Riset Operasional

Session 9

Transportation Problem

Transportation
The transportation problem deals with
the transportation or physical
movement of goods and services from a
number of sources to a number of
destinations, at a minimum total
transportation cost.
In general, there will be a fixed amount
or limited supply of goods and services
at each source, or supply origin, and a
fixed amount or required quantity will
be needed at each terminal, or demand
destination.


Supplies
O1 : Los Angeles
s1 = 1000

Supply
Origins
(factories)

Distribution routes
(amounts to be shipped
are the decision
variables, xij)
X11
X12

Demand
Destinations
Demands
(warehouses)
D1 : Chicago
d1 = 700

X13
X21
O2 : St. Louis
s2 = 1900

X22
X23
X31

O3 : Boston
s3 = 1600

D2 : Houston
d2 = 2000

X32
X33

D3 : Atlanta
d3 = 1800

The balanced transportation problem as depicted by the network

model shown previously can be formulated as a linear
programming as follows.
xij = number of products shipped from factory i to
warehouse j.
Minimize z = $90x11 + $80x12 + $100x13 + $20x21 + $40x22 + $50x23
+ $40x31
+ $90x32 + $60x33
Subject to
x11 + x12 + x13 = 1000 (Supply, origin 1, Los Angeles)
x21 + x22 + x23 = 1900 (Supply, origin 2, St. Louis)
x31 + x32 + x33 = 1600 (Supply, origin 3, Boston)
x11 + x21 + x31 = 700 (Demand, destination 1, Chicago)
x12 + x22 + x32 = 2000 (Supply, destination 2, Houston)
x13 + x23 + x33 = 1800 (Supply, destination 3, Atlanta)

In general, the mathematical formulation of a transportation problem with m origins

and n destinations can be described as follows.

Let
si = the supply of the product available at origin I
dj = the demand for the product at destination j.
cij = the unit cost associated with shipping one unit of product from origin i to
destination j.
xij = the unknown quantity to be shipped from origin i to destination j.
Minimize

z cij xij
i 1 j 1

Subject to
n

ij

j 1

si

(Supply, si > 0. at origin i; i=1,2,,m)

m

x
i 1

ij

dj

(Demand, di > 0, at destination j; j =1,2,,n)

with all xij 0

The balanced conditioni :1

d j
j 1

Solving the Transportation

Problem
The tableau

Initial Basic Feasible Solution for

Transportation Problem (a numerous
methods)
Northwest Corner Rule, steps :

1. Start at the northwest corner cell in the

transportation tableau [i.e. cell (1,1)] and
allocate as much as possible without violating
either the supply or demand constraint.
2. This allocation will exhaust the supply at
origin 1 and/or satisfy the demand at
destination 1. Then, allocate as much as
possible to the adjacent cell in the row or
column that has not been eliminated.
3. Proceed in the same manner until all supply
availabilities have been exhausted and all
demand requirements have been met.
4. Compute the total cost by multiplying
corresponding transportation cost and amount

the tableau
Initial Basic Feasible Solution Northwest Corner Rule

Destinations

To
Destinations
From
Origins

O1: Los
Angeles

D1: Chicago

D2: Houston

D3: Atlanta

90

80

10
0

40

50

700

1700
40

O3: Boston
Destination
Demand

200
90

60

1600
700

1000

300
20

O2: St. Louis

Origin
Supply

2000

1800

1900
1600
4500

 The total cost for NCR Method =

$261,000
Does the shipping assignment
change if the cost from Los Angeles
to Chicago increases ftom $90 per
unit to $100 per unit? Does the total
cost change?

Initial Basic Feasible Solution for

Transportation Problem (a numerous
methods)
Matrix Minima Rule, steps :

1. Examine the entire transportation tableau and

determine the cell having the smallest unit
transportation cost, cij. If a tie between two or
more cell occurs, the tie may be broken arbitrarily.
For the minimum cost cell, set xij = min(si , dj), and
eliminate from further consideration either row i, if
supply availability si is exhausted, or column j, if
demand requirement dj is satisfied. Consequently,
if xij = si, we decrease dj by si, and if xij = dj, we
decrease si by dj.
2. For the remaining cells that are feasible, select the
minimum cost cell and allocate as much as
possible.
3. Proceed in the same manner until all supply
availabilities have been exhausted and all demand

the tableau
Initial Basic Feasible Solution Matrix Minima Rule

Destinations

To
Destinations
From
Origins

D1: Chicago

D2: Houston

D3: Atlanta

90

80

10
0

O1: Los
Angeles
O2: St. Louis

800
20

700

O3: Boston
Destination
Demand

40

50

90

60

1600
700

2000

1000

200

1200
40

Origin
Supply

1800

1900
1600
4500

 The total cost for Matrix Minima Rule

= $242,000
If the cost per unit from St. Louis to
Chicago is not $20, but rather $60,
does this initial solution change?
Does the total cost change?

