Transportation, Assignment and Tra Nsshipment Problems

Chapter 7
Transportation, Assignment and Tra

nsshipment Problems
to accompany
Operations Research: Applications & Algorithms,
4th edition, by Wayne L. Winston
1
Copyright © 2004 Brooks/Cole, a division of Thomson Learning, Inc.
Description
A transportation problem basically deals with the p
roblem, which aims to find the best way to fulfill t
he demand of n demand points using the capacities
of m supply points. While trying to find the best w
ay, generally a variable cost of shipping the produc
t from one supply point to a demand point or a sim
ilar constraint should be taken into consideration.
2
7.1 Formulating Transportation P
roblems
Example 1: Powerco has three electric pow
er plants that supply the electric needs of fo
ur cities.
•The associated supply of each plant and de
mand of each city is given in the table 1.
•The cost of sending 1 million kwh of elect
ricity from a plant to a city depends on the
distance the electricity must travel.
3
Transportation tableau
A transportation problem is specified by th

e supply, the demand, and the shipping cost
s. So the relevant data can be summarized i
n a transportation tableau. The transportatio
n tableau implicitly expresses the supply an
d demand constraints and the shipping cost
between each demand and supply point.
4
Table 1. Shipping costs, Supply, and Demand
for Powerco Example
From To
City 1 City 2 City 3 City 4 Supply (Millio
n kwh)
Plant 1 $8 $6 $10 $9 35
Plant 2 $9 $12 $13 $7 50
Plant 3 $14 $9 $16 $5 40
Demand (Milli 45 20 30 30
on kwh)
Transportation Tableau
5
Solution
1. Decision Variable:
Since we have to determine how much electricity
is sent from each plant to each city;
Xij = Amount of electricity produced at plant i an

d sent to city j
X14 = Amount of electricity produced at plant 1 a

nd sent to city 4
6
2. Objective function
Since we want to minimize the total cost of shipping

from plants to cities;
Minimize Z = 8X11+6X12+10X13+9X14
+9X21+12X22+13X23+7X24
+14X31+9X32+16X33+5X34
7
3. Supply Constraints
Since each supply point has a limited production capa
city;
X11+X12+X13+X14 <= 35
X21+X22+X23+X24 <= 50
X31+X32+X33+X34 <= 40
8
4. Demand Constraints
Since each supply point has a limited production capa
city;
X11+X21+X31 >= 45
X12+X22+X32 >= 20
X13+X23+X33 >= 30
X14+X24+X34 >= 30
9
5. Sign Constraints
Since a negative amount of electricity can not be shipp
ed all Xij’s must be non negative;
Xij >= 0 (i= 1,2,3; j= 1,2,3,4)
10
LP Formulation of Powerco’s Problem
Min Z = 8X11+6X12+10X13+9X14+9X21+12X22+13X23+7X24
+14X31+9X32+16X33+5X34
S.T.: X11+X12+X13+X14 <= 35 (Supply Constraints)

X21+X22+X23+X24 <= 50
X31+X32+X33+X34 <= 40
X11+X21+X31 >= 45 (Demand Constraints)
X12+X22+X32 >= 20
X13+X23+X33 >= 30
X14+X24+X34 >= 30
Xij >= 0 (i= 1,2,3; j= 1,2,3,4)
11
General Description of a Transportation Probl
em
1. A set of m supply points from which a good is sh
ipped. Supply point i can supply at most si units.
2. A set of n demand points to which the good is sh
ipped. Demand point j must receive at least di un
its of the shipped good.
3. Each unit produced at supply point i and shipped
to demand point j incurs a variable cost of cij.
12
Xij = number of units shipped from supply point i to de
mand point j
i m j n
min  cijXij
i 1 j 1
j n
s.t. Xij  si (i  1,2,...,m)
j 1
i m
X
i 1
ij  dj ( j  1,2,...,n)
Xij  0(i  1,2,...,m; j  1,2,...,n)
13
Balanced Transportation Problem
If Total supply equals to total demand, the
problem is said to be a balanced transportat
ion problem:
im jn
s d
i1
i
j1
j
14
Balancing a TP if total supply exceeds total d
emand
If total supply exceeds total demand, we ca

n balance the problem by adding dummy d
emand point. Since shipments to the dumm
y demand point are not real, they are assign
ed a cost of zero.
15
Balancing a transportation problem if total sup
ply is less than total demand
If a transportation problem has a total suppl

