ADVANCE APPAREL

MANUFACTURING MANAGEMENT

TRANSPORTATION MODEL

S. PRABHAKAR, M.C.A., M.E(SEOR).,

Assistant Professor
 Transportation Model
• The transportation model deals with a special class of linear programming problem
in which the objective is to transport a homogeneous commodity from various
origins or factories to different destinations or markets at a total minimum
cost.
• Three factories A, B and C manufactures Fabrics and are located in different
regions.
• Factory A manufactures, b1 meters of fabric per year and B manufactures b2 meters
of fabric per year and C manufactures b3 meters of fabric. The fabric is required by
four markets W, X, Y and Z.
• The requirement of the four markets is as follows: Demand for Fabric in Markets
W, X, Yand Z is d1, d2, d3 and d4 meters respectively.
• The transportation cost of one meter of fabric from each factory to market is given
in the matrix below.
• The objective is to transport fabric from factories to the markets at a minimum total
transportation cost.
 Transportation Model Properties
– 1. It has an objective function.
– 2. It has structural constraints.
– 3. It has a non-negativity constraint.
– 4. The relationship between the variables and the constraints are linear.

General model for transportation problem appears.

'm' rows and 'n' columns i.e., m × n matrix
 TRANSPORTATION ALGORITHM - Initial Basic Feasible Solution

Step 1.

 Balancing the given problem. Balancing means check whether sum of availability constraints
must be equals to sum of requirement constraints.
 That Σ bi = Σd j . Once they are equal, go to step two. If not by opening a Dummy row or
Dummy column balance the problem.
 The cost coefficients of dummy cells are zero. If Σbi is greater than Σd j , then open a dummy
column, whose requirement constraint is equals to Σbi – Σd j and the cost coefficient of the cells
are zeros.
 In case if Σd j is greater than Σbi , then open a dummy row, whose availability constraint will be
equals to Σd j – Σbi and the cost coefficient of the cells are zeros.
 Once the balancing is over, then go to second step. Remember while solving general linear
programming problem to convert an inequality into an equation, we add (for maximization
problem) a slack variable.
 In transportation problem, the dummy row or dummy column, exactly similar to a slack variable.
 Basic feasible solution can be obtained by
three methods

(a) Stepping
Stone Method.
(a) North - west
corner method.

(b) Least - cost cell

Basic method. (Or
Inspection method
There are
two methods
Feasible Or Matrix minimum of giving
- row minimum - optimality
solution column minimum
method)
test:

(c) Vogel's
Approximation
Method, generally
known as VAM. (b) Modified Distribution
Method, generally known
as MODI method.
 NORTH WEST CORNER METHOD
(i) Balance the problem. That is see whether Σbi = Σd j . If not open a dummy column or dummy
row as the case may be and balance the problem.

(ii) Start from the left hand side top corner or cell and make allocations depending on the
availability and requirement constraint. If the availability constraint is less than the requirement
constraint, then for that cell make allocation in units which is equal to the availability constraint. In
general, verify which is the smallest among the availability and requirement and allocate the
smallest one to the cell under question. Then proceed allocating either sidewise or downward to
satisfy the rim requirement. Continue this until all the allocations are over.

(iii) Once all the allocations are over, i.e., both rim requirement (column and row i.e., availability and
requirement constraints) are satisfied, write allocations and calculate the cost of transportation.
 Problem
• Four factories A, B,C and D manufactures Fabrics and
are located in different regions.
• Factory A produces 10 meters of fabric, B produces 8
meters of fabric, C produces 5 meters of fabric and D
produces 6 meters of fabric. The fabric has demand in
Three markets X, Y and Z.
• The demand of market X is 7 meters, that of market Y is
12 meters and the demand of market Z is 5 meters.
• The transportation cost of one meter of fabric from each
factory to market is given in the matrix below.
• Find the Optimal Solution for least cost transportation cost
Matrix
 Balance demand and availability

  Cost in Rs. per meter Markets.    

Factories. X Y Z Dummy Availability in Meters

A 4 3 2 0 10

B 5 6 1 0 8

C 6 4 3 0 5

D 3 5 4 0 6

Requirement in Meters 7 12 5 5 29
 Iteration 1
    Cost in Rs. per meter Markets.    

Factories. NWC X Y Z Dummy Availability in Meters

A 7 4 3 2 0 10
3
B   5 6 1 0 8

C   6 4 3 0 5

D   3 5 4 0 6

Requirement in Meters   7 12 5 5 29

0
 Iteration 2
    Cost in Rs. per meter Markets.  

Availability in
Factories. NWC Y Z Dummy
Meters

A 3 3 2 0 3
0
B   6 1 0 8

C   4 3 0 5

D   5 4 0 6

Requirement in Meters   12 5 5 22

9
 Iteration 3
    Cost in Rs. per meter Markets.  

Availability in
Factories. NWC Y Z Dummy
Meters

B 8 6 1 0 8
0

C   4 3 0 5

D   5 4 0 6

Requirement in Meters   9 5 5 19

1
 Iteration 4
    Cost in Rs. per meter Markets.  

Availability
Factories. NWC Y Z Dummy
in Meters

C 1 4 3 0 5
4
D   5 4 0 6

Requirement in Meters   1 5 5 11

0
 Iteration 5
    Cost in Rs. per meter Markets.  

Availability in
Factories. NWC Z Dummy
Meters

C 4 3 0 4
0

D   4 0 6

Requirement in Meters   5 5 10

1
 Iteration 6
    Cost in Rs. per meter Markets.  

Availability in
Factories. NWC Z Dummy
Meters

D 1 4 0 6
5

Requirement in Meters   1 5 6

0
 Iteration 7

    Cost in Rs. per meter Markets.

Factories. NWC Dummy Availability in Meters

D 5 0 5
0

Requirement in Meters   5 5

0
 Allocated

  Cost in Rs. per meter Markets.  

Factories. X Y Z Dummy

A 4*7 3*3 2 0

B 5 6*8 4*1 0

C 6 4 3*4 0

D 3 5 4*1 0*5

         
Feasible solution NWC
From To Units in meters Cost in Rs Total

A X 7 4 28

A Y 3 3 9

B Y 8 6 48

B Z 1 4 4

C Z 4 3 12

D Z 1 4 4

D Dummy 5 0 0

      Total 105