Transportation Problems

MHA 6350

Medical Supply Transportation Problem

A Medical Supply company produces catheters in packs at three productions facilities. The company ships the packs from the production facilities to four warehouses. The packs are distributed directly to hospitals from the warehouses. The table on the next slide shows the costs per pack to ship to the four warehouses.

Source: Adapted from Lapin, 1994

Medical Supply
TO WAREHOUSE FROM PLANT Juarez Seoul Tel Aviv Seattle $19 15 11 New York Phoenix $7 21 14 $3 18 15 Miami $21 6 22

Capacity Juarez 100 Seoul 300 Tel Aviv 200

Demand Seattle New York Phoenix Miami

150 100 200 150

Source: Adapted from Lapin, 1994

From Plant J S

TO WAREHOUSE S Xjs Xss N Xjn Xsn P Xjp Xsp M Xjm Xsm

Plant Capacity 100 300

T
Warehouse Demand

Xts
150

Xtn
100

Xtp
200

Xtm
150

200
600

Number of constraints = number of rows + number of columns

Total plant capacity must equal total warehouse demand. Although this may seem unrealistic in real world application, it is possible to construct any transportation problem using this model.

Source: Adapted from Lapin, 1994

Northwest Corner Method To S From

19 7 3 21

Capacity

J
15 21 18 6

100

S
11 14 15 22

300

200

Demand

150

100

200

150

600

Begin with a blank shipment schedule. Note the shipping costs in the upper right hand corner of each cell.

Source: Adapted from Lapin, 1994

Northwest Corner Method To S From

19 7 3 21

Capacity

100
15 21 18 6

100

S
11 14 15 22

300

200

Demand

150

100

200

150

600

Start in the upper left-hand corner, northwest corner of the schedule and place the largest amount of capacity and demand available in that cell. Seattle demands 150 and Jaurez has a capacity of 100.

Source: Adapted from Lapin, 1994

Northwest Corner Method To S From

19 7 3 21

Capacity

100
15 21 18 6

100

50
11 14 15 22

300

200

Demand

150

100

200

150

600

Since Juarez capacity is depleted move down to repeat the process for the Seoul to Seattle cell. Seoul has sufficient capacity but Seattle can only take another 50 packs of demand.

Source: Adapted from Lapin, 1994

Northwest Corner Method To S From

19 7 3 21

Capacity

100
15 21 18 6

100

50
11

100
14

150
15 22

300

50

150

200

Demand

150

100

200

150

600

Now move to the next cells to the right and assign capacity for Seoul to warehouse demand until depleted. Then move down to the Tel Aviv row and repeat the process.

Source: Adapted from Lapin, 1994

Northwest Corner Method To S From

19 7 3 21

Capacity

1900
100

1900
15 21 18 6

750
2100
11 14

750

2700
15 22

300

2100 2700

750

3300

200

750
Demand

150

100

200

150

600

3300 C =11,500

The previous slides show the process of satisfying all constraints and allows us to begin with a starting feasible solution. Multiply the quantity in each cell by the cost.

Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj Assign zero as the row number for the first row.

To S From
19 7 3 21

Capacity

100
15 21 18 6

100

rj = 0

50
11

100
14

150
15 22

300

50

150

200

Demand

150 ks = 19 b

100

200

150

600

19 = (0) + ks

Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj Assign zero as the row number for the first row.
To

S
From
19

N
7

P
3

M
21

Capacity

100
15 21 18 6

100

rj = 0

50
11

100
14

150
15 22

300

rs = -4

50

150

200

Demand

150 ks = 19 b

100

200

150

600

15 = rs + 19 rs = -15 + 19 = -4

Note: Always use the newest r value to compute the next k.

Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj Assign zero as the row number for the first row.
To

S
From
19

N
7

P
3

M
21

Capacity

100
15 21 18 6

100

rj = 0

50
11

100
14

150
15 22

300

rs = -4

50

150

200

Demand

150 ks = 19 b

100

200 kp = 22 d

150

600

18 =-4 + kp 18 + 4 = kp = 22

Skip cell SN, mark it * for later and move on to cell SP .

Source: Adapted from Lapin, 1994

For non empty cells: ctp = rt+ kp

Assign zero as the row number for the first row then

use the newest r value to compute the next k.

To

S
From
19

N
7

P
3

M
21

Capacity

100
15 21 18 6

100

rj = 0

50
*
11

100
14

150
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100

200 kp = 22 d

150

600

15 = rt + 22 15 - 22 = rt = -7

Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj

Assign zero as the row number for the first row then

use the newest r value to compute the next k.

To

S
From
19

N
7

P
3

M
21

Capacity

100
15 21 18 6

100

rj = 0

50
*
11

100
14

150
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100

200 kp = 22 d

150 km = 29 f

600

22 = -7 + km 22 + 7 = km = 29

Source: Adapted from Lapin, 1994

For non empty cells: cij = ri+ kj

Assign zero as the row number for the first row then

use the newest r value to compute the next k.