y that is strictly less than total demand the
problem has no feasible solution. There is n
o doubt that in such a case one or more of t
he demand will be left unmet. Generally in
such situations a penalty cost is often assoc
iated with unmet demand and as one can gu
ess this time the total penalty cost is desire
d to be minimum
16
7.2 Finding Basic Feasible Soluti
on for TP
Unlike other Linear Programming problem
s, a balanced TP with m supply points and
n demand points is easier to solve, although
it has m + n equality constraints. The reaso
n for that is, if a set of decision variables (x
ij’s) satisfy all but one constraint, the values
for xij’s will satisfy that remaining constrai
nt automatically.
17
Methods to find the bfs for a balanced TP
There are three basic methods:
1. Northwest Corner Method
2. Minimum Cost Method
3. Vogel’s Method
18
1. Northwest Corner Method
To find the bfs by the NWC method:
Begin in the upper left (northwest) corner of the tran
sportation tableau and set x11 as large as possibl
e (here the limitations for setting x11 to a larger
number, will be the demand of demand point 1
and the supply of supply point 1. Your x11 value
can not be greater than minimum of this 2 value
s).
19
According to the explanations in the previous slide
we can set x11=3 (meaning demand of demand poin
t 1 is satisfied by supply point 1).
5
3 5 2 3
3 2
X 5 2 3
20
After we check the east and south cells, we saw that
we can go east (meaning supply point 1 still has cap
acity to fulfill some demand).
3 2 X
X 3 2 3
3 2 X
3 3
X X 2 3
21
After applying the same procedure, we saw that we
can go south this time (meaning demand point 2 nee
ds more supply by supply point 2).
3 2 X
3 2 1
X X X 3
3 2 X
3 2 1 X
22 X X X 2
Finally, we will have the following bfs, which is:
x11=3, x12=2, x22=3, x23=2, x24=1, x34=2
3 2 X
3 2 1 X
2 X
X X X X
23
2. Minimum Cost Method
The Northwest Corner Method dos not utilize shipping
costs. It can yield an initial bfs easily but the total ship
ping cost may be very high. The minimum cost metho
d uses shipping costs in order come up with a bfs that
has a lower cost. To begin the minimum cost method,
first we find the decision variable with the smallest shi
pping cost (Xij). Then assign Xij its largest possible val
ue, which is the minimum of si and dj
24
After that, as in the Northwest Corner Method we sh
ould cross out row i and column j and reduce the sup
ply or demand of the noncrossed-out row or column
by the value of Xij. Then we will choose the cell wit
h the minimum cost of shipping from the cells that d
o not lie in a crossed-out row or column and we will
repeat the procedure.
25
An example for Minimum Cost Method
Step 1: Select the cell with minimum cost.
2 3 5 6
5
2 1 3 5
10
3 8 4 6
15
12 8 4 6
26
Step 2: Cross-out column 2
2 3 5 6
5
2 1 3 5
2
8
3 8 4 6
15
12 X 4 6
27
Step 3: Find the new cell with minimum shipping co
st and cross-out row 2
2 3 5 6
5
2 1 3 5
X
2 8
3 8 4 6
15
10 X 4 6
28
st and cross-out row 1
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
15
5 X 4 6
29
st and cross-out column 1
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
10
5
X X 4 6
30
st and cross-out column 3
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
6
5 4
X X X 6
31
Step 7: Finally assign 6 to last cell. The bfs is found
as: X11=5, X21=2, X22=8, X31=5, X33=4 and X34=6
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
X
5 4 6
X X X X
32
3. Vogel’s Method
Begin with computing each row and column a penalty.
The penalty will be equal to the difference between th
e two smallest shipping costs in the row or column. Id
entify the row or column with the largest penalty. Find
the first basic variable which has the smallest shipping
cost in that row or column. Then assign the highest po
ssible value to that variable, and cross-out the row or c
olumn as in the previous methods. Compute new penal
ties and use the same procedure.
33
An example for Vogel’s Method
Step 1: Compute the penalties.
Supply Row Penalty
6 7 8
10 7-6=1
15 80 78
15 78-15=63
Demand 15 5 5
Column Penalty 15-6=9 80-7=73 78-8=70
34
Step 2: Identify the largest penalty and assign the hig
hest possible value to the variable.
Supply Row Penalty
6 7 8
5 8-6=2
5
15 80 78
15 78-15=63
Demand 15 X 5
Column Penalty 15-6=9 _ 78-8=70
35
Supply Row Penalty
6 7 8
0 _
5 5
15 80 78
15 _
Demand 15 X X
Column Penalty 15-6=9 _ _
36
Supply Row Penalty
6 7 8
X _
0 5 5
15 80 78
15 _
Demand 15 X X
Column Penalty _ _ _
37
Step 5: Finally the bfs is found as X11=0, X12=5, X13
=5, and X21=15
Supply Row Penalty
6 7 8
X _
0 5 5
15 80 78
X _
15
Demand X X X
Column Penalty _ _ _
38
7.3 The Transportation Simplex
Method
In this section we will explain how the simplex algorit

