CH04: TRANSPORTATION MODEL Illustration:

→ Concerned with determining an optimal strategy for A concrete company transports concrete from three plants, 1, 2
distributing a commodity from a group of supply and 3, to three construction sites, A, B and C. The capacity (in
centers, such as factories, called sources, to various tons) of the plants and the requirement (in tons) of construction
receiving centers, such as warehouses or stores, sites per week are as follows:
called destinations, in such a way as to minimize
total distribution costs. Plant Capacity Construction Requirement
→ Can also be used when a firm is trying to decide (Supply) Site (Demand)
where to locate a new facility. Good financial 1 300 A 200
decisions concerning facility location also attempt 2 300 B 200
to minimize total transportation and production 3 100 C 300
costs for the entire system. The transportation cost of 1 ton of concrete from each plant to
each construction site is shown below:

Determine the number of tons to be delivered from each plant to

respective construction site that will obtain the minimum total
transportation cost.

Objective: Minimize Cost = = X1AC1A + X1BC1B + X1CC1C + Prepare the initial feasible solution using the following methods
X2AC2A + X2BC2B + X2CC2C + X3AC3A + X3BC3B + X3CC3C and compute for the total transportation cost:

Subject to: a. Northwest corner rule – Check the capacity and

requirement on northwest corner (x1A). Since source
X1A + X1B + X1C = Supply 1 1 can supply 300 tons and destination A needs 200
tons, all the 200 tons demand of destination A can
X2A + X2B + X2C = Supply 2 be fulfilled, with 100 tons remaining in source 1.
X3A + X3B + X3C = Supply 3

X1A + X2A + X3A = Demand 1

X1B + X2B + X3B = Demand 2

X1C + X2C + X3C = Demand 3

X1A, X1B, X1C, X2A, X2B, X2C X3A, X3B, X3C ≥ 0

After satisfying destination A, the remaining 100 tons from
TYPES OF TRANSPORTATION MODEL source 1 is allocated to the next destination which is destination
B. Since the requirement of destination B is 200 tons, all the 100
PROBLEM remaining tons of source 1 will be exhausted, leaving
destination B a need to 100 more tons.
1. Balanced transportation model problem – Total
demand is equal to the total supply.
2. Unbalanced transportation model problem -
Total demand is not equal to total supply. Dummy
row or dummy column is needed to solve this kind
of problem.

METHODS OF ESTABLISHING INITIAL

FEASIBLE SOLUTION
The remaining 100 tons requirement will be fulfilled by the next
source which is source 2. Since source 2 can supply a total of
1. Northwest Corner Rule (NCR) – A method where
300 tons, it can fulfill all the remaining needs of destination B
the capacity and requirement of the northwestmost
and will still have a remaining of 200 tons which it can supply
corner of the solution table is satisfied first, then
to the next destination.
proceeding to the subsequent row or column to
satisfy all the capacity and requirement.
2. Minimum Cost Model (MCM) or Greedy
Method – The capacity and requirement of the cell
with the least or minimum cost is satisfied first, then
proceeding to the capacity and requirement of the
cell with the least or minimum cost from the
remaining cells until all the capacity are exhausted
and all requirements are fulfilled.
3. Vogel’s Approximation Model – Where the row or After satisfying destination B, the remaining 200 tons from
column with the highest penalty will be located and source 2 is allocated to the next destination which is destination
the cell in that row or column with the least cost will C. Since the requirement of destination C is 300 tons, all the 200
be satisfied first. The same method is done in the remaining tons of source 2 will be exhausted, leaving
remaining cells until all the capacity are exhausted destination C a need to 100 more tons.
and all requirements are fulfilled.

9|Page|MANSCI-Transportation Model
The remaining 100 tons requirement will be satisfied by the next In the last tableau, all the capacity of sources is exhausted to
source which is source 3. Since source 3 can supply a total of different destinations and all the requirement of destinations is
100 tons, it can satisfy all the remaining needs of destination C. fulfilled.

