Iterative computations

of the Transportation
algorithm

Iterative computations of the Transportation algorithm

After determining the starting BFS by any one of the
three methods discussed earlier, we use the following
algorithm to determine the optimum solution
Step1: Use the Simplex optimality condition to
determine the entering variable as a current non-basic
variable that can improve the solution. If the
optimality condition is satisfied by all non-basic
variables, the current solution is optimal and we stop.
Otherwise we go to Step 2.

Step 2. Determine the leaving variable using the

Simplex feasibility condition. Change the basis
and go to Step 1.
The determination of the entering variable from
among the current non-basic variables is done by
the method of multipliers.
In the method of multipliers, we associate with
each row a dual variable (also called a multiplier)
ui and with each column we associate a dual
variable (also called a multiplier) vj.

Noting that each row corresponds to a constraint

and each column corresponds to a constraint we
recall from duality theory that
At any simplex iteration ,
Primal z-equation
Left hand side
Right hand side
coefficient of
= of corresponding - of corresponding
variable xj
dual constraint
dual constraint

That is

" zij cij " ui v j cij

(Verify this by taking m=3 and n=4 !)

Since there are m+n-1 basic variables and since

zij cij 0

for all such basic variables, we have m+n-1

equations
u v c
i

ij

to determine the m+n variables ui , v j

We arbitrarily choose one of them and equate to
zero and determine the remaining m+n-1 of
them. Then we calculate zij cij ui v j cij
for all non-basic variables xij. Then the entering
variable is that one for which ui v j cij
is most positive.

We do all this on the transportation

tableau itself (and NOT separately) as the
following example shows.

Starting Tableau

S
o
u
r
c
e

Destination

Total Cost =48

v1=3
3

v2=7 v3=6 v4=3 Supply

7
6
4
5
u1=0
3
2
0
-1
2
4
3
2
2
u2= -3
1
1
-2
-2
4
3
8
5
u3= 2
3
1
2
1
6

Demand

Thus x32 enters the basis.

Determining the leaving variable

We first construct a closed loop that starts and
ends at the entering variable cell. The loop
consists of connected horizontal and vertical
segments only (no diagonals are allowed). Except
for the entering variable cell, each vertex (or
corner) of the closed loop must correspond to a
basic variable cell. The loop can cross itself and
bypass one or more basic variables. The amount
to be allocated to the entering variable cell is
such that it satisfies all the demand and supply
restrictions and must be non-negative. Usually

 is the minimum of the amounts allocated to the

basic cells adjacent to the entering variable cell.
Having decided about the amount to be
allocated to the entering cell, for the supply and
demand limits to remain satisfied, we must
alternate between subtracting and adding the
amount at the successive corners of the loop.
In this process one of the basic variables will
drop to zero. In simplex language, we say it
leaves the basis. We repeat this process till
optimality is reached. We illustrate with a
numerical example.

Starting Tableau

S
o
u
r
c
e

Destination

Total Cost =48

v1=3
3

v2=7 v3=6 v4=3 Supply

7
6
4
5
u1=0
3
2
0
-1
2
4
3
2
2
u2= -3
1
1
-2
-2
4
3
8
5
u3= 2
3

1
2
1
6

Demand

Thus x32 enters the basis.

Thus will become 1 and in the process both the

basic variables x22 and x33 will become
simultaneously zero. Since only one of them should
leave the basis we make x22 leave the basis and keep
x33 in the basis but with value zero. Thus the
transportation cost reduces by 6 (as x23 increases by
1) and we say one iteration is over. The resulting
new tableau is on the next slide.

Start of Iteration 2

S
o
u
r
c
e

Destination

Total Cost =42

v1=3
3

v2=7 v3=12 v4=9 Supply

7
6
4
5

3
2
u1=0
5
6
2
4
3
2
2
u2= -9
2
-2
-8
-6
4
3
8
5
u3= -4
3
1
0
2
-5

Demand

Thus x13 enters the basis.

Thus will become 0 and x32 leaves the basis.

Again the BFS is degenerate . But the
transportation cost remains the same and we say
the second iteration is over. The resulting new
tableau is on the next slide.

