9.1 INTRODUCTION One important application of linear programming is in the area of physical distribution (transportation) of goods and services from several supply centres to several demand centres. A transportation problem when expressed in terms of an LP model can also be solved by the simplex method. However a transportation problem involves a large number of variables and constraints, solving it using simplex methods takes a long time. Two transportation algorithms, namely Stepping Stone Method and the MODI (modified distribution) Method have been developed for solving a transportation problem The structure of transportation problem involves a large number of shipping routes from several supply centres to several demand centres. Thus, objective is to determine shipping routes between supply centres and demand centres in order to satisfy the required quantity of goods or services at each destination centre, with available quantity of goods or services at each supply centre at the minimum transportation cost and/ ortime. The transportation algorithms help to minimize the total cost of transporting a homogeneous commodity (product) from supply centres to demand centres. However, it can also be applied to the maximization of total value or utility. There are various types of transportation models and the simplest of them was first presented by FL Hitchcock (1941). It was further developed by T C Koopmans (1949) and G B Dantzig (1951). Several extensions of transportation models and methods have been subsequently developed.9.2 MATHEMATICAL MODEL OF TRANSPORTATION PROBLEM Let us consider Example 9.1 to illustrate the mathematical model formulation of transportation problem of transporting a single commodity from three sources of supply to four demand destinations. The sources of supply ase production facilities, warehouses, or supply centres, each having certain amount of commodity to supply. The destinations are consumption facilities, warehouses or demand centres each having certain amount of requirement (or demand) of the commodity. Example 9.1 A company has three production facilities $,, S$, and S, with production capacity of 7, 9 and 18 units (in 100s) per week of a product, respectively. These units are to be shipped to four warehouses D, Ds, D; and D, with requirement of 5, 6, 7 and 14 units (in 100s) per week, respectively. ‘The transportation costs (in rupees) per unit between factories to warehouses are given in the table below: 5, 19 30 50 10 7 S, 70 30 40 60 9 & 40 8 70 20 18 Demand 5 8 7 4 34 (Requirement) Formulate this transportation problem as an LP model to minimize the total transportation cost.Model formulation Let x, = number of units of the product to be transported from a production facility i@7=1, 2,3) toa warehouse j (j= 1, 2, 3, 4) The transportation problem is stated as an LP model as follows: Minimize (total transportation cost) Z = 19x11 + 30x) + SOxy3 + 10x14 + 70xy) + 30x) + 40x73 + GOxy4 + 40x51 + 8x3) + 70x55 + 20X54 subject to the constraints yt tay thy = 7 %y 7% Xa 7 ye = 9 H(Supply) Nyy 7 Xy) $455 Fy =18 sate tn = 5 Xp ty tXy = 8 2 Xp +2 © X43 4% +X = 7 i Mut Xt 334 = 14 and xy 20 for1=1, 2, 3 andy = 1,2, 3, and 4. In the above LP model, there are m x =3%4 = 12 decision variables, xy and m +n = 7 constraint, where m are the sumber of rows and n are the number of columns in a general transportation table.9.2.1 General Mathematical Model of Transportation Problem Let there be m sources of supply. 5,, Sy, .... §,, having a, (f= 1, 2, .... m) units of supply (or capacity), respectively to be transported to » destinations, D,, D;, ....D, with b, (7=1,2,....») units of demand (or requirement), respectively. Let cj, be the cost of shipping one unit of the commodity from source i to destination j. If x,, represents number of waits shipped from source 7 to destination j, the problem is to determine the transportation schedule so as to minimize the total transportation cost while satisfying the supply and demand conditions. Mathematically. the transportation problem, in general, may be stated as follows: Minimize (total cost) Z= i ics ty @ ae ject to the constraints