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Transportation Problem: - Transportation Problem - A "Special Case" of LP - Reasons?

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Transportation Problem

• Transportation problem - a “special case”


of LP

• Reasons?
– it can be formulated & solved using LP
technique
Review of Transportation Problem

Warehouse supply of televisions sets: Retail store demand for television sets:

1- Cincinnati 300 A - New York 200


2- Atlanta 200 B - Dallas 300
3- Pittsburgh 200 C - Detroit 200
total 700 total 600

From To Store
Warehouse
A B C
1 $16 $18 $11
2 14 12 13
3 13 15 17

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A Transportation Example (2 of 3)
Model Summary and Computer Solution with Excel
Minimize Z = $16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C + 13x3A + 15x3B + 17x3C

subject to
x1A + x1B+ x1C = 300
x2A+ x2B + x2C = 200
x3A+ x3B + x3C =300
x1A + x2A + x3A = 200
x1B + x2B + x3B = 250
x1C + x2C + x3C = 200
xij  0

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Transportation Tableau

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initial tableau
• Three different ways:
– Northwest corner method
– The Minimum cell cost method
– Vogel’s approximation method (VAM)

• Now, are these initial tableaus given us an


Optimal solution?

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Northeast corner

150
150

50

--

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Initial tableau of NW corner method
• Repeat the above steps, we have the following
tableau.
• Stop. Since all allocated have been assigned

Ensure that all columns and rows added up to its respective totals. 7
The Minimum cell cost method
Here, we use the following steps:
Steps:
Step 1 Find the cell that has the least cost
Step 2: Assign as much as allocation to this cell
Step 3: Block those cells that cannot be allocated
Step 4: Repeat above steps until all allocation have
been assigned.

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Step 1 Find the cell that has the least cost
Step 2: Assign as much as allocation to this cell

Step 1:
Step 2:

200

The min cost, so allocate as much resource as possible here

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Step 3: Block those cells that cannot be allocated
Step 4: Repeat above steps until all allocation
have been assigned.

Second iteration, step 4


Step 3:

--

--

200 75

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The initial solution

• Stop. The above tableau is an initial tableau


because all allocations have been assigned

(to p8)
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Vogel’s approximation method
Operational steps:
Step 1: for each column and row, determine its
penalty cost by subtracting their two of their
least cost
Step 2: select row/column that has the highest penalty cost
in step 1
Step 3: assign as much as allocation to the
selected row/column that has the least cost
Step 4: Block those cells that cannot be further allocated
Step 5: Repeat above steps until all allocations have been
assigned

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subtracting their two of their
least cost

Step 1

(8-6)

(11-7)

(5-4)

(6-4) (8-5) (11-10)

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Steps 2 & 3
Step 2:
Highest penalty
cost

Step 3: this has the least cost


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Step 4

--- ---

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Step 5
Second Iteration

---

--- ---

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3 Iteration of VAM
rd

--- ---

--- ---

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Initial tableau for VAM

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Solution methods
• We need a method, like the simplex
method, to check and obtain the optimal
solution
• Two methods:

1. Stepping-stone method
2. Modified distributed method (MODI)

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Stepping-stone method
Let consider the following initial tableau from the Min Cost algorithm

There are
Non-basic variables

These are basic


variables
Question: How can we introduce
a non-basic variable into basic variable?
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Introduce
a non-basic variable into basic variables
• Here, we can select any non-basic variable as
an entry and then using the “+ and –” steps to
form a closed loop as follows:

let consider this non


basic variable

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Stepping stone

+ -

- +

The above saying that, we add min value of all –ve cells into cell that has “+” sign, and subtracts
the same value to the “-ve” cells 22
Thus, max –ve is min (200,25) = 25, and we add 25 to cell A1 and A3, and subtract it from B1 and A3
Stepping stone

The above tableaus give min cost = 25*6 + 120*10 + 175*11


175*4 + 100* 5 = $4525

We can repeat this process to all possible non-basic cells in that above
tableau until one has the min cost! NOT a Good solution method 23
Total demand ≠ total supply

Note that, total demand=650, and total supply = 600

How to solve it?

We need to add a dummy row and assign o cost to each cell as such .. 24
Dd≠ss

Extra row, since Demand > supply


25
Dd≠ss

Extra column is added


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