What Is the Transportation Problem?

 The transportation problem is a type of linear

programming problem designed to minimize the cost of
distributing a product from M sources to N destinations.
 The transportation problem in operational research is
concerned with finding the minimum cost of transporting a
single commodity from a given number of sources to a
given number of destination. 
Since there is only one commodity, a destination can
receive its demand from more than one source. The
objective is to determine how much should be shipped
from each source to each destination so as to minimize the
total transportation cost.
 The transportation problem exists in two forms. 
 Balanced 
 Unbalanced
Balanced
It is the case where the total supply equals the total demand.

Unbalanced
It is the case where either the demand is greater than the
supply.

North West Cell Method

The concept of North-West Corner can be well understood
through a transportation problem given below:

Once the demand and supply are equal, the following

procedure is followed:

The Total cost can be computed by multiplying the units

assigned to each cell with the concerned transportation cost.
Therefore,

Total Cost = 20*5+ 30*8+ 40*6+ 25*9+ 35*6 = Rs 1015

 Least Cost Cell Method

Question:

Solution: 
Step 1:

Step 2:
Step 3:

Step 4:
Step 5:

Step 6:
Total Transportation cost
= (300 * 1) + (250 * 2) + (150 * 5) + (50 * 3) + (250 * 3) + (200 * 2) = 2850

Vogel’s Approximtion Method

 

Question:
Solve the given transportation problem using Vogel’s
approximation method.
Solution:
For the given cost matrix,
Total supply = 50 + 60 + 25 = 135
Total demand = 60 + 40 + 20 + 25 = 135
Step1: 

Step 2: 
Step 3: 

Step 4: 
Step5: 

Step 6:
  
Step 7:

Total cost = (10 × 3) + (25 × 7) + (25 × 2) + (40 × 2) + (20 × 2) +

(15 × 3)
= 30 + 175 + 50 + 80 + 40 + 45
=420

Assignment Problem
The assignment problem is a special case of linear programming
problem; it is one of the fundamental combinational
optimization problems in the branch of optimization or
operations research in mathematics.
Question:
Solve the following assignment problem. Cell values represent
cost of assigning job A, B, C and D to the machines I, II, III and
IV.

Solution:
Step 1:
 Select a smallest element in each row and subtract this from all
the elements in its row.
Look for at least one zero in each row and each column. Otherwise go to step 2.

Step 2: 
Select the smallest element in each column and subtract this
from all the elements in its column.

Since each row and column contains atleast one zero,

assignments can be made.
Step 3:
Examine the rows with exactly one zero. First three rows
contain more than one zero. Go to row D. There is exactly one
zero. Mark that zero by   (i.e) job D is assigned to machine I.
Mark other zeros in its column by × .
Step 4:
 Now examine the columns with exactly one zero. Already there
is an assignment in column I. Go to the column II. There is
exactly one zero. Mark that zero by  . Mark other zeros in its
rowby × .

Column III contains more than one zero. Therefore proceed to

Column IV, there is exactly one zero. Mark that zero by  . Mark
other zeros in its row by × .

Step 5:
 Again examine the rows. Row B contains exactly one zero.
Mark that zero by  .
Thus all the four assignments have been made. The optimal
assignment schedule and total cost is

The optimal assignment (minimum) cost

= ₹ 38