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- Assignment 4
- Transshipment Problem
- TRANsSHIPMENT PROBLEM
- Operations Research
- Operation research Project Transportation
- LEADERSHIP THEORIES AND STYLES
- MANAGEMENT OF ORGANIZATIONAL CONFLICT
- SEN301
- Operations Research Project.docx
- Operation Research
- Network Optimization Models
- Transportation and Assignment Models
- List of Formulas for Queuing Theory
- TRANSSHIPMENT_PROBLEMS.ppt
- transportation problem in operation research
- Note1 Model Formulation
- A Project on Transportation Problem
- Example for Solution of Transportation Problem
- Transshipment
- 7FE Project Framework

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Ý

?

Y

Description

A transportation problem basically deals with

the problem, which aims to find the best way to

fulfill the demand of n demand points using the

capacities of m supply points. While trying to

find the best way, generally a variable cost of

shipping the product from one supply point to

a demand point or a similar constraint should

be taken into consideration.

V

Y

Æormulating Transportation

Problems

Example 1: Powerco has three electric

power plants that supply the electric

needs of four cities.

The associated supply of each plant and

demand of each city is given in the table 1.

The cost of sending 1 million kwh of

electricity from a plant to a city depends

on the distance the electricity must travel.

Y

Transportation table

A transportation problem is specified by

the supply, the demand, and the shipping

costs. So the relevant data can be

summarized in a transportation tableau.

The transportation tableau implicitly

expresses the supply and demand

constraints and the shipping cost between

each demand and supply point.

Y

Shipping costs, Supply, and Demand for

Power co Example

Æ

½ ½ ½ ½

½ ½ ½ ½

½ ½ ½ ½

Y

Solution

1. Decision Variable:

Since we have to determine how much

electricity is sent from each plant to each

city;

and sent to city j

1 and sent to city 4

ë

Y

Vbjective function

Since we want to minimize the total cost of

shipping from plants to cities;

Minimize Z = 8X11+6X12+10X13+9X14

+9X21+12X22+13X23+7X24

+14X31+9X32+16X33+5X34

0

Y

Supply Constraints

Since each supply point has a limited production

capacity;

X11+X12+X13+X14 <= 35

X21+X22+X23+X24 <= 50

X31+X32+X33+X34 <= 40

Ô

Y

. Demand Constraints

Since each supply point has a limited production

capacity;

X11+X21+X31 >= 45

X12+X22+X32 >= 20

X13+X23+X33 >= 30

X14+X24+X34 >= 30

Y

5. Sign Constraints

Since a negative amount of electricity can not be

shipped all Xij·s must be non negative;

?

Y

DP Æormulation of Powerco·s Problem

Min Z = 8X11+6X12+10X13+9X14+9X21+12X22+13X23+7X24

+14X31+9X32+16X33+5X34

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)

??

Y

[eneral Description of a Transportation

Problem

1. A set of m supply points from which a good

is shipped. Supply point i can supply at most

si units.

2. A set of n demand points to which the good

is shipped. Demand point j must receive at

least di units of the shipped good.

3. Each unit produced at supply point i and

shipped to demand point j incurs a variable

cost of cij.

?V

Y

Xij = number of units shipped from supply point i to

demand point j

"

"

YY YYY ¦

YYY "¦

?

Y

åalanced Transportation Problem

If Total supply equals to total demand, the

problem is said to be a balanced

transportation problem:

"

· ·

?

Y

åalancing a TP if total supply exceeds total

demand

can balance the problem by adding dummy

demand point. Since shipments to the

dummy demand point are not real, they

are assigned a cost of zero.

?

