Professional Documents
Culture Documents
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Nature of the problem
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This Lecture discusses:
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Factory Capacity & Warehouse Demand
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Summary Matrix
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The Cost Matrix
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The LP Formulation
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How It Works:
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Solution of Transportation Model
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Northwest Corner Method
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5 10
5 15 5
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Least-Cost Method
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15 0
15 10
5 5
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Vogel Approximation Method (VAM)
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5
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11-2=9
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Lec-07
Optimality Test/ Checking for optimality:
Optimality test can be performed if Initial Basic Feasible Solutions are
i) m+n-1 numbers
ii) The location of them are independent*
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To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity
5 4 ? 3
(D) Des Moines 100 100
8 4 3
(E) Evansville 100 200 ? 300
9 7 5
(F) Fort Lauderdale 100 ? 200 300
Warehouse
requirement 300 200 200 700
5 5
5 5 5 5
Closed loop 5 5
Closed loop
5 5 Closed loop
5 5
5 5
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Steps for solving a problem:
Optimality test of the following IBFS
A B C D
S1 2 3 11 7
1 5
1 0 6 1
S2 1
5 8 15 9
S3 6 3 1
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Step 1: Write the cost matrix only for allocated cell
A B C D
vj v1 v2 v3 v4
ui
u1 2 3
S1
u2 1
S2
S3 u3 5 15 9
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Step3: Write cell values (ui +vj ) for empty cell
A B C D
S3 u3 =3 3+3= 6
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Step4: Find Cell evaluation of empty cell by Deducting cell
values from original costs
A B C D
S3 u3 =3 8-6= 2
(If any cell value is negative then the solution is not optimal)
So this Initial solution is not Optimal and need improvement
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Finding an Optimal Solution
1. Select the unoccupied cell with largest negative opportunity cost and
draw a close loop with allocated cells in all other corners.
2. Assign alternative positive and negative sign at corner points of the
closed loop
(start from unoccupied cell will be with positive sign)
3. Determine the maximum possible number of units that should be
allocated to this unoccupied cell (Look for the lowest allocated
value in corner cells). This should be added to cells with positive
sign and subtracted from negative sign
4. Now check for optimality again and repeat this procedure till an
optimal solution is obtained
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Step 1: A B C D
u2 =-5 4 2 -1
S2
S3 u3 =3 2
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Step 2: A B C D
S1
1 - 5 +
S2 1
S3 6 +
3- 1
S1 1-1=0 0+1=1
- 5 +
S2 1
6+1=7 3-1=2
S3
+ -
1
Find the new allocation and check for the optimality and repeat the steps
A B C D
S1 5 1
S2
1
S3 7 2 1
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Stepping-Stone Method
Cell index can be found out by adding single unit to any empty cell and
adjustment in the closed loop.
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Stepping-Stone Method
1. If an improvement is possible, choose the
route (unused square) with the largest
negative improvement index
2. On the closed path for that route, select the
smallest number found in the squares
containing minus signs
3. Add this number to all squares on the closed
path with plus signs and subtract it from all
squares with a minus sign
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Stepping-Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity
Rs5 Rs4 Rs3
(D) Des Moines 100 100
Warehouse
requirement 300 200 200 700
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