Transportation Problems

MHA 6350
 Medical Supply Transportation
Problem
• A Medical Supply company produces catheters
in packs at three productions facilities.
• The company ships the packs from the
production facilities to four warehouses.
• The packs are distributed directly to hospitals
from the warehouses.
• The table on the next slide shows the costs per
pack to ship to the four warehouses.
Source: Adapted from Lapin, 1994

Medical Supply
TO WAREHOUSE
FROM
PLANT Seattle New York Phoenix Miami

Juarez $19 $ 7 $ 3 $21

Seoul 15 21 18 6
Tel Aviv 11 14 15 22

Capacity Demand
Juarez 100 Seattle 150
Seoul 300 New York 100
Tel Aviv 200 Phoenix 200
Miami 150
Source: Adapted from Lapin, 1994

TO WAREHOUSE
From Plant
Plant Capacity
S N P M

J Xjs Xjn Xjp Xjm 100

S Xss Xsn Xsp Xsm 300

T Xts Xtn Xtp Xtm 200

Warehouse
Demand
150 100 200 150 600

Number of constraints = number of rows + number of columns

Total plant capacity must equal total warehouse demand.

Although this may seem unrealistic in real world application, it
is possible to construct any transportation problem using this model.
Source: Adapted from Lapin, 1994

Northwest Corner Method

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100

1 2 1
6
5 1 8
S 300

1 1 1 2
1 4 5 2
T 200

Demand 150 100 200 150 600

Begin with a blank shipment schedule. Note the shipping costs

in the upper right hand corner of each cell.
Source: Adapted from Lapin, 1994

Northwest Corner Method

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100

1 2 1
6
5 1 8
S 300

1 1 1 2
1 4 5 2
T 200

Demand 150 100 200 150 600

Start in the upper left-hand corner, “northwest corner” of the schedule

and place the largest amount of capacity and demand available in that
cell. Seattle demands 150 and Jaurez has a capacity of 100.
Source: Adapted from Lapin, 1994

Northwest Corner Method

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100

1 2 1
6
5 1 8
5
S 300
0
1 1 1 2
1 4 5 2
T 200

Demand 150 100 200 150 600

Since Juarez capacity is depleted move down to repeat the process for
the Seoul to Seattle cell. Seoul has sufficient capacity but Seattle can
only take another 50 packs of demand.
Source: Adapted from Lapin, 1994

Northwest Corner Method

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100

1 2 1
6
5 1 8
5
S 100 150 300
0
1 1 1 2
1 4 5 2
5
T 150 200
0

Demand 150 100 200 150 600

Now move to the next cells to the right and assign capacity for Seoul to
warehouse demand until depleted. Then move down to the Tel Aviv row
and repeat the process.
Source: Adapted from Lapin, 1994

Northwest Corner Method

To
S N P M
Capacity
From
1 2
9
7 3
1 1900
J 1900 100
750
1 2 1
6
5 1 8
S 750 2100 2700 300 2100

1 1 1 2 2700
1 4 5 2
T 750 3300 200
750

Demand 150 100 200 150 600 3300

The previous slides show the process of satisfying all C =11,500

constraints and allows us to begin with a starting feasible
solution. Multiply the quantity in each cell by the cost.
Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj

Assign zero as the row number for the first row.

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a

1 2 1
6
5 1 8
5
S 100 150 300
0
1 1 1 2
1 4 5 2
5
T 150 200
0

Demand 150 100 200 150 600

ks = 19
19 = (0) + ks b
Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj

Assign zero as the row number for the first row.

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a

1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
1 1 1 2
1 4 5 2
5
T 150 200
0

Demand 150 100 200 150 600

ks = 19
15 = rs + 19
b
rs = -15 + 19
= -4 Note: Always use the newest r value to compute the next k.
Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj

Assign zero as the row number for the first row.

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a

1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0 *
1 1 1 2
1 4 5 2
5
T 150 200
0

Demand 150 100 200 150 600

ks = 19 kp = 22
18 =-4 + kp
b d Skip cell SN, mark it * for later
18 + 4 = kp
and move on to cell SP .
= 22
Source: Adapted from Lapin, 1994
For non empty cells: ctp = rt+ kp
Assign zero as the row number for the first row then
use the newest r value to compute the next k.

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a

1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0 *
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kp = 22
15 = rt + 22
b d
15 - 22 = rt
= -7
Source: Adapted from Lapin, 1994
For non empty cells: cij = ri+ kj
Assign zero as the row number for the first row then
use the newest r value to compute the next k.

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a

1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0 *
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kp = 22 km = 29
22 = -7 + km
b d f
22 + 7 = km
= 29
Source: Adapted from Lapin, 1994
For non empty cells: cij = ri+ kj
Assign zero as the row number for the first row then
use the newest r value to compute the next k.