ROUTE Tons Cost/ Total

From To Shipped ton Cost
1 A 100 4 400
1 C 200 8 1,600
2 B 200 5 1,000
2 C 100 9 900
3 A 100 4 400
TOTAL 4,300
In the last tableau, all the capacity of sources is exhausted to
different destinations and all the requirement of destinations is
fulfilled. c. Vogel’s Approximation method – Calculate the
penalty for all the rows and columns. Penalty is
ROUTE Tons Cost/ Total equal to the difference of the least cost and the
Shipped ton Cost second least cost in each row and column. If two or
From To more column has the highest penalty, any row or
1 A 200 4 800 column may be selected.
1 B 100 6 600
2 B 100 5 500 Penalty
2 C 200 9 1,800
3 C 100 5 500 ROW/COLUMN 2nd Lowest Penalty
TOTAL 4,200 Lowest
ROW 1 6 4 2
ROW 2 7 5 2
b. Minimum cost method – Check the capacity and ROW 3 5 4 1
requirement of cell with the lowest transportation COLUMN A 4 4 0
cost. Since there are two cells with the least cost COLUMN B 5 5 0
(x1A and x3A), the cell with the highest demand
COLUMN C 8 5 3
will be satisfied first. If they still have the same
The row or column with the highest penalty is column C. The
demand, you can choose alternatively the cell that
cell in column C with the least cost is x3C. Source 3 can supply
you will satisfy first.
100 tons while destination C needs 300 tons. All the 100 tons of
x1A and x3A have the same demand, thus, x1A and x3A can be source 3 is exhausted and fulfilled to destination C, leaving
chosen alternatively. To give a different tableau from the destination C a need to 200 more tons.
northwest corner rule, let us choose x3A.

Since source 3 can supply 100 tons and destination A needs 200
tons, we can exhaust all the 100 tons capacity of source 3 leaving
destination A a need to 100 more tons.

1. From the remaining cells, the cell with the least cost
is x1A. Since source 1 can supply 300 tons and
destination A requires 100 remaining tons, it can
fulfill all the remaining needs of destination A and
will still have a remaining of 200 tons which it can Since all the capacity of source 3 is exhausted, it is not included
supply to other destinations. in the next computation of penalty.
2. From the remaining cells, the cell with the least cost
is x2B. Since source 2 can supply 300 tons while Penalty
destination B requires 200 tons, it can fulfill all the
needs of destination B and will still have a ROW/COLUMN 2nd Lowest Penalty
Lowest
remaining of 100 tons which it can supply to other
destinations. ROW 1 6 4 2
3. From the remaining cells, the cell with the least cost ROW 2 7 5 2
is x1C. Since source 1 can supply 200 remaining tons COLUMN A 7 4 3
while destination C requires 300 tons, all the COLUMN B 6 5 1
remaining 200 tons of source 1 will be exhausted, COLUMN C 9 8 1
leaving destination C a need to 100 more tons. The row or column with the highest penalty is column A. The
4. The last remaining cell is x2C. All the remaining cell in column A with the least cost is x1A. Since source 1 can
100 tons in source 2 will be exhausted to fulfill the supply 300 tons while destination A needs 200 tons, it can fulfill
remaining 100 tons requirements of destination C. all the needs of destination A and will still have a remaining of
100 tons which it can supply to other destinations.

10 | P a g e | M A N S C I - T r a n s p o r t a t i o n M o d e l
 cells and only one closed path for the most negative
cell is traced.

Illustration:

From the initial feasible solution determined above, establish the

optimal feasible solution using the following method and
compute for the total transportation cost.

Since all the requirements of destination A are fulfilled, it is not 1. Stepping stone method
included in the next computation of penalty. a. Northwest corner rule

Penalty

ROW/COLUMN 2nd Lowest Penalty

Lowest
ROW 1 8 6 2
ROW 2 9 5 4
COLUMN B 6 5 1
COLUMN C 9 8 1
The row or column with the highest penalty is row 2. The cell in
row 2 with the least cost is x2B. Since source 2 can supply 300 From the initial feasible solution, compute for the improvement
tons while destination B needs 200 tons, it can fulfill all the index of each unused cell using the following steps:
needs of destination B and will still have a remaining of 100 tons
which it can supply to other destinations. 1. Starting from the unused cell, trace a path using the
occupied cell to go back to the unused cell. Only
horizontal and vertical movements is allowed.
2. Beginning with a plus (+) sign in the unused cell,
place alternative minus (-) and plus (+) sign on each
corner cell of the closed path traced.
3. Calculate the improvement index by adding the
transportation cost per unit of cells with plus (+)
sign and deducting the cost per unit of cells with

Only column C remains with x1C with the least cost. Since
source 1 can supply 100 remaining tons while destination C
needs 200 tons, all the 100 remaining tons of source 1 will be
exhausted, leaving destination C a need to 100 more tons. This
remaining requirement will be fulfilled by source 2 which still
has 100 remaining tons to supply.

minus (-) sign.

