Learning Objectives

• What is Transportation Model

• Transportation network Model
• Components of Transportation Model
• Examples of Transportation Model
• Balanced and unbalanced Transportation Model
• Transportation Model Algorithm
• Initial Basic Feasible Solution (IBS)
• Improve the IBFS
• Solve the problem With TORA Software 1
 Transportation Model and Its Variants

Definition of the transportation model

The transportation model is a special class of the LP
problem. It deals with the situation in which a
commodity is shipped from source (e.g. factories) to
destinations (e.g. warehouses). The objective is to
determine the amounts shipped from each source to
each destination that minimize the total shipping cost
while satisfying both the supply limits and the demand
requirements.

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Dr.Farouk Sha'ban
Example 1:

There are three plants A, B, C and two destinations 1and 2, the distance
between them is as follows

The mile costs 8 cents find the cost/unit round to $

We define
X11 as the amount shipped from A to 1
X12 as the amount shipped from A to 2
X21 as the amount shipped from B to 1
X22 as the amount shipped from B to 2
X31 as the amount shipped from C to 1
X32 as the amount shipped from C to 2
The plants A, B, and C produces 1000,
1500, and1200 cars respectively.
The destination 1&2 demands are 2300 3
 The LP model is
Minimize Z=80 X11+215 X12 +100 X21 +108 X22 +102 X31 +68 X32
S.T = 1000 ……….…… (A)
X11 + X12
= 1500 ……………. (B)
X21 + X22 = 1200 ……………. (C)
= 2300 ……………. (1)
X31 + X32
= 1400 …………..... (2)
X12 + X22+ X32
XX11ij >=0 + i=1, 2, 3 j=1, 2
These constraints are all equations because the total supply from the three
X21+ X31
plants = 1000 + 1500 + 1200 = 3700 cars, equals the total demands at the two
destinations = 2300 + 1400 = 3700 cars.
The LP model can be solved by the simplex method. However, the special
structure of the constraints allows us to solve the problem more
conveniently using the transportation tableau.

When the total supply does not equal the total demand, the
transportation model is said to be unbalanced. We must add
a dummy source or destination. 554
Dr.Farouk Sha'ban
Example 2:
In example (1) suppose that plant B
capacity is 1300 cars (instead of 1500). The
total supply =3500cars and the total demand
= 3700cars. So the total supply <
the total demand. Therefore, we have to
add dummy source with capacity 200 cars.

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Example 3:
In example (1) suppose that the demand of
the destination 1 is 1900 cars (instead of 2300). The
total supply =3700cars and the total
demand = 3300cars. So the total supply >
the total demand. Therefore, we have to add dummy
destination with 400 cars.

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The Transportation Algorithm

Step (1): Determine an Initial Basic Feasible Solution (IBFS) by

using one of the following methods.

1.The North-West Corner Method

OR, 2.The Least-Cost Method OR,
3.Vogel Approximation Method.
A general T.M. with m sources and n destinations has m + n
constraints, one for each source and each destination. However,
because the T.M. is always balanced, one of these equation
redundant. Thus, the model has m +
is
starting basic
solution consists of m + n – 1 basic variables.
n

Step (2): Improve the IBFS -

•Determine an entering variable. 1

•Determine a leaving variable.
•Obtain a new BFS independent
constraint equations,
•If the solution whichstop.
is optimal means that the
Otherwise; repeat step (2).
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 Steps of North-West Method

1. Allocate as much as possible to a selected

cell X11

2. Cross out the row or column with zero

supply or demand (if both are satisfied at
the same time, only one should be crossed
out).

3. If exactly one row or column is

uncrossed left out stop.
Otherwise go to
step(1)

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 Example 3:
Solve the following
transportation problem.

Solution
Step
(1):
finding
the
IBFS
•Using the North-West
Corner Method

Transportation Cost = 5(10) +10(2) +5(7) +15(9) +5(20) +10(18) =520

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 The Least-Cost Method:

This method gives a better starting solution because

it takes the cost into consideration

Transportation Cost = 15(2) +15(9) +0(7) +10(20) +5(4) +5(18) =475

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Steps of Least-Cost Method

1. Assign as much as possible to the variable with

the smallest unit cost cell.

2. Cross out the row or column with zero supply of

demand (if both are satisfied at the same time,
only one should be crossed out).

