Beruflich Dokumente
Kultur Dokumente
O perations research (OR) are concerned with scientifically deciding how to best design and
operate people–machine systems, usually under conditions requiring the allocation of scarce
Operations research tools and has been a decision-making aid in almost all manufacturing
industries and in financial and service organizations. Key problem managers face is how to
allocate scarce resources among various activities or projects. Linear programming, or LP, is a
method of allocating resources in an optimal way. It is one of the most widely used In the term
linear programming, programming refers to mathematical programming.
One of the most important and successful applications of quantitative analysis to solving
business problems has been in the physical distribution of products, commonly referred to as
transportation problems. Basically, the purpose is to minimize the cost of shipping goods from
one location to another so that the needs of each arrival area are met and every shipping location
operates within its capacity. However, quantitative analysis has been used for many problems
other than the physical distribution of goods.
We could set up a transportation problem and solve it using the simplex method as with any LP
problem (see using the Simplex Method to Solve Linear Programming Maximization
However, the special structure of the transportation problem allows us to solve it with a faster,
more economical algorithm than simplex. Problems of this type, containing thousands of
variables and constraints, can be solved in only a few seconds on a computer. In fact, we can
solve a relatively large transportation problem by hand.
There are some requirements for placing an LP problem into the transportation problem
category.
The transportation problem
Linear programming is good at solving problems with zillions of options, and finding the optimal
solution. Could it work for transportation problems? Costs are linear, and shipment quantities are
linear, so maybe so.
Since any transportation problem can be formulated as an LP, we can use the simplex method
to find an optimal solution. Because of the special structure of a transportation LP, the iterations
of the simple method have a very special form. The transportation simplex method is nothing but
the original simplex method, but it streamlines the iterations given this special form.
Introduction
Consider a commodity which is produced at various centers called SOURCES and is demanded
at various other DESTINATIONS. The production capacity of each source (availability) and the
requirement of each destination are known and fixed.
The cost of transporting one unit of the commodity from each source to each destination is also
known. The commodity is to be transported from various sources to different destinations in such
a way that the requirement of each destination is satisfied and at the same time the total cost of
transportation in minimized.
This optimum allocation of the commodity from various sources to different destinations is
called TRANSPORTATION PROBLEM.
• The objective to satisfy the destination requirements within the plants capacity
constraints at the minimum transportation cost.
A typical transportation problem contains
• Inputs:
• Objective:
Source D1 D2 D3 D4 Availability
S1 C11 C12 C13 C14 a1
The problem is to determine the values of xij such that total cost of transportation is
minimized.
We assume that the total quantity available is the same as the total requirement.
a i b j
• Balanced transportation problems i1 j1
m n
Include a dummy source or a dummy destination having a supply “d” or demand “d” to
convert it to a balanced transportation problem.
n m m n
Where d=
b a
j 1
j
i 1
i or a b
i 1
i
j 1
j respectively.
A solution where the row total of allocations is equal to the availabilities and the column total is
equal to the requirements is called a feasible solution .The solution with m+n-1 allocations is
called a Basic Solution.
Prototype Problem
• Prototype Problem
When solving the transportation problem, the number of possible routes should be
m+n-1.
If it is <m+n-1, it is called a degenerate solution.
In such a case evaluation of the solution will not be possible.
In order to evaluate the cells /routes (using the Modi-method or the stepping stone
method) we need to imagine/introduce some used cells/routes carrying / transporting a
very small quantity, say . That cell should be selected at the correct place.
• Solution of transportation problems
• Two phases:
• First phase:
• Find an initial feasible solution
• 2nd phase:
• Check for optimality and improve the solution
• Find an initial feasible solution
• North west corner method
• Least cost method
• Vogel’s approximation method
• Checking for optimality
a) Stepping stone method
b) Modified distribution (MODI) method.
1. Define the objective function to be minimized with the constraints imposed on the
problem.
2. Set up a transportation table with m rows representing the sources and n columns
representing the destination
3. Develop an initial feasible solution to the problem by any of these methods
4. a) The North west corner rule
5. b) Lowest cost entry method
6. c)Vogel’s approximation method
4. Examine whether the initial solution is feasible or not.( the solution is said to be feasible if the
solution has allocations in ( m+n-1) cells with independent positions.
5. Test wither the solution obtained in the above step is optimum or not using
a) Stepping stone method
b) Modified distribution (MODI) method.
6. If the solution is not optimum, modify the shipping schedule. Repeat the above until an
optimum solution is obtained.
• Applications
• To minimize shipping costs from factories to warehouses or from warehouses to retails
outlets.
• To determine lowest cost location of a new factory, warehouse or sales office.
• To determine minimum cost production schedule that satisfies firm’s demand and
production limitations.
North-West Corner Method
Step1: Select the upper left (north-west) cell of the
transportation matrix and allocate the maximum possible value to X11 which is equal to
min(a1,b1).