1. X1c → X1b → X2B → X2C → X1C
2. (+) (-) (+) (-)
3. 8 - 6 + 5 - 9 = -2

In the last tableau, all the capacity of sources is exhausted to

different destinations and all the requirement of destinations is
fulfilled.
=4
ROUTE Tons Cost/ Total
From To Shipped ton Cost
1 A 200 4 800
1 C 100 8 800
2 B 200 5 1,000
2 C 100 9 900
3 C 100 5 500
TOTAL 4,000

=5
METHODS OF ESTABLISHING OPTIMAL
FEASIBLE SOLUTION

1. Stepping Stone Method (SSM) – A method that

involves tracing closed paths (or a loop, path going
back to the origin cell) for each unused cells using
the occupied cells.
2. Modified Distribution Method (MODI) – A =4
method that involves evaluation of all unoccupied

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Optimality Test - After computing all the improvement indices, Improvement index of unused cells:
and all the indices computed is greater than or equal to zero
(positive), an optimal solution has been achieved. x1B = +x1B – x2B + x2C – x1C | = 6 – 5 + 9 – 8 = 2

If not, an improvement must be done using the following steps: x2A = +x2A – x2C + x1C – x1A | = 7 – 9 + 8 – 4 = 2

1. Choose the closed path traced of the unused cell x3B = +x3B – x2B + x2C – x1C + x1A – x1C | = 5 – 5 + 9 – 8 + 4 – 4
with the most negative improvement index. =1
2. Choose the smallest value of transferred units from
the cells in the closed path with a minus (-) sign. x3C = + x3C – x1C + x1A – x1C | = 5 – 8 + 4 – 4 = -3
3. Add the value in step 2 in the value of transferred
units in cells with plus (+) sign and deduct such Since one of the indices is negative, improvement of tableau is
from the value of transferred units in cells with needed:
minus (-) sign.
1. X3C → X1C → X1A → X3A → X3C
Since one of the indices is negative, improvement of tableau is 2. X1C = 200, X3A = 100;
needed: 3. X3C = 0 + 100 = 100 X1C = 200 – 100 = 100

1. X1C → X1B → X2B → X2C → X1C X1A = 100 + 100 = 200 X3A = 100 – 100 = 0
2. X1B = 100, X2C = 200;

Smaller value = 100

3. X1C = 0 + 100 = 100 X1B = 100 – 100 = 0

X2B = 100 + 100 = 200 X2C = 200 – 100 = 100

All the improvement indexes of all unused cells must be

computed again and check if all the indices is greater than or
equal to zero (positive).

Improvement index of unused cells:

x1B = +x1B – x2B + x2C – x1C | = 6 – 5 + 9 – 8 = 2

All the improvement indexes of all unused cells must be x2A = +x2A – x2C + x1C – x1A | = 7 – 9 + 8 – 4 = 2
computed again and check if all the indices is greater than or
equal to zero (positive). x3A = +x3A – x3C + x1C – x1A | = 4 – 5 + 8 – 4 = 3

Improvement index of unused cells: x3B = +x3B – x3C + x2C – x2B | = 5 – 5 + 9 – 5 = 4

x1B = +x1B – x2B + x2C – x1C | = 6 – 5 + 9 – 8 = 2 Since all the indices are greater than or equal to zero, thus,
Tableau 2 contains the optimal solution already. The minimum
x2A = +x2A – x2C + x1C – x1A | = 7 – 9 + 8 – 4 = 2 transportation cost is:

