TRANSPORTATION PROBLEM: OPTIMUM

SOLUTION USING STEPPING STONE METHOD

By,
Dr. Akash Asthana,
Assistant Professor,
University of Lucknow,
Lucknow

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 TRANSPORTATION PROBLEM
Sometimes it is required to transport the same goods from
different sources to different destinations in such a manner that
the total cost of transportation is minimum under the condition
that goods can be transported from one source to more than one
destinations as well as the destinations can receive the goods
from more than one sources. The per unit cost of transporting
goods from different sources to different destinations may be
different. Such problems are termed as transportation problem.
The place where goods is prepared or kept for delivery like
godown, factories etc. are called as sources or origins and the
places where items are required such as shops etc. are called as
destinations.
The availability and demand are simultaneously called as rim
requirement.
 SOLUTION OF TRANSPORTATION PROBLEM
Any transportation problem can be solved by using simplex or other
methods defined for LPP as it is a special case of LPP. But its
calculations become too lengthy and complicated as it deals with
(m+n) constraints in mn decision variables. Therefore several
methods are defined for solving the transportation problem. Any
transportation problem can be solved into two steps:
Step I: Obtain the Initial Basic Feasible Solution using any of
following three methods:
1. North-West Corner (NWC) Method.
2. Matrix Minima Method.
3. Vogel’s Approximation Method (VAM).
Step II: Obtain the optimum solution by using any of following two
methods:
1. Modified Distribution Method (MODI)
2. Stepping Stone Method
LOOP IN TRASPORTATION TABLE
Loop is an ordered set (or sequence) of at least four different cells
that the satisfy the following conditions:
1. Any two consecutive cells lie in either the same row or same
column.
2. No three or more consecutive cells lie in the same row or column.
For Eample
i. {(1, 2), (1, 4), (3, 4), (3, 2)} is a loop.
ii. {(1, 3), (1, 5), (4, 5), (4, 2), (2, 2), (2, 3)} is a loop.
iii. {(1, 3), (1, 4), (1, 5), (4, 5), (4, 2), (2, 2)} is not a loop.

Note: For the construction of loop only row-wise or column-wise

movement is allowed. Diagonal movement is not allowed, i.e. Loop
have even number of corners.
 EXAMPLE
 For discussing the Modified distribution method (MODI)
method, following example would be considered.
Check whether x13=50, x14=20, x21=55 x31=30 and x32=35 and
x34=25 is an optimal solution for the following transportation
problem. If not obtain the optimum solution.
Source Destination Availability
I II III IV
A 6 1 9 3 70
B 1 5 2 8 55
C 10 12 4 7 90
Requirement 85 35 50 45
 STEPPING STONE METHOD
It is an alternative method to MODI method for obtaining the
optimum solution to the transportation problem. It has following
steps:
Step 1: Obtain Initial Basic Feasible Solution using any method.
Step 2: Check whether the number of allocated cell is m+n–1, where
m is number of rows, n is number of columns. If number of allocated
cells is less than m+n–1 the solution is said to be degenerate. To
remove the degeneracy allocate a very small positive quantity є (≈ 0)
to an unallocated cell in such a manner that no loop is formed by
allocated cells. Such allocations are made such that the number of
allocated cells become m+n–1.
Step 3: Select an unallocated cell. Construct a loop having this cell at
one corner and allocated cells on the other corner.
Step 4: Compute the opportunity cost for transferring a single unit
from allocated cell to unallocated cell without violating the rim
requirements.
 STEPPING STONE METHOD
Step 5: Check whether all the opportunity costs are non-negative. If
yes the solution is optimum, otherwise find the most negative
(minimum) opportunity cost. Let the cell (i, j) have most negative
opportunity cost. The cell (i, j) is said to be entering cell.
Step 6: Transfer maximum possible quantity to the unallocated cell
(i, j) without violating the rim requirements. This should be done by
adding and subtracting units alternatively starting from the cell (i, j)
according to the loop considered, in such a manner that the allocation
of one cell become zero. The cell for which allocation become zero is
said to leave the basis.
Step 7: Repeat the process till all opportunity costs not become non-
negative.
 STEPPING STONE METHOD
 Step 1: In the considered example the IBFS is given as
Destination
Source
I II III IV
50 20
A
6 1 9 3
55
B
11 5 2 8
30 35 25
C
10 12 4 7