Initial Basic Feasible Solution for

Transportation Problem (a numerous
methods)
Vogels Approximation Method (VAM), steps :
1.

2.

3.

Calculate the penalty cost for each row and each

column. For each row, determine the difference
between the lowest cost, cij, and the next lowest cost,
cit. This difference represents the penalty that will be
incurred if instead of shipping over the best route.
Select the row or column that has the largest penalty
cost (breaking any tie arbitrarily). Allocate as much as
possible to the cell having the smallest cij value in the
row or column selected. Thus, for the smallest cij value
in the selected row or column, xij = min(si , dj). By
making this allocation, the penalties associated with
more costly allocation are avoided.
Adjust the supply availabilities and demand
requirements to reflect the allocation made. Eliminate
from further consideration any row fro which the supply
has been exhausted, or any column for which demand
has been satisfied.

the tableau
Initial Basic Feasible Solution Vogels Approximation
Method

Destinations

To
Destinations
From
Origins

D1: Chicago

D2: Houston

D3: Atlanta

90

80

10
0

O1: Los
Angeles

100
20

O2: St. Louis

O3: Boston
Destination
Demand

700
700

40

50

90

60

900
2000

1000

900

1900
40

Origin
Supply

1800

1900
1600
4500

the tableau
Summary Table : Vogels Approximation Method
Difference
Step

Row

Column

10

20

20

20

40

10

10

20

50

10

40

3
4
5

20
20

30

10

Largest
Difference
40, column
2

Allocation
X22 =
1900

Eliminat
e row 2

50, column
1

X31 =
700

Eliminat
e
column
1

40, column
3

X33 =
900

Eliminat
e row 3

40

20, row 1

X21 =
100
X14 =

Eliminat
e
column
2
Eliminat
e row 1

Obtaining the optimal solution :

Stepping-Stone Algorithm
Once we have determined the initial basic
feasible solution, the next step is to determine
if the total transportation cost associated with
this initial basic feasible solution can be
reduced.
One method for doing this is called SteppingStone Algorithm, involves two steps :

1. Each unoccupied cell is evaluated for the net

cost effect of transferring one unit from an
occupied cell to the unoccupied cell. This transfer
must be made in a manner that maintains the row
and the column balance of the transportation
problem.
2. After all unoccupied cells have been evaluated , a
reallocation is made to the unoccupied cells for
which it is indicated that the greatest per-unit-net
cost savings would occur.


Initial Basic Feasible Solution Northwest Corner Rule

Destinations

To
Destinations
From
Origins

O1: Los
Angeles

D1: Chicago

90

700
20

80

300
+1

40

1700
40

O3: Boston

D3: Atlanta

+1

-1

O2: St. Louis

Destination
Demand

D2: Houston

-1

10
0
50

200
90

60

1600
700

2000

1800

Origin
Supply

1000

1900
1600
4500

another illustration of looping

Cell (1, 1)
being
evaluated

6
10

11

10

another illustration of looping

+

5
9

20

11

11

12

15

 the next steps

The amount of the allocation to a chosen
unoccupied cell (the most decrease - net cost) is
always the minimum amount in the cells on the
closed loop that are marked with a -1 during the
unoccupied cell evaluation process.
The
minimum
amount

D1

D2
90

O1

O2

700

80

300
20

40

1700

The
most
s
decrea
e in
cost
Net
Closed loop
cost
increase and
chang
decrease
e

...summarized from all possible looping

Unoccupi
ed cell
(1, 3)

Closed loop
x13 x23 x22 x12 x13

(2, 1)
(3, 1)

x21 x22 x12 x11 x21

(3, 2)

x31 x11 x12 x22 x23 x33 x31

= + $10

$20 40 + 80 90

= -$30

$40 90 + 80 40 + 50
60

= - $20

$90 40 + 50 60

x32 x22 x2390

x33 x32

700

+c13 - c23 + c22 - c12

+$100 50 + 40 80

80

100

40

50

300
20

1700
40

200
90

60

1600

= +$40


Second Basic Feasible Solution Stepping Stone Algorithm
(Optimal Solution) [Reallocation to cell (2, 1)]: x 21 becomes
basic, x11 become nonbasic

