TRANSPORTATION PROBLEMS

Transportation problem is a case of LPP in which the objective is to transport

various amounts of a single homogeneous commodity to various destinations
for a minimum transport cost.

1. Feasible Solution
For a set of non negative values xij that satisfies the constraints are called the
feasible solution of the transportation problem.

2. Basic Feasible Solution

A feasible solution that contains not more than m+n-1 non negative allocation
is called BF solution to the TP.

3. Optimal Solution
A feasible solution is said to be optimal if it minimizes the total transportation
cost.

4. Degenerate & Non- degenerate Basic Feasible Solution

A BF solution to the m × n TP that contains exactly m+n-1 allocation in
independent position is called non degenerate BF solution.

A feasible solution that contains less than m+n-1 non negative allocation is
said to be degenerating.

Methods to find initial basic feasible solution

1. North West Corner Rule (NWCR)

Ques : Find the IBFS whose cost matrix is given by

D1 D2 D3 D4 Capacity
6 4 1 5 14
8 9 2 7 16
4 3 6 2 15
6 10 15 14 Demand
Soln:
1 2 3 4 Cap
1 6 4 1 5 14
6 8 × ×
2 8 9 2 7 16
× 2 14 ×
3 4 3 6 2 15
× × 1 14
Dem 6 10 15 14 45
45

Number of allocation= m+n-1 = 4+3-1 = 6

IBFS Cost = (6 × 6) + (8 × 4) + (2 × 9) + (14 × 2) + (1 × 6) +
(14 × 2)
= 148

2. Matrix Minima or Low Cost Entry Method

Ques:

1 2 3 4 Supply
A 21 16 15 3 11
B 17 18 14 23 13
C 32 27 18 41 19
Demand 6 10 12 15
Soln:
21 16 15 3 11
× × × 11
17 18 14 23 13
1 × 12 ×
32 27 18 41 19
5 10 × 4
6 10 12 15 43
43
= m+n-1= 4+3-1 = 6
Number of allocation
IBFS Cost = (11 × 3) + (1 × 17) + (12 × 14) + (5 × 32)
+ (10 × 27) + (4 × 41)
= 812

3. Vogel’s Approximation Method

Ques:

1 2 3 4 Supply
A 21 16 15 3 11
B 17 18 14 23 13
C 32 27 18 41 19
Demand 6 10 12 15
Soln:
21 16 15 3 11
× × × 11 12 |
17 18 14 23 13
6 3 4 3|3|3|4|
×
32 27 18 41 19
7 12 9 | 9 | 9 | 9| 9 | 9 | 18 |
× ×
6 10 12 15 43
43
×
4 2 1 20
15 9 4 18
15 9 4
9 4
27 18
18

= m+n-1 = 4+3-1 = 6
Number of allocation
IBFS Cost = (11 × 3) + (6 × 17) + (3 × 18) + (4 × 23)
+ (7 × 27) + (12 × 18)
= 686

Problems:

1. Find the IBFS whose cost matrix is given below by NWCR, MMM, VAM
 E F G H I J Supply
A 14 19 32 9 21 0 200
B 15 10 18 7 11 0 225
C 20 12 13 18 16 0 175
D 11 32 14 14 18 0 350
Demand 130 110 140 260 180 130

Soln:

a. NWCR:

14 19 32 9 21 0 200
130 70 × × × ×
15 10 18 7 11 0 225
× 40 140 45 × ×
20 12 13 18 16 0 175
× × × 175 × ×
11 32 14 14 18 0 350
× × × 40 180 130
130 110 140 260 180 130

IBFS Cost = (130 × 14) + (70 × 19) + (40 × 10) + (140 × 18)
+ (45 × 7) + (175 × 18) + (40 × 14) + (180 × 18)
+ (0 × 130)
= 13335
b. VAM:

14 19 32 9 21 0 200 9 5 5
× × × 35 35 130
15 10 18 7 11 0 225 7 3 3 3
× × 225
× × ×
20 12 13 18 16 0 175 12 1 1 1 1
× 110 65 × × ×
11 32 14 14 18 0 350 11 3 3 3 3 3
130 × 75 × 145 ×
130 110 140 260 180 130 950
3 2 1 2 5 0
3 2 1 2 5 0

