Transportation problems

North west corner cell method Least cost method Vogel approximation method

It is a special kind of linear programming problem in which goods are transported from a set of destinations subject to supply and demand of the source and destination , such that the cost of transportation is minimized. SOURCE Plants Plants DESTINATION Markets Finished goods warehouse Markets COMMODITY Finished Goods Finished Goods OBJECTIVE Minimizing total shipping cost Minimizing total shipping cost Minimizing total shipping cost Minimizing total shipping cost Minimizing total shipping cost Minimizing total shipping cost

Finished goods warehouse Suppliers

Finished Goods

Plants

Raw materials

Suppliers

Raw materialswareho use Plants

Raw materials

Raw materials warehouse

Raw materials

 m be the number of source n be the number of destinations ai be the supply at source i

bj be the demand at destination j

cij be the cost of transportation per unit from source to

destination j jXij be the nuber of units to be transported from source i to destination j

Algorithm for north west corner cell method

Step 1 Find the minimum demand and supply in NW corner . Step2 Allocate min value to current value and subtract from demand and supply values Step3 Check for zero supply /demand in col and row Step 4 Delete row coloum .Go to step 6. Step5 Delete both row and col Step 6 Check if 1 row or col left Step 7 Match demand and supply of that row and col Go to phase 2 DESTINATION S O U R C E 1 1 2 3 dema nd 3 2 8 250 2 1 6 3 350 3 7 5 3 400 4 4 9 2 200 supply 300 400 500 1200

DESTINATION S O U R C E 1 2 3 4 supply

25 0
3 2 8

300

2 3

6 3

5 3

9 2

400 500

dema nd

250

350

400

200

1200

DESTINATION S O U R C E 1 1 25 0 2 1 3 7 4 4 supply 300 50 400 500 1200

3
2 3 dema nd 2 8 250 6 3 350 5 3 400 9 2 200

DESTINATION S O U R C E 2 3 4 supply

1
1 2 3 6 3

5 0

50 0

5 3

9 2

400 500

dema nd
S O U R C E 2 2

350 300
3 30 0 5

400

200

1200

DESTINATION 4 9 suppl y 400 100 500 1200

6
3 dema nd 3 300 0 3 400 2 200

DESTINATION S O U R C E 3 2 3 5 3 4 9 2 suppl y 100 500 1200

demand 400 200 300 DESTINATION S O U R C E 3 3 dema nd 3 4 2

suppl y 500 0 1200

300 0 200 0

Solution =3x250+1x50+6x300+5x100+3x300+ 2 x 200=4400

3 S O U R C E 1 1 3 2 2 25 0 1 30 0 10 0 9 400 2 50 3 7 4 4 supply 300

6
3 8 3

5
30 0 3 2 200 1200 400 20 0 500

dema nd

250

350

Solve
MARKET
1 P L A N T 1 2 3 4 10 26 8 14 2 2 18 4 22 3 16 12 14 20 4 14 13 12 8 5 10 16 10 18 6 0 0 0 0 sup ply 300 500 825 375

dem and

350

400

250

250

150

400

120 0

Least cost cell method

Find min of values in cost matrux Find min of supply and demand

Allocate X units to cell with matrix minimum

Check for 0 in row or col Delete the 0 coldel both row colwith respect to

min matrix Chk whether one row col left DESTINATION Match demnad ans supply col
S O U R C E 1 1 3 1 2 2 6 5 9 400 2 30 0 3 7 4 4 supply

500

Least cost method

DESTINATION S O U R C E 1 2 2 25 0 2 6 3 5 4 9 supply 400 150

3
dema nd

8
250 0

3
50

3
400

2
200

500
1200

Least cost method

DESTINATION S O U R C E 2 2 3 6 3 3 5 3 4 9 20 0 supply 150 500 300 1200 DESTINATION S O U R C E 2 2 6 dema nd 50 5 0 5 100 3 10 0 sup ply 15 0 12 00

2
400 50 supply 150 300 300 0 3 1200 200 0

dema nd DESTINATION S O U R C E 2 2 3 deman d 6 3 3 5

50 400 100

Least cost method =1x300+2x250+ 6x50+5x100+3x300+2x200=Rs 2900

DESTINATION S O U R C E 1 1 3 1 2 2 3 8 25 0 6 3 3 dema nd 250 350 400 50 5 30 0 2 200 1200 20 0 500 100 9 400 2 300 3 7 4 4 supply

Vogels approximation method (MODI) VAM

Find row penalties diff bw 1st and 2nd min Find col penalties Find max among row and col penalties Identify least Find min of supply and demand values Allocate min value to selected cell and subtract from demand and supply values Check for 0 Delete row or col Revise row penalties after deletion Check whether row col left out Match supply and demand of undeleted col/row

VAM
DESTINATION S O U R C E 1 1 3 2 1 3 7 4 4 supply 300 2 penalt y

2
2 3 8

25 0

400 150
500

3*

dema nd

250 0
1

350
2

400
2

200
2

1200

VAM
DESTINATION S O U R C E 2 1 1 30 0 3 7 4 4 supply 300 0 3* penalt y

2 3

6 3

5 3

9 2

150 500

1 1

dema nd

350 50
2

400
2

200
2

1200

VAM
DESTINATION S O U R C E 2 2 6 3 5 4 9 supply 150 1 penalt y

3
dema nd

3
50 3

3
400 2

2
200 200 7*

500 300
1200

VAM
DESTINATION S O U R C E 2 2 6 3 5 supply 150 1 penalt y

3
dema nd

3
50 3

3
400 2

300
1200

VAM
DESTINATION S O U R C E 2 2 3 3 dema 50 0 400 nd DESTINATION 3* 2 S O U R C E 3 2 3 5 3 suppl y 150 250 1200 1200 6 30 0 3 5 3 supply 150 300 250 1 0 penalt y

deman 400 d

VAM
DESTINATION S O U R C E 1 1 2 2 3 8 3 dema nd 250 350 50 3 400 3 1 25 0 6 5 25 0 2 200 1200 20 0 500 150 9 400 2 3 300 7 4 4 supply 300

Solution =3x250+1x50+6x300+5x100+3x200= 4400

DESTINATION S O U R C E 1 1 3 2 2 25 0 1 30 0 10 0 9 400 2 50 3 7 4 4 supply 300

6
3 8 3

5
30 0 3 2 200 1200 400 20 0 500

Deman 250 d

350

U-V = m+n -1
DESTINATION V=12 W A R E H O U S E 1 U=0 1 10 2 U=-2 2 5 10 V=2 2 2 0 3 15 2 U=3 U=10 3 15 4 20 15 13 2 5 8 5 30 20 5 14 7 15 20 10 4 20 30 V=3 3 V=-4 V=-2 4 5 15 5 9 supp ly 25

DEMAN D

20

30

10

25

U-V = m+n -1
DESTINATION V=12 W A R E H O U S E 1 U=0 1 10 2 U=-2 2 5 10 V=2 2 2 0 3 15 2 U=3 U=10 3 15 4 20 15 13 2 5 8 5 30 20 5 14 7 15 20 10 4 20 30 V=3 3 V=-4 4 5 15 V=-2 5 9 supp ly 25

DEMAN D

20

30

10

25