Chapter 7

Transportation, Assignment, and

Transshipment Problems
 Transportation Problem
• Network Representation and LP Formulation
 Assignment Problem
• Network Representation and LP Formulation
 The Transshipment Problem
• Network Representation and LP Formulation
 Transportation, Assignment, and
Transshipment Problems
 A network model is one which can be represented by
a set of nodes, a set of arcs, and functions (e.g. costs,
supplies, demands, etc.) associated with the arcs
and/or nodes.
 Transportation, assignment, and transshipment
problems of this chapter, as well as the shortest route,
minimal spanning tree, and maximal flow problems)
and PERT/CPM problems) are all examples of
network problems.
 Transportation, Assignment, and
Transshipment Problems
 Each of the three models of this chapter
(transportation, assignment, and transshipment
models) can be formulated as linear programs and
solved by general purpose linear programming
codes.
 For each of the three models, if the right-hand side of
the linear programming formulations are all integers,
the optimal solution will be in terms of integer values
for the decision variables.
 However, there are many computer packages
(including The Management Scientist) which contain
separate computer codes for these models which take
advantage of their network structure.
 Transportation Problem

 The transportation problem seeks to minimize the

total shipping costs of transporting goods from m
origins (each with a supply si) to n destinations (each
with a demand dj), when the unit shipping cost from
an origin, i, to a destination, j, is cij.
 The network representation for a transportation
problem with two sources and three destinations is
given on the next slide.
 Transportation Problem

 Network Representation

1 d1
c11
s1 1 c12
c13
2 d2
c21
c22
s2 2
c23
3 d3

SOURCES DESTINATIONS
 Transportation Problem

 LP Formulation
The LP formulation in terms of the amounts
shipped from the origins to the destinations, xij , can
be written as:

Min cijxij
ij

s.t. xij < si for each origin i

j

xij = dj for each destination j

i

xij > 0 for all i and j

 Transportation Problem

 LP Formulation Special Cases

The following special-case modifications to the
linear programming formulation can be made:
• Minimum shipping guarantee from i to j:
xij > Lij
• Maximum route capacity from i to j:
xij < Lij
• Unacceptable route:
Remove the corresponding decision variable. Or Set Xij=0
 Example: BBC

Building Brick Company (BBC) has orders for 80

tons of bricks at three suburban locations as follows:
Northwood -- 25 tons, Westwood -- 45 tons, and
Eastwood -- 10 tons. BBC has two plants, each of which
can produce 50 tons per week. 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?
 Example: BBC

 Delivery Cost Per Ton

Northwood Westwood Eastwood

Plant 1 24 30 40
Plant 2 30 40 42
 Example: BBC

 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
 Assignment Problem

 An assignment problem seeks to minimize the total cost

assignment of m workers to m jobs, given that the cost
of worker i performing job j is cij.
 It assumes all workers are assigned and each job is
performed.
 An assignment problem is a special case of a
transportation problem in which all supplies and all
demands are equal to 1; hence assignment problems
may be solved as linear programs.
 The network representation of an assignment problem
with three workers and three jobs is shown on the next
slide.
 Assignment Problem

 Network Representation

c11
1 1
c12
c13
AGENTS TASKS
c21
c22
2 2
c23
c31
c32
3 c33 3
 Assignment Problem

 LP Formulation

Min cijxij
ij

s.t. xij = 1 for each agent i

j

xij = 1 for each task j

i
xij = 0 or 1 for all i and j

• Note: A modification to the right-hand side of the

first constraint set can be made if a worker is
permitted to work more than 1 job.
 Assignment Problem

 LP Formulation Special Cases

• Number of agents exceeds the number of tasks:
xij < 1 for each agent i
j

• Number of tasks exceeds the number of agents:

Add enough dummy agents to equalize the
number of agents and the number of tasks.
The objective function coefficients for these
new variable would be zero.
 Assignment Problem

 LP Formulation Special Cases (continued)

• The assignment alternatives are evaluated in terms
of revenue or profit:
Solve as a maximization problem.
• An assignment is unacceptable:
Remove the corresponding decision variable.
• An agent is permitted to work a tasks:
xij < a for each agent i
j
 Example: Hungry Owner

A contractor pays his subcontractors a fixed fee plus

mileage for work performed. On a given day the
contractor is faced with three electrical jobs associated
with various projects. Given below are the distances
between the subcontractors and the projects.
Projects
Subcontractor A B C
Westside 50 36 16
Federated 28 30 18
Goliath 35 32 20
Universal 25 25 14
How should the contractors be assigned to minimize
total costs?
 Example: Hungry Owner

