TRANSPORTATION

PROBLEM
Name : Pawankumar M. Pawara
Roll No.: 226
Guide By : Mr. Manish Khandare
 Introduction

• The transportation problem is a special type of LPP (Linear programming

Problem) where objective is to minimize the cost of distributing a product from
a number of sources to a number of destinations.

• Simplex method is not suitable for solving transportation problem due to its
special structure. Special method is required for the problems’ solution.
 Aim

• To find out the optimum transportation schedule keeping in mind cost of

transportation to be minimized.
Basic Structure of Transportation Problem
 Types of Transportation Problem

 Balanced Transportation Problem –

Where the total supply equal to total demand

Unbalanced Transportation Problem –

Where the total supply is not equal to total demand
(Addition of dummy row or column)
 Phases of Solution of Transportation
Problem
 PHASE I –
Obtain the Initial Basic Feasible Solution

 PHASE I I –
Obtain the Optimal Basic Solution
 Initial Basic Feasible Solution

• North West Corner Rule

• Least Cost Method
• Vogle Approximation Method (VAM)
 Optimum Basic Solution

Modified Distribution Method (MODI Method) –

Stepping Stone Method –

 Special Cases

 Demand not equal to supply

• Also called as unbalanced problem
• Resolved by adding dummy sources or dummy destinations as necessary with cost
coefficient zero.
 Degeneracy
• Use stepping stone method, the number of occupied cells in any solution must be
equal to the no, of rows in the table plus no. of columns minus 1 ( m+n –1)
• If the solution not satisfy this rule, it is called degenerate.
 Applications of Transportation Problem

• Minimize shipping costs from factories to warehouses.

• Determine lowest cost location for new factory, office, warehouse etc.
• Find minimum cost production schedule
• Compute transportation routes in such a way to minimize transportation cost.
 Conlusion

• The transportation problem is one of the most frequently encountered

application in real life situations and is a special type of linear
programming problem.
• The transportation problem indicates the amount of consignment to be
transported from various origins to different destinations so that the total
cost is minimized without violating the availability constraints and the
requirement.