Transportation

Transportation
Problem
Amelia Kurniawati ST., MT.
OUTLINE
2
GOAL
• Understand the concept of
transportation method and its
application
• Understand the concept of optimum
solution of transportation problem
• Understand search methods for feasible
solution and optimum solution 3
Introduction
4
Transportation Problem
• Transportation problems are generally

related to the problem of distribution of
a product from several sources to a
number of destinations at minimum cost.
5
Factory Distribution Center
1 5
100 1 25
4
70 2 7 3 30
2
4 5
6 7 3 100
How many product should be shipped
from warehouse 1 and 2 to each 4 15
customer so the cost at the minimum? 6
Linear Programming Formulation
• There are m sources (eg warehouse)
where the product is stored.
• There are n destinations (eg market)
where the product is needed.
• Availability of supplies from sources: ai (i =
1, 2, …, m)
• Demand from destinations: bj (j = 1, 2, …,
n)
7
• Shipping cost from source i to destination j :
cij (i = 1, 2, …, m; j = 1, 2, …, n). If a source i
can not supply to a destination j, then cij =
M (M is a very large positive number).
• The problem is determining the number of
products shipped from source i to
destination j (represented by xij) that
minimize the total transportation cost
(shipping).
8
m n
Minimize Z   cij xij
i 1 j 1
Subject to:
n
x
j 1
ij  ai i = 1, 2, …, m
m
x
i 1
ij  bj j = 1, 2, …, n
xij  0 i, j
9
Transportation Problem in Network Form
Source Destination
a1 1 cij 1 b1
a2 2 2 b2
ai ... ... bj
am m n bn
10
Standard/Balanced Transportation Problem
m n
m
Z   cij xij
n
a i  bj
Minimize i 1 j 1
j 1 i 1
Subject to:
n
x
j 1
ij  ai i = 1, 2, …, m
m
x
i 1
ij  bj j = 1, 2, …, n
xij  0 i, j
11
Unbalanced Transportation problem
m n 1
Minimize Z   cij xij m n

i 1 j 1
a i  bj
Subject to: n 1
j 1 i 1
x
j 1
ij  ai i = 1, 2, …, m
m
x
i 1
ij  bj j = 1, 2, …, n, n+1
xij  0 i, j
m n
j = n+1 is a fictitious destination with demand bn 1   ai   b j

j 1 i 1
and ci , n 1  0, i  1,2,..., m
12
Unbalanced Transportation problem
m 1 n
Minimize Z   cij xij m n
i 1 j 1 a
j 1
i  bj
i 1
Subject to: n
x
j 1
ij  ai i = 1, 2, …, m+1
m 1
x
i 1
ij  bj j = 1, 2, …, n
xij  0 i, j
n m
j = n+1 is a fictitious destination with demand an 1   b j   ai

i 1 j 1
and cm 1, j  0, j  1,2,..., n

13
Transportation Table
Destinations
Supply
D1 D2 Dn
c11 c12 c1n
S1 a1
x11 x12 x1n
c22 c22 c2n
S2 a2
Sources
x12 x22 x2n
cm1 cm2 cmn

Sm
xm1 xm2 xmn an
Demand b1 b2 bm
14
Case Example
To
Albuquerque Boston Cleveland
From
Des Moines $5 $4 $3
Evansville $8 $4 $3
Fort Lauderdale $9 $7 $5
15
To
Albuquerque Boston Cleveland
From
Des Moines $5 $4 $3
Evansville $8 $4 $3
Fort Lauderdale $9 $7 $5
Boston
Cleveland (200 units
Des Moines (200 units required)
(100 units required)
capacity)
Albuquerque
(300 units Evansville
required) (300 units
capacity)
Fort Lauderdale
(300 units
capacity)16
Transportation Matrix
To Factory Des Moines
From Albuquerque Boston Cleveland capacity capacity
constraint
$5 $4 $3
Des Moines 100
Cell
$8 $4 $3 representing
Evansville 300 a possible
source-to-
$9 $7 $5 destination
Fort Lauderdale 300 shipping
assignment
Warehouse (Evansville to
requirement 300 200 200 700
Cleveland)
Cost of shipping 1 unit from Fort Cleveland Total demand