Y

åalancing a transportation problem if total

supply is less than total demand

supply that is strictly less than total

demand the problem has no feasible

solution.There is no doubt that in such a

case one or more of the demand will be

left unmet. [enerally in such situations a

penalty cost is often associated with

unmet demand and as one can guess this

time the total penalty cost is desired to be

minimum

?ë

Y

Æinding åasic Æeasible Solution for

TP

Unlike other Dinear Programming

problems, a balanced TP with m supply

points and n demand points is easier to

solve, although it has m + n equality

constraints.The reason for that is, if a set

of decision variables (xij·s) satisfy all but

one constraint, the values for xij·s will

satisfy that remaining constraint

automatically.

?0

Y

Methods to find the bfs for a balanced TP

There are three basic methods:

3. Vogel·s Method

?Ô

Y

Northwest Corner Method

To find the bfs by the NWC method:

åegin in the upper left (northwest) corner of

the transportation tableau and set x11 as

large as possible (here the limitations for

setting x11 to a larger number, will be the

demand of demand point 1 and the supply

of supply point 1.Your x11 value can not be

greater than minimum of this 2 values).

?

Y

According to the explanations in the previous slide

we can set x11=3 (meaning demand of demand

point 1 is satisfied by supply point 1).

V

Y

After we check the east and south cells, we saw that we

can go east (meaning supply point 1 still has capacity to

fulfill some demand).

a

a a

a

a a

a

V?

Y

After applying the same procedure, we saw that we can

go south this time (meaning demand point 2 needs more

supply by supply point 2).

a

a

a

a

a

VV

Y

Æinally, we will have the following bfs, which is:

x11=3, x12=2, x22=3, x23=2, x24=1, x34=2

a

V

Y

Minimum Cost Method

The Northwest Corner Method dos not utilize

shipping costs. It can yield an initial bfs easily but

the total shipping cost may be very high. The

minimum cost method uses shipping costs in

order come up with a bfs that has a lower cost. To

begin the minimum cost method, first we find the

decision variable with the smallest shipping cost

(ij). Then assign ij its largest possible value,

which is the minimum of si and dj

V

Y

After that, as in the Northwest Corner Method we

should cross out row i and column j and reduce the

supply or demand of the noncrossed-out row or

column by the value of Xij. Then we will choose the

cell with the minimum cost of shipping from the

cells that do not lie in a crossed-out row or column

and we will repeat the procedure.

V

Y

An example for Minimum Cost Method

Step 1: Select the cell with minimum cost.

V

V

V

Vë

Y

Step 2: Cross-

Cross-out column 2

V

V

V

V

V0

Y

Step 3: Æind the new cell with minimum shipping

cost and cross-

cross-out row 2

V a

V a

V

a

VÔ

Y

Step 4: Æind the new cell with minimum shipping

cost and cross-

cross-out row 1

V a

V a

V

a

V

Y

Step 5: Æind the new cell with minimum shipping

cost and cross-

cross-out column 1

V

V

V

Y

Step 6: Æind the new cell with minimum shipping

cost and cross-

cross-out column 3

V

V

V

?

Y

Step 7: Æinally assign 6 to last cell. The bfs is found

as: X11=5, X21=2, X22=8, X31=5, X33=4 and X34=6

V

V

V

V

Y

Vogel·s Method

åegin with computing each row and column a

penalty.The penalty will be equal to the difference

between the two smallest shipping costs in the

row or column. Identify the row or column with

the largest penalty. Æind the first basic variable

which has the smallest shipping cost in that row

or column. Then assign the highest possible value

to that variable, and cross-out the row or column

as in the previous methods. Compute new

penalties and use the same procedure.

Y

An example for Vogel·s Method

Step 1: Compute the penalties.

ë 0 Ô

? 0ë?

? Ô 0Ô

? 0Ô?ë

?

?ë Ô 00 0ÔÔ0

Y

Step 2: Identify the largest penalty and assign the

highest possible value to the variable.

ë 0 Ô

ÔëV

? Ô 0Ô

? 0Ô?ë

?

?ë 0ÔÔ0

Y

Step 3: Identify the largest penalty and assign the

highest possible value to the variable.