Lay = a 1= 1.2... m (supply constraints) Q is Baye bp Jah .. n (demand constraints) ®@ and xj 20 for all i and j @ For easy preseatation and solution, a transportation problem data is generally presented as shown in Table 9.1.Existence of feasible solution A necessary and sufficieat condition for a feasible solution to the transportation problems is: Total supply = Total demand 51 = £8) (also called rim conditons) For proof, see Appendix at the end of this chapter. Sy a te oll. Tee a In this problem, there are (m ~ 1) constraints, one for each source of supply, and distinction and m %n variables. Since all (m +7) constraints are equations, therefore, one of these equations is extra (redundant). The extra constraint (equation) can be derived from the other constraints (equations), without affecting the feasible solution. It follows that any feasible solution for a transportation problem must have exactly (m+ n ~1) non-negative basic variables (or allocations) x satisfying the rim conditions9.3 THE TRANSPORTATION ALGORITHM ‘The algorithm for solving a transportation problem may be summarized into the following steps: Step 1: Formulate the problem and arrange the data In the matrix form The formulation of the transportation problem is similar to the LP problem formulation. In transportation problem, the objective function is the total transportation cost and the constraints are the amount of supply and demand available at each source and destination, respectively. Step 2: Obtain an initial basic feasible solution In this chapter, following three different methods are discussed to obtain an initial solution: © North-West Corner Method, © Least Cost Method, and ‘© Vogel's Approximation (or Penalty) Method. ‘The initial solution obtained by any of the three methods must satisfy the following conditions: @ The solution must be feasible, i.e. it must satisfy all the supply and demand constraints (also called rim conditions). @ The number of positive allocations must be equal to m + —1, where m is the number of rows and n is the number of columns. Any solution that satisfies the above conditions is called non-degenerate basic feasible solution, otherwise, degenerate solution. Step 3: Test the initial solution for optimality _Ia this chapter, the Modified Distribution (MODI) method is discussed to test the optimality of the solution obtained in Step 2. If the current solution is ‘optimal, then stop. Otherwise, determine a new improved solution Step 4: Updating the solution Repeat Step 3 until an optimal solution is reached.9.4 METHODS OF FINDING INITIAL SOLUTION ‘There are several methods available to obtain an initial basic feasible solution. In this chapter, we shall discuss only following three methods: 9.4.1 North-West Corner Method (NWCM) This method docs not take into account the cost of transportation on any route of transportation. The method can be summarized as follows: Step 1: Start with the cell at the upper left (north-west) comer of the transportation table (or matrix) and allocatecommodity equal to the minimum of the rim values for the first row and first column, ie. min (a,.5,). Step 2: (a) Ifallocation made in Step 1 is equal to the supply available at first source (a, in first row), then move vertically dowa to the cell (2. 1), i, second row and first column. Apply Step 1 again, for next allocation. (©) If allocation made in Step 1 is equal to the demand of the first destination (2, in first column), then move horizontally to the cell (1. 2), Le. first row and second column. Apply Step 1 again for next allocation. © Ta, = b,, allocate x, = a, or b, and move diagonally to the cell (2, 2). Step 3: Continue the procedure step by step till an allocation is made in the south-east comer cell of the transportation table Remark _ If during the process of making allocation at a particular cell. the supply equals demand, then the next allocation of magnitude zero can be made in a cell either in the next row or column. This condition is known as degeneracy.Example 9.2 Use North-West Corner Method (NWCM) to find an initial basic feasible solution to the transportation problem using data of