QUESTION 2

A transportation problem involves the following costs, supply, and demand:

To
From 1 2 3 4 Supply
1 $ 500 $ 750 $ 300 $ 450 12
2 650 800 400 600 17
3 400 700 500 550 11
Demand 10 10 10 10

a. Find the initial solution using the northwest corner method, the minimum cell cost method,
and Vogel’s approximation model. Compute total cost for each.

Northwest Corner Method

To
1 2 3 4 Supply
From
500 750 300 450
1 12
10 2
650 800 400 600
2 17
8 9
400 700 500 550
3 11
1 10

Demand 10 10 10 10 40

Z = 500X11 + 750X12 + 800X22 + 400X23 + 500X33 + 550X34

Z = 500 (10) + 750 (2) + 800 (8) + 400 (9) + 500 (1) + 550 (10)

Z = 5,000 + 1,500 + 6,400 + 3,600 + 500 + 5,500

Z = $ 22,500
Minimum Cell Cost Method

To
1 2 3 4 Supply
From
500 750 300 450
1 12
10 2
650 800 400 600
2 17
10 7
400 700 500 550
3 11
10 1

Demand 10 10 10 10 40

Z = 300X13 + 450X14 + 800X22 + 600X24 + 400X31 + 550X34

Z = 300 (10) + 450 (2) + 800 (10) + 600 (7) + 400 (10) + 550 (1)

Z = 3,000 + 900 + 8,000 + 4,200 + 4,000 + 550

Z = $ 20,650
Vogel’s Approximation Method

To
1 2 3 4 Supply
From
150
500 750 300 450 50
1 12 300
2 10
200
650 800 400 600 50
2 17 200
7 10
100
400 700 500 550 150
3 11 150
10 1

Demand 10 10 10 10 40
100 50 100 100
100 50 100
50 100

Z = 750X12 + 450X14 + 800X22 + 400X23 + 400X31 + 700X32

Z = 750 (2) + 450 (10) + 800 (7) + 400 (10) + 400 (10) + 700 (1)

Z = 1,500 + 4,500 + 5,600 + 4,000 + 4,000 + 700

Z = $ 20,300
b. Using the VAM initial solution, find the optimal solution using the modified distribution
method (MODI).

X12 : u1 + v2 = 750 Let u1 = 0

X14 : u1 + v4 = 450 v2 = 750

X22 : u2 + v2 = 800 v4 = 450

X23 : u2 + v3 = 400 u2 = 50

X31 : u3 + v1 = 400 v3 = 350

X32 : u3 + v2 = 700 u3 = –50

v1 = 450

vi v1 = 450 v2 = 750 v3 = 350 v4 = 450

To
ui 1 2 3 4 Supply
From
500 750 300 450
u1 = 0 1 12
2 10
650 800 400 600
u2 = 50 2 17
7 10
400 700 500 550
u3 = –50 3 11
10 1

Demand 10 10 10 10 40

X11 : k11 = 500 – 0 – 450 = 50 X24 : k24 = 600 – 50 – 450 = 50

X13 : k13 = 300 – 0 – 350 = –50 X33 : k33 = 500 – (–50) – 350 = 200

X21 : k21 = 650 – 50 – 450 = 150 X34 : k34 = 550 – (–50) – 450 = 150
 To
1 2 3 4 Supply
From
500 – 750 + 300 450
1 12
2 10
650 + 800 – 400 600
2 17
7 10
400 700 500 550
3 11
10 1

Demand 10 10 10 10 40

To
1 2 3 4 Supply
From
500 750 300 450
1 12
2 10
650 800 400 600
2 17
9 8
400 700 500 550
3 11
10 1

Demand 10 10 10 10 40

X13 : u1 + v3 = 300 Let u1 = 0

X14 : u1 + v4 = 450 v3 = 300

X22 : u2 + v2 = 800 v4 = 450

X23 : u2 + v3 = 400 u2 = 100

X31 : u3 + v1 = 400 v2 = 700

X32 : u3 + v2 = 700 u3 = 0

v1 = 400
 vi v1 = 400 v2 = 700 v3 = 300 v4 = 450
To
ui 1 2 3 4 Supply
From
500 750 300 450
u1 = 0 1 12
2 10
650 800 400 600
u2 = 100 2 17
9 8
400 700 500 550
u3 = 0 3 11
10 1

Demand 10 10 10 10 40

X11 : k11 = 500 – 0 – 400 = 100 X24 : k24 = 600 – 100 – 450 = 100

X12 : k12 = 750 – 0 – 700 = 50 X33 : k33 = 500 – 0 – 300 = 200

X21 : k21 = 650 – 100 – 400 = 150 X34 : k34 = 500 – 0 – 450 = 50

Z = 300X13 + 450X14 + 800X22 + 400X23 + 400X31 + 700X32

Z = 300 (2) + 450 (10) + 800 (9) + 400 (8) + 400 (10) + 700 (1)

Z = 600 + 4,500 + 7,200 + 3,200 + 4,000 + 700

Z = $ 20,200
QUESTION 9

Steel mills in three cities produce the following amounts of steel:

Location Weekly Production (tons)

A. Bethlehem 150
B. Birmingham 210
C. Gary 320
680

These mills supply steel to four cities where manufacturing plants have the following
demand:

Location Weekly Demand (tons)

1. Detroit 130
2. St. Louis 70
3. Chicago 180
4. Norfolk 240
620

Shipping costs per ton of steel are as follows:

To
From 1 2 3 4
A $ 14 9 16 18
B 11 8 7 16
C 16 12 10 22

Because of a truckers’ strike, shipments are at present prohibited from Birmingham to

Chicago.
a. Set up a transportation tableau for this problem and determine the initial solution. Identify
the method used to find the initial solution.