hm is used to solve a transportation problem.
39
How to Pivot a Transportation Problem
Based on the transportation tableau, the following ste

ps should be performed.
Step 1. Determine (by a criterion to be developed shor
tly, for example northwest corner method) the variabl
e that should enter the basis.
Step 2. Find the loop (it can be shown that there is onl
y one loop) involving the entering variable and some
of the basic variables.
Step 3. Counting the cells in the loop, label them as ev
en cells or odd cells.
40
Step 4. Find the odd cells whose variable assumes the
smallest value. Call this value θ. The variable correspo
nding to this odd cell will leave the basis. To perform t
he pivot, decrease the value of each odd cell by θ and i
ncrease the value of each even cell by θ. The variables
that are not in the loop remain unchanged. The pivot is
now complete. If θ=0, the entering variable will equal
0, and an odd variable that has a current value of 0 wil
l leave the basis. In this case a degenerate bfs existed b
efore and will result after the pivot. If more than one o
dd cell in the loop equals θ, you may arbitrarily choose
one of these odd cells to leave the basis; again a degen
erate bfs will result
41
Illustration of pivoting procedure on the Powerco ex
ample. We want to find the bfs that would result if X
14 were entered into the basis.
5 35 0 35
10 20 20 50
4 3
2 1
10 30 40
45 20 30 30
E O E O E O
(1, 4) (3, 4) (3, 3) (2, 3) (2, 1) (1, 1)
Nothwest Corner bfs and loop for Powerco

42
New bfs after X14 is pivoted into basis. Since There i
s no loop involving the cells (1,1), (1,4), (2,1), (2,2),
(3,3) and (3, 4) the new solution is a bfs.
35-20 0+20 35
20-20
10+20 20 50
(nonbasic)
10+20 30-20 40
45 20 30 30
After the pivot the new bfs is X11=15, X14=20, X21=3

0, X22=20, X33=30 and X34=10.
43
Two important points!
In the pivoting procedure:
1. Since each row has as many +20s as –20s, the ne

w solution will satisfy each supply and demand c
onstraint.
2. By choosing the smallest odd variable (X23) to lea

ve the basis, we ensured that all variables will re
main nonnegative.
44
Pricing out nonbasic variables
To complete the transportation simplex, now we will d

iscuss how to row 0 for any bfs. For a bfs in which the
set of basic variables is BV, the coefficient of the varia
ble Xij (call it čij) in the tableau’s row ) is given by
čij = cBV B-1aij – cij
Where cij is the objective function coefficient for Xij an

d aij is the column for xij in the original LP.
45
Since the example is a minimization problem, the c
urrent bfs will be optimal if all the čij‘s are nonposit
ive; otherwise, we enter into the basis with the mos
t positive čij.
After determining cBVB-1 we can easily determine či
.j Since the first constraint has been dropped, cBVB-1
will have m+n-1 elements.
cBVB-1= [u2 u3…um v1 v2…vn]
Where u2 u3…um are elements of cBVB-1 correspondi
ng to the m-1 supply constraints, and v1 v2…vn are e
lements of cBVB-1 corresponding to the n demand co
nstraints.
46
To determine cBVB-1 we use the fact that in any tabl
eau, each basic variable Xij must have čij=0. Thus f
or each of the m+n-1 variables in BV,
cBV B-1aij – cij=0
For the Northwest corner bfs of Powerco problem,