ë 0 Ô

? Ô 0Ô

?

?

?ë

ë

Y

Step 4: Identify the largest penalty and assign the

highest possible value to the variable.

ë 0 Ô

? Ô 0Ô

?

?

0

Y

Step 5: Æinally the bfs is found as X11=0, X12=5,

X13=5, and X21=15

ë 0 Ô

? Ô 0Ô

?

Ô

Y

The Transportation Simplex

Method

algorithm is used to solve a transportation problem.

Y

ow to Pivot a Transportation Problem

åased on the transportation tableau, the

following steps should be performed.

Determine (by a criterion to be

developed shortly, for example northwest corner

method) the variable that should enter the basis.

Æind the loop (it can be shown that there

is only one loop) involving the entering variable

and some of the basic variables.

Counting the cells in the loop, label them

as even cells or odd cells.

Y

Æind the odd cells whose variable assumes

the smallest value. Call this value . The variable

corresponding to this odd cell will leave the basis.

To perform the pivot, decrease the value of each

odd cell by and increase the value of each even

cell by . The variables that are not in the loop

remain unchanged.The pivot is now complete. If

=0, the entering variable will equal 0, and an odd

variable that has a current value of 0 will leave the

basis. In this case a degenerate bfs existed before

and will result after the pivot. If more than one

odd cell in the loop equals , you may arbitrarily

choose one of these odd cells to leave the basis;

again a degenerate bfs will result

?

Y

Assignment Problems

Example: Machine has four jobs to be completed.

Each machine must be assigned to complete one

job. The time required to setup each machine for

completing each job is shown in the table below.

Machine wants to minimize the total setup time

needed to complete the four jobs.

V

Y

Setup times

(Also called the cost matrix)

¦

Y

The Model

According to the setup table Machinco·s problem

can be formulated as follows (for i,j=1,2,3,4):

YY

Y

Æor the model on the previous page note that:

of job j

demands of job j

transportation problem in which all supplies and

demands are equal to 1.

Y

The Assignment Problem

" "

Minimize

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ë

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Comments on the Assignment Problem

ë The Air Æorce has used this for assigning

thousands of people to jobs.

assignment problem predates research on DPs.

techniques exist.

´ 10 years ago,Yusin Dee and J. Vrlin solved a problem

with 2 million nodes and 40 million arcs in ½ hour.

0

Y

Although the transportation simplex appears to be

very efficient, there is a certain class of transportation

problems, called assignment problems, for which the

transportation simplex is often very inefficient. Æor

that reason there is an other method called The

ungarian Method.The steps of The ungarian

Method are as listed below:

Æind a bfs. Æind the minimum element in each

row of the mxm cost matrix. Construct a new matrix

by subtracting from each cost the minimum cost in its

row. Æor this new matrix, find the minimum cost in

each column. Construct a new matrix (reduced cost

matrix) by subtracting from each cost the minimum

cost in its column.

Ô

Y

Draw the minimum number of lines

(horizontal and/or vertical) that are needed to

cover all zeros in the reduced cost matrix. If m

lines are required , an optimal solution is available

among the covered zeros in the matrix. If fewer

than m lines are required, proceed to step 3.

value k) in the reduced cost matrix that is

uncovered by the lines drawn in step 2. Now

subtract k from each uncovered element of the

reduced cost matrix and add k to each element

that is covered by two lines. Return to step2.

Y

Transshipment Problems

A transportation problem allows only shipments

that go directly from supply points to demand

points. In many situations, shipments are allowed

between supply points or between demand points.

Sometimes there may also be points (called

transshipment points) through which goods can be

transshipped on their journey from a supply point

to a demand point. Æortunately, the optimal

solution to a transshipment problem can be found

by solving a transportation problem.

