UNIT – 4

Transportation Problems
Definition: Transportation problem
The objective is to determine the amount to be shifted from each source to each
destination such that the total transportation cost is minimum.
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Mathematical formulation of a transportation problem:
Let us assume that there are m-sources and n-destinations.
Let ai be the supply at source i, bj be the demand at destination j, cij be the unit
transportation cost from source i to destination j and xij be the number of units shifted from
source i to destination j.
Then the transportation problem can be expressed mathematically as.
m n
Minimize Z = ∑ ∑ c ij x ij
i=1 j=1

Subject to the constraints

∑ x ij= ai , i = 1,2,3,…,m.
j=1

∑ x ij= bj , j = 1,2,3,…,n. and xij ≥ 0 for all i and j.

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Standard Transportation table:
Transportation problem is explicity represented by the following transportation table.
Destinations
D1 D2 D3 … Dn Supply
S1 C11 C12 C13 C1n a1
S2 C21 C22 C23 C2n a2
S3 C31 C32 C33 C3n a3
Sources

.
.
.
Sm Cm1 Cm2 Cm3 Cmn am
Demand b1 b2 b3 bn ∑ai=∑bj

The mn squares are called cells. The unit transportation cost Cij from the jth source to the
i destination is displayed in the upper left side of the (i,j)th cell. Any feasible solution is shown
th
in the table by entering the value of xij in the Centre of the (i,j)th cell. The various a’s and b’s are
called rim requirement. The values of xij along the rows and down the columns.
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Definition: Balanced Transportation problems
m n

∑ ai = ∑ bj , then the transportation problems is said to be balanced.

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Definition: Unbalanced Transportation Problems
m n

∑ ai ≠ ∑ bj , then the transportation problems is said to be unbalanced.

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Definition: Feasible solution
A set of non-negative values xij , i = 1,2,…,m ; j = 1,2,…,n that satisfies the constraints
(Rim conditions and also the non-negativity restrictions) is called a feasible solution to the
transportation problem.
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Definition: Basic feasible solution
A feasible solution to a (m×n) transportation problem that contains no more than m+n-1
non-negative allocations is called a basic feasible solution to the transportation problem.
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Definition: Non-Degenerate basic feasible solution
A basic feasible solution to a (m×n) transportation problem is said to be a non-degenerate
basic feasible solution if it contains exactly m+n-1 non-negative allocations in independent
positions.
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Definition: Degenerate basic feasible solution
A basic feasible solution that contain less than m+n-1 non-negative allocations is said to
be a degenerate basic feasible solution.
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Definition: Optimum solution
A feasible solution (not necessarily basic) is said to be an optimal solution if it minimizes
the total transportation cost.
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Transportation Algorithms:
1. North West Corner Rule:
Step 1: The first assignment is made in the cell occupying the upper left-hand (north - west)
corner of the transportation table. The maximum possible amount is allocated there that is x 11 =
min {a1,b1}
If min {a1,b1}=a1 , then put x11 = a1, decrease b1 by a1 and move vertically to the 2nd row ie,
to the cell (2,1) cross out the first row.
If min {a1,b1}=b1 , then put x11 = b1, decrease a1 by b1 and move horizontally right ie, to
the cell (1,2) cross out the first column.
If min {a1,b1}=a1 = b1 , then put x11 = a1 = b1 and move diagonally to the cell (2,2) cross
out the first row and the first column.
Step 2: Repeat the procedure until all the rim requirements are satisfied.
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2. Least Cost Method (or) Matrix Minima Method (or) Lowest Cost Entry Method:
Step 1: Identify the cell with smallest cost and allocate xij = min {ai , bj}
If min {ai , bj}= ai, then put xij = ai, cross out the ith row and decrease bj by ai, go to
step(2).
If min {ai , bj}= bj, then put xij = bj, cross out the jth column and decrease ai by bj, go to
step(2).
If min {ai , bj}= ai = bj, then put xij = ai = bj, cross out either ith row or jth column but not
both, go to step(2).
Step 2: Repeat step(1) for the resulting reduced transportation table until all the rim
requirements are satisfied.
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3. Vogel’s Approximation Method (or) Unit Cost Penalty Method:
Step 1: Find the difference (Penalty) between the smallest and next smallest costs in each
row (column) and write them in brackets against the corresponding row (column).
Step 2: Identify the row (or) column with largest penalty. If a tie occurs, break the tie
arbitrarily row and column and allocate as much as possible to this cell and cross out the
satisfied row or column and go to step (3).
Step 3: Again compute the column and row penalties for the reduced transportation table and
then go to step (2). Repeat the procedure until all the rim requirements are satisfied.
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Methods for finding initial basic feasible solution:
 North West Corner Rule.
  Least Cost Method (or) Matrix Minima Method (or) Lowest Cost Entry Method.
 Vogel’s Approximation method (or) Unit Cost Penalty Method.
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Problems:
North West Corner Rule
1. Determine basic feasible solution to the following transportation problem using North
West Corner Rule.
Sink
A B C D E Supply
P 2 11 10 3 7 4
Origin

Q 1 4 7 2 1 8
R 3 9 4 8 12 9
Demand 3 3 4 5 6

Solution:
∑ai = 4 + 8 + 9 = 21 ; ∑bj = 3 + 3 + 4 + 5 + 6 = 21
∑ai = ∑bj so the given transportation problem is balanced.

3
2 11 10 3 7

1 4 7 2 1

3 9 4 8 12

3 3 4 5 6