Lauderdale factory to Boston warehouse warehouse demand and total supply
17
Case Example II
Shipping costs, Supply, and Demand for
Powerco Example
From To
City 1 City 2 City 3 City 4 Supply (Million
kwh)
Plant 1 $8 $6 $10 $9 35
Plant 2 $9 $12 $13 $7 50
Plant 3 $14 $9 $16 $5 40
Demand (Million 45 20 30 30
kwh)
18
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)
19
Solving
20
Solving Algorithms
• Step 0:
− Formulation of the problem in the standard
transportation problem
• Step 1:
− Determination of initial feasible basic solution
• Step 2:
− Examination of optimality. If the solution is optimum
then stop.
− Determination of a new basic solution and back to
step 2 21
Initial Feasible Basic Solution
Determination Methods
• Northwest corner method

• Least cost method
• Vogel’s approximation method (VAM)
22
Northwest Corner Rule (0)
 It is an initial feasible solution, but not optimum yet and should
be proceed to the next stage by using optimization method.
Procedure:
(1) Charging cell / box starting from the top left corner.
(2) Give allocation with the maximum (largest) as per the terms so it is
feasible to meet demand.
(3) Move to the right box when there is sufficient supplies. If not, move to
below box to fulfill the demand. Moving continue until the supply runs
out and the demand fulfilled.
23
Product Supply
Consumer
2 2 2 1
3
10 8 5 4
Factory 7
7 6 6 8
5
4 3 4 4
Demand 24
2 2 2 1
0
3
10 8 5 4
7
7 6 6 8
5
1 3 4 4
25
2 2 2 1
0
3
10 8 5 4
6
1
7 6 6 8
5
0 3 4 4
26
2 2 2 1
0
3
10 8 5 4
3
1 3
7 6 6 8
5
0 0 4 4
27
2 2 2 1
0
3
10 8 5 4
0
1 3 3
7 6 6 8
5
0 0 1 4
28
2 2 2 1
0
3
10 8 5 4
0
1 3 3
7 6 6 8
4
1
0 0 0 4
29
2 2 2 1
0
3
10 8 5 4
0
1 3 3
7 6 6 8
0
1 4
0 0 0 0
30
Northwest Corner Rule
Feasible Basic Solution
2 2 2 1
0
3
10 8 5 4
0
1 3 3
7 6 6 8
0
1 4
0 0 0 0
Total transportation cost Z = 93 31

Least Cost Rule (1)
2 2 2 1
3
10 8 5 4
7
7 6 6 8
5
4 3 4 4
32
Least Cost Rule (2)
2 2 2 1
0
3
10 8 5 4
7
7 6 6 8
5
4 3 4 1
33
Least Cost Rule (3)
2 2 2 1
0
3
10 8 5 4
6
1
7 6 6 8
5
4 3 4 0
34
Least Cost Rule (4)
2 2 2 1
0
3
10 8 5 4
2
4 1
7 6 6 8
5
4 3 0 0
35
Least Cost Rule (5)
2 2 2 1
0
3
10 8 5 4
2
4 1
7 6 6 8
2
3
4 0 0 0
36
Least Cost Rule (6)
2 2 2 1
0
3
10 8 5 4
2
4 1
7 6 6 8
0
2 3
2 0 0 0
37
Least Cost Rule
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
Total transportation cost = 79 38

Vogel’s Approximation Method (VAM) (0)
Solving procedure:
(1) Calculate the difference between the two smallest costs of each row and
column. Write the value in new row/column in addition to the existing
rows/columns (called the penalty row/column).
(2) Select the row or column with the largest penalty value, then give brackets.
If the value in the row or column is the same, select the one which can move
more items.
(3) From the selected row/column in (2), determine the amount of items that
can be transported by taking into account restrictions that apply to rows or
columns, and cells with the smallest cost.
(4) Delete rows or columns that have fulfilled the limit (supply or demand have
been fulfilled).
(5) Repeat step (1) through (4) until all allocations fulfilled.
39
Penalty
2 2 2 1
3 1
10 8 5 4
7 1
7 6 6 8
5 0
4 3 4 4
Penalty 5 4 3 3
40
Penalty
2 2 2 1
0
3
10 8 5 4
7 1
7 6 6 8
5 0
1 3 4 4
Penalty 3 2 1 4
41
Penalty
2 2 2 1
0
3
10 8 5 4
3 3
4
7 6 6 8
5 0
1 3 4 0
Penalty 3 2 1
42
Penalty
2 2 2 1
0
3
10 8 5 4
0
3 4
7 6 6 8
5
1 3 1 0
Penalty
43
Vogel’s Approximation Method (VAM)
Supply
2 2 2 1
3
3
10 8 5 4
7
3 4
7 6 6 8
5
1 3 1
Demand 4 3 4 4
Total transportation cost Z = 68

