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MODI Method Examples, Transportation

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MODI Method Examples:

Transportation Problem

In the previous section, we provided the steps in MODI method

(modified distribution method) to solve a transportation

problem. In this section, we provide an example. Let's solve the

following example:

This example is the largest and the most involved

you have read so far. So you must read the steps

and the explanation mindfully.

Example: MODI Method (Modified

Distribution Method)

Consider the transportation problem presented in the following

table.

Distribution centre

D1 D2 D3 D4 Supply

Plant

P1 19 30 50 12 7

P2 70 30 40 60 10

P3 40 10 60 20 18

Requirement 5 8 7 15

Determine the optimal solution of the above problem.

Solution.

An initial basic feasible solution is obtained by Matrix Minimum

Method and is shown in table 1.

Table 1

Distribution centre

D1 D2 D3 D4 Supply

Plant

P1

19 30 50 7

P2

30 60 10

P3

60 18

Requirement 5 8 7 15

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8/20/2014 MODI Method Examples, Transportation Problem

http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 2/4

Initial basic feasible solution

12 X 7 + 70 X 3 + 40 X 7 + 40 X 2 + 10 X 8 + 20 X 8 = Rs. 894.

Calculating u

i

and v

j

using u

i

+ v

j

= c

ij

Substituting u

1

= 0, we get

u

1

+ v

4

= c

14

0 + v

4

= 12 or v

4

= 12

u

3

+ v

4

= c

34

u

3

+ 12 = 20 or u

3

= 8

u

3

+ v

2

= c

32

8 + v

2

= 10 or v

2

= 2

u

3

+ v

1

= c

31

8 + v

1

= 40 or v

1

= 32

u

2

+ v

1

= c

21

u

2

+ 32 = 70 or u

2

= 38

u

2

+ v

3

= c

23

38 + v

3

= 40 or v

3

= 2

Table 2

Distribution centre

D1 D2 D3 D4 Supply u

i

Plant

P1

19 30 50 7 0

P2

30 60 10 38

P3

60 18 8

Requirement 5 8 7 15

v

j

32 2 2 12

Calculating opportunity cost using c

ij

( u

i

+ v

j

)

Unoccupied cells Opportunity cost

(P

1

, D

1

) c

11

( u

1

+ v

1

) = 19 (0 + 32) = 13

(P

1

, D

2

) c

12

( u

1

+ v

2

) = 30 (0 + 2) = 28

(P

1

, D

3

) c

13

( u

1

+ v

3

) = 50 (0 + 2) = 48

(P

2

, D

2

) c

22

( u

2

+ v

2

) = 30 (38 + 2) = 10

(P

2

, D

4

) c

14

( u

2

+ v

4

) = 60 (38 + 12) = 10

(P

3

, D

3

) c

33

( u

3

+ v

3

) = 60 (8 + 2) = 50

Table 3

Distribution centre

D1 D2 D3 D4 Supply u

i

Plant

P1

7 0

P2

10 38

P3

18 8

Requirement 5 8 7 15

8/20/2014 MODI Method Examples, Transportation Problem

http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 3/4

v

j

32 2 2 12

Now choose the smallest (most) negative value from opportunity

cost (i.e., 13) and draw a closed path from P1D1. The following

table shows the closed path.

Table 4

Choose the smallest value with a negative position on the closed

path(i.e., 2), it indicates the number of units that can be shipped

to the entering cell. Now add this quantity to all the cells on the

corner points of the closed path marked with plus signs and

subtract it from those cells marked with minus signs. In this way,

an unoccupied cell becomes an occupied cell.

Now again calculate the values for u

i

& v

j

and opportunity cost.

The resulting matrix is shown below.

Table 5

Distribution centre

D1 D2 D3 D4 Supply u

i

Plant

P1

7 0

P2

10 51

P3

18 8

Requirement 5 8 7 15

v

j

19 2 11 12

Choose the smallest (most) negative value from opportunity cost

(i.e., 23). Now draw a closed path from P2D2 .

Table 6

8/20/2014 MODI Method Examples, Transportation Problem

http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/modiex.htm 4/4

About the Author

Vinay is a

Management

Enthusiast. Contact

him on Google+, Facebook,

LinkedIn

Share and Recommend

505 Recommend

Now again calculate the values for u

i

& v

j

and opportunity cost

Don't panic. The

following table is

the last table.

"Every complex human problem has an easy

solution - neat & small, but wrong." - Vinay

Chhabra & Manish Dewan

Table 7: MODI Method

Distribution centre

D1 D2 D3 D4 Supply u

i

Plant

P1

7 0

P2

10 28

P3

18 8

Requirement 5 8 7 15

v

j

19 2 12 12

Since all the current opportunity costs are nonnegative, this is the

optimal solution. The minimum transportation cost is: 19 X 5 + 12 X

2 + 30 X 3 + 40 X 7 + 10 X 5 + 20 X 13 = Rs. 799

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