Optimization Techniques (OT) UNIT-2

UNIT – II
Transportation Problem
Introduction, Basic feasible solution by North-West corner method,
Vogel’s approximation method. Optimal solution by UV method,
degeneracy, unbalanced transportation problem.
ASSIGNMENT PROBLEM: Introduction, One-to-one assignment
problem, optimal solution, unbalanced assignment problem

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Introduction:
The transportation problem is a special class of the linear programming problem. It
deals with the situation in which a commodity is transported from Sources (origins) to
Destinations. The objective is to determine the amount of commodity (item) to be transported
from each source to each destination so that the total transportation cost is minimum. To
achieve this objective, we must know the amount and location of available supplies and the
quantities demanded. In addition, we must know the costs that result from transporting 1 unit
of commodity from various origins to various destinations.

Where No. of Sources (origins) = m

No. of destinations = n
Transportation cost per unit = Cij

Basic Terminology
1. Feasible Solution- A feasible solution to a transportation problem is a set of non-
negative allocations, xij, that satisfies the rim (row and column) restrictions.
2. Basic Feasible solution- A feasible solution is called a basic feasible solution if it
contains no more than m+n-1 non negative allocations where m is the number of
rows and n is the number of columns of the transportation problem.
3. Optimal Solution- A feasible solution (non-necessarily basic) is said to be optimal if it
minimizes (maximizes) the transportation cost (profit).
4. Balance and Unbalance Transportation Problem-If the total demand is equal to
total supply, then TP is called balance TP, otherwise it is unbalanced Transportation
Problem (TP).
5. Occupied and Unoccupied cells- the allocated cells in the transportation cells are
occupied cells and empty cells are called non-occupied cells.

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Steps to Find Basic Feasible Solution (BFS) of a transportation problem

Check given transportation problem is balanced
Unfortunately
Step – 1
If given transportation problem is unbalanced then we must balance by adding
“Dummy” row (or) “Dummy” column to given transportation problem
We must Find IBFS (Initial Basic Feasible Solution) of a Transportation
Problem the methods are as below
Step – 2 1) North-West Corner Rule Method
2) Least Cost Method (or) Matrix-Minima Method
3) Vogel’s Approximation Method

After finding IBFS (Initial Basic Feasible Solution), by using u-v (or)
Step – 3
MODI (MOdified DIstribution) method we can find BFS (Basic Feasible
Solution)

Explain about balance and unbalance transportation problem with an example

Example:
A transportation problem is said to be balance means
Sum of all supply costs = Sum of all Demand costs
300 + 400 + 500 = 250 + 350 + 400 + 200
1200 = 1200

Destinations

1 2 3 4 Supply
1 3 1 7 4 300
Sources 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200 1200

Unfortunately
If given transportation problem is unbalanced then we must balance by adding
“Dummy” row (or) “Dummy” column to given transportation problem as below
Example
Destinations

1 2 3 4 Supply
1 3 1 7 4 200

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Sources 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200 Unbalance

Sum of all supply costs = Sum of all Demand costs

200 + 400 + 500 = 250 + 350 + 400 + 200
1100 ≠ 1200
From the above calculation we can identify deficiency of cost 100 is in “Supply” side so
we must add a “Dummy” row in the given transportation problem keeping cells in
“Dummy” row as ZERO as below
Destinations

1 2 3 4 Supply
1 3 1 7 4 200
Sources 2 2 6 5 9 400
3 8 3 3 2 500
4 0 0 0 0 100 “ Dummy” Row
Demand 250 350 400 200 1200
Similarly if deficiency of cost 100 is in “Demand” side we have to add a “Dummy”
column in the given transportation problem keeping cells in “Dummy” column as ZERO

Solve the optimal cost of given transportation problem using any of IBFS method
Sources/Destinations D1 D2 D3 Supply
S1 1 2 6 7
S2 3 4 2 12
S3 4 6 5 11
Demand 10 10 10 30