44
Improvement
• Initial feasible basic solution
improvement:
− Optimality examination
− Determination of a new feasible basic
solution
• Methods:
− u-v or MODI method (Modified Distribution
Method) 45
u-v Method (1)
For any feasible basic solution, determine the value of
ui (for all i) and vj (for all j) such that
ui  v j  cij for each basic variable xij

(Value of ui and vj can be positive, negative or zero).
For non-basic variables:
cij  cij  ui  v j 
46
u-v Method (2)
For non-basic variables:
Optimality condition (in minimization problem) occurs when
cij  cij  ui  v j   0 for each basic variable
If the condition has not optimum, the variable that enters the
basic is those which has the most negative cij (in minimization
problem)
47
For example, an initial feasible basic solution is
given by Least Cost Method
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
48
Implementation of u-v
Method
Six equations with seven
u1  v4  1 unknown variables 
u2  v1  10 there are an infinite number of
u2  v3  5 possible solutions
u2  v4  4
To obtain a solution,
u3  v1  7
a certain variable value can be
u3  v2  6 set randomly, and the value of
others can be solved.
For example, u1 = 0 49
Examination of Optimality
v1 = v2 = v3 = v4 =
2 2 2 1
u1 = 0 3
3
10 8 5 4
u2 = 7
2 4 1
7 6 6 8
u3 = 5
2 3
4 3 4 4
50
v1 = 7 v2 = 6 v3 = 2 v4 = 1
2 2 2 1
u1 = 0 3
3
10 8 5 4
u2 = 3 7
2 4 1
7 6 6 8
u3 = 0 5
2 3
4 3 4 4
51
v1 = 7 v2 = 6 v3 = 2 v4 = 1
-5 2 2 2 1
u1 = 0 3
3
10 8 5 4
u2 = 3 7
2 4 1
7 6 6 8
u3 = 0 5
2 3
4 3 4 4
52
v1 = 7 v2 = 6 v3 = 2 v4 = 1
-5 2 -4 2 0 2 1
u1 = 0 3
3
10 -1 8 5 4
u2 = 3 7
2 4 1
7 6 4 6 7 8
u3 = 0 5
2 3
4 3 4 4
x11 enters basic 53

v1 = 7 v2 = 6 v3 = 2 v4 = 1
2 2 2 1
u1 = 0 3
+ 3
10 8 5 4
u2 = 3 7
2 4 1+
7 6 6 8
u3 = 0 5
2 3
4 3 4 4
 = min(3, 2) = 2  x21 exit basic 54

New Solution
2 2 2 1
3
2 1
10 8 5 4
7
4 3
7 6 6 8
5
2 3
4 3 4 4

v1 = 2 v2 = 1 v3 = 2 v4 = 1
2 2 2 1
u1 = 0 3
2 1
10 8 5 4
u2 = 3 7
4 3
7 6 6 8
u3 = 5 5
2 3
4 3 4 4
56
v1 = 2 v2 = 1 v3 = 2 v4 = 1
2 1 2 0 2 1
u1 = 0 3
2 1
5 10 4 8 5 4
u2 = 3 7
4 3
7 6 -1 6 2 8
u3 = 5 5
2 3
4 3 4 4
x33 enter basic 57

v1 = 2 v2 = 1 v3 = 2 v4 = 1
2 2 2 1
u1 = 0 3
2+ 1
10 8 5 4
u2 = 3 7
4 3+
7 6 6 8
u3 = 5 5
2 3 +
4 3 4 4
 = min(1, 4, 2) = 1  x14 exit basic 58

