ch-4 transportation problem nift - copy
DESCRIPTION
transTRANSCRIPT
![Page 1: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/1.jpg)
Transportation Problem
![Page 2: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/2.jpg)
Content..
• Generic Model• Initial Solutions• VAM• Least Cost Method• Modi Method
![Page 3: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/3.jpg)
Transportation Problem• This problem involves the shipment of a
homogeneous product from a number of supply locations to a number of demand locations.
• Problem: given needs at the demand locations, how should we take limited supply at supply locations and move the goods. Further suppose we wish to minimize cost.
![Page 4: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/4.jpg)
Basic Concept
• Objective:Minimize cost
• Variables:Quantity of goods shipped from eachSupply point to each demand point
• Restrictions:Non negative shipmentsSupply availability at a supply pointDemand need at a demand point
![Page 5: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/5.jpg)
Formulation of Problem• Suppose there are m sources and n destinations• Let ai be the number of supply units available at source i (i=1,2,3 …
m).• Let bj be the number of demand units required at destination j (j=
1, 2, 3…n) • The total number of variables is m x n.• The total number of constraints is m + n.• Let cij represent unit transportation cost for transporting unit from
source i to destination j.• We have determine number of units to be transported from i
source to j destination so that total cost of transportation is minimum.
![Page 6: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/6.jpg)
Formulation of Problem cont…• Let xij be the number of units shipped from source i
to destination j.• Let ai be the row i total supply
• Let bj be the column j total demand Min SScijxij i j
subject to S xij < ai for each source i j
S xij > bj for each destination j i
xij > 0 for all i and j
![Page 7: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/7.jpg)
![Page 8: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/8.jpg)
Balanced Transportation Problem
• The total supply from all the sources equals the total demand in all the destinations.
In case of balanced transportation problem, all constraints are expressed as equations i.e. there is no inequality.
![Page 9: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/9.jpg)
Example 1:
Plant Distribution Centres Supply (million litres)
1 2 3 4
1 2 3 11 7 6
2 1 0 6 1 1
3 5 8 15 9 10Demand 7 5 3 2 17
A dairy firm has three plants and four distribution centers. The daily production capacity and demand at each distribution centre is given in the table below. The cost shipping of one million litres of milk from plant to distribution centre is also given in hundreds of rupees.
![Page 10: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/10.jpg)
Formulation: Step 1
Here xij are the decision variables i.e. the quantities of milk to be shipped from different plants to different distribution centres.
When i=1,2,3 and j= 1, 2, 3,4 and xij ≥ 0
![Page 11: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/11.jpg)
Formulation: Step 2
• Minimize the objective function i.e.
– Minimize Z = 2x11 + 3x12 + 11x13 + 7x14 + x21 + 0x22 + 6x23 + x24 + 5x31 + 8x32 + 15x33 + 9x34
• In general we can write:
Min SScijxij i j
![Page 12: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/12.jpg)
Formulation: Step 3
• Here constraints are the supply of milk is limited. So,
• Here constraints are the demand of milk
![Page 13: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/13.jpg)
Solving Transportation Problem• The transportation problem is solved in two phases:
– Phase I — Obtaining an initial feasible solution– Phase II — Moving toward optimality
• In Phase I, – North-West Corner Rule– The Least-Cost Method– Row Minima Method– Column Minima Method– Vogel’s Approximation Method (VAM)
• In Phase II, – The Stepping Stone Method, – The MODI method ( Modified Distribution Method)
![Page 14: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/14.jpg)
North-West Corner Rule
1. Assign largest possible allocation to the cell in the upper left-hand corner of the tableau
2. Repeat step 1 until all allocations have been assigned3. Stop. Initial tableau is obtained4. The proposed solution is feasible solution since all
demand and supply constraints are fully satisfied.5. Assignment has been done without considering cost,
solution may not be the best or optimal.6. The value of xij can be taken as zero when they are not
allocated in any cell.7. A cell that gets an allocation is called a basic cell.
