TRANSPORTATION

PROBLEM
Dr. G SUNDARAMALI
MB -128
SMEC
VIT
MOB:7598489628

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 TRANSPORTATION MODEL
• A dairy has three plants located throughout the state. Daily milk production at each plant is as follows:
• Plant 1 - 6 million litres
• Plant 2 – 1 million litres
• Plant 3 – 10 million litres
• Each day the firm must fulfill the needs of its four distribution centres. Milk requirement at each centre is as
follows:
• Distribution centre 1 – 7 million litres
• Distribution centre 2 – 5 million litres
• Distribution centre 3 – 3 million litres
• Distribution centre 4 – 2 million litres
• Cost of shipping one million litres of milk from each plant to each distribution centre is given in the following
table in hundreds of rupees.
• Formulate the mathematical model for the problem.
• Determine the optimal transportation policy.
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 TANSPORTATION MODEL
• Deals with transportation of a product available at several sources a number of different destinations
in such a way that the total transportation cost is minimum.
• The origin of this model dates back to 1941 when FL Hitchcock presented a study on the subject.
• Assumptions in the transportation model:-
• Total quantities of an item item available at different sources is equal to total requirement at
different destinations.
• Items can be transported conveniently from all sources to destinations.
• The unit transportation cost of the item from all sources to destinations is certainly and precisely
known.
• The transportation cost on a given route is directly proportional to the number of units shipped
on that route.
• The objective is to minimize the total transportation cost for the organization as a whole and not
for individual supply and distribution centres.

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 TANSPORTATION MODEL
Distribution Center
1 2 3 4

1 2 3 11 7

2
Plant 1 0 6 1

3
5 8 15 9

4
 TANSPORTATION MODEL
Distribution Center
1 2 3 4

1 X11 X12 X13 X14

2
Plant X21 X22 X23 X24

3
X31 X32 X33 X34

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 TANSPORTATION MODEL
• Objective is to minimize the cost of transportation
i.e. Minimize Z = 2X + 3X12 + 11X13 + 7 X14 + X21 + 0X22 + 6X23 + X24 + 5X31 + 8X32 +
15X33 + 9X34
Subject to
X11 + X12 + X13 + X14 = 6 (For plant 1)
X21 + X22 + X23 + X24 = 1 (For plant 2)
X31 + X32 + X33 + X34 = 10 (For plant 3)
X11 + X21 + X31 = 7, (For DC 1)
X12 + X22 + X32 = 5, (For DC 2)
X14 + X24 + X34 = 2 (For DC 3)

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 TANSPORTATION MODEL
Distribution Center
1 3 Supply
2 4

1 2 3 11 7 6

2 1
Plant 1 0 6 1

3
5 8 15 9 10

7 5 3 2
Requirement 17 7
 NORTH WEST CORNER
METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (6) 6

1 0 6 1
2 1
Plant (1) (0)

3 5 8 15 9
(5) (3) (2) 10

7 5 3 2
Requirement 17 8
 ROW MINIMA METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (6) 6

1 0 6 1
2 1
Plant (1)

3 5 8 15 9
(1) (4) (3) (2) 10

7 5 3 2
Requirement 17 9
 COLUMN MINIMA METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (6) 6

1 0 6 1
2 1
Plant (1)

3 5 8 15 9
(5) (3) (2) 10

7 5 3 2
Requirement 17 10
 VAM METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 6 (1)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
10 (3)

7 5 3 2
Requirement 17 11
(1) (3) (5) (6)
 VAM METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (5) 6 (1)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
10 (3)

7 5 3 2
Requirement 17 12
(3) (5) (4) (2)
 VAM METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (1) (5) 6 (5)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
10 (3)

7 5 3 2
Requirement 17 13
(3) (5) (4) (2)
 VAM METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (1) (5) 6 (5)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
(6) (3) (1) 10 (3)

7 5 3 2
Requirement 17 14
(3) (5) (4) (2)
 VAM METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (1) (5) 6 (5)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
(6) (3) (1) 10 (3)

7 5 3 2
Requirement 17 15
(3) (5) (4) (2)
 TRANSPORTATION MODEL
Important Note:
In case of tie among the highest penalties, select the row or column
having minimum cost. In case of tie in the minimum cost also, select
the cell which can have maximum allocation. If there is tie among
maximum allocation cells also, select the cell arbitrarily or
allocation. This will give the best initial basic feasible solution
requiring less number of iterations subsequently.
Optimality Test
Optimality test can be performed only on that feasible solution in which
(a) Number of allocations is m + n – 1, where m is the number of rows
and n is the number of columns.
(b)These (m + n - 1) allocations should be in independent positions.