BV={X11, X21, X22, X23, X33, X34}. Applying the eq
uation above we obtain:
0 
0 
 
1 
 
0 
0 
č11= [u2 u3 v1 v2 v3 v4]   -8 = v1-8=0
47  0 
1 
0 
 
1 
č21= [u2 u3 v1 v2 v3 v4]   -9 = u2+v1-9=0
0 
0 
 
 0 
1 
0 
 
0 
č22= [u2 u3 v1 v2 v3 v4]   -12 = u2+v2-12=0
1 
0 
 
 0 
1 
0 
 
0 
č23= [u2 u3 v1 v2 v3 v4]   -13 = u2+v3-13=0
0 
1 
 
 0 
48
0 
1 
 
0 
č33= [u2 u3 v1 v2 v3 v ]
4  0  -16 = u3+v3-16=0

1 
 
 0 
0 
1 
 
0 
č34= [u2 u3 v1 v2 v3 v ]
4 0  -5 = u3+v4-5=0
 
1 
 
 0 
For each basic variable Xij (except those having i=1), we

see that the equation we used above reduces to ui+vj=cij.
If we define u1=0, we must solve the following system o
f m+n equations.
49
u1=0
u1+v1=8
u2+v1=9
u2+v2=12
u2+v3=13
u3+v3=16
u3+v4=5
By solving the system above we obtain:

v1=8, u2=1, v2=11,v3=12, u3=4, v4=1
50
For each nonbasic variable, we now compute
čij = ui+vj – cij
We obtain:
č12 = 0+11 – 6 = 5 č13 = 0+12 – 10 = 2
č14 = 0+1 – 9 = -8 č24 = 1+1 – 7 = -5
č31 = 4+8 – 14 = -2 č32 = 4+11 – 9 = 6
Since č32 is the greatest positive čij, we would next

enter X32 into the basis. Each unit that is entered in
to the basis will decrease Powerco’s cost by $6.
51
We have determined that X32 should enter the basis. As
shown in the table below the loop involving X32 and so
me of the basic variables is (3,2), (3,3), (2,3), (2,2). The
odd cells in the loop are (2,2) and (3,3). Since the small
est value of these two is 10 the pivot is 10.
35 35
10 20 20 50
10 30 40
45 20 30 30
52
The resulting bfs will be:
X11=35, X32=10, X21=10, X22=10, X23=30 and X34=30
The ui’s and vj’s for the new bfs were obtained by solv
ing
u1=0
u2+v2=12
u3+v4=5
u1+v1=8
u2+v3=13
u2+v1=9
u3+v2=9
53
In computing čij = ui+vj – cij for each nonbasic variable,
we find that č12 = 5, č13 = 2 and č24 = 1 are the only posi
tive čij‘s. Thus we next enter X12 into the basis. By appl
ying the same steps we will finally get a solution where
all čij’s are less then or equal to 0, so an optimal solution
has been obtained.
The optimal solution for Powerco is X11=10, X13=25, X2

1=45, X23=5, X32=10 and X34=30.
As a result of this solution the objective function value
becomes:
Z=6(10)+10(25)+9(45)+13(5)+9(10)+5(30)=$1020
54
7.4 Sensitivity Analysis
In this section we discuss the following three aspects o
f sensitivity analysis for the transportation problem:
1. Changing the objective function coefficient of a non
basic variable.
2. Changing the objective function coefficient of a bas
ic variable.
3. Increasing a single supply by Δ and a single demand
by Δ.
55
1. Changing the objective function coefficient
of a nonbasic variable.
Changing the objective function coefficient of a non
basic variable Xij will leave the right hand side of the
optimal tableau unchanged. Thus the current basis wi
ll still be feasible. Since we are not changing cBVB-1,
the ui’s and vj’s remain unchanged. In row 0 only the
coefficient of Xij will change. Thus as long as the coe
fficient of Xij in the optimal row 0 is nonpositive, the
current basis remains optimal.
56
Let’s try to answer the following question about Pow
erco as an example:
For what range of values of the cost of shipping 1 milli
on kwh of electricity from plant 1 to city 1 will the curr
ent basis remain optimal?
Suppose we change c11 from 8 to 8+ Δ.
Now č11 = u1+v1-c11=0+6-(8+ Δ)=2- Δ.
Thus the current basis remains optimal for –2- Δ<=0, o