To

S
From
19

N
7

P
3

M
21

Capacity

100
15 21 18 6

100

rj = 0

50
*
11

100
14

150
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100 kn = 25 g

200 kp = 22 d

150 km = 29 f

600

21= -4 + kn 21 + 4 = kn = 25

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >> JN = 7 0 25 = -18

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21 18 6

100

rj = 0

50
11

100
14

150
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100 kn = 25 g

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >> JP = 3 0 22 = -19

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21

100 -19
18 6

rj = 0

50
11

100
14

150
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100 kn = 25 g

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >> JM = 21 0 29 = -8

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21

100 -19
18

rj = 0

-8
6

50
11

100
14

150
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100 kn = 25 g

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >> SM = 6 (-4) 29 = -19

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21

100 -19
18

rj = 0

-8
6

50
11

100
14

150
-19
15 22

300

rs = -4

50

150

200

rt = -7

Demand

150 ks = 19 b

100 kn = 25 g

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >> TS = 11 (-7) 19 = -1

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21

100 -19
18

rj = 0

-8
6

50
11

100
14

150
-19
15 22

300

rs = -4

T -1 Demand 150 ks = 19 b 100 kn = 25 g

50

150

200

rt = -7

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >>TN = 14 (-7) 25 = -4

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21

100 -19
18

rj = 0

-8
6

50
11

100
14

150
-19
15 22

300

rs = -4

T -1 Demand 150 ks = 19 b -4 100 kn = 25 g

50

150

200

rt = -7

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate empty cells using: cij - ri - kj

Improvement Difference >>

To

S
From
19

N
7

P
3

M
21

Capacity

100 -18
15 21

100 -19
18

rj = 0

-8
6

50
11

100
14

150
-19
15 22

300

rs = -4

T -1 Demand 150 ks = 19 b -4 100 kn = 25 g

50

150

200

rt = -7

200 kp = 22 d

150 km = 29 f

600

Source: Adapted from Lapin, 1994

Next calculate the entering cell by finding the empty cell with the greatest absolute negative improvement difference. Cells JP and SM are tied for the greatest
improvement at $19 per pack. Break the tie and arbitrarily choose JP. JP becomes the entering cell. Place a + sign in cell JP
To From 19 J 7 3 21 100 rj = 0 100 -18 -19 (+) -8 15 21 18 6 50 100 150 (+) (-) -19 11 14 15 22 50 150 -1 -4 S N P M Capacity

(-)

100

300 rs = -4 200 rt = -7 600

T Demand

150 ks = 19

100 kn = 25

200 kp = 22

150 km = 29

Note: Except for the entering cell all changes must involve nonempty cells.

Source: Adapted from Lapin, 1994

Continue around the closed loop until all tradeoffs are completed.

Previous cost was $11,500 and the new is:

To From 19 J 7 3 21 100 rj = 0 100 -18 -19 (+) -8 15 21 18 6 50 150 50 100 (+) (-) -19 11 14 15 22 50 150 -1 -4

Capacity

(-)

300 rs = -4 200 rt = -7 600

T Demand

300 2250 2100 900 750 3300 C = $9,600

150 ks = 19

100 kn = 25

200 kp = 22

150 km = 29

Note: Except for the entering cell all changes must involve nonempty cells.

Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the greatest absolute negative improvement difference. >>>>>SM

To From

S 19

N 7

P 3 100 11 21 18 50

M 21

Capacity

J 19 15 S 150 50 11 T -1 Demand 150 ks = 0 -4 100 kn = 6 100 14 1

100 6 -19 15

rj = 0

(-)
50

(+)
22

300 rs = 15 200

150

(+)
200 kp = 3

(-)
150 km = 10 600

rt = 12

Note: The r and k values and the improvement difference values have changed.

Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the greatest absolute negative improvement difference. SM Previous cost was $9,600, now the new is:
To From 19 J 19 15 S 150 50 11 T -1 Demand 150 ks = 0 -4 100 kn = 6 100 14 100 50 1 21 50 18 50 -19 15 150 100 7 100 11 6 3 21 100 rj = 0

Capacity

(-) (+)
200 kp = 3

(+)
22

300 rs = 15 200

300 2250 2100 300 1500 2200 C = $8,650

(-)
150 km = 10 600

rt = 12

Note: The r and k values and the improvement difference values have changed.

Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the greatest absolute negative improvement difference. SM Previous cost was $8,650, now the new is:
To From 19 J 0 15 S 150 50 11 T -20 Demand 150 ks = 19 -18 100 21 -19 100 14 100 15 0 100 18 7 100 11 50 150 6 300 rs = -4 200 rt = 12 600 3 21 100 rj = 0

Capacity

(-) (+) -23

100 kn = 2 25

(+)
22

300 2250 900 1400 1500 C = $6,350

(-)
200 kp = 3 150 km = 10

Note: The r and k values and the improvement difference values have changed.

Source: Adapted from Lapin, 1994

Begin another iteration choosing the empty cell with the greatest absolute negative improvement difference. SM $6,350
To From 19 J 20 S 150 15 3 0 11 100 14 5 21 -1 18 7 100 31 150 6 300 rs = 16 22 200 20 150 km = 10 600 rt = 12 3 21 100 rj = 0

Capacity

(-) (+)

(+)
15

300 2250 900 1400 1500 C = $6,350

T Demand

100

(-)
100 kn = 2 200 kp = 3

150 ks = -1

Note: The r and k values and the improvement difference values have changed.

Source: Adapted from Lapin, 1994

Optimal Solution

In five iterations the shipping cost has moved from $11,500 to $6,250. There are no remaining empty cells with a $6,250 negative value.

To From

S 19

N 7

P 3 100 30 21 100 18

M 21

Capacity

J 19 S 50 15 3 11 100 14 1 100 kn = 3 4

100 150 6 300

rj = 0

(-)
100

(+)
15 22

rs = 15 200

T Demand

300 750 1800 900 1100 1400 C = $6,250

(+)
150 ks = 0

(-)
200

20 150 km = -9 600

rt = 11

kp = 3

Note: The r and k values and the improvement difference values have changed.