Example 9.1 Solution The cell (5,. D,) is the north-west comer cell in the given transportation table. The rim values for row 5, and cohumn D, ate compared. The smaller of the two, ic. 5, is assigned as the first allocation, otherwise it will violate the feasibility condition. This means that 5 units of a commodity are to be ‘transported from source 5; to destination D,. However. this allocation leaves a supply of 7 — 5 = 2 units of commodity at 5, Move horizontally and allocate as much as possible to cell (Sj. D,). The sim value for sow S, is 2 and for column Dy is 8. The smaller of the two, ie. 2. isplacedin the cell. Proceeding to row S.. since the demand of D, is fullfilled The unfulfilled demand of D, is now 8 — 2 = 6 units. This can be fulfilled by S, with capacity of 9 units. So 6 units are allocated to cell (S,. D,). The demand of D, is now satisfied and a balance of 9— 6 =3 units remains with 5 a a s Po Fo 7 2) Po fo |* , sf aR 5 © [el » = i a Continue to move horizontally and vertically in the same manner to make desired allocations. Once the procedure is over. count the number of positive allocations. These allocations (occupied cells) should be equal to m +n —1=3 +4 —1=6. If yes, then solution is non-degenerate feasible solution. Otherwise degenerate solution. ‘The total transportation cost of the initial solution is obtained by multiplying the quantity xy in the occupied cells with the corresponding unit cost c, and adding all the values together. Thus. the total transportation cost of this solution i= Total cost = 5 * 19 +2. * 304+ 6% 30 43% 40 +4 % 70 + 14 x 20=Rs 1.01594.2 Least Cost Method (LCM) Since the main objective is to minimize the total transportation cost, transport as much as possible through those routes (cells) where the unit transportation cost 1s lowest. This method takes into account the minimum unit cost of transportation for obtaining the initial solution and can be summarized as follows: Step 1: Select the cell with the lowest unit cost in the entire transportation table and allocate as much as possible to this cell. Then eliminate (line out) that row or column in which either the supply or demand is fulfilled. Ifa row and acolumn are both satisfied simultaneously, then crossed off either a row or a column. In case the smallest unit cost cell is not unique, then select the cell where the maximum allocation can be made. Step 2: After adjusting the supply and demand for all uncrossed rows and columns repeat the procedure to select a cell with the next lowest unit cost among the remaining rows and columns of the transportation table and allocate as much as possible to this cell. Then crossed off that row and column in which either supply or demand is exhausted. Step 3: Repeat the procedure until the available supply at various sources and demand at various destinations is satisfied. The solution so obtained need not be non-degenerate.Example 9.3. Use Least Cost Method (LCM) to find initial basic feasible solution to the transportation problem using data of Example 9.1 Solution The cell with lowest unit cost (i... 8) is (S5, D,). The maximum units which can be allocated to this cell is 8. This meets the complete demand of D, and leave 10 uaits with $,, as shown in Table 9.3. In the reduced table without column D,, the next smallest unit transportation cost, is 10 in cell (5,, D,). The maximum which can be allocated to this cell is 7. This exhausts the capacity of $, and leaves 7 units with D, as unsatisfied demand. This is shown in Table 9.3. 19 30 50 10 St @ 7 n 30 40 0 & 9 a 8 70 0In Table 9.3, the next smallest cost is 20 in cell (S,, D,). The maximum units that can be allocated to this cell is 7 units. This satisfies the entire demand of D, and leaves 3 units with S,, as the remaining supply. shown in Table 9.4 In Table 9.4 the next smallest unit cost cell is not unique. That is, there are two cells ~(S,, D) and (S;, D,) ~ that have the same unit transportation cost of 40. Allocate 7 units in cell (S,, D,) first because it can accommodate more units as compared to cell (S;, D,). Then allocate 3 units (only supply left with 5, to cell (S5,D)). The remaining demand of 2 units of D; is falfilled from S,. Since supply and demand at each supply centre and demand centre is exhausted, the initial solution is arrived at, and is shown in Table 9.4. 