New Solution
2 2 2 1
3
3
10 8 5 4
7
3 4
7 6 6 8
5
1 3 1
4 3 4 4
Total transportation cost Z = 68
59
v1 = 2 v2 = 1 v3 = 1 v4 = 0
2 2 2 1
u1 = 0 3
3
10 8 5 4
u2 = 4 7
3 4
7 6 6 8
u3 = 5 5
1 3 1
4 3 4 4

Solution
v1 = 2 v2 = 1 v3 = 1 v4 = 0
2 1 2 1 2 1 1
u1 = 0 3
3
4 10 3 8 5 4
u2 = 4 7
3 4
7 6 6 3 8
u3 = 5 5
1 3 1
4 3 4 4
Optimum solution 61
Optimum Solution
2 2 2 1
3
3
10 8 5 4
7
3 4
7 6 6 8
5
1 3 1
4 3 4 4

Maximization Problem
Optimum conditions:
 relative objective function coefficient of non-basic
variables is not positive
cij  cij  ui  v j   0
Determination of non-basic variable that enters the basic

 Select non-basic variable with the most positive
relative objective function coefficient
63
64
1. Set U1= 0
2. Calculate the value of Ui and Vj using the equation Cij = Ui + Vj, for
cells that receive allocations.
3. Calculate Reduced Cost (Kij)= Cij-Ui-Vj, for cells that do not receive
allocations.
V1 V2 V3 V4
cells that receive
allocation.
Cij = Ui + Vj
U1
U2
cells that don’t U3
receive allocation.
U1, U2, U3, V1, V2, V3, V4, K12, K14, K21, K23, K24, K33 ?
Kij= Cij-Ui-Vj 65
Example
66
67
Optimum
68
Solution given from Least Cost Method
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
69
Stepping-Stone Method
Stepping Stone Method: Pressing down transportation cost by including non-basic variables
which is the allocation of goods to the empty box) into the solution.
By using the initial solution obtained from the North West Corner method which is not optimum
yet, it will be shown the evaluation of each non-basic.
a. Selecting one of the empty cells (which are not allocated)

b. Starting from this cell, we create a closed path through cells which get the allocation to the
selected empty cell. This closed path is moving horizontally and vertically only.
c. Begin with a (+) sign in selected empty cells, we put the (-) and (+) sign alternately on each
corner of the closed path.
d. Calculate the improvement index by adding the transportation cost of the (+) marked cell and
subtracting the transportation cost of the (-) marked cell.
e. Repeat step 1 to 4 until the improvement index for all empty cells have been calculated.
70
Stepping Stone
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
Start from cell x11, we create a closed path through cells which get the
allocation to the selected empty cell (x11) 71
Stepping Stone (2)
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
Begin with a (+) sign in selected empty cells, we put the (-) and (+) sign alternately on
each corner of the closed path. 72
Stepping Stone (3)
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
Calculate the improvement index from it cost
then, C11 = 2 – 1 + 4 – 10 = - 5 73
Stepping Stone (4)
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
cell x12
74
Stepping Stone (5)
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
Improvement index C12 = 2 – 1 + 4 – 10 + 7 – 6 = -4 75

Stepping Stone (6)
Improvement index from each empty cell:
C11 = -5
C12 = -4
C13 = 0
C22 = -1
C33 = 4
C34 = 7
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.
4. Repeat the iteration until there’s no negative
improvement index.
77
Stepping Stone (8)
C11 = -5 The largest negative

C12 = -4 value. Reallocation the
C13 = 0 x11 cell
C22 = -1
C33 = 4
C34 = 7
Stepping Stone (9)
2 2 2 1
0
3
10 8 5 4
0
2 4 1
7 6 6 8
0
2 3
0 0 0 0
From x11 cell route, select the smallest number found in the squares containing minus
signs (-)
79
Stepping Stone (10)
2 2 2 1
0
0+2 3 3- 2
10 8 5 4
0
2 2- 2 4 12
1+
7 6 6 8
0
2 3
0 0 0 0
Add number 2 to all squares on the closed path with plus signs and subtract it from all
squares with a minus sign
80
Stepping Stone (11)
2 2 2 1
0
2 1
10 8 5 4
0
0 4 3
7 6 6 8
0
2 3
0 0 0 0
New solution = 69
81
Stepping Stone (12)
2 2 2 1
0
2 1
10 8 5 4
0
0 4 3
7 6 6 8
0
2 3
0 0 0 0
Repeat the stepping stone method iteration, calculate the improvement index for
every empty cell
82
Stepping Stone (13)
C12 = 1
C13 = 0
C21 = 5
C22 = 4 It still has a negative
C33 = -1 value. Reallocation the
C34 = 2 x33 cell
Stepping Stone (14)
2 2 2 1
0
2 1
10 8 5 4
0
0 4 3
7 6 6 8
0
2 3
0 0 0 0
Reallocation for x33