r Δ>=-2, and c11>=8-2=6.
57
2. Changing the objective function coefficient of a
basic variable.
Since we are changing cBVB-1, the coefficient of each non
basic variable in row 0 may change, and to determine wh
ether the current basis remain optimal, we must find the n
ew ui’s and vj’s and use these values to price out all nonb
asic variables. The current basis remains optimal as long
as all nonbasic variables price out nonpositive.
58
Let’s try to answer the following question about Powerco
as an example:
For what range of values of the cost of shipping 1 million
kwh of electricity from plant 1 to city 3 will the current b
asis remain optimal?
Suppose we change c13 from 10 to 10+ Δ.
Now č13=0 changes from u1+v3=10 to u1+v3=10+ Δ.
Thus, to find the ui’s and vj’s we must solve the followin
g equations:
u1=0 u1+v2=6 u2+v1=9 u2+v3=13
u3+v2=9 u1+v3=10+ Δ u3+v4=5
59
Solving these equations, we obtain u1=0, v2=6, v3=10+ Δ,
v1=6+ Δ , u2=3- Δ, u3=3, and v4=2.
We now price out each nonbasic variable. The current basi
s will remain optimal as long as each nonbasic variable ha
s a nonpositive coefficient in row 0.
č11 = u1+v1-8=Δ-2<=0 for Δ<=2
č14 = u1+v4-9=-7
č22 = u2+v2-12=-3-Δ<=0 for Δ>=-3
č24 = u2+v4-7=-2-Δ<=0 for Δ>=-2
č31 = u3+v1-14=-5+Δ<=0 for Δ<=5
č33 = u3+v3-16=Δ-3<=0 for Δ<=3
60
Thus, the current basis remains optimal for –2<=Δ<=2,
or 8=10-2<=c13<=10+2=12
61
3. Increasing Both Supply si and Demand dj by Δ.
Changing both supply and demand by the same amount
will maintain the balance of the transportation problem. S
ince ui’s and vj’s may be thought of as the negative of ea
ch constraint’s shadow price, we know that if the current
basis remains optimal,
New Z value = old Z value+Δui+Δvj
For example if we increase plant 1,s supply and city 2’s d

emand by 1 unit, then
New cost=1020+1(0)+1(6)=$1026
62
We can also find the new values of the decision variables
as follows:
1. If Xij is a basic variable in the optimal solution, increa

se Xij by Δ.
2. If Xij is a nonbasic variable in the optimal solution, fin

d the loop involving Xij and some of the basic variables.
Find an odd cell in the loop that is in row I. Increase the
value of this odd cell by Δ and go around the loop, altern
ately increasing and then decreasing current basic variabl
es in the loop by Δ.
63
7.5. Assignment Problems
Example: Machineco has four jobs to be completed. Eac
h machine must be assigned to complete one job. The ti
me required to setup each machine for completingeach j
ob is shown in the table below. Machinco wants to mini
mize the total setup time needed to complete the four jo
bs.
64
Setup times
(Also called the cost matrix)
Time (Hours)
Job1 Job2 Job3 Job4
Machine 1 14 5 8 7
Machine 2 2 12 6 5
Machine 3 7 8 3 9
Machine 4 2 4 6 10
65
The Model
According to the setup table Machinco’s problem can be
formulated as follows (for i,j=1,2,3,4):
minZ 14X1 15X1 28X1 37X1 42X2 112X2 26X2 35X2 4
7X3 18X3 23X3 39X3 42X4 1 X4 26X4 310X4 4
s.t.X1 1 X1 2 X1 3 X1 41
X2 1 X2 2 X2 3 X2 41
X3 1 X3 2 X3 3 X3 41
X4 1 X4 2 X4 3 X4 41
X1 1 X2 1 X3 1 X4 11
X1 2 X2 2 X3 2 X4 21
X1 3 X2 3 X3 3 X4 31
X1 4 X2 4 X3 4 X4 41
Xij 0orX
ij 1
66
For the model on the previous page note that:
Xij=1 if machine i is assigned to meet the demands of jo

bj
Xij=0 if machine i is assigned to meet the demands of jo

bj
In general an assignment problem is balanced transporta

tion problem in which all supplies and demands are equ
al to 1.
67
Although the transportation simplex appears to be very ef
ficient, there is a certain class of transportation problems,
called assignment problems, for which the transportation
simplex is often very inefficient. For that reason there is
an other method called The Hungarian Method. The steps
of The Hungarian Method are as listed below:
Step1. Find a bfs. Find the minimum element in each row
of the mxm cost matrix. Construct a new matrix by subtra
cting from each cost the minimum cost in its row. For thi
s new matrix, find the minimum cost in each column. Co
nstruct a new matrix (reduced cost matrix) by subtracting
from each cost the minimum cost in its column.
68
Step2. Draw the minimum number of lines (horizontal an
d/or vertical) that are needed to cover all zeros in the red
uced cost matrix. If m lines are required , an optimal solu
tion is available among the covered zeros in the matrix. If
fewer than m lines are required, proceed to step 3.
Step3. Find the smallest nonzero element (call its value k

