Module No.

Simplified Module in Management Science

Summer Class 2020
Angelita Mando

July 2, 2021 Module 4: Linear Programming: Transportation Method

Learning Objectives:
Identify a transportation problem and state its assumptions.

Formulate the problem in a transportation problem.

Write the equivalent Linear Programming problem.

Generate an initial feasible solution by Norwest Corner Rule,

Greedy Method and Vogel’s Approximation method.

Employ the optimal solution Stepping Stone Method and

Modified Distribution Method.

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Basic Concepts
Lesson No.
1 Ø Definitions

Ø Initial Feasible Solution

Ø Optimum Solution

2
Initial Basic Feasible Solution
Lesson No. Ø Transportation Problem

Ø Method

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Optimal Solution: Minimization &
Maximization Method

3
Ø MODI Ø SSM Min. Problem

Lesson No. Ø MODI Steps Ø MODI Max. Problem

Ø MODI Min. Problem

Ø SSM

Ø SSM Steps

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Module No.

Simplified Module in Management Science

Basic Concepts

Summer Class 2020

Angelita Mando

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Transportation Model
- a special procedure of linear programming for finding the minimum cost
for distributing homogeneous units of product from several points of
supply (origin) to a number of points of demand (destinations)

- a linear programming model in which a product is to be transported from

a number of sources to a number of destination at the minimum cost
(for minimization problem ) or maximum profit (maximum problem)

- it answers the question: what are the cheapest routes to send a certain
number of products from a certain number of suppliers to a certain
number of destinations?

It was first presented by F.L. Hitchcock in 1941 in the study entitled: The Distribution of
a Product from Several Sources to Numerous Localities.

It was later expanded by T.C. Koopmans entitled: Optimum Utilization of the

Transportation System.

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Terms
Stepping Stone Method Ø was developed by A. Charnes in 1953

Modified Distribution
Method

Destination

Origin

Unused Cells

Used Cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Terms
Stepping Stone Method

Modified Distribution Ø was developed by W.W. Cooper in 1955

Method

Destination

Origin

Unused Cells

Used Cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Terms
Stepping Stone Method

Modified Distribution
Method

Destination Ø a point of demand in a transportation problem.

Origin

Unused Cells

Used Cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Terms
Stepping Stone Method

Modified Distribution
Method

Destination

Origin Ø is the source or supply location in a transportation problem

Unused Cells

Used Cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Terms
Stepping Stone Method

Modified Distribution
Method

Destination

Origin

Ø are routes where no quantity is shipped between a source and a destination.

Unused Cells

Used Cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Terms
Stepping Stone Method

Modified Distribution
Method

Destination

Origin

Unused Cells

Ø are routes where there is quantity shipped between a source and a destination.
Used Cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Methods in Establishing the Initial Feasible Solution

Northwest Corner Rule
Ø It starts with allocating units to the upper left-hand corner and ends in the (NCR)
lower right corner of any transportation.
Minimum Cost Method
(MCM)
Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Methods in Establishing the Initial Feasible Solution

Northwest Corner Rule
Ø A method that allocates as much as possible to the least-cost/ highest (NCR)
profit cell also known as the “Greedy Method”.
Minimum Cost Method
(MCM)
Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Methods in Establishing the Initial Feasible Solution

Northwest Corner Rule
Ø A method that considers “penalty cost” of not using the cheapest route. (NCR)

Minimum Cost Method

(MCM)
Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Methods in Establishing the Optimum Solution

Stepping Stone Method
Ø A method which involves tracing closed paths from each unused cell (SSM)
through used cells. When all cells have been evaluated and appropriate
shifts made, the problem is solved. Modified Distribution
Method (MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Definitions Ø Initial Feasible Solution Ø Optimum Solution

Methods in Establishing the Optimum Solution

Stepping Stone Method
Ø A procedure where determining the per unit cost/per profit changed (SSM)
associated with assigning flow to an unused cell.
Modified Distribution
Method (MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

July 2, 2021 Module 4: Linear Programming: Transportation Method
 Module No.

Simplified Module in Management Science

Initial Basic Feasible Solution

Summer Class 2020

Angelita Mando

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Balance Transportation Problem

Transportation problem wherein supply is equal to the demand or production is equal

to the requirement.

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule Ø It provides that the allocation of shipment from the plants to the
(NCR) warehouses begins in cell (1,1) in the northwest (upper left-hand corner) of
the table.
Minimum Entry Method

Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule

(NCR)

Minimum Entry Method

Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule Ø It provides that the first allocation begins in the cell with the smallest
(NCR) available cost in the cost matrix.