84
Stepping Stone (15)
2 2 2 1
0
2+1 1-1
10 8 5 4
0
0 4-1 3+1
7 6 6 8
0
2-1 3 0+1
0 0 0 0
New Allocation
85
Stepping Stone (16)
2 2 2 1
0
3 0
10 8 5 4
0
0 3 4
7 6 6 8
0
1 3 1
0 0 0 0
New Solution = 68
86
Stepping Stone (17)
C12 = 1
C13 = 1
There’s no negative
C14 = 1
value, therefore 68 is
C21 = 4
the optimum solution.
C22 = 3
C34 = 3
Implementation Example
-Stepping Stone Method-
88
Transportation Matrix
To Factory Des Moines
From Albuquerque Boston Cleveland capacity capacity
constraint
$5 $4 $3
Des Moines 100
Cell
$8 $4 $3 representing a
Evansville 300 possible
source-to-
$9 $7 $5 destination
Fort Lauderdale 300 shipping
assignment
Warehouse (Evansville to
Cleveland)
Cost of shipping 1 unit from Fort Cleveland Total demand

Lauderdale factory to Boston warehouse warehouse demand and total supply
89
Northwest-Corner Rule
 Start in the upper left-hand cell (or northwest
corner) of the table and allocate units to
shipping routes as follows:
1. Exhaust the supply (factory capacity) of each row before moving
down to the next row
2. Exhaust the (warehouse) requirements of each column before
moving to the next column
3. Check to ensure that all supplies and demands are met
90
1. Assign 100 tubs from Des Moines to Albuquerque (exhausting Des
Moines’s supply)
2. Assign 200 tubs from Evansville to Albuquerque (exhausting
Albuquerque’s demand)
3. Assign 100 tubs from Evansville to Boston (exhausting Evansville’s
supply)
4. Assign 100 tubs from Fort Lauderdale to Boston (exhausting Boston’s
demand)
5. Assign 200 tubs from Fort Lauderdale to Cleveland (exhausting
Cleveland’s demand and Fort Lauderdale’s supply)
91
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
$9 $7 $5
(F) Fort Lauderdale 100 200 300
Warehouse
Means that the firm is shipping 100 bathtubs

Figure C.3 from Fort Lauderdale to Boston
92
Intuitive Lowest-Cost Method
$5 $4 $3
$8 $4 $3
(E) Evansville 300
$9 $7 $5
(F) Fort Lauderdale 300
Warehouse
First, $3 is the lowest cost cell so ship 100 units from Des
Moines to Cleveland and cross off the first row as Des
Moines is satisfied Figure C.4 93
$5 $4 $3
$8 $4 $3
(E) Evansville 100 300
$9 $7 $5
Warehouse
Second, $3 is again the lowest cost cell so ship 100 units

from Evansville to Cleveland and cross off column C as
Cleveland is satisfied Figure C.4 94
$5 $4 $3
$8 $4 $3
$9 $7 $5
Warehouse
Third, $4 is the lowest cost cell so ship 200 units from

Evansville to Boston and cross off column B and row E as
Evansville and Boston are satisfied Figure C.4
95
$5 $4 $3
$8 $4 $3
$9 $7 $5
(F) Fort Lauderdale 300 300
Warehouse
Finally, ship 300 units from Albuquerque to Fort Lauderdale

as this is the only remaining cell to complete the allocations
Figure C.4
96
$5 $4 $3
$8 $4 $3
$9 $7 $5
Warehouse
Total Cost = $3(100) + $3(100) + $4(200) + $9(300)

