Transportation Model

2-1

TRANSPORTATION MODEL

Requirements List of origins and each ones capacity.

List of destinations and each ones demand.
Unit cost of shipping.

Assumptions Items to be shipped are homogeneous.

Shipping cost per unit is the same.
Only one route between origin and destination.
Demand and supply is equal.

TRANSPORTATION MODEL
SCENARIO
A
(demand)

B
(demand)

1
(supply)
2
(supply)

D
(demand)

3
(supply)

C
(demand)

A TRANSPORTATION TABLE
A
Factory

Warehouse
C

B
4

1
100

1
12

10

16

200

150

450
Demand

80

90

120

Warehouse B can use 90

units per period

160

450

Factory 1
can supply 100
units per
period

Total
supply
capacit
y per
period

Total demand
per period

NETWORK PRESENTATION

Transportation problem can be represented as a network. Circles

represent origins and destinations, and the arcs between them
represent the decision variables, i.e. the amounts shipped.
Demand
Destination

Supply
Origin
100

S1

4
10

6
8
300

S2

16
6

14
300

S3

D1

200

D2

300

D3

200

18
10

LINEAR PROGRAMMING
FORMULATION

Let xij be unknown number of units shipped from origin i to

destination j (i,j = 1,2,3)

min z = 4x11 + 10x12 + 6x13

+ 8x21 + 16x22 + 6x23
+ 14x31 + 18x32 + 10x33
st.
x11 + x12 + x13 < 100

x11 + x21 + x31 > 200

x21 + x22 + x33 < 300

x12 + x22 + x32 > 300

x31 + x32 + x33 < 300

x13 + x23 + x33 > 200

Supply constraints

Demand constraints

xij > 0

Non-negative constraints

TRANSPORTATION PROBLEM
Cleveland
(200 units)
required

Des Moines
(100 units)
capacity
Albuquerque
(300 units)
required

Evansville
(300 units)
capacity

Boston
(200 units)
required

Ft. Lauderdale
(300 units)
capacity

TRANSPORTATION PROBLEM

From
(Sources)
Des Moines

To
(Destinations)
Albuquerque Boston Cleveland
$5
$4
$3

Evansville

$8

$4

$3

Fort Lauderdale

$9

$7

$5

UNIT SHIPPING COST: 1 UNIT,

FACTORY TO WAREHOUSE
Albuquerque
(A)

Boston
(B)

Cleveland
(C)

Des Moines
(D)

Evansville
(E)

Ft Lauderdale
(F)

Warehouse
Req.

Factory
Capacity

TOTAL DEMAND & TOTAL SUPPLY

Albuquerque
(A)

Boston
(B)

Cleveland
(C)

Factory
Capacity

Des Moines
(D)

100

Evansville
(E)

300

Ft Lauderdale
(F)

300

Warehouse
Req.

300

200

200

700

TRANSPORTATION TABLE
Albuquerque
(A)

Boston
(B)

Cleveland
(C)

Des Moines
(D)

Evansville
(E)

Ft Lauderdale
(F)

Warehouse
Req.

300

200

200

Factory
Capacity
100
300
300
700

NORTH - WEST CORNER METHOD

Start in the upper left-hand cell and allocate units
to shipping routes as follows:
Exhaust the supply (factory capacity) of each row
before moving down to the next row.
Exhaust the demand (warehouse) requirements of
each column before moving to the next column to
the right.
Check that all supply and demand requirements are
met.

NORTH - WEST CORNER METHOD

(CONTD.)
Albuquerque
(A)
Des Moines
(D)
Evansville
(E)

100
200

Warehouse
Req.

300

Cleveland
(C)

Ft Lauderdale
(F)

Boston
(B)

100
100
200

200
200

Total =
$4,200

Factory
Capacity
100
300
300
700

LEAST COST METHOD

Albuquerque
(A)

Boston
(B)

Cleveland
(C)

Des Moines
(D)

Evansville
(E)

Ft Lauderdale
(F)

400

Warehouse
Req.

400

600
300

500
200

3
3
5

900

700

Total Cost:

10,200

Factory
Capacity
500
800
700
2000

SAME EXAMPLE WITH NWM

Albuquerque
(A)
Des Moines
(D)

400

Evansville
(E)

Ft Lauderdale
(F)

Warehouse
Req.

400

Boston
(B)
100
800

Cleveland
(C)
4

700

900

700

Total Cost:

9,100

Factory
Capacity
500
800
700
2000

EXCEL TEMPLATE