Transportation Method

- is a simplified special case of simplex method. ILLUSTRATION:

- Its name was derived from its application to problems involving Executive Furniture Shop which manufacture desks at three locations, D, E
transporting products from several sources to several destinations. and F delivers the desks to its regional warehouses, A, B and C. The shipping
cost per unit transferred is given below:
Initial Solution: Northwest Rule From To A B C Supply
1. Start by selecting the cell in the most “North-West” corner of the D P5 4 3 100
table. E 8 4 3 300
2. Assign the maximum amount to this cell that is allowed based on F 9 7 5 300
the requirements and the capacity constraint. Demand 300 200 200
3. Exhaust the capacity from each cell before moving to another cell.
How many units will be transferred from respective locations to each
Optimality Test: Stepping Stone Method warehouse to minimize the shipping cost?
1. Select an unused cell to be evaluated.
2. Beginning at this cell, trace a closed path going back to the original
cell using the used cells (only horizontal and vertical moves are
allowed).
3. Place alternatively (+) and (-) signs on the cells of the closed path
traced starting with (+) sign.
4. Calculate the improvement index by adding and subtracting the unit
cost figures found in each cell of the closed path traced.
5. Repeat steps 1-4 until improvement index has been calculated for
all unused cells.
 If all indices computed are greater than or equal to zero, an
optimal solution has been reached.
 If not, improve the current solution using the following
method.
1. Choose the closed path having the most negative index.
2. Within the closed path, choose the least amount of
shipment among the cells having (-) sign.
3. That number must be added to the cells within the
closed path having (+) sign and subtracted to cells
having (-) sign.
MA 6: Lecture jvacpa Page 1 of 1