Minimum Entry Method Steps:

1. Choose the cell with the lowest available cost and allocate the shipment so
Vogel’s Approximation as to exhaust either the production plant or meet the requirements of
Method (VAM) warehouse or both.
2. Delete the row or column, depending on whether the allocation exhaust
the supply or meet the requirement or the warehouse. If both occur
simultaneously (degenerate case) delete the row remaining in which case
delete the column.
3. Adjust the remaining at plant P or unfilled demand of the warehouse.
4. If there remains 2 or more rows or columns not yet deleted, go to step 1,
otherwise the initial basic feasible solution is obtained.

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule

(NCR)

Minimum Entry Method

Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule

(NCR)

Minimum Entry Method

Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule Ø A method based on cost information.

(NCR)
Steps:
Minimum Entry Method 1. Compute the difference between the cost of the cheapest routes for each
origin and each destination. Each individual difference is interpreted as a
Vogel’s Approximation penalty for not choosing the cheapest route and is marked opposite each
Method (VAM) row and column.
2. Identify the row or column with the largest difference. Allocate the
shipment to lowest cost cell in that row or column so as to exhaust either
the supply at a particular source or satisfy the demand at a warehouse.
3. Drop the row or column, depending whether the allocation exhaust the
supply at a plant or meet warehouse’s requirement. If these occur
simultaneously (degenerate case) delete the rows unless it is the only row
remaining in which case, delete or drop the column.

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule Steps:

(NCR)
4. Adjust the supply remaining at source P1, or demand of warehouse not yet
Minimum Entry Method meet.
5. Go to step 1 and repeat the procedure until an initial assignment is
Vogel’s Approximation obtained.
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule

(NCR)

Minimum Entry Method

Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

 Ø Transportation Problem Ø Method

Initial Basic Feasible Solution Method

Northwest Corner Rule

(NCR)

Minimum Entry Method

Vogel’s Approximation
Method (VAM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

July 2, 2021 Module 4: Linear Programming: Transportation Method
 Module No.

Simplified Module in Management Science

Optimal Solution: Minimization &
Maximization Method

Summer Class 2020

Angelita Mando

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

An Optimal Solution: Modified Distribution Method (MODI)

After an assignment is made using the three methods, the next step is to check
whether or not the solution can be improved. We have to examine each unused cell to
determine whether or not moving a shipment into one of them reduces the delivery
cost and then repeating this procedure until the lowest possible cost solution is
obtained.

Modified Distribution Method is more efficient than stepping-stone method since a

closed path is traced in one unused cell rather than in all unused cells. The unused
cells with the largest savings is identified as the one with the most negative value and
then entered in the next solution.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Steps in Establishing the Modified Distribution Method

Use the current solution and operations (a) and (b) below to evaluate the
marginal cost over each of the unused or vacant cells.
a. Set U1 = 0.
b. Find the row indices U2….Un and column indices V1 …..Vn such that
Step 1 Cij = Ui + Vj for every used cell.
c. Let Eij = Cij – Ui – Vj for every unused cell; Eij is the marginal cost of
introducing Cell I, j into the solution.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Steps in Establishing the Modified Distribution Method

a. Minimization Problem. If all the marginal cost is greater than or equal to

zero, stop; you have the optimal solution. If not, select the cell with the
most negative marginal cost.
Step 2 b. Maximization Problem. If all the marginal cost is less than or equal to zero,
stop; you have the optimal solution. If not, select the cell with the most
positive marginal cost.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 1
Ste Start with Northwest-Corner Rule
We have obtained three initial basic feasible solutions for the transportation
problem. Let us consider the solution in Table 1 ( Northwest-Corner Rule)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

Step 2

Create column Ui representing cost factor of supply and Vj cost factor of

demand.

Step 3
Look for the used or occupied cell.
Use Ui + Vj Always set U1 = 0.

U1 + V1 = 9
U1 + V2 = 11
U2 + V2 = 5
U2 + V3 = 10
U3 + V3 = 9

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 4
Ste Assume value for any one to solve for the rest.
Formula : Let Cij = shipping cost per unit
Cij = Ui + Vj

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 5
Ste Test for improvement by evaluating vacant cells for net contribution to cost.

Formula:
Net contribution to Cost = (Cost of vacant cells) minus (Cost Factor of Supply)
minus (Cost Factor of demand)

(-6)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

Step 6
Choose the cell with the most negative (for minimization problem)

Cell (1,3) has the most negative.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste Go back to the table, trace the closed path and transfer units on the cell with
the most negative.

a) Trace a closed path using the most direct route from the selected unused cell
through at least three cells used in the solution and then back to the original unused
cell.
b) Use plus and minus signs alternately at each cell of the closed path, starting with a
plus sign at the unused cell to be evaluated.

