Transportation Problem Q-1 Following matrix represents the cost per unit of transportation from three Places to 4 destinations.

The capacity of each place & demand at each destination is also given. Give the optimum assignments so as to minimize the total transportation cost. D1 P1 P2 P3 Demand 20 70 40 5 D2 30 35 12 8 D3 50 40 60 7 D4 17 60 25 15 Supply 7 10 18

Solution by Vogels Approximation Method- First calculate the Penalty of each row & each column. Penalty is the difference of two least values. Parul Agrawal, BVIMR 9811880805

D1
5 P1 P2 P3 Demand Penalty 20 70 40 5 20

D2

D3

D4

Supply Penalty

30 35 12 8 18

50 40 60 7 10

17 60 25 15 8

7 10 18

3 5 13

Parul Agrawal, BVIMR 9811880805

D1 5 20

D2

D3

D4

Supply

Penalties

P1

30

50

17

13

P2
P3
Demand

70
40 5 20

35 8
12 8 18 18

40
60 7 10 10

60
25 15 8 8

10
18

5
13

5
13

Penalties

18 is the highest penalty in Column D2 and 12 is the least cost in this column, which is assigned 8 units. Penalties are calculated again.
Parul Agrawal, BVIMR 9811880805

D1 P1 P2 P3
Demand

D2 30 35 8 12

D3 50 40 60

D4 17 60
10

Supply

Penalties

5 20
70 40

7 10 18

3 5 13

13 5 13

33 20 35

25

5
20

8
18

7
10

15
8

Penalties

18

10
10

8
8

35 is the highest penalty in row P3 and 25 is the least cost in this row, which is assigned 10 units. Calculate Penalties again.
Parul Agrawal, BVIMR 9811880805

D1 5 P1 20

D2 30

D3 50

D4 2 17

Supply

Penalties

13

33

33

P2
P3
Demand

70
40 5 20

35 8
12 8 18 18

40
60 7 10 10 10 10

60 10 25
15 8 8 8 43

10
18

5
13

5
13

20
35

20

Penalties

Parul Agrawal, BVIMR 9811880805

D1 P1 5 20

D2 30

D3 50

D4 2 17 3

Supply

Penalties

13

33

33 20

P2
P3
Demand

70
40 5 20

35 8
12 8 18 18

40
60 7 10 10 10 10

60
10

10
18

5
13

5
13

20
35

20

25 15 8 8 8 43

Penalties

40

60

60 is the highest penalty in column D4 & least cost is also 60 assign 3 units. Calculate penalties again Parul Agrawal, BVIMR 9811880805

D1 5 P1 P2 P3
Demand

D2 30 35 8 12 8 18 18

D3 50 7 40 60 7 10 10 10 10 40 40

D4 2 17 3 60
10

Supply

Penalties

20 70 40 5 20

7 10 18

3 5 13

13 5 13

33 20 35

33 20 20 40

25 15 8 8 8 43 60

Penalties

40 is the last penalty which is assigned 7 units.

Parul Agrawal, BVIMR 9811880805

Parul Agrawal, BVIMR 9811880805

Feasibility Test- m+n-1 = No of Occupied Cells Where m=No. of Rows & n= No. of columns 3+ 4 -1=6 = no of occupied cells. Solution is Feasible. Apply optimality test.

Parul Agrawal, BVIMR 9811880805

D1 5

D2

D3

D4 2

Supply

Ui

P1

20

30
7

50
3 40 60 7

17

U1=17
U2=60 U3=25

P2 P3 Demand Vj

70 40 5 V1= 3

35 8 12 8

60 10 25 15 V4 = 0

10 18

V2= -13 V3= -20

Parul Agrawal, BVIMR 9811880805

Optimality Test
Calculate the opportunity cost of unoccupied cells. Opportunity Cost = Cij-(Ui+Vj)

P1-D2 P1-D3 P2-D1 P2-D2 P3-D1 P3-D3

30-(17-13)=26 50-(17-20)=53 70-(60+3) =7 35-(60-13)=-12 40-(25+3) =12 60-(25-20)=55

Parul Agrawal, BVIMR 9811880805

A solution to be optimal all the opportunity costs should be zero or positive but here one cell (P2-D2) has negative opportunity cost hence solution is not optimal. It implies that this cell needs assignment. To give assignment to cell P2-D2, find a closed loop with other occupied cells. There are three conditions of the loop. 1. it should be a closed loop. 2. loop should be formed with horizontal and vertical lines, the no of lines should be even i.e 4, 6, 8. 3. all the corner points of that loop should be occupied cells.

Parul Agrawal, BVIMR 9811880805

D1
5 P1 20

D2

D3

D4
2 17 3 60 10 25 + 15 V4 =

Supply

30

50 7 40

U1= U2=

P2

70

35 + 8 12 8 V2=

10

P3
Demand

40
5 V1=

60
7 V3=

18

U3=

Parul Agrawal, BVIMR 9811880805

Parul Agrawal, BVIMR 9811880805

D1
5 P1 20

D2

D3
2

D4

Supply

30 3 35 5

50 7 40

17

U1=17 U2=48

P2

70

60 13 25 15 V4 =0

10

P3
Demand

40
5 V1= 3

12
8 V2= -13

60
7 V3= -8

18

U3=25

Again Ui & Vj are calculated to apply optimality test.

Parul Agrawal, BVIMR 9811880805

Parul Agrawal, BVIMR 9811880805

All opportunity costs are positive hence the solution is optimal & the Total cost is

Parul Agrawal, BVIMR 9811880805