 Step 2: The number of allocated cells is 6 which is equal to

m+n–1.
 STEPPING STONE METHOD
For computing opportunity cost following table would be constructed:
Unallocated Loop Opportunity Cost
Cell
(1, 1) {(1, 1); (1, 4); (3, 4); (3, 1)} 6 – 3 + 7 – 10 = 0
(1, 2) {(1, 2); (1, 4); (3, 4); (3, 2)} 1 – 3 + 7 – 12 = –7
(2, 2 ) {(2, 2); (3, 2); (3, 1); (2, 1)} 5 – 12 + 10 – 11 = –8
(2, 3) {(2,3); (1,3); (1,4); (3,4); (3,1); (2,1)} 2–9+3–7+10–11 = –12
(2, 4) {(2, 4); (3, 4); (3, 1); (2, 1)} 8 – 7 + 10 – 11 = 0
(3, 3) {(3, 3); (1, 3); (1, 4); (3, 4)} 4 – 9 + 3 – 7 = –9
As some of the opportunity costs are negative, solution is not optimum.
The most negative opportunity cost is –12, therefore the cell (2, 3) will
enter to the basis.
STEPPING STONE METHOD
Destination
Source
I II III IV
50 20
A
6 1 9 3
55
B
11 5 2 8
30 35 25
C
10 12 4 7
The maximum quantity that can be transferred without violating rim
requirements is 25. The allocation for the cell (3, 4) will become
zero, therefore cell (3, 4) will leave the basis.
 STEPPING STONE METHOD
The new solution would be obtained as:
Destination
Source
I II III IV
25 45
A
6 1 9 3
30 25
B
11 5 2 8
55 35
C
10 12 4 7

Now, again the optimality of the solution would be tested by

computing the opportunity cost.
 STEPPING STONE METHOD
Now, again the opportunity cost would be computed for unallocated
cells:

Unallocated Loop Opportunity Cost

Cell
(1, 1) {(1, 1); (1, 3); (2, 3); (2, 1)} 6 – 9 + 2 – 11 = –12
(1, 2) {(1,2); (1,3); (2,3); (2,1); (3,1); (3,2)} 1–9+ 2– 11+10–12 = –19
(2, 2 ) {(2, 2); (3, 2); (3, 1); (2, 1)} 5 – 12 + 10 – 11 = –8
(2, 4) {(2, 4); (2, 3); (1, 3); (1, 4)} 8 – 2 + 9 – 3 = 12
(3, 3) {(3, 3); (3, 1); (2, 1); (2, 3)} 4 – 10 + 11 – 2 = 3
(3, 4) {(3,4); (3,1); (2,1); (2,3); (1,3); (1,4)} 7–10+11–2+9–3 = 12

As some of the opportunity costs are negative, solution is not

optimum. The most negative opportunity cost is –19, therefore the cell
(1, 2) will enter to the basis.
STEPPING STONE METHOD
Destination
Source
I II III IV
25 45
A
6 1 9 3
30 25
B
11 5 2 8
55 35
C
10 12 4 7
The maximum quantity that can be transferred without violating rim
requirements is 25. The allocation for the cell (1, 3) will become
zero, therefore cell (1, 3) will leave the basis.
 STEPPING STONE METHOD
The new solution would be obtained as:
Destination
Source
I II III IV
25 45
A
6 1 9 3
5 50
B
11 5 2 8
80 10
C
10 12 4 7

Now, again the optimality of the solution would be tested by

computing the opportunity cost.
 STEPPING STONE METHOD
Now, again the opportunity cost would be computed for unallocated
cells:

Unallocated Loop Opportunity Cost

Cell
(1, 1) {(1, 1); (1,2); (3, 2); (3, 1)} 6 – 1 + 12 – 10 = 7
(1, 3) {(1,3); (2,3); (2,1); (3,1); (3,2); (1,2)} 9–2+ 11–10+12–1 = 19
(2, 2 ) {(2, 2); (3, 2); (3, 1); (2, 1)} 5 – 12 + 10 – 11 = –8
(2, 4) {(2,4); (2,1); (3,1); (3,2); (1,2); (1,4)} 8–11+10–12+1–3 = –7
(3, 3) {(3, 3); (3, 1); (2, 1); (2, 3)} 4 – 10 + 11 – 2 = 3
(3, 4) {(3, 4); (3, 2); (1, 2); (1, 4)} 7 – 12 + 1 – 3 = –7

As some of the opportunity costs are negative, solution is not

optimum. The most negative opportunity cost is –8, therefore the cell
(2, 2) will enter to the basis.
 STEPPING STONE METHOD
The new solution would be obtained as:
Destination
Source
I II III IV
25 45
A
6 1 9 3
5 50
B
11 5 2 8
80 10
C
10 12 4 7

