Presentation on

Transportation
Problem

Nikita Bali (11004)

Neethi Nair (11044)
Ranjini Nair (11045)
Chandan Pahelwani (11047)
Himani Parihar (11049)
Sonia Dadlani (10022)

 QUESTION:
A company has three production
facilities P1, P2 and P3 with production
capacity of 7, 10 and 18 units per week
of a product, respectively. These units
are to be shipped to four warehouses D1,
D2, D3 and D4 with requirement of 5, 8,
7 and 15 units per week, respectively.
The transportation cost per unit
between factories to warehouses are
given in the table below.

D1

D2

D3

D4

Capacity

P1

20

30

50

15

P2

70

35

40

60

10

P3

40

12

60

25

18

15

35

Demand 5

Step 1: Using Vogels

Approximation
Method (VAM)
method to find out
the initial basic
feasible solution.

P1
P2
P3

Penalty

demand

D1 D2 D 3 D4
20)5 30 50 15)2

Penalties

Supply

7/2/0

5 15 35

20 20

70 35

40)7

60)3

10/7/3

40

60

25)10

18/10/0

13

13 35 35

7/0

15/13/3

35

5/0

12)8
8/0

20 18 10 10
18 10 10
10 10
20 35

So the feasible solution is:

D1

D2

D3

D4

P1

20)5

15) 2

P2

40)7

60) 3

P3

12) 8

25) 10

Step 2:MODI Method

Test for
Optimality

D1

D2

D3

D4

P1

U1=
20

15

P2
P3

40

12

60

25

V1=
V2=
V3=
V4=
-20
-2
5
-15

0
U2=
-45
U3=
-10

D1
P1

20

P2

P3

10 40-20-10
40

D2

D3

28

55

30-2

V1=
-20

50+5

30

-1235-45-2
70
35

70-20-45

12

V2=
-2

D4

50
40

5560-10+5
60
V3=
5

15

U1=
0

60

U2=
-45

25

V4=
-15

U3=
-10

Improvisations of Solution
D1

D2

D3

D4

P1

P2

P3

0+X

3-X

8-X

10+X

Take x = min {nos. with x}

= min {3,8}
=3
D1
D2
D3

D4

P1

20)5

15)2

P2

35)3

40)7

P3

12)5

25)13

D1

D2

D3

D4

P1

20

P2

P3

15
35

V1 = -20 V2 = -2

U2 = -33

40

12

25
V3 = -7

U1 = 0

V4 = -15

U3 = -10

D1
P1

28)
20

P2

D3

[70-20-33]

10)
40
[40-20-10]

D4

43)
30

[30-2]

U1 = 0

50
[50-7]

17)
70

P3

D2

15
12)

U2 = -33

60

35

40

[60-15-33]

43)
12

V1 = -20 V2 = -2

60
[60-7-10]

V3 = -7

25
V4 = -15

U3=-10

Total transportation cost

20 * 5 = 100
35 * 3 = 105
12 * 5 = 60
40 * 7 = 280
15 * 2 = 30
25 * 13 = 325
Total = Rs.900