19 30 50 10 SS @ 7 & 70 @ 30 40 @ 0 9 40 3 70 20 *| © |© @| * Demand 5 8 7 14 34 The total transportation cost of the initial solution by LCM is calculated as given below: Total cost = 7 x 10 +2 x 70+7 x 40+3x 40+8x 8+7%x20=Rs 814 The total transportation cost obtained by LCM is less than the cost obtained by NWCM.9.4.3 Vogel's Approximation Method (VAM) Vogel’s approximation (penalty or regret) is preferred over NWCR and LCM methods. In this method, an allocation is made on the basis of the opportunity (or penalty or extra) cost that would have been incurred if the allocation in certain cells with minimum unit transportation cost were missed. Hence. allocations are made in such a way that the penalty cost is minimized. An initial solution obtained by using this method is nearer to an optimal solution or is the optimal solution itself. The steps of VAM are as follows: Step 1: Calculate the penalties for each row (column) by taking the difference between the smallest and next smallest unit transportation cost in the same row (column). This difference indicates the penalty or extra cost that has to be paid if decision-maker fails to allocate to the cell with the minimum unit transportation cost. Step 2: Select the row or column with the largest penalty and allocate as much as possible in the cell that has the least cost in the selected row or column and satisfies the rim conditions. If there is a tie in the values of penalties, it can be broken by selecting the cell where the maximum allocation can be made. Step 3: Adjust the supply and demand and cross out the satisfied row or column. If a row and a column are satisfied simultaneously, only one of them is crossed out and the remaining row (column) is assigned zero supply (demand). Any row or column with zero supply or demand should not be used in computing future penalties Step 4: Repeat Steps 1 to 3 until the available supply at various sources and demand at various destinations is satisfied.Example 9.4 Use Vagel’s Approximation Method (VAM) to find the initial basic feasible solution to the transportation problem using the data of Example 9.1 Solution The differences (penalty costs) for cach row and column have been calculated as shown in Table 915. In the first round, the maximum penalty. 22 oceurs in cohmn D,. Thus the cell (Sy, D,) having the least transportation cost is chosen for allocation. The maximum possible allocation in this cell is 8 units and it sstislies demand in column D,, Advust the supply of 5, from 18 to 10 (18 — § = 10) mS 10 40°40 aa) 30 raw Gre ° 10 20 20 20 s, Fo z 7 20 we | 2 20 50 | ® Demand | 5 8 7 4 34 Cotamn | 2 2 10 10 \etgerences | 21 - 10 10 - = 10 10 = = 10 30 The new row and column penalties are calculated except column D, because D,’s demand has been satisfied. In the second round, the largest penalty, 21 appears at column D,. Thns the cell (S;, D,) having the least transportation cost is chosea for allocating 5 units as shown in Table 9.5. After adjusting the supply and demand in the table, we move to the third round of penalty calculations. In the third round, the maximum penalty 50 appears at row S,. The maximum possible allocation of 10 units is made in cell (53, D,) that has the least transportation cost of 20 as shown in Table 9.5 The process is continued with new allocations till a complete solution is obtained. The initial solution using VAM is shown in Table 9.5. The total transportation cost associated with this method is: Total cost = $< 19 +2 10+7= 40+2™ 60+8™8+10~20=Rs 779Example 9.5 A dairy firm has three plants located in a state. The daily milk production at each plant is as follows: Plant 1: 6 million litres, Plant 2 : 1 million litres, and Plant 3 : 10 million litres Each day. the firm must fulfil the needs of its four distribution centres. The minimum requirement of each centre is as follows: Distribution centre 1 : 7 million litres, Distribution centre 2 : 5 million litres, Distribution centre 3 : 3 