Transportation problem in linear programming

The transportation problem deals with a special class of linear programming problems in which the objective is to transport a homogeneous product (single commodity) manufactured at several plants (origins) to a number of different destinations at a minimum total cost. The statement of the problem must include: The total supply available at the origin The total quantity demanded by the destinations The cost of shipping a unit of goods from a known origin to a known destination

Our objective is to determine the optimal allocation that results 8/2/12 1 in minimum total shipping cost.
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Assumptions in transportation problem

Only a single type of commodity is being shipped from an origin to a destination. Total supply is equal to the total demand. Supply and Demand are all positive integers.

The basic steps of the transportation technique are:

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Determine a starting feasible solution Determining an entering variable from among the non basic variables Determine a leaving variable from among the variables of the current basic solution, then find the new basic solution.
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North West Corner Rule

It is a method for computing a starting feasible solution of a transportation problem, where the basic variables are selected from the North West corner ( i.e., top left corner ). Steps in North West Corner Rule
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Select the north west (upper left-hand) corner cell of the transportation table and allocate as many units as possible equal to the minimum between available supply and demand Adjust the supply and demand numbers in the respective rows and columns. If the demand for the first cell is satisfied, then move horizontally to the next cell in the second column. If the supply for the first row is exhausted, then move down to the first cell in the second row. 8/2/12 3 Continue the process until all supply and demand values are
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Example
A firm has three pipe factories at Karachi, Mirpurkhas and Sukker. The factories have quarterly manufacturing capacities as 2000, 2500 and 3000 respectively. Quarterly demand at Nawabshah, Thatta, Ghotki, and Shikarpur are 1500, 2500,1500, and 2000 respectively. Transportation cost per pipe is given in the following table. Schedule the unit transported to each destination, so that the cost is minimum.

Nawabs Thatta GhotkiShikarpSuppl hah ur y 6 2 1 1 2000 Karachi 2 1 3 2. 1 9 2500 MirpurK 5 0 has 7 1 3 2 Sukkur 3000 0 Deman 1500 2500 8/2/12 1500 2000

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A. Determination of the starting solution

Allocate the maximum amount allowable by the supply and demand to the variable in the northwest corner of the tableau. The satisfied column (row) is then crossed out, indicating that the remaining variables in that column (row) equal zero. Adjust the amount of supply and demand for all uncrossed out column and rows.

Nawabs Thatta GhotkiShikarpSuppl hah ur y 1 1 2000 Karachi 1500 6 500 2 2 1 3 20002. 500 1 9 2500 MirpurK 5 0 has 7 1 3 2 Sukkur 3000 0 1000 2000 Deman 1500 2500 8/2/12 1500 2000
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The cells with allocated values are basic variables (m+n-1 = 6), and the remaining are non basic variables with zero values. The associated transportation cost is: = (1500*6)+(500*2)+(2000*2.5)+(500*10)+(1000*3)+(2000*2) = 27000

B. Determination of the entering variable (Method of multiplier)

In this method we associate multiplier u and v with row and column of the tableau. For each basic variable in the current solution, u and v must satisfy the equation; u1 + v1 = c11 , for each basic variable Assume u1 =0

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Nawabs Thatta GhotkiShikarp U hah ur 1 1 Karachi 1500 6 500 2 0 - 2 1 MirpurK 2. 3 20002. 500 1 2. 9 0.5 3. 5 has 5 5 0 0 7 1 1000 2000 2 -6.5 3 Sukkur 5 0 14. 7. 6 V 2 9.5 8.5 5 5

The non basic variable can be evaluated from the equation; c = u+ v - c , for each non basic variable since in the non basic variables,3.5 is the most positive value 8/2/12 (satisfying the condition of optimality in minimization case in

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C. Determination of the leaving variable construction)

(Loop

Construct a loop for the current entering variable in the current iteration. The loop starts and ends at the designated non basic variable. The end points must be basic variables except the end point that is associated with the entering variable.

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Nawabs Thatta GhotkiShikarpSuppl hah ur y 6 2 1 1 Karachi 1500 - 500 + 2000 2 1 3 2. 1 9 MirpurK + 20005 500 0 2500 has 7 1 3 2 0 1000 2000 Sukkur 3000 Deman Nawabs Thatta GhotkiShikarpSuppl 1500 2500 1500 2000 d hah ur y 6 2 1 1 Karachi 2000 2000 2 1 3 2. 1 9 MirpurK 1500 500 5 500 0 2500 has 7 1 3 2 0 1000 2000 Sukkur 3000
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The new basic solution is now checked for optimality by computing the new multipliers, and thus computing the values of c for non basic variables.

Nawabs hah 6 Karachi MirpurK 1500 3 3. has 5 7 Sukkur 11 V 2.5

Thatta GhotkiShikarp U ur 1 1 2000 2 0 - 2 1 500 2. 500 1 2. 9 0.5 2. 5 5 5 0 0 1 1000 2000 2 -6.5 3 0 14. 2 9.5 8.5 5

Since all the non basic variables in the new tableau are non positive, the optimum solution has been attained
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The optimum solution gives the associated transportation cost as: = (1500*3)+(2000*2)+(500*2.5)+(500*10)+(1000*3)+(2000*2) = 21750

Thatta GhotkiShikarpSuppl hah ur y 6 2000 2 1 1 2000 Karachi 2 1 9 2500 MirpurK 1500 3 500 2. 500 1 5 0 has 7 1 3 2 Sukkur 3000 0 1000 2000 Deman d 1500
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Optimum Tableau Nawabs

2500 1500 2000

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Home Work

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