Y

Transshipment Problem

ë An extension of a transportation problem

´ More general than the transportation problem in that in

this problem there are intermediate ´transshipment

pointsµ. In addition, shipments may be allowed between

supply points and/or between demand points

ë DP Æormulation

´ Supply point: it can send goods to another point but

cannot receive goods from any other point

´ Demand point It can receive goods from other points

but cannot send goods to any other point

´ Transshipment point: It can both receive goods from

other points send goods to other points

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Y

The following steps describe how the optimal

solution to a transshipment problem can be found

by solving a transportation problem.

Step1. If necessary, add a dummy demand point

(with a supply of 0 and a demand equal to the

problem·s excess supply) to balance the problem.

Shipments to the dummy and from a point to itself

will be zero. Det s= total available supply.

Step2. Construct a transportation tableau as

follows: A row in the tableau will be needed for

each supply point and transshipment point, and a

column will be needed for each demand point and

V transshipment point.

Y

Each supply point will have a supply equal to it·s

original supply, and each demand point will have a

demand to its original demand. Det s= total

available supply.Then each transshipment point will

have a supply equal to (point·s original supply)+s

and a demand equal to (point·s original demand)+s.

This ensures that any transshipment point that is a

net supplier will have a net outflow equal to

point·s original supply and a net demander will

have a net inflow equal to point·s original demand.

Although we don·t know how much will be

shipped through each transshipment point, we can

be sure that the total amount will not exceed s.

Y

Transshipment Example

ë © : Widgetco manufactures widgets at

two factories, one in Memphis and one in

Denver.The Memphis factory can produce as

150 widgets, and the Denver factory can

produce as many as 200 widgets per day.

Widgets are shipped by air to customers in DA

and åoston. The customers in each city require

130 widgets per day. åecause of the deregulation

of airfares, Widgetco believes that it may be

cheaper first fly some widgets to NY or Chicago

and then fly them to their final destinations.The

cost of flying a widget are shown next. Widgetco

wants to minimize the total cost of shipping the

required widgets to customers.

Y

Transportation Table Associated with

the Transshipment Example

ë NY Chicago DA åoston Dummy Supply

ë Memphis $8 $13 $25 $28 $0 150

ë Denver $15 $12 $26 $25 $0 200

ë NY $0 $6 $16 $17 $0 350

ë Chicago $6 $0 $14 $16 $0 350

ë Demand 350 350 130 130 90

ë Supply points: Memphis, Denver

ë Demand Points: DA åoston

ë Transshipment Points: NY, Chicago

ë The problem can be solved using the transportation simplex

method

Y

Dimitations of Transportation Problem

ë Vne commodity VNDY: any one product

supplied and demanded at multiple locations

´ Merchandise

´ Electricity, water

ë Invalid for multiple commodities: (UNDESS

transporting any one of the multiple

commodities is completely independent of

transporting any other commodity and hence can

be treated by itself alone)

´ Example: transporting product 1 and product 2 from

the supply points to the demand points where the total

amount (of the two products) transported on a link is

subject to a capacity constraint

´ Example: where economy of scale can be achieved by

transporting the two products on the same link at a

ë larger total volume and at a lower unit cost of

transportation Y

Dimitations of Transportation Problem

´ Difficult to generalize the technique to accommodate

(these are generic difficulty for ´mathematical

programming,µ including linear and non-linear programming

À Economy of scale the per-unit cost of transportation on a link

decreasing with the volume (nonlinear and concave; there is a trick

to convert a ´non-linear program with a piecewise linear but convex

objective function to a linear program; no such tricks exists for a

piecewise linear but concave objective function)

À Æixed-cost: transportation usually involves fixed charges. Æor

example, the cost of truck rental (or cost of trucking in general)

consists of a fixed charge that is independent of the mileage and a

mileage charge that is proportional to the total mileage driven. Such

fixed charges render the objective function NVN-DINEAR and

CVNCAVE and make the problem much more difficult to solve

0

Y

Presented by

ë Sumit jha

ë Æuture innoversity

Ô

Y

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