million litres, and Distribution centre 4 : 2 million litres Cost (in hundreds of rupees) of shipping one million litre from each plantto each distribution centre is given in the following table: Distribution Centre Dr Dr Ds Ds P 2 3 i 1 Plant P, 1 0 6 1 Py 5 8 15 9 Find the initial basic feasible solution for given problem by using following methods: (@ North-west comer rule (©) Least cost method (©) Vogel’s approximation methodSol In (a) North-West Corner Rule 2 3 i 7 Py © 6=a aa E © 0 6 1 lea, a, 5 8 1S 9 mae ® ® ® Demand T=), 5=b, 3 =); 2=b, @ Comparing a, and by, since a, < by; allocate x; = 6. This exhausts the supply at P, and leaves 1 unit as unsatisfied demand at Dy @ Move to cell (P;. D,). Compare a, and 5, (ie 1 and 1) Since a, = by. allocate x, = 1 (ii) Move to cell (P,, D,). Since supply at P,, is equal to the demand at D,. D, and D,, therefore, allocate x3) = 5. x33 = 3 and x3, = 2. It may be noted that the number of allocated cells (also called basic cells) are 5 which is one less than the required number m + 7 — 1 (3 + 4 — 1 = 6). Thus, this solution is the degenerate solution. The transportation cost associated with this solution is Total cost = Rs (2 x 6 +1 1+8 x5 +15 x 3+9x 2) 100 =Rs 11,600(b) Least Cost Method ir Py 6 pint» | 0 © 6 1 fl a 8 15 9 1 © ® @ @ Demand 7 5 3 2 @ The lowest unit cost in Table 9.7 is 0 in cell (P,. D;). therefore the maximum possible allocation that can be made is 1 unit. Since this allocation exhausts the supply at plant P,. therefore row 2 is crossed off. @ The next lowest unit cost is 2 in cell (P}, D,). The maximum possible allocation that can be made is 6 units. This exhausts the supply at plant P), therefore, row P, is crossed off. (Gi) Since the total supply at plant P, is now equal to the unsatisfied demand at all the four distribution centres. therefore, the maximum possible allocations satisfying the supply and demand conditions, are made in cells (P,, D;,). (Ps, D,). (Ps, D,) and (P,, Dy). The aumber of allocated cells in this case are six, which is equal to the required number m+n—1(3+4~-1=6). Thus, this solution is non-degenerate. The transportation cost associated with this solution is Total cost = Rs (2 x 6+ 5 *1+8 x 4415 x3 +92) 100=Rs 11,200(©) Vogel's Approximation Method: First calculating penalties as per rules and then allocations are made in accordance of penalties as shown in Table 9.8 “1 @ © we Q oO weave l@ lo Rew Distribution Centre The number of allocated cells in Table 98 are six, which is equal to the required number m+n-1(3+4-1=6), therefore, this solution is non-degenerate. The transportation cost associated with this solution is: Total cost= Rs(2* 1+ 3x5+1%1+5%6+15*%3+9* 1) * 100=Rs 10.2009.5 TEST FOR OPTIMALITY Once an initial solution is obtained, the next step is to check its optimality im terms of feasibility of the solution and total minimum transportation cost. The test of optimality begins by calculating an opportunity cost associated with each unoccupied cell (represents unused route) in the transportation table. An unoccupied cell with the largest negative opportunity cost is selected to include in the new set of transportation routes (allocations). This value indicates the per unit cost reduction that can be achieved by making appropriate allocation in the unoccupied cell. This cell is also known as an incoming cell (or variable). The outgoing cell (or variable) from the current solution is the occupied cell (basic variable) where allocation will become zero as allocation is made in the unoccupied cell with the largest negative opportunity cost. Such an exchange reduces the total transportation cost. The process is continued until there is no negative opportunity cost. That is. the current solution is an optimal solution. The Modified-distribution (MODI) method (also called u-v method or method of multipliers) is used to calculate opportunity cost associated with each unoccupied cell and then improving the current solution leading to an optimal solution. The steps of MODI method based on the concept of duality are summarized im section 9.5.3.9.5.1 Dual of Transportation Model For a given basic feasible