![Page 15: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/15.jpg)
Allocation of supply using NWC rule
26
3 11 7 6
11
0 6 1 1
5 85
153
92
10
71
5 3 2 17
![Page 16: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/16.jpg)
Example 2: Transportation Tableau
![Page 17: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/17.jpg)
17
Northwest corner
150
Step 1
Max (150,200)
Step 2
150
50
-- -- 0
150
--
--
-- 0
0
125
![Page 18: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/18.jpg)
Allocation of supply using NWC rule
![Page 19: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/19.jpg)
Row Minima
• Allocate as mush as possible in the lowest cost cell of the first row so that either the capacity of the first plant is exhausted or the requirement at jth distribution center is satisfies or both.
• In case of tie among the cost, select arbitrarily.
![Page 20: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/20.jpg)
Least cost Method
Here, we use the following steps:Steps:
Step 1 Find the cell that has the least costStep 2: Assign as much as allocation to this cellStep 3: Block those cells that cannot be allocatedStep 4: Repeat above steps until all allocation have been
assigned.
• In case tie among the cost, select the cell where allocation of more number of units can be made.
![Page 21: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/21.jpg)
Example 1:Allocation of supply using Least Cost Method
26
3 11 7 6
1 01
6 1 1
51
84
153
92
10 9 5 2
71
54
3 2 17
![Page 22: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/22.jpg)
22
Example 2: Allocation of supply using Least Cost Method
Step 1:
The min cost, so allocate as much resource as possible here
200
Step 3
Step 2:
![Page 23: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/23.jpg)
23
Step 3:
200
--
--
0
75
Second iteration, step 4
Example 2: Allocation of supply using Least Cost Method cnt…
![Page 24: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/24.jpg)
24
Example 2: Allocation of supply using Least Cost Method cnt…The initial solution
• Stop. The above tableau is an initial tableau because all allocations have been assigned
![Page 25: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/25.jpg)
25
Vogel’s approximation methodOperational steps:Step 1: for each column and row, determine its penalty cost by subtracting their two of their least cost Step 2: select row/column that has the highest penalty cost
in step 1Step 3: assign as much as allocation to the
selected row/column that has the least costStep 4: Block those cells that cannot be further allocatedStep 5: Repeat above steps until all allocations have been
assignedNote: In case the two least costs are equal, the penalty should
be taken as zero.
![Page 26: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/26.jpg)
Vogel’s approximation methodIf Then
Case 1 Tie among the highest penalties Select the row /column having minimum cost
Case 2 Tie among minimum cost Select the cell which can have max. allocation
Case 3 Tie among maximum allocation Select cell arbitrarily for allocation
![Page 27: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/27.jpg)
27
subtracting their two of their least cost
Step 1
(8-6)
(11-7)
(5-4)
(6-4) (8-5) (11-10)
![Page 28: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/28.jpg)
28
Steps 2 & 3
Highest penaltycost
Step 2:
Step 3: this has the least cost
![Page 29: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/29.jpg)
29
Step 4
--- ---
![Page 30: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/30.jpg)
30
Step 5Second Iteration
--- ---
---
![Page 31: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/31.jpg)
31
3rd Iteration of VAM
---
--- ---
---
![Page 32: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/32.jpg)
32
Initial tableau for VAM
![Page 33: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/33.jpg)
Some definitions…
• Feasible Solution: A set of non-negative values of xij that satisfy the constraints of transportation problem. The demand and supply constraints are satisfied.
• Basic Feasible Solution: A feasible solution that contains no more than m+n-1 non-negative allocations, satisfy demand and supply constraints, non-negative constraints and constraints are independent and do not form loop.
![Page 34: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/34.jpg)
Some definitions…
• Optimal Solutions: A feasible solution which makes the cost of transportation is minimum. The solution need not to be basic feasible solution.
• Degenerate Basic Feasible Solution: A basic feasible solution that contains less than m+n-1 non-negative allocations.
![Page 35: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/35.jpg)
35
Finding Optimal Solution:
![Page 36: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/36.jpg)
Test for Optimality
• After finding initial solution, test for optimality is done.
• The two methods can be used to test optimality:– Stepping Stone Method– Modified distribution Method (MODI Method) or
u-v method.
![Page 37: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/37.jpg)
Stepping-stone method1. Determine an initial basic feasible solution using any three method discussed
above.2. Select a non-basic cell (unoccupied cell) and allocate +1 unit to this cell. 3. Trace a closed loop so that the turning points of the loop is in the allocated cells.4. Calculate net change in the transportation cost. 5. Carry out all above four steps for all unallocated cells.6. Negative value in net change in transportation cost implies that the cost can be
further reduced.7. In case net change is positive or zero, the solution in the question is optimal.8. Select the cell giving highest negative net cost change and determine maximum
number of units that can be assigned to that cell. Also addition and subtraction have to made to other cells in the loop to satisfy the demand and supply constraints.