Destinations

To
Destinations
From
Origins

O1: Los
Angeles
O2: St. Louis
O3: Boston
Destination
Demand

D1: Chicago

+30

D2: Houston

90

80

D3: Atlanta

+10

10
0

Origin
Supply

1000

1000
20

700
+10

40

1000
40

+10

50

200
90

60

1600
700

The total cost : $240,000

2000

1800

1900
1600
4500

Latihan

Suatu perusahaan mempunyai tiga pabrik di

W, H, O. Dengan kapasitas produksi tiap
bulan masing-masing 90, 60, dan 50 ton; dan
mempunyai 3 gudang penjualan di A, B, C
dengan kebutuhan tiap bulan masing-masing
50, 110, dan 40 ton. Biaya pengangkutan
setiapDari
ton produk dari
pabrik
Biaya
tiap ke
tongudang
adalah sebagai
berikut:
Gudang
A Gudang B Gudang C
Pabrik W

20

Pabrik H

15

20

10

Pabrik O

25

10

19

Buatkan initial feasibel solution

Latihan 1
Initial Basic Feasible Solution Northwest Corner Rule

Destinations

To
Destinations
From
Origins

Pabrik W
Pabrik H
Pabrik O
Kebutuhan
Gudang

Gudang A

Gudang B

20

X11

X12
15

X21

Gudang C
8

X13
20

X22
25

10

X23
10

19

X31

X32

X33

50

110

40

Kapasitas
Pabrik

90
60
50
200

SEKIAN

MODI method

The modified distribution method, or MODI method offers

an alternative approach to the stepping-stone algorithm,
based on the dual formulation of the transportation
problem.
Based on the previous case, the primal from of the problem
is as follows.
Minimize = c11x11 + c12x12 + c13x13 + c21x21 + c22x22 + c23x23
+
c13x13 + c23x23 + c33x33
Subject to
x11 + x12 + x13 = s1
x21 + x22 + x23 = s2
x31 + x32 + x33 = s3
x11 + x21 + x31 = d1
x12 + x22 + x32 = d2
x13 + x23 + x33 = d3

Let u1, u2, and u3 as the three dual variables associated with three
origin (supply) constraints of the primal case, and v 1, v2, v3 as the
three dual variables associated with the three destination (demand)
constraints of the primal linear programming problem. The dual
formulation of the problem can be constructed as follows.
Maximize z = (s1u1 + s2u2 + s3u3 + v1d1 + v2d2 + v3d3)
Subject to
u1
+ v1
c11
u1
+ v2
c12
u1
+ v3 c13
u2
+ v1
c21
u2
+ v2
c22
u2
+ v3 c23
u2 + v 1
c31
u2
+ v2
c32
u2
+ v3 c33
with ui, vj unrestricted in sign
ui is the value of one unit of the product at origin i (worth of origin i
per unit), and vj is the value of one unit of the product delivered to
destination j (worth of destination per unit).


Thus, if ui and vj are dual variables corresponding
to the i origin constraints (i = 1,2,..,m) and the j
destination constraints (j = 1,2,,n), the
corresponding dual to the transportation problem
is given by
m

i 1

j 1

Maximize z si ui d j v j
subject to
ui v j cij

for all i, j

with ui , v j unrestricted in sign


As discussed in duality theory, then for each primal
basic variable in any basic feasible solution, the
corresponding dual constraint must be satisfied strictly
as an equality. This means that
ui + vj = cij for all basic xij (xij > 0)
(i.e., for each occupied cell)
and the remaining dual constraints will be all
inequalities of the form
ui + vj cij for all nonbasic xij (xij = 0)
(i.e., for each unoccupied cell)
For the occupied cells, which represent the basic
variables of the problem, there is m + n 1 equations
in m + n unknowns. This set of equations can be
solved by assigning an arbitrary value to any value of
the ui, or vj and then determining the values of
remaining ui, and vj .