Destination
Sourc Supply
N S E W
e
16 13 22 17
A 200
14 13 19 15
B 350
9 20 23 10
C 150
Dema
60 140 300 200
nd Z = 700
vj
Step2: If allocation made is equal to the supply available at the first source (a1 in first row), then
move vertically down to the cell (2,1).
• If allocation made is equal to demand of the first destination (b1 in first column), then
mov
• e horizontally to the cell (1,2).
• If a1=b1 , then allocate X11= a1 or b1 and move to cell (2,2).
Step3: Continue the process until an allocation is made in the south-east corner cell of the
transportation table.
Advantages; it is simple and reliable. Easy to compute understand and interpret.
Disadvantages: This method does not take into considerations the shipping cost, consequently
the initial solution obtained by this method require improvement.
• Problem1: Obtain initial solution in the following transportation problem by using
Northwest corner rule method
Source D1 D2 D3 D4 D5 Availability
S1 5 3 8 6 6 1100
S2 4 5 7 6 7 900
S3 8 4 4 6 6 700
Requirement 800 400 500 400 600
Step2: Then eliminate the row or column in which supply or demand is exhausted. If both the
supply and demand values are same, either of the row or column can be eliminated.
In case, the smallest unit cost is not unique, then select the cell where maximum allocation can
be made.
Step3: Repeat the process with next lowest unit cost and continue until the entire available
supply at various sources and demand at various destinations is satisfied.
• Step1: Calculate penalty for each row and column by taking the difference between the
two smallest unit costs. For each row and column, calculate its difference:
= (Second smallest cij in row/col) - (Smallest cij in row/col)
This penalty or extra cost has to be paid if one fails to allocate the minimum unit
transportation cost.
• Step3: Adjust the supply and demand and eliminate the satisfied row or column.
Eliminate any row/column with no supply / demand left from further steps. If a row and
column are satisfied simultaneously, eliminate both the row and column.
Step4:. Recompute the row and column difference for the reduced transportation table, omitting
rows or columns crossed out in the preceding step.
Step5:
Repeat the process until all the supply sources and demand destinations are satisfied. Repeat
until BFS found.
Repeat the above procedure until the entire supply at factories are exhausted to satisfy
demand at different warehouses.
• Problem1: Obtain initial solution in the following transportation problem by using VAM
method
• Problem 2: Obtain initial solution in the following transportation problem by using VAM
Problem 3
Origins D1 D2 D3 D4 Supply/capacity/a
vailability
O1 1 2 1 4 30
O2 3 3 2 1 50
O3 4 2 5 9 20
Demand/Requiremen 20 40 30 10
ts
Special cases in Transportation
• Unbalanced transportation
• Restricted routes
• Maximisation
When the total availability is equal to the total requirement the problem (i.e. Σai =
Σbj) is said to be a balanced transportation problem.
If the total availability at different sources is not equal to the total requirement at
different destinations, (i.e. Σai ≠ Σbj), the problem is said to be an unbalanced
transportation problem.
Steps to convert an unbalanced problem to a balanced one are
1) If Σai > Σbj i.e. the total availability is greater than the total requirement, a
dummy destination is introduced in the transportation problem with requirement =
Σai - Σbj.
2) The unit cost of transportation from each source to this destination is assumed to
be zero.
3) If Σai < Σbj i.e. the total availability is less than the total requirement, a dummy
source is introduced in the transportation problem with requirement = Σb j - Σai.
The unit cost of transportation from each destination to this source is assumed to
be zero.
After making the necessary modifications in the given problem to convert it to a
balanced problem, it can be solved using any of the methods.
• Include a dummy source or a dummy destination having a supply “d” or
demand “d” to convert it to a balanced transportation problem.
• Where d =
n m m n
Supply
Source N S E W
16 13 22 17
A 200
14 13 19 15
B 350
9 20 23 10
C 150
From\ To C1 C2 C3
A 7 10 5
B 12 9 4
C 7 3 11
D 9 5 7
Because of railroad construction, shipments are temporarily prohibited from warehouse at city A
to company C1.i) Find the optimal distribution for XYZ tobacco Company.
Maximisation Problem
• A Transpiration Tableau contains unit profits instead of unit costs and the
objective function be the maximization of profits.
• To convert maximization problem to minimization all the values of profit
matrix are subtracted from the highest profit value in the matrix
• The objective function is determined with reference to the original profit
matrix
• If a maximization type of transportation problem is unbalanced then it
should be balanced by introducing necessary dummy row or column before
converting it into maximization problem.
• Similarly if such a problem has prohibited route, then the pay of element for
such a route should be submitted by –M before proceeding to convert to
maximization type.
