Lecturer 22

Lecturer 24 (MAT 2003-Transportation

Problem)

By
Dr. Prashanth Maroju
Assistant Professor
Department of Mathematics,
VIT AP University
Amaravathi, Andhra Pradesh

August 31, 2020

1/20
Lecturer 22

2/20
Lecturer 22

The initial feasible solution can be obtained by any of the

following four methods:
Northwest Corner Method (NWC)
Row Minima Method (RMM)
Least cost method
Vogel approximation method (Penalty method)

3/20
Lecturer 22

4/20
Lecturer 22

North-West Corner method (NWCM):

5/20
Lecturer 22

6/20
Lecturer 22

7/20
Lecturer 22

Row Minima Method:

8/20
Lecturer 22

9/20
Lecturer 22

10/20
Lecturer 22

11/20
Lecturer 22

12/20
Lecturer 22

13/20
Lecturer 22

Optimality Test:
(i) Make a optimality test to find whether obtained solution is optimal
or not. Optimality test can, of course, only that basic feasible
solution in which
(a) Number of allocations is m + n − 1, where m is the number of
rows and n is the number of columns.
(b)these m + n − 1 allocations should be independent positions.
(ii) Determining the net evaluation for non basic variable
(unoccupied cells)
(iii) Choosing that net evaluation which may improve the current
basic feasible solution.
(iv) Determine the current occupied cell which leaves the basis and
repeating (ii) and (iii) until optimum solution attained.

14/20
Lecturer 22

MODI Method:
(i) Find an initial basic feasible solution using any one of the three
methods NWCM, LCM or VAM.
(ii) Find ui and vj for rows and columns. To start
(a) assign 0 to ui or vj where maximum number of allocation in a
row or column respectively.
(b) Calculate other ui and vj using cij = ui + vj , for all occupied
cells.
(iii) For all unoccupied cells, calculate dij = (ui + vj ) − cij ,
(iv) Check the sign of dij
(a) If dij ≤ 0, then current basic feasible solution is optimal and
stop this procedure.
(b) If dij > 0, then the given solution is not an optimal solution
and further improvement in the solution is possible.
(v) Select the unoccupied cell with the largest negative value of dij ,
and included in the next solution.

15/20
Lecturer 22

(vi) Draw a closed path (or loop) from the unoccupied cell (selected
in the previous step). The right angle turn in this path is allowed
only at occupied cells and at the original unoccupied cell. Mark
(+) and (−) sign alternatively at each corner, starting from the
original unoccupied cell.
(vii) (a). Select the minimum value from cells marked with (−) sign of
the closed path
(b). Assign this value to selected unoccupied cell (So
unoccupied cell becomes occupied cell).
(c). Add this value to the other occupied cells marked with (+)
sign.
(d). Subtract this value to the other occupied cells marked with
(−) sign.
(viii) Repeat Step-(ii) to step-(vii) until optimal solution is obtained.
This procedure stops when all dij ≤ 0 for unoccupied cells.

16/20
Lecturer 22 The maximization of transportation problem is illustrated with the following
Example.
Example:1:
Example
A company has three factories located in three cities viz. X, Y, Z. These
factories supplies consignments to four dealers viz. A, B, C and D. The
dealers are spread all over the country. The production capacity of these
factories is 310, 100 and 290 units per month respectively. The net return per
unit product is given in the following table:

Dealers A B C D Capacity

Factory
X 6 6 6 4 310
Y 4 2 4 5 100
Z 5 6 7 8 290
Requirement 150 130 120 300 700

Determine a suitable allocation to maximize the total return.

17/20
Lecturer 22

Example 2:Four companies viz. W, X, Y and Z supply the

requirements of three warehouses viz. A, B and C respectively. The
companies availability, warehouses requirements and the unit cost of
transportation are given in the following table. Find an initial basic
a. North West Corner Method
feasible solution using :
(a) NWC Method
b. Least Cost Method
(b)Least Cost Method
c. Vogel
(c) Vogel Approximation
Approximation MethodMethod
(VAM) (VAM)

18/20
Lecturer 22

Example 3: The ABT transport company ships truckloads of food

grains from three sources viz. X, Y, Z to four mills viz. A, B, C, D
respectively. The supply and the demand together with the unit
transportation cost per truckload on the different routes are described
in the following transportation table. Assume that the unit
transportation costs are in hundreds of dollars. Determine the
optimum minimum shipment cost of transportation using MODI
method.

Q4. An organization has three plants at X, Y, Z which supply to warehouses

located at A, B, C, D, and E respectively. The capacity of the plants is 800,
19/20
Lecturer 22

Thank you for your Attention.

20/20