Extension of LP

Nur Aini Masruroh

Outline
Transportation problem
Assignment problem
Short-route problem
Transportation model
Introduction
Involves the shipment of some homogeneous commodity from
various sources (origins) of supply to a set of destinations (sinks)
each demanding specified levels of the commodity.

The model
m sources, i = 1, 2,,m
n destinations, j = 1, 2,,n
s
i
supply units available at source i
d
j
demand units available at destination j
c
ij
unit transportation cost from source i to destination j
x
ij
amount of goods shipped from source i to destination j

Example 1
A company has 3 plants from which it must supply 2 distributors. The
first distributor requires 2100 units of the product, while the second
requires 2500. The data on the 3 plants are as follows:

Plant Capacity Unit cost,
$/unit
Transportation cost, $/unit
Distr 1 Distr 2
1 2000 5,000 1,000 1,000
2 1200 4,000 2,000 3,000
3 1400 7,000 2,000 2,000
LP formulation for example 1
Let xij = the amount of product shipped from Plant i to Distributor j

= =
=
3
1
2
1
min
i j
ij ij
x c z
Subject to
2 , 1 ; 3 , 2 , 1 0
3 , 2 , 1
2 , 1
2
1
3
1
= = >
= =
= =

=
=
j i x
i s x
j d x
ij
j
i ij
i
j ij
Demand of Distr j
Supply of Plant i
Unit transport cost
Example 2
A caterer supplies napkins to a restaurant as follows:

Day 1 2 3 4 5 Total
Quantity 1000 700 800 1200 1500 5200
He can buy them at $1.00 each (new) or send them for overnight
wash at $0.20 each or 2-day wash at $0.10 each. How should he
supply the restaurant at minimum cost?

Formulate this problem into LP!

LP Formulation of a m-Source, n-
Destination Transportation Problem

Assumption: Total supplies = Total demands
Let x
ij
= the amount of product shipped from source i to destination j

j and i all f or x
m i s x
n j d x
to subject
x c z
ij
i
n
j
ij
j
m
i
ij
m
i
n
j
ij ij
0
,..., 1
,..., 1
min
1
1
1 1
>
= =
= =
=

=
=
= =
Dual of a m-Source, n-Destination LP
Transportation Problem

Let
u
i
= the dual variable associated with supply constraint i
v
j
= the dual variable associated with demand constraint j

The dual problem is given by


= =
+ =
n
j
j j
m
i
i i
v d u s w
1 1
max
Subject to
u
i
+ v
j
c
ij
i=1,,m ; j=1,,n
u
i
, v
j
unrestricted for all i and j
Transportation algorithm
1. Set up the problem in the standard cost requirement table
form.
2. Find an initial basic feasible solution.
3. Determine whether a better feasible solution is possible. If
yes, go to Step 4; otherwise, the optimal solution has been
found, stop.
4. Determine the improved basic feasible solution and then go
to Step 3.

Initial solution procedures
The North-West Corner Method
The Least Cost Method
The Vogels Approximation Method (VAM)

North west corner
The method starts at the north-west corner cell of cost requirement
matrix

The steps:
1. Allocate as much as possible to the selected cell and adjust the
associated amount of supply and demand by subtracting the
allocated amount
2. Cross out the row or column with zero supply or demand to
indicate that no further assignments can be made in that row or
column. If both a row or a column net to zero simultaneously,
cross out one only, and leave a zero supply (demand) in the
uncross-out row (column)
3. If exactly one row or column is left uncross-out, stop.
Otherwise, move to the cell to the right if a column has just
been crossed out or below if a row has been crossed out. Go
to step 1
Least Cost Method
Find the better starting solution by
concentrating on the cheapest routes
It starts by assigning as much as possible to
the cell with the smallest unit cost (ties are
broken arbitrarily)
The VAM method
1. Calculate a penalty for each row (column) by subtracting the
smallest cost element in the row (column) from the next smallest
cost element in the same row (column).

2. Identify the row or column with the largest penalty. Allocate as
much as possible to the variable with the least cost in the
selected row or column.

3. Adjust the supply and demand and cross out the satisfied row or
column. If a row and a column are satisfied simultaneously, only
one of them is crossed out and the remaining row (column) is
assigned a zero supply (demand). Any row or column with zero
supply or demand should not be used in computing future
penalties.

The VAM method (contd)
4. Check number of uncrossed out rows and columns
a) If exactly one row and one column remain uncrossed out, stop.
b) If only one row (column) with positive supply (demand) remains
uncrossed out, determine the basic variables in the row (column)
by the Least Cost Method and then stop.
c) If all uncrossed out rows and columns have zero supply and
demand, determine the zero basic variables by the Least Cost
Method and then stop; otherwise, re-compute the penalties for
all the uncrossed out rows and columns and then go to Step 2.

How to determine optimum solution?
Use the method of multipliers
The method of multipliers
1. Associate with each Row
i
of the transportation tableau a
multiplier u
i
.
2. Associate with each Col
j
of the transportation tableau a
multiplier v
j
.
3. For each basic variable x
ij
in the current solution, write the
equation: u
i
+ v
j
= c
ij
.
These equations give m+n-1 equations in m+n unknowns.
4. Set u
1
=0 and solve the m+n-1 equations in the remaining
m+n-1 unknown multipliers.
5. Evaluate cij bar= c
ij
u
i
-v
j
for each non-basic variable x
ij
.
6. Select the most negative cij bar as the entering variable to
enter the basic.

