Transportaton Probem

In Suppy Chan
Management
Presented by
Prya|a Nayak
Rubsmta Bswa
Outne
O
Transportaton Modeng
O
Methods Of Transportaton
O
Obtan the Inta Feasbe
Souton usng
O
Northwest - Corner Rue
O
Intutve Least Cost Method /
Mnmzaton Method
O
Voges Approxmaton Method
O
Obtan Feasbe Souton for
Optmaty usng
O
Moded Dstrbuton Method
WHAT IS TRANSPORTATION
PROBLEM?
A Transportation Problem
(TP) consists of determining
how to route products in a
situation where there are
several supply locations and
also several destinations in
order that the total cost of
transportation is minimized
Transportaton Modeng
O
What s Transportaton Mode? What s Transportaton Mode?
A Transportaton Mode (TP) conssts of A Transportaton Mode (TP) conssts of
determnng how to route products n a stuaton determnng how to route products n a stuaton
where there are severa destnatons n order that where there are severa destnatons n order that
the tota cost of Transportaton s mnmzed the tota cost of Transportaton s mnmzed
O
Can be used to hep resove dstrbuton and Can be used to hep resove dstrbuton and
ocaton decsons ocaton decsons
O
Need to know: Need to know:
O
The orgn ponts and the capacty or suppy per The orgn ponts and the capacty or suppy per
perod at each perod at each
O
The destnaton ponts and the demand per perod The destnaton ponts and the demand per perod
at each at each
O
The cost of shppng one unt from each orgn to The cost of shppng one unt from each orgn to
each destnaton each destnaton
Transportaton Probem (TP)