As for the case, we have c11 = 90; c12 = 80; c22 = 40, c23 =
50, and c33 = 60

For the set of m + n -1 = 5, simultaneously linear

equations to be solved is
u1 + v1 = c11 = 90
u1 + v2 = c12 = 80
u2 + v2 = c22 = 40
u2 + v3 = c23 = 50
u3 + v3 = c33 = 60
Arbitrarily setting u1 = 0, it is obtained
0 + v1 = 90 v1 = 90
0 + v2 = 80 v2 = 80
u2 + 80 = 40 u2 = - 40


Initial basic feasible solution MODI method

Destinations

To
Destinations
From
Origins

O1: Los
Angeles

D1: Chicago

90

700

vj

80

10
0

40

50

1700
40

O3: Boston

D3:
Atlanta

ui

1000

300
20

O2: St.
Louis

Destination
Demand

D2:
Houston

Origin
Supply

200

90

60

1600
700

2000

1800

90

80

90

1900

- 40

1600

- 30

4500

Cost Change Computation

Unoccupied
Cell
(1,
(2,
(3,
(3,

3)
1)
1)
2)

Net Cost Change Computation

c13
c21
c31
c31

u1
u2
u3
u3

v3
v1
v1
v1

=
=
=
=

100 0 90 = +10
20 (-40) - 90 = - 30
40 (-30) 90 = - 20
90 (-30) 80 = + 40


Initial basic feasible solution MODI method

Destinations

To
Destinations
From
Origins

O1: Los
Angeles
O2: St.
Louis
O3: Boston
Destination
Demand
vj

D1: Chicago

+30

D2:
Houston

90

80

D3:
Atlanta

+10

10
0

Origin
Supply

ui

1000

1000
20

700
+10

40

1000
40

+40

50

200

90

60

1600
700

2000

1800

60

80

90

1900

- 40

1600

- 30

4500

The Unbalanced
Transportation Problem
Case 1 : The Unbalanced Transportation Problem
Supply Exceeds Demand
m

Minimize z cij xij

i 1 j 1

subject to
n 1

x
j 1

ij

x
i 1

ij

si i 1,2,..., m
dj

j 1,2,..., n 1

with
xij 0 all i and j

The first set of m constraints contains a 0

indicating that physically there is more units
available at the origins than are required at the
destination.

The Unbalanced
Transportation Problem
Case 1 : The Unbalanced Transportation Problem
Supply Exceeds Demand
m

Minimize z cij xij

i 1 j 1

subject to
n 1

x
j 1

ij

x
i 1

ij

si i 1,2,..., m
di

j 1,2,..., n 1

with
xij 0 all i and j

The first set of m constraints contains a 0

indicating that physically there is more units
available at the origins than are required at the
destination.

Now the first m inequalities can be converted to m

equalities by the addition of m slack variables (denoted as
xin; i = 1,2,,m) n1

x
j 1

ij

x
i 1

ij

xin si , i 1,2,.., m
dj

If we now sum over I and sum over j, and subtract the

n 1 the mfirst summation, we obtain
second summationm from

s d
i 1

j 1,2,.., n 1

j 1

xin
i 1

The sum of the slack variables is a constant, thus to convert

an unbalanced transportation problem simply by the one
additional column to the transportation tableau (an
additional destination) that has a demand requirement
equal to the amount of exceed supply unit. This addition
column is referred to as a slack or dummy destination.


Unbalanced problem Initial basic feasible solution
Case : Supply exceeds demand (increased to 1900 units
from origin Boston)
To
Destinations
From
Origins

O1: Los Angeles

Destinations
D1:
Chicago

+3
0

D2 :
Houston

90

80
800

O2: St. Louis

O3: Boston

20
700
+2
0

j 1

Demand

100

-40

Origin
Suppl
y

ui

1000

200
-10

50

0
1900

- 40

1900

- 40

1200
40

s d 4800 4500 300

Destination
700
i 1

40

+5
0

90

n 1

D3 :
Atlanta

D4:
Dummy
Destinatio
n

2000

60

1600

300

1800

300

4800


Unbalanced problem second basic feasible solution
Case : Supply exceeds demand (increased to 1900 units
from origin Boston)
To
Destinations
From
Origins

O1: Los Angeles

Destinations
D1:
Chicago

+3
0

D2 :
Houston

90

80

D3 :
Atlanta
10
0

+16
0

800
20

O2: St. Louis

700

O3: Boston

-20

40

D4:
Dummy
Destinatio
n

Origin
Suppl
y

ui

1000

0
200

+15
0

50

+40

0
1900

- 40

1200
40

+1
0

90

60
1800

0
100

1900


Unbalanced problem third basic feasible solution
(optimal)
Case : Supply exceeds demand (increased to 1900 units
from origin Boston)
To
Destinations
From
Origins

O1: Los Angeles

Destinations
D1:
Chicago

+3
0

D2 :
Houston

90

80

D3 :
Atlanta
10
0

+20

700
O2: St. Louis

O3: Boston

20

Origin
Suppl
y

ui

1000

0
300

+10

50

+40

0
1900

600

- 40

1300
40

The total cost = $232,000

100
Destination

40

D4:
Dummy
Destinatio
n

+3
0

90

60
1800

+20

1900

The Unbalanced
Transportation Problem
Case 2 : The Unbalanced Transportation Problem
Demand Exceeds Supply
m