9. Again go to step 2 and follow subsequent steps till net change in all unoccupied cells is positive or zero.
![Page 38: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/38.jpg)
38
Stepping-stone methodLet consider the following initial tableau from the Min Cost algorithm
These are basicvariables
There areNon-basic variables
Question: How can we introducea non-basic variable into basic variable?
![Page 39: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/39.jpg)
39
Introducea non-basic variable into basic variables
• Here, we can select any non-basic variable as an entry and then using the “+ and –” steps to form a closed loop as follows:
let consider this nonbasic variable
Then we have
![Page 40: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/40.jpg)
40
Stepping stone
+
- +
-
The above saying that, we add min value of all –ve cells into cell that has “+” sign, and subtractsthe same value to the “-ve” cellsThus, max –ve is min (200,25) = 25, and we add 25 to cell A1 and A3, and subtract it from B1 and A3
![Page 41: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/41.jpg)
41
Stepping stone
The above tableaus give min cost = 25*6 + 120*10 + 175*11 175*4 + 100* 5 = $4525
We can repeat this process to all possible non-basic cells in that abovetableau until one has the min cost! NOT a Good solution method
![Page 42: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/42.jpg)
42
Getting optimal solution using MODI method
• In this method, net cost change is evaluated for all unoccupied cells and only one closed path is traced for the most negative value of net cost change.
• There is considerable time saving over the Stepping –Stone Method.
![Page 43: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/43.jpg)
43
Modified distributed method (MODI)
• It is a modified version of stepping stone method• MODI has two important elements:
1. It determines if a tableau is the optimal one2. It tells you which non-basic variable should be firstly
considered as an entry variable3. It makes use of stepping-stone to get its answer of next
iteration
– How it works?
![Page 44: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/44.jpg)
44
Procedure (MODI)Step 0: let ui, vj , cij variables represent rows, columns, and cost in the transportation tableau, respectivelyStep 1: (a) form a set of equations that uses to represent all basic variables
ui + vj = cij
(b) solve variables by assign one variable = 0
Step2: (a) form a set of equations use to represent non-basic variable (or empty cell) as such
cij – ui – vj = kij
(b) solve variables by using step 1b informationStep 3: Select the cell that has the most –ve value in 2bStep 4: Use stepping-stone method to allocate resource to cell in step 3Step 5: Repeat the above steps until all cells in 2a has no negative value
Example
![Page 45: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/45.jpg)
45
MODIConsider to this initial tableau:
Step 0: let ui, v , cij variables represent rows, columns, and cost in the transportation tableau, respectively
![Page 46: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/46.jpg)
46
Step 0
C3A
Step 1: (a) form a set of equations that uses to represent all basic variables
ui + vj = cij
![Page 47: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/47.jpg)
47
ui + vj = cij
(b) solve variables by assign one variable = 0
![Page 48: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/48.jpg)
48
Set one variable = 0
Because weadded an non-basic variable
Step2: (a & b)
![Page 49: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/49.jpg)
49
Step2: (a & b)
Note this may look difficult and complicated, however, we can add theseV=values into the above tableau as well
![Page 50: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/50.jpg)
50
Step2: (a & b), alternative
-1
6-0-7
-1 +2
+5
Step 3: Select the cell that has the most –ve value in 2b
![Page 51: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/51.jpg)
51
Step3
-1
-1 +2
+5
Select either one, (Why?)These cells mean, introduce it will reduce the min z to -1 cost unit
![Page 52: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/52.jpg)
52
Step 4: Use stepping-stone method
+
- +
-
From here we have ….
![Page 53: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/53.jpg)
53
Step 4: Use stepping-stone method
Step 5: we repeat steps 1-4 again for the above tableau, we have
![Page 54: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/54.jpg)
54
Step 5
![Page 55: Ch-4 Transportation Problem NIFT - Copy](https://reader035.vdocuments.mx/reader035/viewer/2022081501/563dbb6c550346aa9aad05d3/html5/thumbnails/55.jpg)
55
Step 5 cont
All positivesSTOP