 Network Representation
50
West. A
36
Subcontractors 16 Projects
28
30
Fed. B
18
35 32

Gol. C
20
25 25
Univ.
14
 Example: Hungry Owner
 Linear Programming Formulation

Min 50x11+36x12+16x13+28x21+30x22+18x23
+35x31+32x32+20x33+25x41+25x42+14x43
s.t. x11+x12+x13 < 1
x21+x22+x23 < 1 Agents
x31+x32+x33 < 1
x41+x42+x43 < 1
x11+x21+x31+x41 = 1
Tasks
x12+x22+x32+x42 = 1
x13+x23+x33+x43 = 1
xij = 0 or 1 for all i and j
 Transshipment Problem

 Transshipment problems are transportation problems in

which a shipment may move through intermediate
nodes (transshipment nodes)before reaching a
particular destination node.
 Transshipment problems can be converted to larger
transportation problems and solved by a special
transportation program.
 Transshipment problems can also be solved by general
purpose linear programming codes.
 The network representation for a transshipment
problem with two sources, three intermediate nodes,
and two destinations is shown on the next slide.
 Transshipment Problem

 Network Representation
c36
3
c13
c37
s1 1 c14 6 d1
c15 c46
Supply 4 c47 Demand
c23
c24 c56
s2 2 7 d2
c25
5 c57

SOURCES INTERMEDIATE DESTINATIONS

NODES
 Transshipment Problem

 Linear Programming Formulation

xij represents the shipment from node i to node j

Min cijxij
ij
s.t. xij < si for each origin i
j
xik - xkj = 0 for each intermediate
i j node k
xij = dj for each destination j
i
xij > 0 for all i and j
 Example: Transshipping

Thomas Industries and Washburn Corporation

supply three firms (Zrox, Hewes, Rockwright) with
customized shelving for its offices. They both order
shelving from the same two manufacturers, Arnold
Manufacturers and Supershelf, Inc.
Currently weekly demands by the users are 50 for
Zrox, 60 for Hewes, and 40 for Rockwright. Both
Arnold and Supershelf can supply at most 75 units to its
customers.
Additional data is shown on the next slide.
 Example: Transshipping

Because of long standing contracts based on past

orders, unit costs from the manufacturers to the
suppliers are:
Thomas Washburn
Arnold 5 8
Supershelf 7 4
The costs to install the shelving at the various
locations are:
Zrox Hewes Rockwright
Thomas 1 5 8
Washburn 3 4 4
 Example: Transshipping

 Network Representation
ZROX
Zrox 50

5 1
ARNOLD
75 Arnold Thomas 5
8 8
Hewes
HEWES 60

7 3
Super Wash-
WASH 4
75 Shelf Burn
BURN
4 4
Rock-
Wright 40
 Example: Transshipping

 Linear Programming Formulation

• Decision Variables Defined
xij = amount shipped from manufacturer i to supplier j
xjk = amount shipped from supplier j to customer k
where i = 1 (Arnold), 2 (Supershelf)
j = 3 (Thomas), 4 (Washburn)
k = 5 (Zrox), 6 (Hewes), 7 (Rockwright)
• Objective Function Defined
Minimize Overall Shipping Costs:
Min 5x13 + 8x14 + 7x23 + 4x24 + 1x35 + 5x36 + 8x37
+ 3x45 + 4x46 + 4x47
 Example: Transshipping

 Constraints Defined
Amount Out of Arnold: x13 + x14 < 75
Amount Out of Supershelf: x23 + x24 < 75
Amount Through Thomas: x13 + x23 - x35 - x36 - x37 = 0
Amount Through Washburn: x14 + x24 - x45 - x46 - x47 = 0
Amount Into Zrox: x35 + x45 = 50
Amount Into Hewes: x36 + x46 = 60
Amount Into Rockwright: x37 + x47 = 40

Non-negativity of Variables: xij > 0, for all i and j.

 Example: Transshipping

 Optimal Solution
ZROX
Zrox 50
50
75 1
ARNOLD 5
75 Arnold Thomas 5 25
8 8
Hewes
HEWES 60
35
7 3 4
Super Wash-
WASH 40
75 Shelf Burn
BURN
4 75 4
Rock-
Wright 40