TRANSPORTATION PROBLEMS 18/11/2021

Transportation
Model
Dr. Rebecca C. Tolentino

Transportation Problem
• Special Linear Programming problem
• It often involves the distribution of goods and services from several
supply locations to several demand locations.
• Supply locations are also called sources or origins and their supply
capacity is specified.
• The demand locations are also called destinations and the quantity of
goods they need are known.
• The usual objective in a transportation problem is to minimize the total
shipping cost of transporting goods from the origins to the
destinations.
(An Introduction to Management Science by Anderson, Sweeney,Williams, Comm & Martin p. 254)

DR. REBECCA C. TOLENTINO

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TRANSPORTATION PROBLEMS 18/11/2021

Network Representation
• The following figure SOURCES DESTINATIONS
represents a
transportation problem S1
c11
D1
with three sources and c12
three destinations, c1
where:
c21
• Si represents the capacity S2 c22 D2
of source i. c23
• Dj represent the demand c31
of destination j c32
S3 D3
• Cij represents the cost of c33
transportation from
source i to destination j.

Linear Programming
The previous transportation problem can be formulated as a linear
programming problem with 9 decision variables :
xij – number of units to be transported from source i to destination j.
Minimize Z = c11x11 + c12x12 + c12x12 + c21x21 x + c22x22 + c23x23 + c31x31 +
c32x32 + c33x33
Subject to:
x11+ x21+ x31 D1 x11+ x12+ x13  s1
x12+ x22+ x32 D2 x21+ x22+ x23 s2
x + x + x  D3 x31+ x32+ x33 s3
13 23 33
xij≥0,

DR. REBECCA C. TOLENTINO

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TRANSPORTATION PROBLEMS 18/11/2021

Transportation Table
Destination 1 Destination 2 Destination 3 Supply
Source 1 C11 C12 C13
s1

Source 2 C21 C22 C23

s2

Source 3 C31 C32 C33

s3

Demand d1 d2 d3

Three Methods of Setting up the Initial

Feasible solution
• North-West Corner Rule
• Minimum Cost Method
• Vogel’s Approximation Method

DR. REBECCA C. TOLENTINO

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TRANSPORTATION PROBLEMS 18/11/2021

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TRANSPORTATION PROBLEMS 18/11/2021

Stepping
Stone
Method

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Modified Distribution Method

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Stepping Stone
Method

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TRANSPORTATION PROBLEMS 18/11/2021

TABLE 1 TOTAL COST = 785

CLOSED PATH FOR A3 : A3→A1 → B1 → B3

its Improvement Index: A3: 5-4+6-7=0.

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CLOSED PATH FOR B2 : B2→B1 → A1 → A2

its Improvement Index: B2: 3-6+4-2=-1

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TRANSPORTATION PROBLEMS 18/11/2021

CLOSED PATH FOR C1 : C1→B1 → B3 → C1

its Improvement Index: C1: 9-6+7-7=3

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CLOSED PATH FOR C2 : C2→C3 → B3 → B1 → A1 → A2

its Improvement Index: C2: 8-7+7-6+4-2=4
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Modified Distribution
Method (MODI)

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Table 2 TC=750

USED CELLS:
u1+v1=4
u1+v2=2
u2+v2=3
u2+v3=7
u3+v3=7

Set u1=0
then solve for
the rest

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Table 2 TC=750

Vacant cells
Improvement
Index
kij=cij-ui-vj

A3: 5-0-6=-1
B1: 6-1-4=1
C1: 9-1-4=4
C2: 8-1-2=5

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DR. REBECCA C. TOLENTINO

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TRANSPORTATION PROBLEMS 18/11/2021

Table 2 TC=750

Trace a closed
path to A3( the
cell with the
lowest negative
improvement
index), then
adjust the
allocation
schedule by
transferring
stones to A3.

CLOSED PATH FOR A3 : A3→A2 → B2 → B3

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TRANSPORTATION PROBLEMS 18/11/2021

TABLE 3 TC = 745

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SINCE ALL THE IMPROVEMENT INDECES ARE POSITIVE THE TABLE IS OPTIMUM.

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DR. REBECCA C. TOLENTINO

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TRANSPORTATION PROBLEMS 18/11/2021

OPTIMUM SOLUTION
• Minimum total cost is 745.
• Source 1 will supply 45 units to destination 1 and 5 units to
destination3.
• Source 2 will supply 40 units to destination 2 and 20 units to
destination3.
• Source 3 will supply 40 units to destination 3.

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Closed path to the vacant cells

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DR. REBECCA C. TOLENTINO

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