x3A = +x3A – x3C + x1C – x1A | = 4 – 5 + 8 – 4 = 3 ROUTE Tons Cost/ Total

From To Shipped ton Cost
x3B = +x3B – x3C + x2C – x2B | = 5 – 5 + 9 – 5 = 4 1 A 200 4 800
1 C 100 8 800
Since all the indices are greater than or equal to zero, thus, 2 B 200 5 1,000
Tableau 2 contains the optimal solution already. The minimum 2 C 100 9 900
transportation cost is:
3 C 100 5 500
TOTAL 4,000
ROUTE Tons Cost/ Total
Shipped ton Cost Improvement was done from Tableau 1 with a total cost of
From To P4,300 to Tableau 2 with a total cost of P4,000.
1 A 200 4 800
1 C 100 8 800 c. Vogel’s approximation method
2 B 200 5 1,000
2 C 100 9 900
3 C 100 5 500
TOTAL 4,000
Improvement was done from Tableau 1 with a total cost of
P4,200 to Tableau 2 with a total cost of P4,000.

b. Minimum cost method

Improvement index of unused cells:

x1B = +x1B – x2B + x2C – x1C | = 6 – 5 + 9 – 8 = 2

x2A = +x2A – x2C + x1C – x1A | = 7 – 9 + 8 – 4 = 2

x3A = +x3A – x3C + x1C – x1A | = 4 – 5 + 8 – 4 = 3

12 | P a g e | M A N S C I - T r a n s p o r t a t i o n M o d e l
x3B = +x3B – x3C + x2C – x2B | = 5 – 5 + 9 – 5 = 4 4. Compute for marginal cost of each unused cell.

Since all the indices are greater than or equal to zero, thus, CELL Cij Ui Vj Eij
Tableau 1 already contains the optimal solution which has a total X1C 8 0 10 -2
transportation cost of P4,000. X2A 7 -1 4 4
X3A 4 -2 4 2
2. Modified distribution method
X3B 5 -2 6 1
a. Northwest corner rule
Optimality Test - After computing all the marginal cost, and all
the amounts is greater than or equal to zero (positive), an
optimal solution has been achieved.

If not, an improvement must be done using the following steps:

1. Trace a closed path (like in Stepping Stone Method)

for unused cell with the most negative marginal
cost.
2. Beginning with a plus (+) sign in the unused cell,
place alternative minus (-) and plus (+) sign on each
corner cell of the closed path.
From the initial feasible solution, compute for the marginal cost
3. Choose the smallest value of transferred units from
of each unused cell using the following steps:
the cells in the closed path with a minus (-) sign.
4. Add the value in step 3 in the value of transferred
1. Assign a variable for each row (from U1, U2 … Ui)
units in cells with plus (+) sign and deduct such
and each column (from VA, VB … Vj).
from the value of transferred units in cells with
minus (-) sign

Since there a marginal cost with a negative sign, improvement

must be done.

1. X1C → X1B → X2B → X2C → X1C

2. (+) (-) (+) (-)
3. X1B = 100, X2C = 200; Smaller = 100
4. x1C = 0 + 100 = 100 x1B = 100 – 100 = 0
x2B = 100 + 100 = 200 x2C = 200 – 100 = 100
2. Create equations for all occupied cells wherein the
sum of the row and column variables should be
equal to the transportation cost of their intersecting
cell. Cij = Ui + Vj (Row variable + Column variable
= Unit cost)

U1 + VA = 4 (1) U2 + VC = 9 (4)

U1 + VB = 6 (2) U3 + VC = 8 (5)

U2 + VB = 5 (3)

3. Let U1 = 0, and compute for the value of all After the improvement of the tableau, marginal cost of the
variables. 4. Compute the marginal cost of each improved tableau must be computed again.
unused cell using the formula Eij = Cij – (Ui + Vj).
U1 = 0 1. Same variable assigned in respective rows and
columns.
U1 + VA = 4 (1) U2 + VB = 5 (3) U3 + VC = 8 (5) 2. U1 + VA = 4 (1) U2 + VB = 5 (4)
U1 + VC = 8 (2) U3 + VC = 5 (5)
0 + VA = 4 U2 + 6 = 5 U3 + 10 = 8 U2 + VC = 9 (3)
3. U1 + VA = 4 (1) U2 + VC = 9 (3) U3 + VC = 5 (5)
VA = 4 U2 = -1 U3 = -2 0 + VA = 4 U2 + 8 = 9 U3 + 8 = 5
VA = 4 U2 = 1 U3 = -3
U1 + VB = 6 (2) U2 + VC = 9 (4) U1 + VC = 8 (2) U2 + VB = 5 (4)
0 + VC = 8 1 + VB = 5
0 + VB = 6 -1 + VC = 9 VC = 8 VB = 4

VB = 6 VC = 100 Compute for marginal cost of each unused cell.

