Table 6S1 Transportation Table

for Harleys Sand and Gravel

Figure 6S1 Overview of the
Transportation Method
Finding an Initial Feasible Solution:
The Northwest-Corner Method

The Northwest-Corner Method

is a systematic approach for developing
an initial feasible solution.
is simple to use and easy to
understand.
does not take transportation costs into
account.
gets its name because the starting
point for the allocation process is the
upper-left-hand (northwest) corner of
Table 6S2 Initial Feasible
Solution for Harley Using
Northwest-Corner Method
Finding an Initial Feasible Solution:
The Intuitive Approach

1. Identify the cell that has the lowest unit cost.

2. Cross out the cells in the row or column that
has been exhausted (or both, if both have been
exhausted), and adjust the remaining row or
column total accordingly.
3. Identify the cell with the lowest cost from the
remaining cells.
4. Repeat steps 2 and 3 until all supply and
demand have been allocated.
Table 6S3a Find the Cell That
Has the Lowest Unit Cost

Table
Table6S3b
6S3b Allocate
Allocate150
150Units
UnitstotoCell
CellB2
B2
Table 6S4 200 Units Are Assigned to Cell
C3 and 50 Units Are
Assigned to cell A1

Table
Table6S5
6S5 Completion
Completionofofthe
theInitial
InitialFeasible
FeasibleSolution
Solutionfor
forthe
theHarley
Harley
Problem
ProblemUsing
UsingthetheIntuitive
IntuitiveApproach
Approach
Table 6S6Vogels
Approximation Initial
Allocation Tableau with
Penalty Costs
Table 6S7Initial Feasible
Solution Obtained Using the
Northwest-Corner Method

Table
Table6S8
6S8 Evaluation
EvaluationPath
Pathfor
forCell
CellB1
B1
Table 6S9 Evaluation Path for
Cell C1

Table
Table6S10
6S10 Evaluation
EvaluationPaths
Pathsfor
forCells
CellsA3
A3and
andC2
C2
Table 6S11 Initial Feasible
Solution Obtained Using the
Northwest-Corner Method

Evaluation Using the MODI Method

The MODI (MOdified DIstribution) method of evaluating a transportation
solution for optimality involves the use of index numbers that are
established for the rows and columns. These are based on the unit costs of
the occupied cells. The index numbers can be used to obtain the cell
evaluations for empty cells without the use of stepping-stone paths.
Table 6S12 Index Numbers
for Initial Northwest-Corner
Solution to the Harley Problem

Rules for Tracing Stepping-Stone Paths

1. All unoccupied cells must be evaluated. Evaluate cells one at a time.
2. Except for the cell being evaluated, only add or subtract in occupied cells.
(It is permissible to skip over occupied cells to find an occupied cell from
which the path can continue.)
3. A path will consist of only horizontal and vertical moves, starting and
ending with the empty cell that is being evaluated.
4. Alternate + and - signs, beginning with a + sign in the cell being evaluated.
Table 6S13 Cell Evaluations
for Northwest-Corner Solution
for the Harley Problem

Table
Table6S14
6S14 Stepping-Stone
Stepping-StonePath
Pathfor
forCell
CellA3
A3
Table 6S15 Distribution Plan
after Reallocation of 50 Units

Table
Table6S16
6S16 Index
IndexNumbers
Numbersand
andCell
CellEvaluations
Evaluations
Summary of the Transportation
Method
1. Obtain an initial feasible solution. Use either the northwest-corner
method, the intuitive method, or the Vogels approximation
method. Generally, the intuitive method and Vogels approximation
are the preferred approaches.
2. Evaluate the solution to determine if it is optimal. Use either the
stepping-stone method or MODI. The solution is not optimal if any
unoccupied cell has a negative cell evaluation.
3. If the solution is not optimal, select the cell that has the most
negative cell evaluation. Obtain an improved solution using the
stepping-stone method.
4. Repeat steps 2 and 3 until no cell evaluations (reduced costs) are
negative. Once you have identified the optimal solution, compute
its total cost.
Special Issues

1. Determining if there are alternate optimal solutions.

2. Recognizing and handling degeneracy (too few
occupied cells to permit evaluation of a solution).
3. Avoiding unacceptable or prohibited route
assignments.
4. Dealing with problems in which supply and demand
are not equal.
5. Solving maximization problems.
Table 6S17a Index Numbers
and Cell Evaluations

Table
Table6S17b
6S17b Alternate
AlternateOptimal
OptimalSolution
Solution
Table 6S18 Harley Alternate
Solution Modified for
Degeneracy

Table
Table6S19
6S19 Solution
SolutiontotoHarley
HarleyProblem
Problemwith
withaaProhibited
ProhibitedRoute
Route
Table 6S20 A Dummy Origin Is
Added to Make Up 80 Units

Table
Table6S21
6S21 Solution
SolutionUsing
Usingthe
theDummy
DummyOrigin
Origin
Table 6S21 Solution Using the
Dummy Origin

Table
Table6S22
6S22 Solution
SolutionUsing
Usingthe
theDummy
DummyOrigin
Origin
 Table 6S23 Row Reduction

The Hungarian Method

provides a simple heuristic that can be used to find the optimal set
of assignments. It is easy to use, even for fairly large problems. It
is based on minimization of opportunity costs that would result from
potential pairings. These are additional costs that would be
incurred if the lowest-cost assignment is not made, in terms of
either jobs (i.e., rows) or employees (i.e., columns).
The Hungarian Method

Provides a simple heuristic that can be used to

find the optimal set of assignments.
Is easy to use, even for fairly large problems.
Is based on minimization of opportunity costs that
would result from potential pairings.
These additional costs would be incurred if the
lowest-cost assignment is not made, in terms
of either jobs (i.e., rows) or employees (i.e.,
columns).
Requirements for Use of
the Hungarian Method
Situations in which the Hungarian
method can be used are characterized
by the following:
1. There needs to be a one-for-one
matching of two sets of items.
2. The goal is to minimize costs (or to
maximize profits) or a similar objective
(e.g., time, distance, etc.).
3. The costs or profits (etc.) are known or
can be closely estimated.
Special Situations

Special Situations
Certain situations can arise in which the
model deviates slightly from that
previously described.
Among those situations are the following:
The number of rows does not equal the
number of columns.
The problem involves maximization rather
than minimization.
Certain matches are undesirable or not
allowed.
Multiple optimal solutions exist.
Table 6S24 Column Reduction of
Opportunity (Row Reduction) Costs
Table 6S25 Determine the Minimum
Number of Lines Needed to Cover
the Zeros

Table
Table6S26
6S26 Further
FurtherRevision
Revisionofofthe
theCost
CostTable
Table
Table 6S27 Optimal
Assignments