Minimize z cij xij

i 1 j 1

subject to
n

x
j 1

ij

m 1

x
i 1

ij

ai i 1,2,..., m 1
bj

j 1,2,..., n

with
xij 0 all i and j

Other Comments on the Transportation

Problem

DEGENERACY : A basic feasible solution to a

transportation problem is degenerate if less than m + n -1
of the xij values are strictly positive (i.e. >0). In this case it
is impossible to apply either stepping-stone algorithm or
MODI method.
Initial
Case
1 feasible
: Degeneracy
in theRule
initial
basic feasible
basic
solution occurring
Northwest Corner
(degenerate
solution
onlysolution
five occupied cells)
To
Destinations
From
Origins
O1

O2

Destinations
D1

D2
3

D3
6

Origin
Supply

D4
7

6
35

35
4

7
190

15

175
5

 Case 1 : Addition of dummy cell

Initial basic feasible solution addition of dummy cell (2, 3)

To

Destinations

Destinations
From
Origins
O1

O2

O3
Destination
Demand
v

D1

D2
3

+2

D3
6

+0

D4
7

-1

Origin
Supply

ui

35

190

100

-2

35
4

15
+4

175
5

+1

-1

0
3

65

35

50

175

65

35

325

 Case 1 : Addition of dummy cell

Second basic feasible solution optimal solution (degenerate optimal

solution)
To

Destinations

Destinations
From
Origins
O1

O2

O3
Destination
Demand

D1

D2
3

+2

D3
6

+1

D4
7

35

190

100

-1

0
4

15

50

ui

35

+3

Origin
Supply

+1

175
5

175

65

35

65

35

325

Other Comments on the Transportation

Problem

Case 2 : Degeneracy occurring because of a tie for the

leaving basic variable

Initial basic feasible solution Northwest Corner Rule

To

Destinations

Destinations
From
Origins

D1
5

O1

O2

O3
Destination
Demand
v

D2
2

50
-3

D3
1

-5

ui

80

50

30

-1

30
4

4
40

+2

-4

D4

Origin
Supply

+1

+1

-6

10
2

20

10

50

70

30

10

160

Case 2 :

Second basic feasible solution degenerate (only five cells occupied)

To
Destinations
From
Origins
O1

Destinations
D1
5
50

D4
1

ui

80

50

30

Cannot
determi
ne

30
4

40
6

O3

vj

D3
2

O2

Destination
Demand

D2

Origin
Supply

3
10

30
50

70

30
Cannot

10
7

160

Case 2 :

Third basic feasible solution addition of dummy cell (2, 3)

To

Destinations

Destinations
From
Origins

D1
5

O1

O2

O3
Destination
Demand
vj

D2
2

50
-3

D3
1

+1

ui

80

50

30

-1

30
4

4
40

+2

-4

D4

Origin
Supply

+1

7
0

3
10

+6

30
50

70

30

10

160

Case 2 :

Fourth basic feasible solution

To

Destinations

Destinations
From
Origins

D1
5

O1

Destination
Demand
vj

D3
2

10
+3

D4
1

70
4

O2

O3

D2

-2

ui

80

50

-1

30

0
4

+7

40
-2

Origin
Supply

10
6

-3

-1

30
50

70

30

10

160

Case 2 :

Fifth basic feasible solution

To

Destinations

Destinations
From
Origins
O1

D1
5

Destination
Demand
vj

D3
2

10
+3

D4
1

40
4

O2

O3

D2

-2

ui

80

50

-1

30

30
4

+7

40
+1

Origin
Supply

10
6

+3

+2

30
50

70

30

10

160

Case 2 :

Sixth basic feasible solution (optimal so- degenerate solution)

To

Destinations

Destinations
From
Origins
O1

D1
+2

Destination
Demand
vj

D3
2

+1

D4
1

40

O2

O3

D2

+5

80

50

30

10
7

50
+3

ui

30
4

Origin
Supply

0
6

+3

+4

30
50

70

30

10

160

Alternative optimal solution

Prohibited routes : in practices, there will be kind
of discourage or prevent shipment of a product
from a certain origin to a certain destination. This
can be accomplished by assigning an arbitrarily
large cost, for example, cij = +M.
Maximization transportation problem : it is not
usual, but can still be solved using either the
stepping-stone algorithm or MODI method. The
maximization is transformed by subtracting all of
the pij (profit for each cell) from the largest pij.