= $4,100
Figure C.4 97
This feasible solution, and $5
is aMoines
(D) Des an $4
100
$3
100
improvement over the previous
solution, but not necessarily the lowest
$8 $4 $3
(E) Evansville
cost alternative 200 100 300
$9 $7 $5
Warehouse 300 200 200 700
requirement
Total Cost = $3(100) + $3(100) + $4(200) + $9(300)

= $4,100
Figure C.4 98
Stepping Stone Method: Pressing down transportation cost by including non-basic variables
which is the allocation of goods to the empty box) into the solution.
By using the initial solution obtained from the North West Corner method which is not optimum
yet, it will be shown the evaluation of each non-basic.
a. Selecting one of the empty cells (which are not allocated)

b. Starting from this cell, we create a closed path through cells which get the allocation to the
selected empty cell. This closed path is moving horizontally and vertically only.
c. Begin with a (+) sign in selected empty cells, we put the (-) and (+) sign alternately on each
corner of the closed path.
d. Calculate the improvement index by adding the transportation cost of the (+) marked cell and
subtracting the transportation cost of the (-) marked cell.
e. Repeat step 1 to 4 until the improvement index for all empty cells have been calculated.
99
$5 $4 $3
(D) Des Moines 100
- + 100 Des Moines-
200 $8 $4 $3 Boston index
(E) Evansville
+ -100 300
(F) Fort Lauderdale $9 100 $7 200 $5 300 = $4 - $5 + $8 - $4
Warehouse
requirement 300 200 200 700 = +$3
99 $5 1 $4
100 +
-
+ -
201 $8 99 $4
Figure C.5 200 100
100
$5 $4 Start $3
(D) Des Moines 100 - + 100
$8 $4 $3
+ -
$9 $7 $5
+100 - 200 300
(F) Fort Lauderdale
Warehouse
Des Moines-Cleveland index

Figure C.6 = $3 - $5 + $8 - $4 + $7 - $5 = +$4
101
$5 $4 $3
$8 $4 $3
$9 $7 $5
Warehouse
Evansville-Cleveland index
= $3 - $4 + $7 - $5 = +$1 (Closed path = EC - EB + FB - FC)
Fort Lauderdale-Albuquerque index
= $9 - $7 + $4 - $8 = -$1 (Closed path = FA - FB + EB - EA) 102
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
4. Repeat the iteration until there’s no negative
improvement index
103
$5 $4 $3
$8 $4 $3
- +
$9 $7 $5
(F) Fort Lauderdale
+ -100 200 300
Warehouse
1. Add 100 units on route FA
2. Subtract 100 from routes FB
3. Add 100 to route EB
4. Subtract 100 from route EA
104
$5 $4 $3
$8 $4 $3
$9 $7 $5
Warehouse
Total Cost = $5(100) + $8(100) + $4(200) + $9(100) + $5(200)