X A B C D Availability
X 12 18 6 25 200
Y 8 7 10 18 500
Z 14 3 11 20 300
Thank you
krishmandya@gmail.com
-------------------------------------------------------------------------
-
Module 7.1: Structure of the Transportation Problem
Introduction
Ah… finally after 14 weeks…my favorite of all quantitative method applications… the
transportation problem. For seventeen years in the Air Force, most of my career was
spent figuring out how to efficiently move troops and their equipment, weapons and
weapon systems, communication equipment, and medical supplies from point A to point
B. Then, when I moved to the Pentagon to finish my career as Chief of Air Force
Transportation Programs, I worked for three years on how to effectively deploy troops
and their equipment, weapons and weapon systems, communication equipment, and
medical suppliers from many ports of embarkation to multiple ports of debarkation.
After I retired from the Air Force and joined the faculty at the University of South Florida,
my initial applied research was working with supply chain managers at Johnson &
Johnson and 3M to figure out how to effectively move J&J medical products and 3M
consumer products through their supply chains. For 3M, this included using quantitative
methods to help decide where intermediate distribution centers should be located,
especially to meet European expansion in the early 1990's.
You will see that the transportation problem is simply another application of linear
programming, but it is such a widespread application that this and other quantitative
texts devote a chapter just to this application. Companies like 3M that have multiple
manufacturing sites, many distribution centers and warehouses, and multiple consumer
demand locations find the transportation problem to be so complex that linear
programming applications are in common use.
The constraints include "supply" and "demand." Supply constraints are used to ensure
that the number of troops deployed do not exceed the number available at the two ports
of embarkation. Demand constraints are used to ensure that the number of troops
deployed meet the need for troops at the ports of debarkation.
Before continuing, please understand that the two origins could be Detroit and Memphis
automobile production plants. The three destinations could be customers (automobile
dealerships) in Philadelphia, Washington DC and Miami. Instead of moving 20,000
troops, we may be moving 20,000 new cars out of Detroit and Memphis to meet dealer
demand at the three destinations.
The following table presents a picture of this transportation problem. The table includes
the nodes (origins and destinations) and the arcs (deployment or shipping routes).
Table 7.1.1
Origin Destination
(Troops (Troops
Available) Needed)
To Ada -->
Fort Bragg -> 7 Days From FtB Adana
To Dha -->
(14,000) -> 10 Days From FtH (5,000)
To Whl -->
To Ada -->
Fort Hood -> 8 Days from FtB Wheelus
To Dha -->
(6,000) -> 5 Days From FtH (5,000)
To Whl -->
The table shows that 14,000 troops are available for deployment out of Fort Bragg. It
takes 7 days to deploy troops from Fort Bragg to Adana, which has a demand for 5,000
troops. So, one alternative is to deploy 5,000 troops out of Fort Bragg to Adana, leaving
9,000 troops available at Fort Bragg for Dhahran or Wheelus. The "cost" of this move
would be 5,000 troops times 7 days giving 35,000 troop deployment days.
Another way of satisfying the demand at Adana is to deploy 5,000 troops from Fort
Hood. Note it takes 10 days to deploy troops from Fort Hood to Adana, which would
give 5,000 times 10 days or 50,000 troop deployment days. We could continue to try
different combinations of origins and destinations to minimize total troop deployment
days while meeting demand and staying within troop availability constraints. For a small
problem, it would not be too difficult to try all of the combinations of solutions to find the
optimal solution. But if there were many origins, such as 10 or more, and many
destinations, such as 15 or more, the problem would be too cumbersome to work "by
hand."
I should note here that in the parallel automobile example, the 7, 10 and other
deployment day coefficients might be $700, $1000 and other freight charges. The
objective for the commercial application would be to minimize transportation costs while
meeting demand and staying within the available supply constraints.
Note that the number of variables for the standard transportation problem is the number
of origins times the number of destinations. For this problem, there are two origins and
three destinations which gives 2 times 3 or 6 decision variables. The decision variables
then represent the units shipped over the deployment or shipping routes. Also note that
I used a code for naming the variables. The text uses X12 to represent the number of
units shipped from origin one to destination 2. I like to use a more descriptive code to
represent the route, and abbreviate names to keep within the 8 character variable name
restrictions of The Management Scientist.
The objective function is to minimize troop deployment days, where days ("costs") are
the coefficients multiplied times the number of troops routing decision variables.
To show how this equation works, let's compute the deployment days for the solution
FtB_Ada = 5,000; FtB_Dha = 5,000; Fth_Whl = 4,000; Fth_Dha = 5,000 and FtH_Whl =
1,000.
This is a feasible solution but we do not know if it is optimal until we try all combinations
(or finish the constraint set and let the computer software run the combinations). Now
for the constraints which include staying within the available supply at each origin node.
Note that I made the demand constraints strict equalities, but allowed for slack in the
supply constraints. This general formulation works as long as supply = demand or
supply is greater than demand. If supply is greater than demand, the slack constraint
will indicate which origin should have the excess supply. I will talk about how to handle
the special case of demand being greater than supply after we look at the solution.