Transportation Model

North West Corner Rule (NWC)

P Q R T Supply

6
A 4 6 22 14 6

1
B 2 0 12 2 1

5 3 2
C 10 16 30 18 10/5/2

Demand 7/1 5 3 2 17
Transportation Cost - NWC
4X6 = 24
2X1 = 2
16X5 = 80
30X3 = 90
18X2 = 36

Total Cost = Rs. 232

Least Cost Method (LCM)
P Q R T Supply

6
A 4 6 22 14 6

1
B 2 0 12 2 1

1 4 3 2
C 10 16 30 18 10/9/5/3/0

Demand 7/1/0 5/4/0 3/0 2/0 17

Transportation Cost - LCM
4X6 = 24
0X1 = 0
10X1 = 10
16X4 = 64
30X3 = 90
18X2 = 36
Total Cost = Rs. 224
 Vogel’s Approximation Method(VAM)
P Q R T Supply Row Penalty

1 5 2 2 10
A 4 6 22 14 6/1/0

1 2
B 2 0 12 2 1/0

C 10 6 16 30 3 18 1 10/4/1/0 6 6 8

Demand 7/6/0 5/0 3/0 2/1 17

Column 2 6 10 12
Penalty Penalty = Next Min – Min
6 10 8 4 Cost
6 8 4
Transportation Cost - VAM
4X1 = 4
6X5 = 30
10X6 = 60
30X3 = 90
2X1 = 2
18X1 = 18
Total Cost = Rs. 204
Test of Optimality
TEST FOR DEGENERACY & UV METHOD
Test for Degeneracy
No. of Allocations ≥ (m+n-1)
The Solution is non degenerate

6 ≥ (6)
Test of Optimality – UV Method
Allocated Cells
P Q R T U
Cij = (U+V)
A 4 6 -2 2 -6
Unallocated Cells
B 8 4 -2 2 -16 Cij = Cij - (U+V)
C 10 4 30 18 0
A negative C denotes that
solution is not optimal &
V 10 12 30 18 needs further
improvement.
Optimization Technique – MODI
Method
Mark the negative cell as a star, mark
P Q R T allocated cells as dots
From the star, make a closed loop
-1 Rules
A
. . * +1 Only horizontal & vertical lines should be
drawn
Take turn only at allocated cells
B
. Lines should not cross each other
Starting from the star, mark alternate
C
+1 . .-1 . positive & negative signs at the corners of
the loop
Add/Subtract least allocation of –ve cells
Test of Optimality – UV Method
Allocated Cells
P Q R T U
Cij = (U+V)
5 1
A 2 6 22 4 -8
Unallocated Cells
1
B 8 2 -2 2 -16
Cij = Cij - (U+V)
7 2 1
C 10 2 30 18 0
A negative C denotes that
solution is not optimal &
V 10 14 30 18
needs further
improvement.
Optimization Technique – MODI
Method
Mark the negative cell as a star, mark
P Q R T allocated cells as dots
From the star, make a closed loop
A
. . Rules
Only horizontal & vertical lines should be
drawn
B
* +1 -1 . Take turn only at allocated cells
Lines should not cross each other
C
. -1 . .+1 Starting from the star, mark alternate
positive & negative signs at the corners of
the loop
Add/Subtract least allocation of –ve cells
Test of Optimality – UV Method
Allocated Cells
P Q R T U
Cij = (U+V)
5 1
A 2 6 22 4 -8
Unallocated Cells
1
B 10 4 12 0 -18
Cij = Cij - (U+V)
7 1 2
C 10 2 30 18 0
A negative C denotes that
solution is not optimal &
V 10 14 30 18
needs further
improvement.
Test of Optimality – UV Method
Cost
P Q R T
6X5 = 30
5 1 22X1 = 22
A 6 22
12X1 = 12
1
B 12 10X7 = 70
30X1 = 30
7 1 2
C 10 30 18 18X2 = 36
Total Transportation Cost =
Rs. 200
Special Cases of
Transportation Model
UNBALANCED TRANSPORTATION PROBLEM
 A B C Supply

X 5 1 7 10

Y 6 4 6 80

Z 3 2 5 15

105
Demand 75 20 50 145
 A B C Supply
10
X 5 1 7 10
3 50
Y 6 0 4 6 80
5 10
Z 3 2 5 15 5
40
Dummy 0 0 0 40
145
Demand 75 35 30 20 10 50 145
UV Method

A B C U

X 3 1 5 2

Y 6 -1 6 6

Z 3 2 2 3

Dummy 0 1 0 0

V 0 -1 0
MODI Method
A B C U

X .
-10
Y . * +10
.
Z +10 . . -10
Dummy .
V
 A B C U
10
X 2 1 4 3
2 10 50
Y 6 0 4 6 6
1
Z 3 5 1 2 3
40
Dummy 0 2 0 0

V 0 -2 0
Optimal Solution
1X10 = 10
6X20 = 120
4X10 = 40
6X50 = 300
3X15 = 45
0X40 = 0
Total cost = 515
40 units of demand of Distribution center A
will remain unallocated.
Special Cases of
Transportation Model
MAXIMIZATION TRANSPORTATION PROBLEM
A Company produces 4 kinds of Dolls A, B, C & D. The monthly supply is 70 units, 40 units, 90 units & 30 units respectively.
These dolls are sold through 4 stores, P,Q, R & S having monthly demand of 40 units, 50 units, 60 units & 60 units respectively.
Profit per unit for each doll at each store is given below. Suggest optimum policy schedule and relevant profit.