The maximum quantity that can be transferred without violating

rim requirements is 5. The allocation for the cell (2, 1) will
become zero, therefore cell (2, 1) will leave the basis.
 STEPPING STONE METHOD
The new solution would be obtained as:
Destination
Source
I II III IV
25 45
A
6 1 9 3
5 50
B
11 5 2 8
85 5
C
10 12 4 7

Now, again the optimality of the solution would be tested by

computing the opportunity cost.
 STEPPING STONE METHOD
Now, again the opportunity cost would be computed for unallocated
cells:

Unallocated Loop Opportunity Cost

Cell
(1, 1) {(1, 1); (1,2); (3, 2); (3, 1)} 6 – 1 + 12 – 10 = 7
(1, 3) {(1, 3); (2, 3); (2, 2); (1, 2)} 9 – 2 + 5 – 1 = 11
(2, 1 ) {(2, 1); (2, 2); (3, 2); (3, 1)} 11 – 5 + 12 – 10 = 8
(2, 4) {(2, 4); (2, 2); (1, 2); (1, 4)} 8 – 5+ 1 – 3 = 1
(3, 3) {(3, 3); (3, 2); (2, 2); (2, 3)} 4 – 12 + 5 – 2 = –5
(3, 4) {(3, 4); (3, 2); (1, 2); (1, 4)} 7 – 12 + 1 – 3 = –7

As some of the opportunity costs are negative, solution is not

optimum. The most negative opportunity cost is –7, therefore the cell
(3, 4) will enter to the basis.
 STEPPING STONE METHOD
The new solution would be obtained as:
Destination
Source
I II III IV
25 45
A
6 1 9 3
5 50
B
11 5 2 8
85 5
C
10 12 4 7

The maximum quantity that can be transferred without violating

rim requirements is 5. The allocation for the cell (3, 2) will
become zero, therefore cell (3, 2) will leave the basis.
 STEPPING STONE METHOD
The new solution would be obtained as:
Destination
Source
I II III IV
30 40
A
6 1 9 3
5 45
B
11 5 2 8
85 5
C
10 12 4 7

Now, again the optimality of the solution would be tested by

computing the opportunity cost.
 STEPPING STONE METHOD
Now, again the opportunity cost would be computed for unallocated
cells:

Unallocated Loop Opportunity Cost

Cell
(1, 1) {(1, 1); (1, 4); (3, 4); (3,1)} 6 – 3 + 7 – 10 = 0
(1, 3) {(1, 3); (2, 3); (2, 2); (1, 2)} 9 – 2 + 5 – 1 = 11
(2, 1 ) {(2,1); (2,2); (1,2); (1,4); (3,4); (3,1)} 11–5+1–3+7–10 = 1
(2, 4) {(2, 4); (2, 2); (1, 2); (1, 4)} 8 – 5+ 1 – 3 = 1
(3, 2) {(3, 2); (1, 2); (1, 4); (3, 4)} 12 – 1 + 3 – 7 = 7
(3, 3) {(3,3); (2,3); (2,2); (1,2); (1,4); (3,4)} 4–2+5–1+3–7 = 2

Since all the opportunity costs are obtained as non-negative the

solution is optimum.
STEPPING STONE METHOD
The optimum solution for the problem considered is:
From To No. of units Cost of
Source Destination transported transportation
A II 30 30
A IV 40 120
B II 5 25
B III 50 100
C I 85 850
C IV 5 35
Total 1160
The Minimum Transportation cost = 1160 units.
 Comparison Of Stepping Stone Method And MODI Method
The optimum solution for the problem considered by MODI method is:
From To No. of units Cost of
Source Destination transported transportation
A II 30 30
A IV 40 120
B II 5 25
B III 50 100
C I 85 850
C IV 5 35
Total 1160
The Minimum Transportation cost = 1160 units.
Therefore it can be said that both methods provide same optimum
solution to the transportation problem and are alternative to each other.
REFERENCES
1. Hiller S.H., Lieberman G.J.; Introduction to Operations
Research; 7th edition, McGraw Hill Publications
2. Taha, H.A.; Operations Research: An Introduction; 8th
edition; Pearson Education Inc.
3. Swarup K., Gupta P.K. & Manmohan; Operations Research;
11th edition; Sultan Chand & Sons publication.
4. Sharma S.D., Sharma H.; Operations Research: Theory,
Methods and Applications; 15th edition; Kedar Nath Ram
Nath Publishers.
Note: The theorems consider in the present notes are taken from
the reference book mentioned at serial no. 3.