Start of Iteration 3

S
o
u
r
c
e

u1=0
u2= -3
u3= -4

Demand

Destination

v1=3
3

v2=7 v3=6
7
6

-2
-5
3

3
0

1
3

Thus x14 enters the basis.

8
-6
2

Total Cost =42

v4=9 Supply
4
5

5
2
2
4
5
3
2
2

Sometimes it might be difficult to find the closed

loop from the entering cell by inspection. In that
case the following method can be used to find the
closed loop. We sketch the flowchart of the
sequence in which the variables ui and vj were
determined. For example in the above case the
flowchart is on the next slide. Now to find the
loop emanating from the non-basic cell (1,4), join
u1 and v4 by a dotted line (as shown). Then the
closed loop is:
(1,4)

(1,2)

(2,3)

(3,4)

(1,4)

v1=3

u1=0

v2=7
v3=6

u3= -4

v4= 9

u2= -9

Thus the closed loop is

(1,4)
(1,2)
(2,3)

(3,4)

(1,4)

Thus will become 2 and in the process both the

basic variables x12 and x32 will become
simultaneously zero. Since only one of them should
leave the basis we make x32 leave the basis and keep
x12 in the basis but with value zero. Also x32
becomes 3. Thus the transportation cost reduces by
1*2+4*2=10 and we say third iteration is over. The
resulting new tableau is on the next slide.

Start of Iteration 4

S
o
u
r
c
e

u1=0
u2= -3
u3= -4

Demand

Destination

Total Cost =32

v1=3
3

v2=7 v3=6 v4=4 Supply

7
6
4
5
2
0
0

-2
-5
3

3
0

3
3

-1

5
-6
2

-5

2
3

Thus this is the optimal tableau. Alt Opt solutions exist.

Problem 4

Problem Set 5.3B

Page 193

In the unbalanced transportation problem given in

the table below, if a unit from a source is not
shipped out (to any of the destinations) a storage
cost is incurred at the rate of $5, $4, and $3 per unit
for sources 1,2, and 3 respectively. Additionally all
the supply at source 2 must be shipped out
completely to make room for a new product. Use
VAM to determine the starting solution and
determine the optimum solution.

1
1
2
3

1
3
2

2
4
3

1
5
3

20
40
30

30 20 20
To balance the problem, we introduce a dummy
destination with transportation costs
$5, $M, $3 respectively.
(Solution in the next slide)

S
3
o
2
30
u
2
r
3
c
e Demand 30
Column
Penalties

Destination
3
Dummy Supply

10

10

20

2010 20 0

1
1

1
1

1
-

1
1

2
-

20

20

Row Penalties

0 - - -

40 10 1 1 1 1
3010

1 11 0

20

2
M-3

Total shipping cost = 240

Destination

Starting Tableau

S
o
u
r
c
e

Total Cost =240

v1=2
1

v2=3 v3=3 v4=3 Supply

2
1
5
20
u1=-2
-1
-1
-4 20
3
4
5
M
u2= 1
30 10
-1 4-M 40
u3= 0

Demand

3
0

30

10
20

20

20

30

20

Thus this is the optimal tableau. Alt Opt solutions exist.

Problem 5 Problem Set 5.3 B Page 193

In a 33 transportation problem, let xij be the
amount shipped from source i to destination j
and cij be the corresponding transportation cost
per unit. The amounts of supply at sources 1, 2,
and 3 are 15, 30, and 85 units, respectively;
and the demands at destinations 1, 2, and 3 are
15, 30, and 85 units, respectively. Assume that
the northwest corner solution is optimal and
that the associated values of the multipliers are

given by u1 = -2, u2 = 3, u3 = 5, v1 = 2, v2 =
5, and v3 = 10.
(a) Find the associated optimal cost
(b) Determine the smallest values of cij
associated with each non-basic variable
that will maintain the optimality of the
northwest corner solution.

u1=-2
u2=3
u3=5

Demand

v1=2

v2=5

v3=10

Supply

15

13

30

15
5

25

10

20

5 30

Associated cost =

15

5
5

80

80

1475

85

25

Problem 8.1-6 Page 393 Hillier and Lieberman

(Operations Research 7th Edition)
The Onenote Co. produces a single product at
three plants for four customers. The three plants
will produce 60, 80, and 40 units respectively. The
firm has made a commitment to sell 40 units to
customer 1, 60 units to customer 2, and at least 20
units to customer 3. Both customers 3 and 4 also
want to buy as many of the remaining units as
possible. The net profit associated with shipping a
unit from plant i to customer j is given by the
following table.