Vogel’s Approximation Model

To
1 2 3 4 Dummy Supply
From
9
14 9 16 18 0 5
A 150 5
70 80 4-
4-
8
11 8 7 16 0 3
B 210 3
50 160 5
5
10
16 12 10 22 0 2
C 320 4-
80 180 60 6

Demand 130 70 180 240 60 680

3 1 6 2 0
3 1 6 2
3 1 2
3 2
3 2

Z = 9XA2 + 18XA4 + 11XB1 + 16XB4 + 16XC1 + 10XC3

Z = 9 (70) + 18 (80) + 11 (50) + 16 (160) + 16 (80) + 10 (180)

Z = 630 + 1,440 + 550 + 2,560 + 1,280 + 1,800

Z = $ 8,260
b. Solve this problem using MODI.

XA2 : uA + v2 = 9 Let uA = 0

XA4 : uA + v4 = 18 v2 = 9

XB1 : uB + v1 = 11 v4 = 18

XB4 : uB + v4 = 16 uB = –2

XC1 : uC + v1 = 16 v1 = 13

XC3 : uC + v3 = 10 uC = 3

XCD : uC + vD = 0 v3 = 7

vD = –3

vi v1 = 13 v2 = 9 v3 = 7 v4 = 18 vD = –3
To
ui 1 2 3 4 Dummy Supply
From
14 9 16 18 0
uA = 0 A 150
150
11 8 7 16 0
uB = –2 B 210
130 70 10
16 12 10 22 0
uC = 3 C 320
180 80 60

Demand 130 70 180 240 60 680

XA1 : kA1 = 14 – 0 – 13 = 1 XBD : kBD = 0 – (–2) – (–3) = 5

XA3 : kA3 = 16 – 0 – 7 = 9 XC2 : kC2 = 12 – 3 – 9 = 0

XAD : kAD = 0 – 0 – (–3) = 3 XC4 : kC4 = 22 – 3 – 18 = 1

XB2 : kB2 = 8 – (–2) – 9 = 1

Since there is no negative value in the calculation of k ij, the solution shown in the table above
is optimal and the minimum cost has been achieved, where Z = $ 8,260.

c. Are there multiple solutions? Explain. If so, identify them.

The table above contains multiple solutions. Multiple solutions can be found where the value
of kij is equal to zero. Since the kij value for XC2 is equal to zero, this indicates that Cell C2 is
the other optimal solution. If Cell C2 is occupied, the same cost will be obtained.

To
1 2 3 4 Dummy Supply
From
14 – 9 16 + 18 0
A 150
70 80
+ 11 8 7 – 16 0
B 210
50 160
– 16 + 12 10 22 0
C 320
80 180 60

Demand 130 70 180 240 60 680

To
1 2 3 4 Dummy Supply
From
14 9 16 18 0
A 150
150
11 8 7 16 0
B 210
120 90
16 12 10 22 0
C 320
10 70 180 60

Demand 130 70 180 240 60 680

Z = 18XA4 + 11XB1 + 16XB4 + 16XC1 + 12Xc2 + 10XC3

Z = 18 (150) + 11 (120) + 16 (90) + 16 (10) + 12 (70) + 10 (180)

Z = 2,700 + 1,320 + 1,440 + 160 + 840 + 1,800

Z = $ 8,260

d. Formulate this problem as a general linear programming model.

Minimize Z = 14XA1 + 9XA2 + 16XA3 + 18XA4 + 11XB1 + 8XB2 + 7XB3 + 16XB4 + 16XC1 +
12XC2 + 10XC3 + 22XC4

Subject to:

XA1 + XA2 + XA3 + XA4 = 150

XB1 + XB2 + XB3 + XB4 = 210

XC1 + XC2 + XC3 + XC4 = 320

XA1 + XB1 + XC1 = 130

XA2 + XB2 + XC2 = 70

XA3 + XB3 + XC3 = 180

XA4 + XB4 + XC4 = 240

Xij  0
 MANAGERIAL DECISION MODELLING

KPA1323

INDIVIDUAL ASSIGNMENT 2

TRANSPORTATION MODELS

NAME : SITI AFIQAH BINTI KAMARUZAMAN

STUDENT ID : KBB16012

SUBMISSION DATE : 2ND NOVEMBER 2016

SUBMITTED TO : DR. CHENG JACK KIE