3 2 1 2
4 2 1 7
9 20 1 4
11 32 14 14

IBFS Cost = 10315

 c. MMM
14 19 32 9 21 0 200
× × × 35 35 130
15 10 18 7 11 0 c.
225
× × × 225 × ×
20 12 13 18 16 0 175
× 110 65 × × ×
11 32 14 14 18 0 350
130 × 75 × 145 ×
130 110 140 260 180 130

IBFS Cost = (35 ×9) + (35 × 21) + (130 × 0) + (225 × 7)

+ (110 × 12) + (65 × 13) + (130 × 11) + (75 × 14)
+ (145 × 18)
= 9880
Test for optimality

1. Number of allocation = m+n-1

2. These allocations must be in independent positions

Non independent

Non independent

Independent

Prob: Test the optimality of the given problem by Modi method or UV

method

19 30 50 10 7
70 30 40 60 9
40 8 70 20 18
5 8 7 14
Soln:
IBFS Cost = (19 × 5) + (10 × 2) + (40 × 7) + (2 × 60)
+ (8 × 8) + (65 × 13) + (20 × 10)
= 779

19 30 50 10 7 9 9 40 40
5 × × 2
70 30 40 60 9 10 20 20 20
× × 7 2
40 8 70 20 18 12 20 50
× 8 × 10
54 8 7 14 34
54 8 7 14

21 22 10 10
21 10 10
10 10
10 50

Test by Modi Method

19 30 50 10 u1 = 10
5 + + 2
90 30 40 60 u2 = 60
+ − 7 2 -0
40 8 70 20 u3 = 20
+ 8 + 10 +0
v1 =9 v2= -12 v3= -20 v4= 0

For allocated cells we have cij = ui + vj

C14 = U1 + V4 U1 = 10
10 = U1 + 0
C24 = U2 + V4 U2 = 10
60 = U2 + 0

C34 = U3 + V4 U3 = 0
20 = U3 + 0

C11 = U1 + V1 V1 = 9
19 = V1 + 10

C23 = U2 + V3 V3 = -20
40 = V3 + 60

C32 = U3 + V2 V2 = -12
8 = V1 + 20

For empty cells

dij = cij – ( uj + vj )
d12 = 30 – (10 – 12 )
d12 = 32

d13 = 50 – (10 – 20 )
d13 = 60

d21 = 90 – (9 + 60 ) d22 = 30 – (60 – 12 )

d21 = 21 d22 = -18

d31 = 40 – (9 + 20 ) d33 = 70 – (20 – 20 )

d31 = 11 d33 = 70 Ans: 743
 Unbalanced Transportation Problem
Prob 1: A company has 4 factories A,B,C,D which supply to
warehouses E,F,G,H,I. Monthly capacities are 200,225,175,350 units.
Monthly ware house requirements are 130,110,140,260 & 180 units
respectively. The shipping cost in Rs is given below. Find the minimum
transportation cost.

E F G H I Cap
A 14 19 32 9 21 200
B 15 10 18 7 11 225
C 26 12 13 18 16 175
D 11 22 14 14 18 350
Dem 130 110 140 260 180 950
820

Soln: Since the capacity is not equal to demand. This is an unbalanced TP.
Balance it by adding a dummy column having a demand of 950 – 820 =
130 units.
The cost values in the dummy column are taken as zeroes.

14 19 32 9 21 0

15 10 18 7 11 0

26 12 13 18 16 0

11 22 14 14 18 0
 14 19 32 9 21 0 200
× × × 200 × ×
15 10 18 7 11 0 225
× × × 45 80 ×
26 12 13 18 16 0 175
× 45 × × × 130
11 22 14 14 18 0 350
130 65 140 15 × ×
130 110 140 260 180 130

14 19 32 9 21 0
× × × 200 × ×
15 10 18 11 7 0
× × × 60 165 ×
26 12 13 18 16 0
× 45 × × × 130
11 22 14 14 18 0
130 65 40 × 15 ×
Test for optimality

