5 + 30
B. Tripathy SIOM
* 7 + 20 * 9 = 650. 21
3.Vogel’s Approximation Method (VAM)
Steps:
1. Identify the boxes having minimum and next to minimum
transportation cost in each row and write the difference (penalty)
along the side of the table against the corresponding row.
2. Identify the boxes having minimum and next to minimum
transportation cost in each column and write the difference
(penalty) against the corresponding column
3. Identify the maximum penalty. If it is along the side of the table,
make maximum allotment to the box having minimum cost of
transportation in that row. If it is below the table, make maximum
allotment to the box having minimum cost of transportation in that
column.
4. If the penalties corresponding to two or more rows or columns
are equal, select the top most row and the extreme left column.
Mr. B. B. Tripathy SIOM 22
Destination

Origin I II III IV Supply

A 20 22 17 4 120
B 24 37 9 7 70
C 32 37 20 15 50

Demand 60 40 30 110 240

Mr. B. B. Tripathy SIOM 23


Destination

Origin I II III IV Supply Penalty

A 20 22 40 17 4 80 120 80 13 13 - - - -

B 24 10 37 9 30 7 30 70 40 10 2 2 2 17 24 24

C 32 50 37 20 15 50 5 5 5 17 32 -

Demand 60 40 30 110
10 30
Penalty 4 15 8 3
4 - 8 3
8 - 11 8
8 - - 8
8 - - -
24 - - -

The initial basic feasible solution:


22 * 40 + 4 * 80 + 24 * 10 + 9 * 30 + 7 * 30 + 32 * 50
= 3520
Mr. B. B. Tripathy SIOM 24
Home Assignment Problem:
Find IBFS of Transportation Problem by NWCR, MMM, VAM.

Transportation cost

From I II III IV Supply

A 5 2 4 3 22
B 4 8 1 6 15
C 4 6 7 5 8

Demand 7 12 17 9

Mr. B. B. Tripathy SIOM 25

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