The method of multipliers
7. Determine the leaving variable by constructing a loop
associated with the selected entering variable as follows:
a) Identify a closed loop which starts and ends at the selected non-
basic variable.
b) The loop consists of successive horizontal and vertical segments
whose end points must be basic variables, except for the two
segments starting and ending at the non-basic variable.
c) The leaving variable is selected from among the corner variables
of the loop which will decrease when the entering variable
increases above zero level. It is selected as the one having the
smallest value, since it will be the first to reach zero value and
any further decrease will cause it to be negative

Irregular transportation problem
Imbalanced transportation problem (Supply
demand)
Add dummy row/column
Degeneration
Balanced transportation table can be solved if the number
of allocated cells = number of raw + number of column 1
If not, add artificial allocation with the amount of 0 so that
the stepping stone path can be performed
Forbidden route
Assign M (big value) to the respective route

Application of transportation problems
1. Transportation of goods from supply points to
demand centers to minimize total transportation
cost.

2. Refuse collection
The refuse collection includes the collection of refuse at
the various sources and transporting them to the disposal
points. The operation may be divided into the following
activities:
a) Storage at or near the sources
b) Collection and haulage of the refuse to the disposal sites
c) Disposal
The problem can be modeled as a transportation problem.


Application of transportation problems
(contd)
3. Recruitment of staff
Suppose an organization has vacancies on n types of
jobs. Each type of job j requires dj persons to fulfill the
vacancy. After advertising, the organization receives
applications from m applicants to apply for these posts.
Let cij denote the cost of assigning applicant i to job j. The
problem can be modeled as a transportation problem.

Application of transportation problems
(contd)
4. Production planning
Given the demand dj for n periods and the regular time
and overtime production rates as well as production costs
and inventory holding costs, an optimal production
schedule to minimize the total of production and inventory
costs can be obtained by modeling this as a transportation
problem.

Assignment problem
Given
n jobs
n machines
c
ij
: the cost of doing job j on machine I

The objective of the problems is to assign the jobs to the
machines (one job per machine) at the least total cost.
It is a special case of transportation problem with
m = n
s
i
= 1
d
j
= 1

LP formulation of assignment problem
Consider a n jobs and n machines assignment problem

n 1,..., j n; 1,..., i 1 or
s constraint Machine
s constraint J ob
to subject
otherwise
job with assigned is machine If
Let
= = =
= =
= =
=

=
=
= =
0
,..., 1 1
,..., 1 1
min
0
1
1
1
1 1
ij
n
i
ij
n
j
ij
n
i
n
j
ij ij
ij
x
n j x
n i x
x c z
j i
x
Assignment problem an example
We have 3 jobs and 3 workers. The 3 workers have different levels
of expertise necessary to do the three jobs. Labor costs will vary
depending on which worker is assigned to each job. The cost matrix
is given below:

Job
Worker
1 2 3
1 7 15 15
2 9 11 13
3 11 13 13
Problem: Which job to assign to each worker so as to minimize
our cost?

Hungarian method
The steps:
1. For the original cost matrix, identify each rows
minimum, and subtract it from all the entries of the
row
2. For the matrix resulting from step 1, identify each
columns minimum, and subtract it from all the
entries of the column
3. Identify the optimal solution as the feasible
assignment associated with the zero elements of
the matrix obtained in step 2
Shortest route problem
Given a network G with n nodes and m edges and a
cost cij associated with each edge (i,j) in G.

Problem: Find the shortest route from node 1 to note
n in G. The cost of the route is the sum of costs of
all the edges in the route.

Example 1
What is the shortest route from node 1 to node 7?

Example 2
There are six time periods during which a piece of equipment must
be used.
Let cij = The cost of renting an equipment at the beginning of period
i, maintaining it until the beginning of period j and then trading it
for another new equipment.
The objective is to find the shortest route from node 1 to node 7.
Each node entered in this path represents a replacement.

LP Formulation of the Shortest Route
Problem

Given a network G with n nodes and m edges and a cost cij
associated with each edge (i,j) in G.

j i x
n i if
n i if
i if
x x
x c z
j i
x
ij
i k
ki
j i
ij
G j i
ij ij
ij
, all for 1 or 0
1
1 0
1 1
to subject
min
otherwise 0
route the in is ) , ( edge If 1
Let
) , (
=

=
< <
=
=
=

= =
e
LP formulation example 1
min z = 6x
12
+9x
13
+ 3x
14
+ 4x
24
+ 3x
26
+ 10x
27
+2x
34
+ 4x
35
+ 6x
45
+ x
56
+ 4x
57
+ 6x
67
subject to
Node 1: x
12
+ x
13
+ x
14
= 1
Node 2: x
24
+ x
26
+ x
27
- x
12
= 0
Node 3: x
34
+ x
35
- x
13
= 0
Node 4: x
45
(x
14
+x
24
+x
34
) = 0
Node 5: x
56
+x
57
(x
35
+x
45
) = 0
Node 6: x
67
(x
26
+x
56
) = 0
Node 7: (x
27
+x
57
+x
67
) = -1
x
ij
0, for all (i,j) G

Shortest route algorithm
1. Label node 1 with L
1
= 0
2. Continue to label the remaining nodes according to the
following formula: L
j
= min {L
i
+c
ij
(i,j)G}
3. When the last node, n, has been labeled, L
n
is the shortest
distance from node 1 to node n.
4. The route is determined by tracing backward from node n to
all nodes so that
L
j
= L
i
+c
ij

Shortest route algorithm example 1
L
1
= 0
L
2
= min(L
1
+6) = 6
L
3
= min(L
1
+9) = 9
L
4
= min(L
2
+4, L
1
+3, L
3
+2) = min(10,3,11) = 3
L
5
= min(L
3
+4, L
4
+6) = min(13,9) = 9
L
6
= min(L
2
+3, L
5
+1) = min(9,10) = 9
L
7
= min(L
2
+10, L
5
+4 , L
6
+6) = min(16,13,15) = 13
Shortest path = 1 4 5 7