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Identify optimal value of the transportation problem by using north west corner method
Destinations

1 2 3 4 Supply
1 3 1 7 4 300
Sources 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200 1200
Since given transportation problem is said to be balance means
Sum of all supply costs = Sum of all Demand costs
300 + 400 + 500 = 250 + 350 + 400 + 200
1200 = 1200
Here no. of rows, m = 3 and no. of columns, n = 4
No. of optimal cells = m + n – 1
=3+4–1
No. of optimal cells = 6

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The name of method itself says we must take reference North-West Corner cell
In the given transportation problem north-west corner cell is 3(300,250)
Destinations

1 2 3 4 Supply
1 3 1 7 4 300
Sources 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200 1200

Here, north-west corner cell is 3(300,250) here 250(demand) is minimum so it must enter inside
of north-west corner cell 3 and 250 is subtracted from both supply and demand of north-west
corner cell 3 also “Delete” demand column as below

Destinations

1 2 3 4 Supply
1 3(250) 1 7 4 300 50
Sources 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200 950
Revised transportation table is as below
Destinations

2 3 4 Supply
1 1 7 4 50
Sources 2 6 5 9 400
3 3 3 2 500
Demand 350 400 200 950
Here, north-west corner cell is 1(50,350) here 50(supply) is minimum so it must enter inside of
north-west corner cell 1 and 50 is subtracted from both supply and demand of north-west corner
cell 1 also “Delete” supply row as below
Destinations

2 3 4 Supply
1 1(50) 7 4 50
Sources 2 6 5 9 400
3 3 3 2 500
Demand 350 400 200 900

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300
Revised transportation table is as below
Destinations

2 3 4 Supply
Sources 2 6 5 9 400
3 3 3 2 500
Demand 300 400 200 900
Here, north-west corner cell is 2(400,300) here 300(demand) is minimum so it must enter inside
of north-west corner cell 6 and 300 is subtracted from both supply and demand of north-west
corner cell 6 also “Delete” demand column as below

Destinations

2 3 4 Supply
Sources 2 6(300) 5 9 400 100
3 3 3 2 500
Demand 300 400 200 600

Revised transportation table is as below

3 4 Supply
Sources 2 5 9 100
3 3 2 500
Demand 400 200 600
Here, north-west corner cell is 5(100,400) here 100(supply) is minimum so it must enter inside
of north-west corner cell 5 and 100 is subtracted from both supply and demand of north-west
corner cell 5 also “Delete” supply row as below

3 4 Supply
Sources 2 5(100) 9 100
3 3 2 500
Demand 400 200 600
300
Revised transportation table is as below

3 4 Supply
3 3 2 500
Demand 300 200 500

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Here, north-west corner cell is 3(500,300) here 300(demand) is minimum so it must enter inside
of north-west corner cell 3 and 300 is subtracted from both supply and demand of north-west
corner cell 3 also “Delete” demand column as below

3 4 Supply
3 3(300) 2 500 200
Demand 300 200 500

Revised transportation table is as below

4 Supply
3 2 200
Demand 200 200
Here, north-west corner cell is 2(200,200) here 200(demand) = 200(supply) so it must enter
inside of north-west corner cell 2 and 200 is subtracted from both supply and demand of north-
west corner cell 2 as below
4 Supply
3 2(200) 200
Demand 200 200

Final Transportation Table after using North-West Corner Rule Method as below
Destinations

1 2 3 4 Supply
1 3(250) 1(50) 7 4 300
Sources 2 2 6(300) 5(100) 9 400
3 8 3 3(300) 2(200) 500
Demand 250 350 400 200 1200

Total Cost = (3*250) + (1*50) + (6*300) + (5*100) + (3*300) + (2*200)

= 750 + 50 + 1800 + 500 + 900 + 400
Total Cost = 4400

Solve the transportation problem by using Vogel approximation method

Sources/Destinations D1 D2 D3 D4 Supply

S1 19 30 50 10 7

S2 70 30 40 60 9

S3 40 8 70 20 18

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Demand 5 8 7 14

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Optimization Techniques (OT) UNIT-2