Plant

Customer
1
2
1 $800
$700
2 $500
$200
3 $600
$400

3
$500
$100
$300

4
$200
$300
$500

Management wants to know how many units to sell to

customers 3 and 4 and how many units to ship from
each of the plant to each of the customers to maximize
profits. Formulate the problem as a transportation
model and solve it.

There are 3 sources, viz. Plants 1, 2 and 3. Right

now there are 4 destinations, viz. customers 1, 2, 3,
and 4. The supplies ai at the three sources are 60,
80, and 40 respectively. The demands at the three
destinations are: b1 = 40, b2 = 60, b3 20, b4 = ?
Since in a transportation model, all constraints are
equalities, we shall put b3 = 80 ( since customer 3
must get at least 20 units) and b4= 60 as the supply
remaining after satisfying the three customers 1, 2,
and 3 is 60 and since customers 3 and 4 will buy as
much as possible.

But now the demand has become 240 and so we

introduce a dummy source SF with supply 60. Since
the customers 1, 2 must definitely get 40 and 60 units
respectively, the dummy source cannot send any
amount to these destinations. This is achieved by
putting the cost from the dummy to these destinations
as big M. Now the cost from dummy to the
destinations 3 and 4 are put as zero. Also since these
are actually profits, and since the transportation model
is a minimization problem, to maximize the total profit
we take cij as negative of the profits given. The
starting tableau is given below.

S
o
u
r
c
e

Destination
3
4 Supply

-8

-5
-2
40

-1

-3
40

-6

-4

-3
20

-5
20 4020

SF

60

80

3
-

2
2
2
3

Demand 40
2
1
-

-7
-5
60
0

60

-2

6020
2
2
2
5

60 0

1 - - -

8040

2 2 2

60

1 1 2 2
0 0 0 0

v1= -9

S
o
u
r
c
e

u1= 0 -8

-5
u2= 4
u3= 2
u4= 5

Destination
v2= -7 v3= -5 v4= -7

-7
-1
40

-6

60

-2

-4-M

-5

-3

-3
-9

M
-2-M

40

-5

-1

-2

-1

-4

-5

20
60

-5

20

0
-2

This is the optimal tableau.

Max Profit = - min z = - (-900) = $900.

Compre Question I Semester 2003-2004

The table below gives the times taken by 3
persons to complete 4 tasks( i.e. cell (i,j) is the
time taken by person i to complete the task j).
Tasks

Person

2
3

6
5

4
2

3
6

5
4

If each task is to be allocated to a person (i.e. no

splitting of the task between 2 or more persons is
allowed) and if each person can be assigned at most
two tasks, find the optimum allocation of the jobs to
the persons to minimize the total time taken to
complete all the 4 tasks.
This can be formulated as a transportation model with
three sources (persons) and 4 destinations (tasks). The
demands at the three destinations are bj = 1 for
j=1,2,3,4. But the availabilities are a i = 2 for i=1, 2, 3
as each person can be assigned a maximum of two
tasks. Thus to balance the problem, we introduce a
dummy task with demand 2 and time 0. Thus we get

Starting Tableau
S
o
u
r
c
e

Dummy Supply

3
2

1
1

Demand
1
1
1

Destination

21

1 1 3

3 - -

2 22

10

20

1
1
1

1
4
-

1
2
2

0
-

Starting Tableau

Destination

v1=5 v2=2 v3=3 v4=4 v5=0 Supply

S
4
1
2
6
0
2
o u1= -1
1
1
0
-3
-1
u
6
4
3
5
0
r u2= 0
2
2
-1
-2
0
-1
c
5
2
6
4
0
e
2
1
0
1
u3= 0
-3

Demand

Thus this is the optimal tableau. Optimal cost = 12