Scribd
Upload
17 views11 pages

Chapter 3 Transportation and Assignment

Uploaded by

ttesfaye437
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
17 views11 pages

Chapter 3 Transportation and Assignment

Uploaded by

ttesfaye437
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
You are on page 1/ 11

The Transportation Model

 Deals with the distribution of goods from several points of supply


(sources) to a number of points of demand (destinations).
 Transportation models can also be used when a firm is trying to
decide where to locate a new facility.
 A product is transported from a number of sources to a number of
destinations at the minimum possible cost.
 Each source is able to supply a fixed number of units of the
product, and each destination has a fixed demand for the product.
 The linear programming model has constraints for supply at each
source and demand at each destination.
 All constraints are equalities in a balanced transportation model
where supply equals demand.
 Constraints contain inequalities in unbalanced models where supply
does not equal demand.
 Good financial decisions concerning facility location also attempt
to minimize total transportation and production costs for the entire
system.
1
 In real-life problems, total demand is not equal to total
supply.
These unbalanced problems can be handled easily by
using dummy sources or dummy destinations.
If total supply is greater than total demand, a dummy
destination (warehouse), with demand exactly equal to the
surplus, is created.
If total demand is greater than total supply, introduce a
dummy source (factory) with a supply equal to the excess
of demand over supply.

PN5033 - TRANSPORTATION AND ASSIGNMENT PROBLEMS 2


Solution of the Transportation Model

Solution Methods

• Transportation models do not start at the origin where all decision values are zero;
they must instead be given an initial feasible solution.
• Initial feasible solution determination methods include:
- northwest corner method
- minimum cell cost method
- Vogel’s Approximation Method
• Methods for solving the transportation problem itself include:
- stepping-stone method and
- modified distribution method.

3
The Northwest Corner Method
- In the northwest corner method the largest possible allocation is made to the cell in the upper
left-hand corner of the tableau , followed by allocations to adjacent feasible cells.

The Initial NW Corner


Solution

- The initial solution is complete when all rim requirements are satisfied.
- Transportation cost is computed by evaluating the objective function:
Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C
= 6(150) + 8(0) + 10(0) + 7(50) + 11(100) + 11(25) + 4(0) + 5(0) + !2(275)
= $5,925
4
The Minimum Cell Cost Method
(1 of 3)
- In the minimum cell cost method as much as possible is allocated to the cell with the
minimum cost followed by allocation to the feasible cell with minimum cost.

The Initial Minimum Cell Cost Allocation

The Second Minimum Cell Cost Allocation

5
Vogel’s Approximation Method (VAM)
(1 of 5)
- Method is based on the concept of penalty cost or regret.
- A penalty cost is the difference between the largest and the next largest cell cost in a row
(or column).
- In VAM the first step is to develop a penalty cost for each source and destination.
- Penalty cost is calculated by subtracting the minimum cell cost from the next higher cell
cost in each row and column.

The VAM Penalty Costs

6
Vogel’s Approximation Method (VAM)
(2 of 5)
- VAM allocates as much as possible to the minimum cost cell in the row or column with
the largest penalty cost.

The Initial VAM


Allocation

7
Vogel’s Approximation Method (VAM)
(4 of 5)

- Recomputed penalty costs after the third allocation.

The Third VAM


Allocation

8
The Assignment Model

 Special form of linear programming model similar to the


transportation model.
 The second special-purpose LP algorithm is the assignment method.
 Refers to the class of LP problems that involve determining
the most efficient assignment of
o people to projects,
o salespeople to territories,
o contracts to bidders,
o jobs to machines, etc.
 The objective is most often to minimize total costs or total time
of performing the tasks at hand.
 One important characteristic of assignment problems is that
only one job or worker is assigned to one machine or project

9
Each assignment problem has associated with it a
table, or matrix.
Generally, the rows contain the objects or people
we wish to assign, and the columns comprise the
tasks or things we want them assigned to.
The numbers in the table are the costs associated
with each particular assignment.

10
An assignment problem can be viewed as a transportation
problem in which
the capacity from each source (or person to be assigned)
is 1 and
the demand at each destination (or job to be done) is 1.
Such a formulation could be solved using the
transportation algorithm, but it would have a severe
degeneracy problem.
However, this type of problem is very easy to solve using
the assignment method.

11

You might also like