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Optimization Techniques (OT) UNIT-2

Identify optimal value of the transportation problem by using vogel’s approximation method

Destinations

1 2 3 4 Supply
1 3 1 7 4 300
Sources 2 2 6 5 9 400
3 8 3 3 2 500
Demand 250 350 400 200 1200
Since given transportation problem is said to be balance means
Sum of all supply costs = Sum of all Demand costs
300 + 400 + 500 = 250 + 350 + 400 + 200
1200 = 1200

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Here no. of rows, m = 3 and no. of columns, n = 4
No. of optimal cells = m + n – 1
=3+4–1
No. of optimal cells = 6
Firstly, write penalties of rows and columns as below
For example: Penalty of row 1 = 2 (since 1’st least cost in row – 2’nd least cost in row)
Destinations

1 2 3 4 Supply Penalty
1 3 1 7 4 300 2
Sources 2 2 6 5 9 400 3
3 8 3 3 2 500 1
Demand 250 350 400 200 1200
Penalty 1 2 2 2

Identifying highest penalty as 3 from both row and column penalties

So in this highest penalty row, Least cell is 2(400,250) here 250(demand) is minimum so it has
to enter inside of least cell 2 and 250 is subtracted from both supply and demand of least cell 2
also “Delete” demand column as below

Destinations

1 2 3 4 Supply Penalty
1 3 1 7 4 300 2
Sources 2 2(250) 6 5 9 400 150 3
3 8 3 3 2 500 1
Demand 250 350 400 200 1200
Penalty 1 2 2 2
Revised transportation table is as below
Destinations

2 3 4 Supply New Penalty

1 1 7 4 300 3
Sources 2 6 5 9 150 1
3 3 3 2 500 1
Demand 350 400 200 950
New Penalty 2 2 2

Identifying highest penalty as 3 from both row and column penalties

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So in this highest penalty row, Least cell is 1(300,350) here 300(supply) is minimum so it has
to enter inside of least cell 1 and 300 is subtracted from both supply and demand of least cell 1
also “Delete” demand column as below

2 3 4 Supply Penalty
1 1(300) 7 4 300 3
Sources 2 6 5 9 150 1
3 3 3 2 500 1
Demand 350 400 200 950
Penalty 2 2 2
Revised transportation table is as below

Destinations

2 3 4 Supply New Penalty

Sources 2 6 5 9 150 1
3 3 3 2 500 1
Demand 50 400 200 650
New Penalty 3 2 7
Identifying highest penalty as 7 from both row and column penalties
So, in this highest penalty column, Least cell is 2(500,200) here 200(demand) is minimum so it
has to enter inside of least cell 2 and 200 is subtracted from both supply and demand of least cell
2 also “Delete” demand column as below

Destinations

2 3 4 Supply Penalty
Sources 2 6 5 9 150 1
3 3 3 2(200) 500 1
Demand 50 400 200 650
Penalty 3 2 7
Revised transportation table is as below

Destinations

2 3 Supply New Penalty

Sources 2 6 5 150 1
3 3 3 300 0
Demand 50 400 450
New Penalty 3 2

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Identifying highest penalty as 3 from both row and column penalties
So in this highest penalty column, Least cell is 3(300,50) here 50(demand) is minimum so it
has to enter inside of least cell 3 and 50 is subtracted from both supply and demand of least cell 3
also “Delete” demand column as below

Destinations

2 3 Supply Penalty
Sources 2 6 5 150 1
3 3(50) 3 300 0
Demand 50 400 450
Penalty 3 2
Revised transportation table is as below

3 Supply New Penalty

Sources 2 5 150 5
3 3 250 3
Demand 400 400
New Penalty 2

Identifying highest penalty as 5 from both row and column penalties

So in this highest penalty row, Least cell is 5(150,400) here 150(supply) is minimum so it has
to enter inside of least cell 5 and 150 is subtracted from both supply and demand of least cell 5
also “Delete” supply row as below