A
B
C
D
E
F
SUPPLY DEMAND
Transportaton Probem
From From
To To
Andheri Andheri Bandra Bandra Chandivali Chandivali
Dadar Dadar 5 5 4 4 3 3
Elphinston Elphinston 8 8 4 4 3 3
Fort Fort 9 9 7 7 5 5
Transportaton Matrx
From
To
Andher
Bandra Chandva
Dadar
Ephnston
Fort
Factory
capact
y
Warehouse
requreme
nt
300
300
300 200 200
100
700
5
5
4
4
3
3
9
8
7
Cost of shppng 1 unt from Cost of shppng 1 unt from
factory to Bandra warehouse factory to Bandra warehouse
Dadar Dadar
capacty capacty
constrant constrant
Ce Ce
represent represent
ng a ng a
possbe possbe
source- source-
to- to-
destnat destnat
on on
shppng shppng
assgnme assgnme
nt nt
(Ephnst (Ephnst
on to on to
Chandva Chandva
) )
Tota demand Tota demand
and tota suppy and tota suppy
Chandva Chandva
warehouse demand warehouse demand
DEVELOPING AN INITIAL SOLUTION- THE
NORTHWEST CORNER RULE
Once the data have been arranged n tabuar form, we
must estabsh an nta feasbe souton to the probem.
One systematc procedure, known as the northwest corner
rue, requres that we start n the upper eft hand ce (or
northwest corner) of the tabe and aocate unts to
shppng routes as foows:
Exhaust the suppy ( factory suppy) at each row before
movng down to the next row.
Exhaust the (warehouse) requrements of each coumn
before movng to the next coumn, on the rght.
Check that a the suppy and demands are met.
Demand Not Equa To Suppy
A stuaton occurrng qute frequenty n rea-word
probems s the case where tota demand s not equa to
tota suppy.
These unbaanced probems can be handed easy by
ntroducng a dummy Demand or dummy Suppy.
In the event that tota suppy s greater than tota
demand, a dummy destnaton, wth demand exacty
equa to the surpus, s created.
If tota demand s greater than tota suppy, we ntroduce
a dummy source (factory) wth a suppy equa to the
excess of demand over suppy.
In ether ease, cost coemcents of zero are assgned to
each dummy ocaton.
To
(A) (B) (C)
(D)
(E)
(F)
Warehouse
requrement
300 200 200
Factory
capacty
300
300
250
850
5
5
4
4
3
3
9
8
7
From
50 200
250
50
150
Dummy
150
0
0
0
150
Northwest Corner rue
Northwest - Corner Rue
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
100
100
100
200
200
Means that the rm s shppng 100 Means that the rm s shppng 100
bathtubs from Fort to Bandra bathtubs from Fort to Bandra
Northwest Corner
Computed Shppng Cost
Computed Shppng Cost
Route Route
From From To To Tubs Shpped Tubs Shpped Cost per Unt Cost per Unt Tota Cost Tota Cost
D D A A 100 100 5 5 500 500
E E A A 200 200 8 8 1,600 1,600
E E B B 100 100 4 4 400 400
F F B B 100 100 7 7 700 700
F F C C 200 200 5 5 1,000 1,000
Tota: 4,200 Tota: 4,200
Ths s a feasbe souton but not
necessary the owest cost
aternatve
Drawbacks
O
The Northwest- corner rue s easy to use,
but ths approach totay gnores the costs
O
Demand not equa to suppy
O
Caed an unbaanced probem
O
Resoved by ntroducng dummy source or
dummy destnaton where n the am of
transportaton mode s mnmzaton of
cost so ntroducng a dummy source s not
a good souton.
O
Mssng out the best cost ehectve path
Intutve Lowest-Cost Method
O
Identfy the ce wth the owest cost Identfy the ce wth the owest cost
O
Aocate as many unts as possbe to that Aocate as many unts as possbe to that
ce wthout exceedng suppy or demand; ce wthout exceedng suppy or demand;
then cross out the row or coumn (or then cross out the row or coumn (or
both) that s exhausted by ths both) that s exhausted by ths
assgnment assgnment
O
Fnd the ce wth the owest cost from the Fnd the ce wth the owest cost from the
remanng ces remanng ces
O
Repeat steps 2 and 3 unt a unts have Repeat steps 2 and 3 unt a unts have
been aocated been aocated
Lowest - Cost Method
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
Frst, 3 s the owest cost ce so shp 100 unts from Frst, 3 s the owest cost ce so shp 100 unts from
Dadar to Chandva and cross oh the rst row as Dadar to Chandva and cross oh the rst row as
Dadar s satsed Dadar s satsed
Lowest Cost Method
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
100
100
Second, 3 s agan the owest cost ce so shp 100 Second, 3 s agan the owest cost ce so shp 100
unts from Ephnston to Chandva and cross oh unts from Ephnston to Chandva and cross oh
coumn C as Chandva s satsed coumn C as Chandva s satsed
Lowest Cost Method
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
100
100
200
Thrd, 4 s the owest cost ce so shp 200 unts from Thrd, 4 s the owest cost ce so shp 200 unts from
Ephnston to Bandra and cross oh coumn B and row Ephnston to Bandra and cross oh coumn B and row
E as Ephnston and Bandra are satsed E as Ephnston and Bandra are satsed