CELL Cij Ui Vj Eij

X1B 6 0 4 2
X2A 7 1 4 2
X3A 4 -3 4 3
X3B 5 -3 4 4
Since all the marginal costs are greater than or equal to zero,
thus, Tableau 2 contains the optimal solution already. The
minimum transportation cost is:

13 | P a g e | M A N S C I - T r a n s p o r t a t i o n M o d e l
 ROUTE Tons Cost/ Total 4. Compute for marginal cost of each unused cell.
From To Shipped ton Cost
1 A 200 4 800 CELL Cij Ui Vj Eij
1 C 100 8 800 X1B 6 0 4 2
2 B 200 5 1,000 X2A 7 1 4 2
2 C 100 9 900 X3A 4 -3 4 3
3 C 100 5 500 X3B 5 -3 4 4
TOTAL 4,000 Since all the marginal costs are greater than or equal to zero,
Improvement was done from Tableau 1 with a total cost of thus, Tableau 2 contains the optimal solution already. The
P4,200 to Tableau 2 with a total cost of P4,000. minimum transportation cost is:

b. Minimum cost method ROUTE Tons Cost/ Total

From To Shipped ton Cost
1 A 200 4 800
1 C 100 8 800
2 B 200 5 1,000
2 C 100 9 900
3 C 100 5 500
TOTAL 4,000
Improvement was done from Tableau 1 with a total cost of
P4,300 to Tableau 2 with a total cost of P4,000.

c. Vogel’s approximation method

STEPS:

1. Same variable assigned in respective rows and

columns.
2. U1 + VA = 4 (1) U2 + VB = 5 (4)
U1 + VC = 8 (2) U3 + VA = 4 (5)
U2 + VC = 9 (3)
3. U1 + VA = 4 (1) U2 + VC = 9 (3) U3 + VA = 4 (5)
0 + VA = 4 U2 + 8 = 9 U3 + 4 = 4
VA = 4 U2 = 1 U3 = 0
U1 + VC = 8 (2) U2 + VB = 5 (4)
1. Same variable assigned in respective rows and
0 + VC = 8 1 + VB = 5
columns.
VC = 8 VB = 4
2. U1 + VA = 4 (1) U2 + VB = 5 (4)
4. Compute for marginal cost of each unused cell.
U1 + VC = 8 (2) U3 + VC = 5 (5)
U2 + VC = 9 (3)
CELL Cij Ui Vj Eij
3. U1 + VA = 4 (1) U2 + VC = 9 (3) U3 + VC = 5 (5)
X1B 6 0 4 2 0 + VA = 4 U2 + 8 = 9 U3 + 8 = 5
X2A 7 1 4 2 VA = 4 U2 = 1 U3 = -3
X3A 5 0 4 4 U1 + VC = 8 (2) U2 + VB = 5 (4)
X3c 5 0 8 -3 0 + VC = 8 1 + VB = 5
Since there a marginal cost with a negative sign, improvement VC = 8 VB = 4
must be done. 4. Compute for marginal cost of each unused cell.

1. X3C → X1C → X1A → X3A → X3C CELL Cij Ui Vj Eij

2. (+) (-) (+) (-) X1B 6 0 4 2
3. X1C = 200, X3A = 100; Smaller = 100 X2A 7 1 4 2
4. x3C = 0 + 100 = 100 x1C = 200 – 100 = 100 X3A 4 -3 4 3
x1A = 100 + 100 = 200 x3A = 100 – 100 = 0 X3B 5 -3 4 4
Since all the marginal costs are greater than or equal to zero,
thus, Tableau 1 already contains the optimal solution which has
a total transportation cost of P4,000.