solution if we associate numbers (also called dual variables or multipliers) u, and v, with row (= 1,2,.... m) and column (j= 1, 2... m) of the transportation table, respectively, then wu, and v, must satisfy the equation u,+ ¥,= cy. for each occupied cell (4 /) These equations yield m + — 1 equations in m +n unknown dual variables. The values of these variables can be determined by arbitrarily assigning a zero value to any one of these variables. The value of the remaining m+ n — 2 variables can then be obtained algebraically by using the above equation for the occupied cells. The opportunity cost of each unoccupied cell (called non-basic variable or unused route) is calculated by using following equation that involves u, and v, values.: d= ¢,—(u, + ¥,), for each moccupied cell ( 5) This equation also indicates the per unit reduction in the total transportation cost for the route (r, s). To prove these two results, consider the general transportation model: subject to the constraints 2 7=1,2....m (Supply) a x=). J=12...0 (Demand) and xy20. forall i and jSince all of the constraints are equalities, write each equality constraint equivalent to two inequalities as follows: (Supply constraints) _m (Demand constraints) Let ag? and yj be the dual variables, one for each supply constraint 1. Similarly y+, Vj" be the dual variables one for each demand constraint j. Then, the dual of the transportation model can be written asBi Caf map Day * Byte YB; subject to the constraints (uf —up ) + YF Wo) Seg and uy wuz yt .y> 20, for all i andj. The variables 1¢ and 17 that appear in the objective function, may take positive, negative or zero values. Thus, either of these will appear in the optimal basic feasible solution because one is the negative of the other. The same argument may be given for Vj" and ¥,- Thus, let gs T= 12 J=12.. The values of u, and v, will then be unrestricted in sign. Hence, the dual of the transportation model can now be written as Maximize Z' = 3 way + 3, vj by a A subject to the constraints 1, +S cy and 1, v, Unrestricted in sign for all i and j. The relationship (c, - 1,—v,) xy = 0 is known as complementary slackness for a transportation problem and indicates that @ if x,>0 and solution is feasible, then c, — u,-v, = 0 or ¢, = u, + v, for each occupied cell. () ifx,=0 and c, > u,+ v, then itis not desirable t0 have x, * 0 in the ‘Solution mix because it would cost more to transport on a route (i, ). © if c, 0, then the current basic feasible solution is optimal. @) Ifd,=0. then the current basic feasible solution will remain unaffected but an alternative solution exists.(i) Tone or more dj, < 0, then an improved solution can be obtained by entering an unoccupied cell G,) into the solution mix (basis). An unoccupied cell having the largest negative value of di, is chosen for entering into the solution mix (new transportation schedule). Step 4: Construct a closed-path (or loop) for the unoccupied cell with largest negative value of d,,. Start the closed path with the selected unoccupied cell and mark a plus sign (+) in this cell. Trace a path along the rows (or columns) to an occupied cell, mark the comer with a minus sign (-) and continue down the column (or row) to an occupied cell. Then mark the comer with plus sign (+) and minus sign (-) alternatively. Close the path back to the selected unoccupied cell. Step 5: Select the smallest quantity amongst the cells marked with minus sign on the comers of closed loop. Allocate this value to the selected unoccupied cell, add it to occupied cells marked with plus signs. and subtract it from the occupied cells marked with minus signs. Step 6: Obtain a new improved solution by allocating units to the unoccupied cell according to Step 5 and calculate the new total transportation cost. Step 7: Test optimality of the revised solution. The procedure terminates when all d, 2 0 for unoccupied cells Remarks 1. The closed-loop (path) starts and ends at the selected unoccupied cell. It consists of successive horizontal and vertical (connected) lines whose end points must be occupied cells, except an end point associated with entering unoccupied cell. This means that every comer element of the loop must be an occupied cell. It is immaterial whether the loop is traced in a clockwise or anti-clockwise direction and whether it starts, up, down, right or left (but never diagonally). However, for a given solution only one loop can be constructed for each unoccupied cell. 2. There can only be one plus (+) sign and only one minus (-) sign in any given row or column. 