) in the reduced cost matrix that is uncovered by the lines
drawn in step 2. Now subtract k from each uncovered ele
ment of the reduced cost matrix and add k to each elemen
t that is covered by two lines. Return to step2.
69
7.6 Transshipment Problems
A transportation problem allows only shipments that go
directly from supply points to demand points. In many s
ituations, shipments are allowed between supply points
or between demand points. Sometimes there may also b
e points (called transshipment points) through which go
ods can be transshipped on their journey from a supply
point to a demand point. Fortunately, the optimal solutio
n to a transshipment problem can be found by solving a
transportation problem.
70
The following steps describe how the optimal solution to
a transshipment problem can be found by solving a trans
portation problem.
Step1. If necessary, add a dummy demand point (with a s
upply of 0 and a demand equal to the problem’s excess s
upply) to balance the problem. Shipments to the dummy
and from a point to itself will be zero. Let s= total availab
le supply.
Step2. Construct a transportation tableau as follows: A ro
w in the tableau will be needed for each supply point and
transshipment point, and a column will be needed for eac
h demand point and transshipment point.
71
Each supply point will have a supply equal to it’s origina
l supply, and each demand point will have a demand to it
s original demand. Let s= total available supply. Then ea
ch transshipment point will have a supply equal to (point’
s original supply)+s and a demand equal to (point’s origi
nal demand)+s. This ensures that any transshipment point
that is a net supplier will have a net outflow equal to poin
t’s original supply and a net demander will have a net infl
ow equal to point’s original demand. Although we don’t
know how much will be shipped through each transship
ment point, we can be sure that the total amount will not
exceed s.
72

Transportation, Assignment and Tra Nsshipment Problems

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Transportation, Assignment and Tra Nsshipment Problems

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Chapter 7

Transportation, Assignment and Tra

A transportation problem is specified by th

Xij = Amount of electricity produced at plant i an

X14 = Amount of electricity produced at plant 1 a

Since we want to minimize the total cost of shipping

Xij >= 0 (i= 1,2,3; j= 1,2,3,4)

S.T.: X11+X12+X13+X14 <= 35 (Supply Constraints)

Xij  0(i  1,2,...,m; j  1,2,...,n)

If total supply exceeds total demand, we ca

If a transportation problem has a total suppl

There are three basic methods:

1. Northwest Corner Method

2. Minimum Cost Method

Supply Row Penalty

Column Penalty 15-6=9 80-7=73 78-8=70

Supply Row Penalty

Column Penalty 15-6=9 _ 78-8=70

Supply Row Penalty

Column Penalty 15-6=9 _ _

Supply Row Penalty

Supply Row Penalty

In this section we will explain how the simplex algorit

Based on the transportation tableau, the following ste

(1, 4) (3, 4) (3, 3) (2, 3) (2, 1) (1, 1)

Nothwest Corner bfs and loop for Powerco

After the pivot the new bfs is X11=15, X14=20, X21=3

1. Since each row has as many +20s as –20s, the ne

2. By choosing the smallest odd variable (X23) to lea

To complete the transportation simplex, now we will d

čij = cBV B-1aij – cij

Where cij is the objective function coefficient for Xij an

cBV B-1aij – cij=0

For the Northwest corner bfs of Powerco problem,

For each basic variable Xij (except those having i=1), we

By solving the system above we obtain:

Since č32 is the greatest positive čij, we would next

The optimal solution for Powerco is X11=10, X13=25, X2

Suppose we change c11 from 8 to 8+ Δ.

Now č11 = u1+v1-c11=0+6-(8+ Δ)=2- Δ.

Thus the current basis remains optimal for –2- Δ<=0, o

For example if we increase plant 1,s supply and city 2’s d

1. If Xij is a basic variable in the optimal solution, increa

2. If Xij is a nonbasic variable in the optimal solution, fin

Xij=1 if machine i is assigned to meet the demands of jo

Xij=0 if machine i is assigned to meet the demands of jo

In general an assignment problem is balanced transporta

Step3. Find the smallest nonzero element (call its value k

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