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a

1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0 *
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
21= -4 + kn
b g d f
21 + 4 = kn
= 25
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >> JN = 7 – 0 – 25 = -18

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >> JP = 3 – 0 – 22 = -19

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18 -19
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >> JM = 21 – 0 – 29 = -8

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18 -19 -8
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >> SM = 6 – (-4) – 29 = -19

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18 -19 -8
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
-19
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >> TS = 11 – (-7) – 19 = -1

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18 -19 -8
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
-19
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0
-1

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >>TN = 14 – (-7) – 25 = -4

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18 -19 -8
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
-19
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0
-1 -4

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994
Next calculate empty cells using: cij - ri - kj

Improvement Difference >>

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0 a
-18 -19 -8
1 2 1
6
5 1 8
5
S 100 150 300 rs = -4 c
0
-19
1 1 1 2
1 4 5 2
5
T 150 200 rt = -7 e
0
-1 -4

Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
b g d f
Source: Adapted from Lapin, 1994

Next calculate the entering cell by finding the

empty cell with the greatest absolute negative
improvement difference. Cells JP and SM are tied for the greatest
improvement at $19 per pack. Break the tie and
arbitrarily choose JP. JP becomes the entering
cell. Place a + sign in cell JP

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 100 rj = 0
(-) (+) -8
1 -18 2 -19 1
6
5 5 1 8
S 100 150 300
0 rs = -4
(+) (-)
1 1 1 -19 2
1 4 5 5 2
T 150 200
0 rt = -7
-1 -4
Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29
Note: Except for the entering cell all changes must
involve nonempty cells.
Source: Adapted from Lapin, 1994

Continue around the closed loop until all tradeoffs

are completed.

Previous cost was $11,500 and the new is:

To
S N P M
Capacity 300
From
1
7 3
2 2250
9 1
J 100 100 rj = 0 2100
(-) (+) -8
1 -18 2 -19 1 900
6
5 5 1
50
8 750
S 150 100 300
(+)
0
(-) rs = -4 3300
1 1 1 -19 2
1 4 5 2
C = $9,600
5
T 150 200
0 rt = -7
-1 -4
Demand 150 100 200 150 600

ks = 19 kn = 25 kp = 22 km = 29

Note: Except for the entering cell all changes must

involve nonempty cells.
Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the

greatest absolute negative improvement difference.
>>>>>SM

To
S N P M
Capacity
From
1 2
7 3
9 1
J 100 100 rj = 0
19 1 1 2 1 11
6
5 5 1 8
S 150 100 50 300
0 (-) (+) rs = 15
1 1 1 -19 2
1 4 5 5 2
T 150 200
0 rt = 12
-1 -4 (+) (-)
Demand 150 100 200 150 600

ks = 0 kn = 6 kp = 3 km = 10

Note: The r and k values and the improvement

difference values have changed.
Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the

greatest absolute negative improvement difference.
SM
Previous cost was $9,600, now the new is:

To
S N P M
Capacity 300
From
1
7 3
2 2250
9 1
J 100 100 rj = 0 2100
19 1 1 2 1 11 300
6
5 5 1
50
8
50 1500
S 150 100 300
0 (-) (+) rs = 15 2200
1 1 1 -19 2
1 4
C = $8,650
5 5 100
100 150
2
T 200
0 rt = 12
-1 -4 (+) (-)
Demand 150 100 200 150 600

ks = 0 kn = 6 kp = 3 km = 10

Note: The r and k values and the improvement

difference values have changed.
Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the

greatest absolute negative improvement difference.
SM
Previous cost was $8,650, now the new is:

To
S N P M
Capacity 300
From
1
7 3
2 2250
9 1
J 100 100 rj = 0 900
0 1 -18 2 1 11 1400
6
5 5 100 1 8 50
150 1500
S 150 300
0 (-) (+) rs = -4
1 1 -19 1 2
1 4 5 2
C = $6,350
100 100 0
100
T 200
-20
(+)
-23
(-) rt = 12

Demand 150 100 200 150 600

ks = 19 kn = 2
25 kp = 3 km = 10

Note: The r and k values and the improvement

difference values have changed.
Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the

greatest absolute negative improvement difference.
SM
$6,350

To
S N P M
Capacity 300
From
1
7 3
2 2250
9 1
J 100 100 rj = 0 900
20 1 5 2 1 31 1400
6
150 5 1 8 150 1500
S 300
(-) (+) rs = 16
1 3 1 -1 1 2
1
C = $6,350
0 100 4 100 5 2
T 200
(+) (-) 20 rt = 12

Demand 150 100 200 150 600

ks = -1 kn = 2 kp = 3 km = 10

Note: The r and k values and the improvement

difference values have changed.
Source: Adapted from Lapin, 1994

Optimal Solution In five iterations the shipping cost has

moved from $11,500 to $6,250. There are
no remaining empty cells with a negative
$6,250 value.

To
S N P M
Capacity 300
From
1
7 3
2 750
9 1
J 100 100 rj = 0 1800
19 1 4 2 1 30 900
6
50 5 1 100 8 150 1100
S 300
(-) (+) rs = 15 1400
1 3 1 1 2
C = $6,250
100 1 100 4 5 2
T 200
(+) 1 (-) 20 rt = 11

Demand 150 100 200 150 600

ks = 0 kn = 3 kp = 3 km = -9

Note: The r and k values and the improvement

difference values have changed.