3 Supply Penalty
Sources 2 5(150) 150 5
3 3 250 3
Demand 400 250 400
Penalty 2
Revised transportation table is as below

3 Supply New Penalty

3 3 250 3
Demand 250 250
New Penalty 3

Identifying highest penalty as 3 from both row and column penalties

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So in this highest penalty row, Here, least cell is 3(50,50) here 50(demand) = 50(supply) so it
has to enter inside of least cell 3 and 50 is subtracted from both supply and demand of least cell 3
as below
3 Supply Penalty
3 3(250) 250 3
Demand 250 250
Penalty 3
Final Transportation Table after using Vogel’s Approximation Method as below
Destinations

1 2 3 4 Supply
1 3 1(300) 7 4 300
Sources 2 2(250) 6 5(150) 9 400
3 8 3(50) 3(250) 2(200) 500
Demand 250 350 400 200 1200
Total Cost = (1*300) + (2*250) + (5*150) + (3*50) + (3*250) + (2*200)
= 300 + 500 + 750 + 150 + 750 + 400
Total Cost = 285
Solve the optimum basic feasible solution for the transportation problem by using u-v method

Sources/Destinations D1 D2 D3 D4 Supply
S1 5 3 6 2 19

S2 4 7 9 1 37

S3 3 4 7 5 34

Demand 16 18 31 25

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Solve the optimum basic feasible solution for the transportation problem by using u-v method

Sources/Destinations D1 D2 D3 Supply
S1 2 7 4 5
S2 3 3 1 8
S3 5 4 7 7
S4 1 6 2 14
Demand 7 9 18

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Degeneracy in Transportation Problem:

In a transportation problem, if a basic feasible solution with m origins and n
destinations has less than m +n -1 positive Xij i.e. occupied cells, then the problem is said to be
a degenerate transportation problem.

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Key Note:
Assignment Problem is special type of Transportation Problem
which is a special class of Linear Programming Problem (LPP).
Assignment Problems are solved using Hungarian Algorithm

A department head has 4 subordinates, and 4 tasks must be performed. Subordinates differ in
efficiency and tasks differ in their intrinsic difficulty. Time for each man would take to perform
each task is given in the effectiveness matrix below. How should be tasks be allocated, one to a
man, to minimize the total man hours?
Subordinates
Tasks I II III IV
A 2 7 4 5
B 3 3 1 8
C 5 4 7 7
D 1 6 2 14

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Total time in hours = 8 + 4 + 19 + 10 = 41

Find the optimal assignment for the problem with the given cost matrix
Persons
Tasks 1 2 3 4
A 10 12 19 11
B 5 10 7 8
C 12 14 13 11
D 8 15 11 9

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We get the following table

Total time in hours = 12 + 7 + 11 + 8 = 38

Find the optimal assignment for the unbalanced problem with the given cost matrix
Subordinates
Tasks 1 2 3
I 9 26 15
II 13 27 6
III 35 20 15

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IV 18 30 20
The given problem is unbalance because No. of tasks (4) ≠ No. of Subordinates (3), so to
balance the problem we need to add a dummy column with zero costs.

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Four engineers are available to design 4 projects. Engineer 2 is not competent to design the
project B. Given the following time estimates needed to each engineer to design a given
project, find how the engineers should be assigned to do projects to minimize the total design
time of 4 projects.
Projects
Engineers A B C D
1 12 10 10 8
2 14 Not Suitable 15 11
3 6 10 16 4
4 8 10 9 7

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UNIT-II Problems

Obtain the initial basic feasible solution of a transportation problem,

whose cost and rim requirement table is given below using North-West
Corner Rule,

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Obtain the initial basic feasible solution of a transportation

problem, whose cost and rim requirement table is given below using
(VOGEL’s Approximation Method (VAM) and Optimality Test
using MODI Method or UV Method

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Solve the Assignment Problems

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