UNBALANCED TRANSPORTATION
PROBLEM

→ A transportation problem where the total capacity of

all sources is not equal to the requirements of all
After the improvement of the tableau, marginal cost of the destinations. Unbalanced transportation problems
improved tableau must be computed again. must be converted to balanced transportation
problem by adding dummy row or column with a
1. Same variable assigned in respective rows and capacity or requirement amounting to the difference
columns. of supply and demand. All the transportation cost
2. U1 + VA = 4 (1) U2 + VB = 5 (4) from dummy sources or going to dummy
U1 + VC = 8 (2) U3 + VC = 5 (5) destinations is equal to zero. The same procedure
U2 + VC = 9 (3) done above will be used once it is converted.
3. U1 + VA = 4 (1) U2 + VC = 9 (3) U3 + VC = 5 (5) → In case the supply exceeds demand, additional
0 + VA = 4 U2 + 8 = 9 U3 + 8 = 5 column (dummy destination) must be added
VA = 4 U2 = 1 U3 = -3 amounting to the difference of demand and supply.
U1 + VC = 8 (2) U2 + VB = 5 (4) Additional row (dummy source) must be added if
0 + VC = 8 1 + VB = 5 demand exceeds supply on the other hand.
VC = 8 VB = 4

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Illustration:

Assuming that the capacity and the requirements are as follows:

Plant Capacity Construction Requirement

(Supply) Site (Demand)
1 300 A 200
2 300 B 200
3 100 C 200 After the number of occupied cells is already equal to 6.
Same information on transportation cost per unit from above Compute for the total transportation cost and improve the table
illustration will be used. using stepping stone method.

Determine the number of tons to be delivered from each plant to ROUTE Tons Cost/ Total
respective site that will obtain the minimum total transportation From To Shipped ton Cost
cost. 1 A 200 4 800
1 B 100 6 600
Use northwest corner rule and stepping stone method in solving 2 B 100 5 500
the problem. 2 C 200 9 1,800
3 D 100 0 0
• INITIAL FEASIBLE SOLUTION: TOTAL 3,700
NORTHWEST CORNER RULE
Note transportation cost of cell that contains ℇ is not computed
since it is assumed to have a very small non-negative number
Checking the illustration, the total capacity of all sources is 700
and will result to almost nothing. Technically, a total of 700 tons
tons while the total requirements of all destination sites is 600
are shipped but in substance, only 600 tons are shipped because
tons only. There is a surplus of 100 tons which will not have a
the shipment of 100 tons to destination D is just a dummy or
destination.
imaginary transfer.
Since the supply exceeds the demand, a dummy destination
Compute for the improvement index of unused cells:
must be added with a requirement of 100 tons (700 tons – 600
tons). All the transportation cost per unit going to destination D
x1C = +x1C – x1B + x2B – x2C = 8 – 6 + 5 – 9 = -2
(dummy) is zero.
x2A = +x2A – x2B + x1B – x1A =7–5+6–4=4

x2D = +x2D – x1D + x1B – x2B =0–0+6–5=1

x3A = + x3A – x3D + x1D – x1A =4–0+0–4=0

x3B = + x3B – x3D + x1D – x1B = 5 – 0 + 0 – 6 = -1

x3C = +x3C – x3D + x1D – x1B + x2B – x2C

= 5 – 0 + 0 – 6 + 5 – 9 = -7

Since one of the indices is negative, improvement of tableau is

needed:

1. X3C → X3D → X1D → X1B → X2B → X2C → X3C

[ DEGENERACY IN TRANSPORTATION PROBLEM ]
(+) (-) (+) (-) (+) (-)
After obtaining the initial feasible solution of every
transportation model problem, the number of occupied cells 2. X3D = 100, X1B = 100, X2C = 200; Smallest = 100
must be equal to the required number of occupied cells 3. x3C = 0 + 100 = 100 x3D = 100 – 100 = 0
computed using the formula m + n – 1 (number of columns + x1D = ℇ + 100 = 100 + ℇ x1B = 100 – 100 = 0
number of rows – 1). If the number of occupied cells is less than x2B = 100 + 100 = 200 x2C = 200 – 100 = 100
the required number of occupied cells, the transportation
problem tableau is degenerate.

In the illustration above, there are 5 occupied cells. Computing

the required number of occupied cells, it should be 6 (4 + 3 – 1).

