APPLICATIONS IN

TRANSPORTATION
PROBLEMS
Muh.Rum

 Transportation Simplex Method:

A Special-Purpose Solution Procedure

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TRANSPORTATION SIMPLEX METHOD

 To solve the transportation problem by its special purpose

algorithm, the sum of the supplies at the origins must equal
the sum of the demands at the destinations.
 If the total supply is greater than the total demand, a
dummy destination is added with demand equal to the
excess supply, and shipping costs from all origins are
zero.
 Similarly, if total supply is less than total demand, a
dummy origin is added.
 When solving a transportation problem by its special
purpose algorithm, unacceptable shipping routes are given a
cost of +M (a large number).
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TRANSPORTATION SIMPLEX METHOD

 A transportation tableau is given below. Each cell represents a

shipping route (which is an arc on the network and a decision variable
in the LP formulation), and the unit shipping costs are given in an
upper right hand box in the cell.

D1 D2 D3 Supply
15 30 20
S1 50

30 40 35
S2 30

Demand 25 45 10
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TRANSPORTATION SIMPLEX METHOD
 The transportation problem is solved in two phases:
 Phase I -- Finding an initial feasible solution
 Phase II – Iterating to the optimal solution

 In Phase I, the Minimum-Cost Method can be used

to establish an initial basic feasible solution without
doing numerous iterations of the simplex method.
 In Phase II, the Stepping Stone Method, using the
MODI method for evaluating the reduced costs may
be used to move from the initial feasible solution to
the optimal one.

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TRANSPORTATION SIMPLEX METHOD

 Phase I - Minimum-Cost Method

 Step 1: Select the cell with the least cost. Assign to this cell the minimum
of its remaining row supply or remaining column demand.
 Step 2: Decrease the row and column availabilities by this amount and
remove from consideration all other cells in the row or column with zero
availability/demand. (If both are simultaneously reduced to 0, assign an
allocation of 0 to any other unoccupied cell in the row or column before
deleting both.) GO TO STEP 1.

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TRANSPORTATION SIMPLEX METHOD
 Phase II - Stepping Stone Method
 Step 1: For each unoccupied cell, calculate the reduced
cost by the MODI method described below. Select the
unoccupied cell with the most negative reduced cost. (For
maximization problems select the unoccupied cell with
the largest reduced cost.) If none, STOP.
 Step 2: For this unoccupied cell generate a stepping stone
path by forming a closed loop with this cell and occupied
cells by drawing connecting alternating horizontal and
vertical lines between them.
Determine the minimum allocation where a
subtraction is to be made along this path.

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TRANSPORTATION SIMPLEX METHOD

 Phase II - Stepping Stone Method (continued)

 Step 3: Add this allocation to all cells where additions are to be made, and
subtract this allocation to all cells where subtractions are to be made along the
stepping stone path.
(Note: An occupied cell on the stepping stone path now becomes 0
(unoccupied). If more than one cell becomes 0, make only one unoccupied;
make the others occupied with 0's.)
GO TO STEP 1.

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Transportation Simplex Method
 MODI Method (for obtaining reduced costs)
Associate a number, ui, with each row and vj with
each column.
• Step 1: Set u1 = 0.
• Step 2: Calculate the remaining ui's and vj's by
solving the relationship cij = ui + vj for occupied cells.
• Step 3: For unoccupied cells (i,j), the reduced cost =
cij - ui - vj.

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Example: Acme Block Co. (ABC)
Acme Block Company has orders for 80 tons of
concrete blocks at three suburban locations
as follows: Northwood -- 25 tons,
Westwood -- 45 tons, and
Eastwood -- 10 tons. Acme
c m e
has two plants, each of which
can produce 50 tons per week. A
Delivery cost per ton from each plant
to each suburban location is shown on the next slide.
How should end of week shipments be made to fill
the above orders?

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 Example: ABC
 Delivery Cost Per Ton

Northwood Westwood Eastwood

Plant 1 24 30 40
Plant 2 30 40 42

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Muhammadiyah University, Graduated Program
 Example: ABC
 Least Cost Starting Procedure
• Iteration 1: Tie for least cost (0), arbitrarily select x14.
Allocate 20. Reduce s1 by 20 to 30 and delete the
Dummy column.
• Iteration 2: Of the remaining cells the least cost is 24
for x11. Allocate 25. Reduce s1 by 25 to 5 and
eliminate the Northwood column.
continued

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 Example: ABC
 Least Cost Starting Procedure (continued)
• Iteration 3: Of the remaining cells the least cost is 30
for x12. Allocate 5. Reduce the Westwood column to
40 and eliminate the Plant 1 row.
• Iteration 4: Since there is only one row with two
cells left, make the final allocations of 40 and 10 to x22
and x23, respectively.