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 TRANSPORTATION MODEL
Optimality Test
The test procedure for optimality involves examination of each vacant
cell to find whether or not making an allocation in it reduces the
total transportation cost.

Two Methods:
Stepping Stone method:
Modified Distribution Method (MODI)

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STEPPING STONE METHOD
Distribution Center
1 3 Supply
2 4

2 3 11 7
1 (1) (5) 6 (5)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
(6) (3) (1) 10 (3)

7 5 3 2
Requirement 17 18
(3) (5) (4) (2)
 TRANSPORTATION MODEL
Optimality Test
Cell Evaluations
Cell (1,3) = 11-15+5-2 = -1
Cell (1,4) = 7-9+5-2 = +1
Cell (2,1) = 1-1+9-5 = 4
Cell (2,2) = 0-1+9-5+2-3 = 2
Cell (2,3) = 6-1+9-15 = -1
Cell (3,2) = 8-5+2-3 =2

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 MODI METHOD
Distribution Center
1 3 Supply
vj 2 4
ui 2 3 11 7
1 (1) (5) 6 (5)

1 0 6 1
2 1 (1)
Plant (1)

3 5 8 15 9
(6) (3) (1) 10 (3)

7 5 3 2
Requirement 17 20
(3) (5) (4) (2)
 MODI METHOD
U1+V1=2
U1+V2=3
U2+V4=1
U3+V1=5
U3+V3=15
U3+V4=9
Let v1 = 0 (Arbitrary) – Then
U1=2, v2=1, u3=5, v3=10, v4=4, u2=-3

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 MODI METHOD
Distribution Center

vj 0 1 10 4
ui 2 3
2

1
-3
Plant

5 5 15 9

22
 MODI METHOD
Distribution Center

vj 0 1 10 4
ui

2 12 6

-3
Plant -3 -2 7

5
6

Compute ui+vj for each empty cell 23

 MODI METHOD
Distribution Center

vj 0 1 10 4
ui

2
11-12=-1 7-6=1

-3 1+3=4 0+2=2 6-7=-1

Plant

5
8-6=2

Compute cij-(ui+vj) for each empty cell 24

 MODI METHOD
Optimality Test
A –Ve value in an unoccupied cell indicates that a better solution can
be obtained by allocating units to this cell.
A +ve value in an unoccupied cell indicates that a poorer solution will
result by allocating units to the cell.
A zero value in an unoccupied cell indicates that another solution of
the total value can be obtained by allocating units to this cell.

Iterate for optimality by allocating to most –ve cell. Recheck for

optimality. If still notoptimal allocate to most –ve cell and go on.

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 EXAMPLE
Is
50 20
55
30 35 25
An optimal solution for the transportation problem:

6 1 9 3 70

11 5 2 8 55

10 12 4 7
90

85 35 50 45 If not iterate it for optimal

solution 26
 EXAMPLE
Solve the following transportation problem
D1 D2 D3 D4 D5 Available
O1 18
68 35 4 74 15
O2 57 88 91 3 8 17
03
91 60 75 45 60
19
O4 52 53 24 7 82 13

O5 51 18 82 13 7 15

Required 16 18 20 14 14 82

(P-264) 27
 Un Balanced Supply and Demand
EXAMPLE
A product is produced by four factories A,B,C,D. The unit production
costs in them are Rs. 2, 3, 1 and 5 respectively. Their production
capacities are 50,70,30,50 units respectively. These factories supply
the product to four stores, demands of which are 25,35,105,20 units
respectively. Unit transportation cost in rupees from each factory to
each store is given in the table below:

2 4 6 11
10 8 7 5
13 3 9 12
4 6 8 3
Determine the extent of deliveries from each of the factories to each of the
stores so that the total production and transportation cost is minimum. (p-267) 28
Example 1:

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Example 2:

Destinati Supply
on
D1 D2 D3 D4

50 75 35 75 12
S1
Source 65 80 60 65 17
S2
40 70 45 55 11
S3
0 0 0 0 10
(D)
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