Cs6704- Resource Management Techniques

Unit-2 Duality And Networks

TRANSPORATION PROBLEM

Steps involved in solving a Transportation Problem

Step I
From the given problem, express the objective function which must be minimized a long with the
relevant constraints.
Step II
Set up a transportation table, where supply or sources (factories, plants) are denoted as rows and
demand or destinations (warehouses, markets) are denoted by columns.
Step III
Find out an initial feasible solution by using one of the three rules.
Step IV
A solution so obtained is said to be feasible if and only if, such a solution has allocations in the
total number of (m + n – 1) cells with independent positions.

Initial Feasible Solutions

In a transportation problem, the initial feasible solution can be generated by a number of

methods. Three of the most common methods are discussed below:

a. The North-West Corner Rule (NWC Rule)

As the name itself suggests, under this rule, first of all the upper-left or the north-west
corner of each cell is selected.
Step I
Upper-left corner cell of the transportation table is selected. Allocate as many units to this cell as
possible. This will be the least value of demand and supply. This process is repeated for all the
respective rows and columns.
Step II
After exhausting the supply for the first row, move down vertically to the Ist cell in 2nd row and
Ist column. Then repeat the Step I.
Step III
After exhausting the demand for the first column, move along horizontally to the next cell in the
IInd column & Ist row. Then repeat Step I.
Step IV
Where demand is equal to supply for a cell, then further allocation is made in either the next row
or the next column cell. This procedure is continued till the total quantity that is available is fully
allocated to the various cells, as required.

b. Least Cost Method (LCM)

This is a time-saving method since it drastically reduces the numerous calculation required to
be done under the northwest corner rule. The following steps are involved in this method:
Step I
Out of all rows and columns in the transportation table, select that cell which has the lowest
(minimum) transportation cost.
 Cs6704- Resource Management Techniques
Unit-2 Duality And Networks
Step II
Where the smallest cost is not unique i.e., there are other cells having the same smallest cost,
select any cell which has this smallest cost.
Step III
To the cell chosen in the above step, allocate maximum possible units. Eliminate that row or the
column where either the demand is satisfied or the supply is exhausted.
Step IV
For the reduced table so obtained, repeat the above steps till total demand and supply are
exhausted.

c. Vogel’s Approximation Method (VAM)

Step I
Calculate the penalty for all rows and columns. (Penalty is the difference between the smallest
nd the next smallest cost)
Step II
Select the row or column having maximum penalty. In this row or column, select the cell having
the least cost. Allocate maximum possible units (quantity) to this lowest cost cell.
Step III
Reduce the demand or supply by the amount assigned to the cell.
Step IV
If row supply is zero, eliminate it If column demand is zero, eliminate it If both are zero,
eliminate both.
Step V
Again calculate penalty and repeat the same steps.

Methods Employed to Find the Optimal Solution to a Transportation Problem

Basically 2 methods are widely used:-

a. Stepping Stone Method

The main steps involved in this method are as follows.

Step I
After determining the initial feasible solution, check that the number of occupied cells is equal to
M + N – 1 (M – rows, N –columns).
Step II
Test each of the unoccupied cells for evaluating its cost effectiveness as under:
i. Select an empty cell. Use the most direct route horizontally or vertically which passes
through 3 or more occupied cells to trace a closed path. The cells at the “turning points: are
known as “stepping stones.”
ii. Each corner cell of the path so traced is assigned a positive (+) and a negative ( ) sign
alternately. Start with the unoccupied cell which is to be evaluated and assign this cell a positive
(+) sign.
iii. Sum all the unit cost figures in each cell having a positive sign and then subtract all
the unit cost figures having a negative sign. This gives the net change in the cost.
This step has to be repeated till the cost is calculated for all the unoccupied cells.

Step III
 Cs6704- Resource Management Techniques
Unit-2 Duality And Networks
An optimum solution is reached, when all the net changes so calculated are 0.Where such an
optimum solution has not been reached, go to Step IV.
Step IV
The highest negative net cost unoccupied cell is selected. Find the maximum units that can be
given to a cell having negative sign on the closed path relative to the unoccupied cell. This
number has to be added to the unoccupied and all other cells on the closed path having a
positive sign. Finally, this number is to be subtracted from cells on the path which have a minus
sign. The process must be repeated till an optimal solution is obtained.

b. Modified Distribution (MODI) Method

The following are the steps involved in the Modified Distribution (MODI) method of testing the
optimality of a feasible solution in a transportation problem:-
Step I
By using any one of the three methods discussed above, obtain an initial feasible solution, having
M + N – 1 allocation in independent position.
Step II
Assign an arbitrary value (zero) to one of the variables without violating the equations. (Since
there are M + N – 1 occupied cells, there will be M + N – 1 equation).
Step III
For every empty cell, calculate the improvement index i.e.; its opportunity cost. This has to be
calculated by adding the corresponding row and column number and then subtracting the actual
cost of this cell from it. The solution is optimal, if the opportunity cost of all the empty cells > 0.
Step IV
Where the solution is not optimal i.e.; we have empty cells with negative improvement index
(opportunity cost), select the empty cell having the largest value of negative opportunity cost.
Step V
For the empty cell selected in Step IV, draw a closed path – and assign alternate positive (+) and
negative (-) signs at the empty cell lying on the corner points of the path. The cell being evaluated
i.e. as selected in Step IV will have a positive (+) sign.
Step VI
Repeat this procedure till an optimal solution is achieved.
 Cs6704- Resource Management Techniques
Unit-2 Duality And Networks
ASSIGNMENT PROBLEM

Steps involved in Hungarian algorithm

Step 1: Subtract row minima

For each row, find the lowest element and subtract it from each element in that row.
Step 2: Subtract column minima
Similarly, for each column, find the lowest element and subtract it from each element in
that column.
Step 3: Cover all zeros with a minimum number of lines
Cover all zeros in the resulting matrix using a minimum number of horizontal and vertical
lines. If n lines are required, an optimal assignment exists among the zeros. The algorithm stops.
If less than n lines are required, continue with Step 4.
Step 4: Create additional zeros
Find the smallest element (call it k) that is not covered by a line in Step 3. Subtract k from
all uncovered elements, and add k to all elements that are covered twice.

Steps involved in Travelling Salesman Problem

Step 1: Solve the problem as an assignment problem.

Step 2: Check for a complete cycle or alternative cycles. If the cycle is complete, Go to Step 4. If
not, go to the Step 3.
Step 3: To start with, assign the next least element other than zero, (only for first allocation) and
complete the assignment. Go to Step 2.
Step 4: Write the optimum assignment schedule and calculate the cost/time. (Note: If there are
two non-zero values in the matrix, it means that there are two optimal solutions. Calculate the
cost for the two allocations and find the optimal solution.)