1. Based on the test for improvement in solution above, Cell (1,3) has the most negative entry (-
9), so we put a (+) sign on that cell; then (-) (+) and (-) in the cells closest to Cell (1,3). It is
important to note that the signs should be alternately put. Always start with (+) sign and
ends in (-) sign.
2. Cells (1,2), (2,2) and (2,3) are the closest cells with its path identified by the dash lines in this
table.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

3. Notice that two cells (1,2) and (2,3) have negative signs. Compare the two values and choose
the one with the least value.
4. Between the two negatives we have (-10) and (-30), we have to choose(-10) the lesser value,
that means 10 units must be transferred from W2 to W3 then deduct 10 units from P2 to W3.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste
9 11 7
100 10
8 5 10
70 20
9
14 13 9
55

Since we have the new table, then just repeat the process until no negative entry in the change in
cost has been reached.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

1) There is still negative entry (-4) in the change in cost corresponds to Cell (2,1), so we need to
determine the close path.
2) The close path is from cell (2,1) to cell (2,3) then up to cell ((1,3) to cell (1,1) back to cell (2,1).
3) Next, we indicate (+) sign in Cell (2,1), (-) sign in Cell (2,3) (+) sign in Cell (1,3) and (-) sign in
Cell (1,1) No sign assigned to Cell (2,2) since this cell is not a corner point.
4) Choose the least value with the (-) sign, between 100 and 20 we have to choose 20. This
means we transfer 20 units to cell (2,1), then deduct 20 units to cell (1,1), then prepare
another table and repeat again the process.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7 Table 2
Ste

Remember that the corner of the close path should always be a used cell. If the corner of the
path is a vacant cell, look for another path.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

20

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

Changes in cost are all positive, therefore table 3 is an optimal table wherein an optimal solution
can be taken. Therefore, decision has to be made.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method: Minimization Problem

p 7
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

An Optimal Solution: Stepping Stone Method (SSM)

It makes use of an unused or vacant cell as a point of destination to evaluate if the

solution can still be improved.

The general process is to look for available 3 occupied cell, rectangular in position to
the point of destination.

The movement is vertical and horizontal.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Steps in Establishing the Stepping Stone Method

Use the initial feasible solution to create a unique stepping-stone path for
Step 1 each unused cell.

Use these paths to calculate the change in cost (or marginal cost ) of
Step 2 introducing each unused cell into the solution.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Steps in Establishing the Stepping Stone Method

a. Minimization Problem. If all the change in cost is greater than or equal to

0, stop you have the optimal solution (all is positive). If not, select the cell
with the most negative marginal cost.
Step 3
b. Maximization Problem. If the change costs are less than or equal to 0,
stop; you have the optimal solution (all is negative). If not, select cell with
the highest positive marginal cost.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Steps in Establishing the Stepping Stone Method

Using the stepping-stone path, determine the maximum number of items that
Step 4 can be allocated to the route selected in step 2 and adjust the allocation
appropriately.

Step 5 Return to step 1.

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 1
Ste Use the initial feasible solution to create a unique stepping-stone path for
each unused cell.
Using Northwest-Corner Rule

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste Compute the stone cells

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Stepping Stone Method: Minimization Problem

p 2
Ste

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Problem

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Problem

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Problem

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(NCR)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(NCR)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI) V1 = 700 V2 = 1000 V = 1800

U1 = 0

U2 = 500

U3 = -700

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)
1000

1000 V1 1200
V2 1000 700 = 1200
700 1,000 500

1000 = 300 -700

-700 1,800

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI) V1 = 1500 V2 = 1000 V3 = 1800

U1 = 0

U2 = -300

U3 = -700

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

1200
V2 1500 1200 -700 + V1
V2 -300 V1 = 1500

V3 = 1100 V2 300
-700 + V3 = 1100 U3 + 1000 = 300
V3 = 1800 U3 = -700

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(MODI)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

800 – 300 + 1000 – 700 800

800

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

Ø MODI Ø MODI Steps Ø MODI Min. Problem Ø SSM
Ø SSM Steps Ø SSM Min. Problem Ø MODI Max. Problem

Modified Distribution Method (MODI): Maximization Problem

Solution
(SSM)

July 2, 2021 Module 4: Linear Programming: Transportation Method

July 2, 2021 Module 4: Linear Programming: Transportation Method