MODULE

10 ◦ Management Science
MODULE G ALS FLEX Course Material

Linear Programming
Unbalanced Transportation

College of Business and Accountancy

LESSON
#9
LEARNING
OUTC MES
Linear Programming
Learn the concept of LP Unbalanced
Transportation Model.
Solve LP problems of an Transportation
unbalanced transportation
Unbalanced transportation
In the actual business setting , it seldom happens that the quantity demanded
is equal to the quantity supplied. Under normal situation transportation
problems come as unbalanced problems.
What is unbalanced transportation problem?
Unbalanced transportation problem
is a transportation problem where the total availability at the origins is not equal to the
total requirements at the destinations.

Note:
A transportation is said to be unbalanced if the supply and demand are not equal.
How do we know that a transportation problem is
optimum?
Note:
In minimization process the table is said to be optimum if all improvement
computations of all vacant cells are positive,
 What are the different cases of Unbalanced
Transportation?
 Two Cases of Unbalanced Transportation
1. If supply > demand
create an additional column ( dummy column) for you to deliver the excess supply. The unit
cost of this is zero (0).
2. If supply < demand
create an additional row ( dummy row) for you to get the needed supply. The unit cost of this
is zero (0).
NOTE:
Dummy – something we pretend to exist although in reality it does not exist..
All products assigned to a dummy destination represent excess capacity
All products assigned to dummy source represent unmet demand.
Case1: Supply > Demand
To Project Project Project Dummy
From A B C Project Supply
Plant W 0
Plant X 0
Cost here in this
Plant Y 0 column is zero (0)
Demand
Balanced form when supply > demand

Case 2: Supply < Demand

To Project Project Project C
From A B Supply
Plant W Cost here in this row is
zero (0)

Balanced form when supply < demand

◦ What are the methods in finding the optimal solution?
◦ Illustrative example
◦ A company supplies goods to three customers, who each has different requirements;
Customer A requires 150 units, Customer B requires 300 units and Customer C requires
200 units. The company has three warehouses located in three different locations.
Warehouse 1 has 100 units available to be supplied, warehouse 2 has 200 units available
and warehouse 3 has 700 units available . The costs of shipping 1 unit from the
warehouses to the customers are shown in the table of slide 14.
◦ a. Formulate an unbalanced transportation problem.
◦ b. Calculate the improvement index for each vacant cell.
◦ c. Determine the shipping costs of the initial tableau.
◦ d. Calculate the improvement index for each vacant cell in the second tableau.
◦ e. How much is the minimal shipping costs?
Illustrative example:
Determine the lowest cost of transportation.

To Customer A Customer B Customer C Supply

From
Warehouse W P7 P9 4 100
Warehouse X 8 5 5 200
Warehouse Y 7 5 3 700
1,000
Demand 150 300 200 650

We are going to create a dummy destination (dummy column) because the

supply > demand.
◦ Initial solution:
To Warehouse Warehouse Warehouse C Dummy Supply
From A B D
Warehouse W WA 7 WB 9 WC 4 WD 0
100 100
Warehouse X XA 8 XB 5 XC 5 XD 0
50 150 200
Warehouse Y YA 7 YB 5 YC 3 YD 0
150 200 350 700
Cost ofDemand
the initial solution: 150 TSS = 6 300 200 350 650 1,000
WA: 100 x 7 = 700 Total number of Rows + Column (TRC) = 7
XA: 50 x 8 = 400 Total number of Occupied Cells = TRC - 1
XB: 150 x 5 = 750 6=7-1 Dummy destination
YB: 150 x 5 = 750 6=6
YC: 200 x 3 = 600 feasible
YD: 350 x 0 = 0
Total cost = P3,200
◦Initial solution:
From To Customer A Customer B Customer C Dummy D Supply
WA 7 WB 9 WC 4 WD 0
Warehouse W 100 100
XA 8 XB 5 XC 5 XD 0
Warehouse X 200 200
YA 7 YB 5 YC 3 YD 0
Warehouse Y 100 200 350 700
50
Vacant cell = Improvement index IMPROVEMENT
Demand 150 300 200 350 1,000
WB: WB – XB + XA + WA XD: XD – YD + YB – X B YA: Transfer 50 to YA
9–5+8–7=5 0 –0+5–5=0 XA: 0
WC: WC – YC + YB – XB + XA – WA YA: YA – XA + XB – YB YB: 700 – 350 – 200 – 50 =
100
4–3+5–5+8–7=2 7 – 8 + 5 – 5 = -1 XB: 300 – 100 = 200
WD: WD – YD + YB – XB + XA – WA XC: XC – YC + YB – XB Copy the entries of occupied
cells
0–0+5–5+8–7=1 5–3+5–5=2 not affected by the path
 Second Tableau
From To Warehouse A Warehouse B Warehouse C Dummy D Supply
WA 7 WB 9 WC 4 WD 0
Plant W 100 100
XA 8 XB 5 XC 5 XD 0
Plant X 200 200
YA 7 YB 5 YC 3 YD 0
VacantPlant
cell =Y Improvement index 100– YC + YB – XB
XC: XC 200
Decision: 350 700
WB: WB – XB + XA + XA 50 5–3+5–5=2 From W to Customer A = 100 units
Demand 150 300 200 350 1,000
9–5+7–7=4 XD: XD – YD + YB – XB From X to Customer B = 200 units
WC: WC – YC + YB – XB + XA – WA 0–0+5–5=0 From Y to Customer A = 50 units

4 – 3 +7 – 7 = 1 YA: YA – XA + XB – YB From Y to Customer B = 100 units

WD: WD – YD + YA – WA 8–7+5–5=1 From Y to Customer C = 200 units

0 – 0 + 7– 7 = 0 Minimal Cost P3,150
◦ Home work:
Activity Supply = Demand

Using the information given the following table, compute the optimal transportation
cost
using the stepping stone method or the northwest corner rule.
To Warehouse and Cost / Truckload
Warehouse Warehouse Warehouse Supply
From A B C

Factory 1 P3 P5 P3 30
Factory 2 P4 P3 P4 40
Factory 3 P5 P3 P4 20
Demand 20 25 55
INITIAL TABLE
WAREHOUSE AND COST IN TRANSPORTING
TRUCKS HOMOGENOUS GOODS

MINES WAREHOUSE WAREEHOUSE WAREHOUSE C SUPPLY

A B

P3 P5 P3 30
Factory 1
P4 P3 P4 40
Factory 2

P5 P3 P4 20
Factory 3
0 0 0
Dummy

DEMAND
20 25 55
SECOND TABLEAU
WAREHOUSE AND COST IN TRANSPORTING
TRUCKS HOMOGENOUS GOODS

MINES WAREHOUSE WAREEHOUSE WAREHOUSE C SUPPLY

A B

P3 P5 P3 30
Factory 1
P4 P3 P4 40
Factory 2

P5 P3 P4 20
Factory 3
0 0 0
Dummy

DEMAND
20 25 55
KEEP SAFE EVERYONE
END