3. If exactly one row or column is left uncrossed

out stop. Otherwise go to step(1)

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The Vogel Approximation Method:
This method provides a better starting solution (optimal or
closed to the optimal solution)
Steps of Vogel Approximation Method
1. In each row and column, subtract the lowest two costs
from each other.
2. Determine the row or column with the largest difference.
3. Allocate as much as possible to the variable with the least
cost in the selected row or column. Any row or column with
zero supply or demand would not be used in computing
the following step.
4. If exactly one row or column remains uncrossed out stop.
Otherwise, go to step (1).
5. If only one row or column with positive supply or demand
remains uncrossed out determine the basic variable by
the least-cost method.
6. If all uncrossed out rows and columns have assigned
zero supply and demand, determine the zero basic
variable by the least-cost method.
Note: In all the three methods, if you have a tie you can
break the tie arbitrarily.
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X31=5
X12=15
X23=15
X14=0,
X34=5,
X24=10

Transportation Cost = 15(2) + 15(9) +0(4)

+10(20) +5(4) +5(18) = 475
It is expected to produce better starting
solution than least-cost method. 64
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Dr.Farouk Sha'ban
Improving the IBFS
Determine an entering variable using method of multipliers (U, V method),
In this method associate the multipliers with row I and column j of the
transportation tableau.
• For each current basic
variable Ui + Vj = Cij for each
basic Xij
•For non-basic variable
C'ij = Ui + Vj - Cij for each non-
basic Xij
Choose the non-basic variable with the largest positive coefficient (C'ij) to be
the entering variable. The solution is optimal if and only if all C'ij are non-
positive.

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 Improving the IBFS
Determine an entering variable using method of multipliers
(U,V) method, In this method associate the multipliers with row I
and column j of the transportation tableau.
For each current basic variable
Ui + Vj = Cij for each basic Xij

For non-basic variable

C’ij = Ui + Vj - Cij for each non-basic Xij

Choose the non-basic variable with the largest positive

coefficient (C’ij) to be the entering variable. The solution is
optimal if and only if all C’ij are non-positive.

Consider the same example:

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The entering variable must have the maximum C'ij which is X31 = 9

To determine the leaving variable make a closed loop of basic variable

starting with maximum C'ij of non-basic variable keeping:
1. Supply and demand requirements remain satisfied.
2. No negative shipments are allowed through any of the routes.
Therefore, θ=5 and X31 will be basic with value 5 and X22 is a
basic variable but with value 0 and X11 will be non-basic (leaving variable)

The cost of the IBFS by Northwest corner method was 520$

The first iteration cost is 475$ (less which is better)

In the second iteration

Get the entering variable with maximum C'ij = C'14 = 4

= 10 The Leaving variable is X24 =10

X14
and the new solution is:

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All C'ij is negative for all non-basic variables, so the solution is optimal which is:
X12 =5, X14 =10, X22 =10, X23 =15, X31 =5, X34 =5

With optimum cost = 5*2 +10*11 + 10*7 + 15*9 +5*4 + 5*18

= 10+110+70+135+20+90
= 435

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 The Assignment Model

There are n machines M1, M2, M3…, Mn. And

n different jobs J1, J2, …., Jn.

The jobs are to be assigned to these

machines.
The machine cost for each job depends
on the machine to which it is assigned.
Each machine can work only on
one job.

The problem is to assign the jobs to the

machines to
minimize the total cost of machining.

Number of possible 19
 The Linear Programming Formulation of the Problem
Decision variables
job i is assigned to machine j
Xij

Objective Function
Minimize Z= Σn
Σn
C
X
j=1
Σn j=1 X ij =1 i=1
i= 1, 2… n
X =1
Σn i=1 ij ij j= 1, 2…
Xij =1 ij n
Xij =0 if the job i is assigned to the machine j
Constraints other wise
The Assignment Algorithm (Hungarian Algorithm)
It is the most efficient way or solving the assignment
problem. Itis based on the idea that if a constant
is added or subtracted from any row or column the optimal
assignment is not
affected.

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 The Algorithm Steps
1. Subtract the smallest value in each column from all the
values in that column.
2. Subtract the smallest value in each row from all the
values in that row.
3. Note: step 1 & 2 will produce a cost matrix containing at
least one zero element in each row or column.
4. Determine a feasible assignment using the cells with
zero cost. If this is possible stop, as optimal solution is
found. This step is done as follows:
a) Determine the number of lines required to cover all
zeros.
b) If the number of lines is equal to n, stop
(This is the optimal assignment).
c) If the number of lines is less than n then go to (4).
5. Subtract the smallest value not covered with lines from
all uncovered values and add it to the value at the
intersection of the lines then go to (3).
Note: Obtain the minimum cost from the original table.
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 Example 1:
Solve the following
assignment problem.

Jobs
Person

Solution:
The optimal assignment is X12, X21, X33
Job1 is assigned to machine2
Job2 is assigned to
machine1 Job3 is assigned
to machine3 The cost = 10 +
9 + 8 = 27$

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 Example 2: Solve the following assignment problem.

Solution:
The optimal assignment is X15, X22, X33, X44, X51
Job1 is assigned to machine5
Job2 is assigned to machine2
Job3 is assigned to machine3
Job4 is assigned to machine4
Job5 is assigned to machine1
The cost = 3 + 4 + 2 + 5 + 3 = 17$

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