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 Example: ABC
 Iteration 1
• MODI Method
1. Set u1 = 0
2. Since u1 + vj = c1j for occupied cells in row 1, then
v1 = 24, v2 = 30, v4 = 0.
3. Since ui + v2 = ci2 for occupied cells in column 2,
then u2 + 30 = 40, hence u2 = 10.
4. Since u2 + vj = c2j for occupied cells in row 2, then
10 + v3 = 42, hence v3 = 32.

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 Example: ABC
 Iteration 1
• MODI Method (continued)
Calculate the reduced costs (circled numbers on the
next slide) by cij - ui + vj.

Unoccupied Cell Reduced Cost

(1,3) 40 - 0 - 32 = 8
(2,1) 30 - 24 -10 = -4
(2,4) 0 - 10 - 0 = -10

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 Example: ABC
 Delivery Cost Per Ton

Northwood Westwood Eastwood

Plant 1 24 30 40
Plant 2 30 40 42

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 Example: ABC
 Iteration 1 Tableau

Westwood Dummy
Northwood Eastwood ui
24 30 40 0
Plant 1 25 5 +8 20 0

30 40 42 0
Plant 2 -4 40 10 -10 10

vj 24 30 32 0

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 Example: ABC
 Iteration 1
• Stepping Stone Method
The stepping stone path for cell (2,4) is (2,4), (1,4),
(1,2), (2,2). The allocations in the subtraction cells are 20
and 40, respectively. The minimum is 20, and hence
reallocate 20 along this path. Thus for the next tableau:
x24 = 0 + 20 = 20 (0 is its current allocation)
x14 = 20 - 20 = 0 (blank for the next tableau)
x12 = 5 + 20 = 25
x22 = 40 - 20 = 20
The other occupied cells remain the same.

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 Example: ABC
 Iteration 2
• MODI Method
The reduced costs are found by calculating
the ui's and vj's for this tableau.
1. Set u1 = 0.
2. Since u1 + vj = cij for occupied cells in row 1, then
v1 = 24, v2 = 30.
3. Since ui + v2 = ci2 for occupied cells in column 2,
then u2 + 30 = 40, or u2 = 10.
4. Since u2 + vj = c2j for occupied cells in row 2, then
10 + v3 = 42 or v3 = 32; and, 10 + v4 = 0 or v4 = -10.
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 Example: ABC
 Iteration 2
• MODI Method (continued)
Calculate the reduced costs (circled numbers on the
next slide) by cij - ui + vj.

Unoccupied Cell Reduced Cost

(1,3) 40 - 0 - 32 = 8
(1,4) 0 - 0 - (-10) = 10
(2,1) 30 - 10 - 24 = -4

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 Example: ABC
 Iteration 2 Tableau

Westwood Dummy
Northwood Eastwood ui
24 30 40 0
Plant 1 25 25 +8 +10 0

30 40 42 0
Plant 2 -4 20 10 20 10

vj 24 30 36 -6

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 Example: ABC
 Iteration 2
• Stepping Stone Method
The most negative reduced cost is = -4 determined
by x21. The stepping stone path for this cell is (2,1),(1,1),
(1,2),(2,2). The allocations in the subtraction cells are 25
and 20 respectively. Thus the new solution is obtained
by reallocating 20 on the stepping stone path. Thus for
the next tableau:
x21 = 0 + 20 = 20 (0 is its current allocation)
x11 = 25 - 20 = 5
x12 = 25 + 20 = 45
x22 = 20 - 20 = 0 (blank for the next tableau)
TheGraduated
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Program
 Example: ABC
 Iteration 3
• MODI Method
The reduced costs are found by calculating the
ui's and vj's for this tableau.
1. Set u1 = 0
2. Since u1 + vj = c1j for occupied cells in row 1, then
v1 = 24 and v2 = 30.
3. Since ui + v1 = ci1 for occupied cells in column 2,
then u2 + 24 = 30 or u2 = 6.
4. Since u2 + vj = c2j for occupied cells in row 2, then
6 + v3 = 42 or v3 = 36, and 6 + v4 = 0 or v4 = -6.
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 Example: ABC
 Iteration 3
• MODI Method (continued)
Calculate the reduced costs (circled numbers on the
next slide) by cij - ui + vj.

Unoccupied Cell Reduced Cost

(1,3) 40 - 0 - 36 = 4
(1,4) 0 - 0 - (-6) = 6
(2,2) 40 - 6 - 30 = 4

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 Example: ABC
 Iteration 3 Tableau
Since all the reduced costs are non-negative, this is
the optimal tableau.

Westwood Dummy ui
Northwood Eastwood
24 30 40 0
Plant 1 5 45 +4 +6 0

30 40 42 0
Plant 2 20 +4 10 20 6

vj 24 30 36 -6

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 Example: ABC
 Optimal Solution

From To Amount Cost

Plant 1 Northwood 5 120
Plant 1 Westwood 45 1,350
Plant 2 Northwood 20 600
Plant 2 Eastwood 10 420
Total Cost = $2,490

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