1. Among the unused cells, choose the cell with the

least transportation cost per unit. If there are two or
more unused cells with the least transportation cost
per unit, choose any.
2. Trace a closed path on the unused cell selected in
step 1, there should be no closed path traced.
3. If a closed path is traceable, assign ℇ (Epsilon)
which is a very small non-negative number. If a
closed path is traced, choose another unused cell,
and repeat step 2.
From x1D, a step going to x1B can be done. After such, a
downward step to x2BA can be done following a step going to
x2C. After this step, there is no other horizontal or vertical step
can be traced, thus, there is no closed path can be traced for x1D.
An ℇ is assigned to x1D.
After the improvement, check again if the number of occupied
cells is equal to the required number of occupied cells.
Since there are only 5 occupied cells and the required number of
occupied cells is 6, the tableau is degenerate and steps to convert
the table to non-degenerate solution should be done.
1. Choose the unused cell with the least transportation
cost per unit. It can be x2D or x3D but let us choose
x2D.
2. Trace a closed path on x2D.
From x2D, next step can be on x1D, then on x1A, but
no other step can be made after.

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 From x2D, next step can be on x2C, then on x3C, but 3 C 100 5 500
no other step can be made after. TOTAL 3,100
Last option is from x2D, then on x2b, but no other Improvement was done from Tableau 1 with a total cost of
step can be made after. P3,700 to Tableau 3 with a total cost of P3,100.
3. Since there is no closed path can be traced on x2D, a
value ℇ can be assigned to this cell.
SUMMARY FOR TMP

1. Check if the problem is balanced or unbalanced

transportation problem.
❖ If balanced, proceed to Step 2.
❖ If unbalanced, convert it to balanced problem
by adding a dummy row or a dummy column,
then proceed to Step 2.
2. Establish initial feasible solution using any of the
Compute for the improvement index of unused cells: following methods:
a. Northwest corner rule;
x1B = +x1B – x2B + x2D – x1D =6–5+0–0=1 b. Minimum cost method; or
c. Vogel’s approximation model
x1C = +x1C – x2C + x2D – x1D = 8 – 9 + 0 – 0 = -1 3. Check if the transportation model tableau is
degenerate or non-degenerate
x2A = +x2A – x2D + x1D – x1A =7–0+0–4=3 ❖ If the tableau is non-degenerate, proceed to
Step 4.
x3A = +x3A – x3C + x2C – x2D + x1D – x1A ❖ If the tableau is degenerate, do the steps
below:
=4–5+9–0+0–4=4
 Choose the unused cell with the least
transportation cost per unit.
x3B = +x3B – x3C + x2C – x2B =5–5+9–5=4
 Check if there is a closed path that can
x3D = +x3D – x2D + x2C – x3C =0–0+9–5=4 be traced in the cell selected.
 If a closed path is traced, choose
1. X1C → X2C → X2D → X1D → X1C another unused cell. If there is no closed
2. X1C = 100, X1D = 100 + ℇ; Smaller = 100 path can be traced, assign a ℇ number in
3. x1C = 0 + 100 = 100 x2C = 100 – 100 = 0 the cell and consider it as occupied cell.
x2D = ℇ + 100 = 100 + ℇ x1D = (100+ℇ) – 100 = ℇ 4. Improve the transportation model tableau using
a. Stepping stone method; or
b. Modified distribution method.
5. Repeat Step 3 and Step 4 until optimal solution is
achieved.

After the improvement, check again if the number of occupied

cells is equal to the required number of occupied cells.

Since there are 6 occupied cells and the required number of

occupied cells is 6, the tableau is already a non-degenerate and
improvement can be done.

Compute for the improvement index of unused cells:

x1B = +x1B – x2B + x2D – x1D =6–5+0–0=1

x2A = +x2A – x2D + x1D – x1A =7–0+0–4=3

x2C = +x2C – x2D + x1D – x1C =9–0+0–8=1

x3A = +x3A – x3C + x1C – x1A =4–5+8–4=3

x3B = +x3B – x3C + x1C – x1D + x2D – x2B

=5–5+8–0+0–5=3

x3D = +x3D – x1D + x1C – x3C =0–0+8–5=3

Since all the indices are greater than or equal to zero, thus,
Tableau 3 contains the optimal solution already. The minimum
transportation cost is:

ROUTE Tons Cost/ Total

From To Shipped ton Cost
1 A 200 4 800
1 C 100 8 800
2 B 200 5 1,000
2 D 100 0 0

16 | P a g e | M A N S C I - T r a n s p o r t a t i o n M o d e l