= $4,000
105
Degeneration
106
Degeneration
• Feasible basic solution of the transportation
problem is said to degenerate if one or more
basic variables have a value of zero.
• Basic solution may be degenerate if the rest of
the remaining supply and demand is the same
for the variables which will be chosen as the basic.
• Number of basic solution of transportation
problem should be: m + n – 1 (m = number of
rows, n = number of columns)
107
Illustration of Degeneration (1)
2 2 2 1
4
10 8 5 4
5
7 6 6 8
8
4 5 4 4
108
Illustration of Degeneration(2)
Supply
2 2 2 1
0
4
10 8 5 4
5
7 6 6 8
8
Demand 0 5 4 4
109
Supply
2 2 2 1
0
4
10 8 5 4
0
5
7 6 6 8
8
Demand 0 0 4 4
110
Supply
2 2 2 1
0
4
10 8 5 4
0
5
7 6 6 8
4
4
Demand 0 0 0 4
111
• Do a solution improvement with stepping stone method
Supply
2 2 2 1
4
4
10 8 5 4
5
5
7 6 6 8
8
4 4
Demand 4 5 4 4
112
Ilustrasi Degenerasi (8)
• Choose an empty cell then make the route ￫ C21 Supply
2 2 2 1
4
4
10 8 5 4
5
5
7 6 6 8
8
4 4
Demand 4 5 4 4
??? 113
￫ C21 (alternative path)
Supply
2 2 2 1
4
4
???
10 8 5 4
???
5
5
7 6 6 8
8
4 4
Demand 4 5 4 4
114
• add new points (new feasible solution cell) on other empty cell with
zero
Supply
2 2 2 1
4
4
10 8 5 4
5
0 5 0
7 6 6 8
8
4 4
Demand 4 5 4 4
115
Supply
2 2 2 1
4
4
10 8 5 4
5
0 5 0
7 6 6 8
8
4 4
Demand 4 5 4 4
116
• A point can be added freely with a condition that every empty cell
can be covered
Supply
2 2 2 1
4
4
10 8 5 4
5
5
7 6 6 8
8
0 0 4 4
Demand 4 5 4 4
117
Supply
2 2 2 1
4
4
10 8 5 4
5
5
7 6 6 8
8
0 0 4 4
Demand 4 5 4 4
118
If Supply ≠ Demand
Dummy
$5 $4 $3 0
$8 $4 $3 0
(E) Evansville 50 200 50 300
$9 $7 $5 0
Warehouse
requirement 300 200 200 150 850
New
Des Moines
capacity 119
Task
Known to transport tables from a case of distributing goods from the 4 factories to 3
storage warehouses as follows:
Warehouses
Factories Number of Product
Surabaya Yogyakarta Jakarta Barat
to be Distributed
200 100 70
Bandung 50
90 150 80
Bogor 50
60 10 90
Sukabumi 50
50 20 60
Bekasi 50
Warehouse
60 60 80
Capacity 120
Task
1. Determine the initial feasible solution (the number of items

distributed from each factory to each warehouse, as well
as the total cost of distribution) to the northwest corner
method, least cost, and Vogel approximation.
2. Determine the optimum solution (the number of items

distributed from each factory to each warehouse, as well
as the total cost of distribution) with u-v and stepping stone
method based on initial feasible solution with least cost
method.
121
Thank you 
122

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Transportation

• Transportation problems are generally

Minimize Z   cij xij m n

j = n+1 is a fictitious destination with demand bn 1   ai   b j

Minimize Z   cij xij m n

j = n+1 is a fictitious destination with demand an 1   b j   ai

and cm 1, j  0, j  1,2,..., n

x12 x22 x2n

cm1 cm2 cmn

Cost of shipping 1 unit from Fort Cleveland Total demand

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

• Northwest corner method

Total transportation cost Z = 93 31

Total transportation cost = 79 38

Total transportation cost Z = 68

ui  v j  cij for each basic variable xij

Optimality condition (in minimization problem) occurs when

cij  cij  ui  v j   0 for each basic variable

x11 enters basic 53

 = min(3, 2) = 2  x21 exit basic 54

Total transportation cost Z = 69 55

x33 enter basic 57

 = min(1, 4, 2) = 1  x14 exit basic 58

Total transportation cost Z = 68 60

Total transportation cost Z = 68 62

Determination of non-basic variable that enters the basic

a. Selecting one of the empty cells (which are not allocated)

Calculate the improvement index from it cost

Improvement index C12 = 2 – 1 + 4 – 10 + 7 – 6 = -4 75

Improvement index from each empty cell:

Improvement index from each empty cell:

C11 = -5 The largest negative

Improvement index from each empty cell:

Reallocation for x33

Improvement index from each empty cell:

Cost of shipping 1 unit from Fort Cleveland Total demand

3. Check to ensure that all supplies and demands are met

Means that the firm is shipping 100 bathtubs

Second, $3 is again the lowest cost cell so ship 100 units

Third, $4 is the lowest cost cell so ship 200 units from

Finally, ship 300 units from Albuquerque to Fort Lauderdale

Total Cost = $3(100) + $3(100) + $4(200) + $9(300)

Total Cost = $3(100) + $3(100) + $4(200) + $9(300)

a. Selecting one of the empty cells (which are not allocated)

Des Moines-Cleveland index

Total Cost = $5(100) + $8(100) + $4(200) + $9(100) + $5(200)

1. Determine the initial feasible solution (the number of items

2. Determine the optimum solution (the number of items

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