3. The closed path indicates changes involved in reallocating the shipments.Example 9.6 Apply MODI method to obtain optimal solution of transportation problem using the data of Example 9.1 Dy Dr Ds Ds Supply Ss, 19 30 50 10 7 s, 70 30 40 60 9 5; 40 8 70 20 18 Demand 5 8 7 14 4 Solution Applying Vogel’s approximation method to obtain an initial basic feasible solution. This solution is shown in Table 9.11 [for ready reference see Table 9.5] 1 In Table 9.11, since number of occupied cells are m +n — 1=3 + 4-1 =6 (as required), therefore this initial solution is non-degenerate. Thus, an optimal solution can be obtained. The total transportation cost associated with this solution is Rs 779. In order to calculate the values of u,s (f= 1, 2, 3) and vs (j= 1, 2, 3, 4) for each occupied cell, assigning arbitrarily, v, = 0 in order to simplify calculations. Given v, = 0, 1, 1, and u, can be immediately computed by using the relation c, =u, + v, for occupied cells, as shown in Table 9.11SS 19 30 50 10 uy =10 © +3 +0] @ 7 S 70 30 40 60 ‘Uy = 60 +1/@ tea DO ° S 40 8 70 20 U3 = 20 -n|O@ =r) © 18 Demand 5 8 7 14 34 vy u=9 wm=-12 | ws y= 0 Us+v, of 20=u;+0 or u3=20 ng Uy +Vy of 60=1,+0 oF 1, =60 uy +vy or 10=1,+0 or uy, =10 Given m, 1, and w;, value of v;, v, and v, can also be calculated as shown below en 9 G3 =i tu; or 40 = 60 + ¥; ory; =-20 yt ¥, or 19=10+4, ory, 63) =uy+ Vy or 8=20+¥, ory, =-12The opportunity cost for each of the occupied cell is determined by using the relation dy = cy — (u; + ¥) and is shown below. dy = yy — 4, + vy) =30- (10-12) = 2 dy = 43 — (4 + v3) = 50-10-20) = © 1 dy = &y ~ Cy + vy) = 70-(O* 9) dy = cy) ~ (uy + v,) = 30- (60-12) ds) = C3; — (us + ¥,) =40-(20+ 9) yg = C35 — (us + v3) = 70-20-20) According to the optimality criterion for cost minimizing transportation problem, the current solution is not optimal, since the opportunity costs of the unoccupied cells are not all zero or positive. The value of dy) = — 18 in cell (S,, D,) is indicating that the total transportation cost can be reduced in the multiple of 18 by shifting an allocation to this cell. A closed-loop (path) is traced along row S, to an occupied cell (S;, D,). A plus sign is placed in cell (S, D,) and minus sign in cell (S;, D,). Now take a rightangle turn and locate an occupied cell in column D,. An occupied cell (S3, D,) exists at row S;, and a plus sign is placed in this cell. Continue this process and complete the closed path. The occupied cell (S), D;) must be bypassed otherwise they will violate the rules of constructing closed path. In ofder to maintain feasibility, examine the occupied cells with minus sign at the corners of closed loop, and select the one that has the smallest allocation. This determines the maximum number of units that can be shifted along the closed path The minus signs are in cells (S;, D,) and (S,, D,). The cell (Sy, Dy) is selected because it has the smaller allocation, i.e. 2. The value of this allocation is then added to cell (S,, D,) and (S;, D,) which carry plus signs. The same value is subtracted from cells (S,, D,) and (S;, D,) because they carry minus signs. The revised solution is shown in Table 9.12. The total transportation cost associated with this solution is Total cost = 5 « 19 +2 x 10+ 2 30+ 7% 40+6 «8+ 12 ™ 20=Rs 743Sy 19 30 50 10 1, =0 @ 332 +2/ @ 7 s, |70 30 40 60 y= 32 +o| © @ +14 g s, |40 8 70 20 su; © +2/ ® a Demand 5 8 7 “4 4 y y, = 19 ¥, ¥, = 10 i A 8. Test the optimality of the revised solution once again in the same way as discussed in earlier steps. The values of u,s, v;5 and djs are shown in Table 9.12. Since each of d,s is positive, therefore, the current basic feasibie solution is optimal with a miJnimum total transportation cost of Rs 743