14 19 32 9 21 u1 = -5
+ + + 200 +
5 30 40
60 11 u2 = -7
+ − 7 2 -0 165
26 8 70 20 16 u3 = -10
+ 8 + 10 +0 +
11 22 14 14 18 u4 = 0
130 65 140 0 100
v1 =11 v2= 22 v3= 14 v4= 14 v5= 18 v6= 10

(45 + 0) Q -Q (130-0)

(65 – 0) –Q Q

130 – Q = 0
And, 65 – 0 =0
Q = 65 & 130
Qmin = 65

Q 65 - Q

15 – Q 65 + Q

Qmin = 15
 14 19 32 9 21 0 u1 = -5
0 + + 200 + +
15 10 18 7 11 0 u2 = -7
+ + + 60 165 +
26 12 13 18 16 0 u3 = -10
110 - + + 55
+ 11 + 22 14 14 18 0 u4 = 0
130 65 10 +0 15 65
v1 =11 v2= 12 v3= 14 v4= 14 v5= 18 v6= 0

14 19 32 9 21 0 u1 = -3
0 + + 200 + +
15 10 18 7 11 0 u2 = -5
+ + + 60 165 +
26 12 13 18 16 0 u3 = 0
+ 10 - + 15 50
11 22 14 14 18 0 u4 = 0
130 + 140 + 0 80
v1 =11 v2= 12 v3= 14 v4= 12 v5= 16 v6= 0

Q 5+Q

140 – Q 80 + Q

Qmin = 50
 14 19 32 9 21 0 u1 = -4
+ + + 200 + +
15 10 18 7 11 0 u2 = -6
+ + + 60 165 +
26 12 13 18 16 0 u3 = -1
+ 10 50 + 15 +
11 22 14 14 18 0 u4 = 0
130 + 90 + + 130
v1 =11 v2= 13 v3= 14 v4= 13 v5= 17 v6= 0

Min Tc = 8935

Maximisation TP

Prob 1: A firm manufacturing a certain product has 3 plants A, B & C.

The firm has to supply to 3 customers C1, C2 & C3. The profits expected
per unit transported from the 3 plants to the 3 customers are given
below. The requirements of the customers are 100, 70, & 120 units
respectively & the capacities of the plants A, B & C are 80,130 & 100
units respectively. Determine the optimum no. of units to be transplanted
from each of the plants to each of the customers. Does this problem have
more than one optimum solution? If yes find another solution for the
problem

C1 C2 C3 Capacity
A 4 1 3 80
B 2 3 2 130
C 3 5 2 100
Demand 100 70 120 130
290
 Soln: Since the capacity is not equal to demand. This is an unbalanced
TP. Balance it by adding a dummy column having a demand of 310 –
290 = 20 units.

C1 C2 C3 C4 Capacity
A 4 1 3 0 80
B 2 3 2 0 130
C 3 5 2 0 100
Demand 100 70 120 20

Since the given matrix is a profit matrix it has to be maximized. The

given matrix is converted to solve for maximization.

(1) Select highest element in the matrix and subtract all other
elements from it.
For the revised matrix apply regular procedure

1 4 10 5 80 1 1 1 3
70 × × ×
3 2 3 5 130 1 0 1 2
× 110 × 20
2 0 3 5 100 2 1
30 70 × ×
100 70 120 20
1 2 1 0
1 1 0
2 1 0
1 0

IBFS Cost = (70 × 4) + (10 × 3) + (110 × 2) + (20 × 0)

+ (30 × 3) + (70 × 5)
= 970
Test for optimality

1 4 2 5 u1 = - 1
70 + 10 0
3 2 3 5 u2 = - 1
+ + 110 20
2 0 3 5 u3 = 0
30 70 + 0
v1 =2 v2= 0 v3= 3 v4= 6

Since, empty cell evaluations are all non negative the solution is optimal.
Hence, there is zero evaluation for 2 empty cells which suggest this
problem has more than one optimal solution.