A B C D

P 95 80 70 60

Q 75 65 60 50

R 70 45 50 40

S 60 40 40 30
 P Q R S Supply

A 95 80 70 60 70

B 75 65 60 50 40

C 70 45 50 40 90

D 60 40 40 30 30

Demand 40 50 60 60
Convert Maximization into
Minimization problem
P Q R S Supply

A 0 15 25 35 70

B 20 30 35 45 40

C 25 50 45 55 90

D 35 55 55 65 30
230
Demand 40 50 60 60 210
Balance the problem
P Q R S Dummy Supply

A 0 15 25 35 0 70

B 20 30 35 45 0 40

C 25 50 45 55 0 90

D 35 55 55 65 0 30

Dema 230
40 50 60 60 20 230
nd
 Initial BFS - VAM
P Q R S Dummy Supply RP
30
A 0 40 15 25 35 0 70 30 0 15 10
2 20
B 20 30 0 35 45 0 4020 20 10 5 5 10
40
C 25 50 45 55 50 0 9050 25 20 5 5 10 10
10 2
D 35 55 55 65 0 0
3010 35 20 0 0 10 10

Demand 40 5020 6040 60 20

CP 20 15 10 10 0
20 15 10 10
15 10 10
20 10 10
10 10
10 10
UV Method
P Q R S Dummy U

A 0 15 5 5 35 0

B 5 30 35 0 20 15

C 0 10 45 55 10 25

D 0 5 0 65 0 35

V 0 15 20 30 -35
Optimal Schedule
Dum Supp Total Profit
P Q R S my ly 95X40 = 3800
A 95 80 70 60 0 70 80X30 = 2400
65X20 = 1300
B 75 65 60 50 0 40 60X20 = 1200
50X40 = 2000
C 70 45 50 40 0 90
40X50 = 2000

D 60 40 40 30 0 30 30X10 = 300
0X20 = 0
Dem
40 50 60 60 20 TOTAL PROFIT = 13000
and
Special Cases of
Transportation Model
DEGENERATE TRANSPORTATION PROBLEM
A Company has 3 factories A, B & C and 4 warehouses D,E, F & G. The monthly capacities of the factories are The monthly
capacities of the factories are 160, 150 & 190 units respectively. The supply is made to the warehouses whose requirements
are 80, 90, 110 & 160 respectively. Shipping costs are given below. Find optimal transportation cost.

D E F G

A 42 48 38 37

B 40 49 52 51

C 39 38 40 43
 D E F G Supply

A 42 48 38 37 160

B 40 49 52 51 150

C 39 38 40 43 190

Deman 500
80 90 110 160
d 440
Balancing the problem
D E F G Dummy Supply

A 42 48 38 37 0 160

B 40 49 52 51 0 150

C 39 38 40 43 0 190

Deman
80 90 110 160 60 500
d
 Initial BFS - VAM

D E F G Dummy Supply RP

A 42 48 38 37 160 0 160 37 1 1 1
80 1 51 60
B 40 49 52 0 1509010 40 9 11 1
0
C 39 38 90 40 100 43 0 190100 38 1 1 3

Demand 80 90 110 160 60 500

CP 1 10 2 6 0
1 10 2 6
1 2 6
2 6
Test for degeneracy
No of allocations >= m+n-1
6>=3+5-1 = 7

Solution is Degenerate
UV Method Epson Ɛ=0
D E F G Dummy U

Ɛ
A 2 -2 -14 37 0 0
B 40 -1 52 14 0 0
C 11 38 40 18 12 -12
V 40 50 52 37 0
MODI Method
D E F G Dummy

-Ɛ
+Ɛ
A * . .

B . -Ɛ
. . +Ɛ

C . .
UV Method
D E F G Dummy U

Ɛ 160
A 16 12 38 37 14 -14
80 1 60
B 40 -1 52 0 0 0 0
90 100
C 11 38 40 4 12 -12
V 40 50 52 51 0
MODI Method
D E F G Dummy

A . .
+1
-10
0
B . * . .

C . . +10
-10
UV Method
D E F G Dummy U

Ɛ 160
A 15 12 38 37 13 -13
80 1 60
B 40 49 0 1 1 0 0
80 110
C 10 38 40 4 11 -11
V 40 49 51 50 0
Optimal Solution
Total Cost
37 X 160 = 5920
40X80 = 3200
49X 10 = 490
38 X 80 = 3040
40 X 110 = 4400

Total cost is 17050

At factory B, out of a total monthly capacity
of 150 units, 60 units will remain unallocated.
Special Cases of
Transportation Model
PROHIBITED ROUTES TRANSPORTATION PROBLEM
 IBFS - LCM

D E F G Supply
160
A 42 48 38 37 160

80 70
B 40 49 52 51 150

90 100
C ∞ 38 40 43 190100

Deman
80 90 17070 160
d