The Transportation

Problem
 The Transportation problem
At the beginning of a sowing season, there will be surplus
of 6, 9, 7 and 5 tractors in four villages: A, B, C and D while
three other villages: X, Y and Z will require 8, 7 and 12
tractors, respectively for farming purposes. The cost of
moving tractors is directly proportional to the distance
between the surplus and the deficit villages, and these
distances (in kilometres) are given below:
To 
X Y Z
From 
A 26 22 28
B 19 27 16
C 39 21 32
D 18 24 23
 The Transportation problem
Our problem is to evolve a transportation scheme which
meets the requirements at the deficit villages and for which
the total transportation cost is minimum. Formulate and
solve this transportation problem.
 Transportation problem

Some Assumptions:
1) Homogenous Product
2) Pure Sources (m=4)
3) Pure Destinations (n=3)
4) Only variable costs for transportation
 Transportation problem
To formulate this problem using LP, we employ the concept
of double subscripted variables. We let the first subscript
represent the source (surplus village) and the second
subscript the destination (deficit village). Thus, in general,
xij refers to the number of tractors shifted from source i to
destination j. Therefore, we have twelve decision variables
as follows:
x11 = # of units shipped from source A to destination X
x12 = # of units shipped from source A to destination Y
x13 = # of units shipped from source A to destination Z
x21 = # of units shipped from source B to destination X
.
.
.

x43 = # of units shipped from source D to destination Z

 Transportation problem
Min z = 26x11 + 22x12 + 28x13 + 19x21 + 27x22 + 16x23 + 39x31 + 21x32 +
32x33 + 18x41 + 24x42 + 23x43

s.t.
x11 + x12 + x13 ≤ 6
x21 + x22 + x23 ≤ 9
Source Constraints
x31 + x32 + x33 ≤ 7
x41 + x42 + x43 ≤ 5
x11 + x21 + x31 + x41 ≥ 8
x12 + x22 + x32 + x42 ≥ 7 Destination Constraints

x13 + x23 + x33 + x43 ≥ 12

xij  0 for i = 1, 2, 3, 4 and j = 1, 2, 3
 Transportation problem
Adding all source constraints, we get
x11 + x12 + x13 + x21 + x22 + x23 + x31 + x32 + x33 + x41 + x42 + x43 ≤ 27

Similarly, adding all destination constraints, we get

x11 + x12 + x13 + x21 + x22 + x23 + x31 + x32 + x33 + x41 + x42 + x43 ≥ 27

Considering both the inequalities together, we infer that

x11 + x12 + x13 + x21 + x22 + x23 + x31 + x32 + x33 + x41 + x42 + x43 = 27
Finally, if the sum of all source constraints is an equality, each
source constraint must be satisfied as an equality.
Similarly, if the sum of all destination constraints is an equality, each
destination constraint must be satisfied as an equality.
 The Balanced Transportation
problem
If Total Supply = Total Demand, we can write the problem as:
Min z = 26x11 + 22x12 + 28x13 + 19x21 + 27x22 + 16x23 + 39x31 + 21x32 +
32x33 + 18x41 + 24x42 + 23x43
s.t.
x11 + x12 + x13 = 6
x21 + x22 + x23 = 9
Source Constraints
x31 + x32 + x33 = 7
x41 + x42 + x43 = 5
x11 + x21 + x31 + x41 = 8
x12 + x22 + x32 + x42 = 7 Destination Constraints
x13 + x23 + x33 + x43 = 12
xij  0 for i = 1, 2, 3, 4 and j = 1, 2, 3
 Transportation problem

 The transportation problem, in general, seeks

to minimize the total shipping costs of
transporting goods from m origins (each with
a supply si) to n destinations (each with a
demand dj), when the unit shipping cost from
an origin, i, to a destination, j, is cij.
 Transportation problem
The LP formulation in terms of the amounts shipped
from the origins to the destinations, xij , can be
written as:

Min cijxij
ij
s.t. xij < si for each origin i
j
xij > dj for each destination j
i

xij > 0 for all i and j

The Balanced Transportation
problem
In case total supply = total demand , we can
write the general balanced transportation problem as:

Min cijxij
ij
s.t. xij = si , i = 1, 2, … , m
j
xij = dj , j = 1, 2, … , n
i

xij > 0 for all i and j

The constraints are a set of (m+n) equations of which

only (m+n-1) are independent
 Transportation problem

Some Assumptions:
1) Homogenous Product
2) Pure Sources (m=4)
3) Pure Destinations (n=3)
4) Only variable costs for transportation
5) Total availability (6+9+7+5) = Total
requirement (8+7+12)
 The Balanced Transportation
problem
X Y Z Av. Therefore, we can
26 22 28 simply formulate
A 6
and solve the
19 27 16
B 9 balanced
transportation
39 21 32
C 7 problem in the
18 24 23 simple table form
D 5 as shown here
Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at a
26 22 28 corner of the
A 6
6
table, we can get
19 27 16
B 9 an initial feasible
corner point
39 21 32
C 7 solution
18 24 23
D 5

Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at a
26 22 28 corner of the
A 6
6
table, we can get
19 27 16
B 9 an initial feasible
6
corner point
39 21 32
C 7 solution
18 24 23
D 5

Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at a
26 22 28 corner of the
A 6
6
table, we can get
19 27 16
B 9 an initial feasible
3 6
corner point
39 21 32
C 7 solution
18 24 23
D 5

Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at a
26 22 28 corner of the
A 6
6
table, we can get
19 27 16
B 9 an initial feasible
3 6
corner point
39 21 32
C 7 solution
4
18 24 23
D 5

Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at a
26 22 28 corner of the
A 6
6
table, we can get
19 27 16
B 9 an initial feasible
3 6
corner point
39 21 32
C 7 solution
3 4
18 24 23
D 5

Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at a
26 22 28 corner of the
A 6
6
table, we can get
19 27 16
B 9 an initial feasible
3 6
corner point
39 21 32
C 7 solution (as
3 4
18 24 23 shown here) with
D 5 m+n-1 allocations
5
Req. 8 7 12
 The Balanced Transportation
problem
X Y Z Av. Starting at
26 22 28 another corner of
A 6
6
the table, we can
19 27 16
B 9 get another initial
2 7
feasible corner
39 21 32
C 7 point solution (as
7
18 24 23 shown here) with
D 5 fewer than m+n-1
5
Req. 8 7 12 allocations
 The Balanced Transportation
problem
Three possible cases:
(1)If the number of allocations = m+n-1, it refers
to a normal corner point
(2)If the number of allocations < m+n-1, it refers
to an abnormal or degenerate corner point
(3)If the number of allocations > m+n-1, it refers
to a non-corner i.e. boundary point
 The Balanced Transportation
problem
X Y Z Av. As shown here, if
26 22 28 the number of
A 6
1 5
allocations > m+n-1,
19 27 16
B 9 it refers to a non-
2 7
corner i.e. boundary
39 21 32
C 7 point from which it
3 4
18 24 23 is possible to move
D 5 along two opposite
5
Req. 8 7 12 directions
 Unbalanced Transportation
problem
If total supply < total demand , we can
add a dummy source with zero costs and just
enough supply to make it a balanced
transportation problem

If total demand < total supply , we can

add a dummy destination with zero costs and just
enough demand to make it a balanced
transportation problem
Thus any transportation problem can always be
easily formulated in the table format as a balanced
transportation one by adding either a dummy row
or a dummy column
 Transportation problem
 LP Formulation Special Cases
The following special-case modifications to the linear
programming formulation can be made:
• Minimum shipping guarantee from i to j:
xij > Lij
• Maximum route capacity from i to j:
xij < Uij
• Unacceptable route:
Remove the corresponding decision variable or put a
very high cij for the unit transportation cost on that
route.
Transportation problem
Transportation problem
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Transportation problem
Transportation problem
Transportation problem
Transportation problem
Transportation problem
Transportation problem
Transportation problem
Transportation problem
 The Balanced Transportation
problem: One Result

 If the RHS values are all integers, then in

a balanced transportation problem, all
corner points are integer-valued.
 Obviously, any optimal would also be
integer-valued.