10 – Q Q

110+ Q 20 – Q

Q =10

1 4 2 5 u1 = - 1
70 + 10 0
3 2 3 5 u2 = - 1
+ + 120 10
2 0 3 5 u3 = 0
30 70 - -
v1 =2 v2= 0 v3= 4 v4= 6
70 + Q 10 – Q

10 + Q
120 –Q

30 –Q Q Q =10

1 4 2 5 u1 = - 1
80 + 0 0
3 2 3 5 u2 = 0
+ + 110 20
2 0 3 5 u3 = 0
20 70 10 0
v1 =2 v2= 0 v3= 3 v4= 5

Degeneracy in TP

Degeneracy occurs in a TP whenever the number of occupied cells is

less than m + n – 1. The degeneracy can develop in 2 ways
(1) Basic feasible solution may degenerate from the initial stage
onwards.
(2) They may become degenerate at any inter mediate stage.

Resolution of degeneracy

To reduce degeneracy allocate an extremely small quantity of goods

(usually denoted by ∆ or ε ) to one or more of the empty cells so that the
numbers of occupied cells become equal to m + n – 1. The small
quantity ∆ is introduced on the least cost independent cell.
Test for optimality

Prob 1: The following table given the cost of transporting a certain item
from A, B, C & D to destination E, F, G & H. The demand at E, F, G &
H are 10, 20, 30, & 40 units respectively. The capacities of A, B, C & D
are 10, 30, 20 & 60 units respectively
a. Determine the optimum transportation schedule and minimum total
cost.
b. If the cost from C to G is increased to 12 per unit does the optimal
schedule change if yes find the new optimal solution? Does it have
an alternate solution?

E F G H
A 8 10 12 17 0 10
B 15 13 18 11 0 30
C 14 20 6 10 0 20
D 13 19 7 5 0 60
10 20 30 40 20

Soln: Rs 730

Prob 2: A company has factories A, B, C which supplies to ware houses

at D, E & F. Monthly capacities are 150,200 & 250 units respectively on
regular production. If are time is utilized factories A & B can produce 50
& 100 units respectively. The expected profits per unit for different
combination of factories to warehouses are given below. If overtime is
utilized, the expected profit/unit decreases by 5% & 4% respectively per
factories A & B. Determine the optimum distribution plan for the
company & the max profit.
 D E F
A 11 13 17 150
B 16 18 14 200
C 21 20 13 250
300 200 200

D E F
A 11 13 17 150
B 16 18 14 200
C 21 20 13 250
A0 6 8 12 50
B0 12 14 10 100

Considering over time we take 2 fictitious factories having capacities 50

& 100 units respectively.

The expected profits per unit for these factories are estimated by
decreasing Rs.5 & 4 from factories A & B without over time.

This is an unbalanced problem & hence to be balanced.

D E F Gf
A 11 13 17 0 150
B 16 18 14 0 200
C 21 20 13 0 250
A0 6 8 12 0 50
B0 12 14 10 0 100
300 200 200 50
 D E F Gf
A 10 8 4 21 150
× × 150 ×
B 5 3 7 21 200
50 150 ∆× ×
C 0 1 8 21 250
250 × × ×
A0 15 13 9 21 50
× × 50 ×
B0 9 7 11 21 100
× 50 × 50
300 200 200 50

No. of allocations = m+n-1 = 8, but m + n – 1 =7

This is a case of degeneracy.

Since the empty cell evaluations are non negative the solution is optimal.

IBFS Cost = (150 × 17) + (50 × 16) + (150 × 18)

+ (250 × 21) + (50 × 12) + (50 × 14)
+ (50 × 0)
= 12600
Max Profit = 12600
 13 D 11 E 16 F 23 G u1f = -3
+
A 1 10 + 8 + 4 21 u1 = - 3
11 + 19 + 26 50 16 u+2 = 8
1
B 4 5 + 3 - 7 21 u2 = 0
12 50 11 150 4 ∆ 9 u+3 = 0
+
C 2 0 5 1 3 8 21 u3 = -5
7 250 15 + 9 + 14 + u4 = 4
8
A0 0 15 + 13 + 9 21 u4 = 2
v1 = 3 v+2= 11 v+3= 4 v4= 9
50 +
B0 9 7 11 21 u5 = 4
0 50 + 50
v1 =5 v2= 3 v3= 7 v4= 17