Lowest Cost Method
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
100
100
200
300
Fnay, shp 300 unts from Andher to Fort as ths s Fnay, shp 300 unts from Andher to Fort as ths s
the ony remanng ce to compete the aocatons the ony remanng ce to compete the aocatons
Lowest Cost Method
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
100
100
200
300
Tota Cost Tota Cost = 3(100) + 3(100) + 4(200) + 9(300) = 3(100) + 3(100) + 4(200) + 9(300)
= 4,100 = 4,100
Lowest Cost Method
To
(A)
Andher
(B)
Bandra
(C)
Chandva
(D) Dadar
(E) Ephnston
(F) Fort
Warehouse
requrement
300 200 200
Factory
capacty
300
300
100
700
5
5
4
4
3
3
9
8
7
From
100
100
200
300
Tota Cost Tota Cost = 3(100) + 3(100) + 4(200) + 9(300) = 3(100) + 3(100) + 4(200) + 9(300)
= 4,100 = 4,100
Ths s a feasbe souton, and an
mprovement over the prevous
souton, but not necessary the
owest cost aternatve
Voges Approxmaton
Method
O
Cacuate penaty for each row and coumn by takng
the dherence between the two smaest unt costs.
Ths penaty or extra cost has to be pad f one fas to
aocate the mnmum unt transportaton cost.
O
Seect the row or coumn wth the hghest penaty and
seect the mnmum unt cost of that row or coumn.
Then, aocate the mnmum of suppy or demand
vaues n that ce. If there s a te, then seect the ce
where maxmum aocaton coud be made.
O
Ad|ust the suppy and demand and emnate the
satsed row or coumn. If a row and coumn are
satsed smutaneousy, ony of them s emnated
and the other one s assgned a zero vaue. Any row
or coumn havng zero suppy or demand, can not be
used n cacuatng future penates.
O
Repeat the process unt a the suppy sources and
demand destnatons are satsed
Voges Approxmaton
Method
Voges Approxmaton
Method
Voges Approxmaton Method
O
The tota transportaton cost obtaned
by ths method
=
8*8+19*5+20*10+10*2+40*7+60*2
= Rs.4!!
O
Here, we can see that Vogels
Approximation Method nvoves the
owest cost than North-West Corner
Method and Least Cost Method and
hence s the most preferred method of
ndng nta basc feasbe souton.
Benets of Voges
Approxmaton Method
O
VAM s an mproved verson of the east-
cost method that generay, but not
aways, produces better startng soutons.
O
Ths method s preferred over the other
methodsbecause t generay yeds, an
optmum, or cose to optmum, startng
soutons.
Obtan Feasbe souton for
Optmaty usng MODI Method
The moded dstrbuton
method, MODI for short , s an
mprovement over the steppng
stone method for testng and
ndng optma soutons
Steps Invoved n MODI Method
O
Fnd a basc souton by any standard
method. If suppy and demand are equa
then t s a baanced transportaton
probem.
O
Test for optmaty. The number of occuped
ces shoud equa to m + n -1. If the nta
basc feasbe souton does not satsfy ths
rue, then optma souton cannot be
obtaned. Such souton s a degenerate
souton
O
Set up a cost matrx for aocated ces ony.
Steps Invoved n MODI
Method
O
Determne a set of number Ui for each row and a set
of number Vj on the bottom of the matrx.
O
Compute the vaue of Ui and Vj wth the formua Ui +
Vj = Cij to a basc(occuped) ces.
O
Cacuate the water vaue of of non-basc
( unoccuped) ces usng the reaton Ui+Vj=Cij.
O
Compute the penates for each unoccuped ce by
usng the formua D|=P|=U+V|-C|.
Examne whether a P| 0.
If a P| < 0, then the souton s optma and unque.
If a P| 0, then the souton s optma and an
aternatve souton exsts.
If at east one P| > 0, then the souton s not optma.
At the end, prepare the optmum souton tabe and
cacuate the optmum/mnmum transportaton cost.
Optmum Souton Usng
Mod Method
8 8 15
15 10
17
3 9
10
REOUIREMENT 150 80
50
120
80
80
CAPACITY
D
E
F
A B C
W1 W2
W3
F1
F2
F3
8
8
15
15
3
10
17
9 10
120
30
50
30 50
150 80
50
12
0
80
80
IBFS=
120(8)+30(15)+50(10)+30(9)+50(10)
IBFS=960+450+500+270+500=2680
OCCUPIED MATRIX
UNOCCUPIED MATRIX
8
15 10
9
10
V| V1=8 V2=3
V3=4
U
U1=
0
U2=
7
U3=
6
V| 8 3
4
U
U
0
7
6
-5
-11
-6
11
3 4
11
14
-8 -15
-3
-17
P|=(U+V|)-C| U + V| = C|
15 8
8
15 10 17
3 9
1
0
10
120
30
50
30 50
+
+
_
_
8
15
3
8
15
10
17
9
10
120
E
80
30
50
STONE SEOUARE=RIM REOUIREMENT
m+n-1=5
DEGENERACY OCCUAR
Vaue of O s equa to the mnmum of
the exstng aocaton among the sgned
ces on the oop.
LOOP CONSTRUCT
120
80
80
D| 150 80 50
280
S

OPTIMUM SOLUTION
TABLE
8 8 15
15 10 17
3 9 10
OPTIMUM COST

F1 W1 8*120 =960

F1 W2 8*E = _

F2 W2 10*80 =800

F3 W1 3*30= 90

F3 W3 10*50 =500
__________
2350

12
0
30
E
80
50
Why MODI Method?
O
It Is the smpex method
O
It s a mnmum cost souton to the
transportaton probem.
O
A the drawbacks whch were n a
the three methods s covered n ths
mod method.
Thank You!!