Transportation

Model

Casanova
Lim
Mai
 Transportation Model

– Special procedure of linear programming for finding the minimum

cost for distributing homogeneous units of a product from several
points of supply (origin) to a number of points of demand
(destinations)
– WHAT ARE THE CHEAPEST ROUTES TO SEND A CERTAIN NUMBER OF
PRODUCTS FROM A CERTAIN NUMBER OF SUPPLIER TO A CERTAIN
NUMBER OF DESTINATIONS?
Consider the following:
1. Number of sources
and their capacity to
supply the products to
distribute
2. Number of
destinations and their
demand
3. Per-unit cost of
shipping the products
from a certain source
to a certain
destination
TERMS

– Destination is a point of demand in a transportation problem and origin is the

source or supply location in a transportation problem
– Unused squares are squares which represent routes where no quantity is
shipped between a source and a destination
– Used squares/ Stone squares
 Problem:

The WSS Company sells desktop computers to IT companies in Metro Manila, and ships
them from three distribution warehouses located in three (3) different areas. The company
is able to supply the following numbers of desktop computers to IT companies by the
beginning of the year:
Distribution Warehouse Supply
Warehouse 1 150
Warehouse 2 200
Warehouse 3 50
Total 400
IT Companies have ordered desktop computers that must be delivered and
installed by the beginning of the year:
IT Company Demand
(Desktop computers)
AUS Link 100
SJS Networking Inc. 80
RFS Data Limited 220
Total 400

The shipping costs per desktop computer from each distributor to each
company are as follows:
From Destination
A B C
1 7 5 9
2 10 12 10
3 6 3 14
 Solution:
Distribution Warehouse Supply
Warehouse 1 150
Warehouse 2 200
Warehouse 3 50
Total 400

IT Company Demand
(Desktop computers)
AUS Link 100
SJS Networking Inc. 80
RFS Data Limited 220
Total 400

From Destination
A B C

1 7 5 9
2 10 12 10
3 6 3 14
 Objective Function:
Minimize C = 7X1A + 5X1B + 9X1C + 10X2A + 12X2B + 10X2C + 6X3A + 3X3B +
14X3C
Constraints:
Subject to: X1A+X1B+X1C = 150
X2A+X2B+X2C = 200
X3A+X3B+X3C = 50
X1A+X2a+X3A = 100
X1B+X2B+X3B = 80
X1C+X2C+X3C = 220
Xij ≥ 0
 METHODS OF
ESTABLISHING THE
INITIAL FEASIBLE
SOLUTION
1. Northwest Corner Rule (NCR)
2. Greedy Method or Minimum Cost Method (MCM)
3. Vogel’s Approximation Method (VAM)
Northwest Corner Rule (NCR)

– A procedure for obtaining an initial feasible solution to a transportation

problem that starts with allocating units to the upper left-hand corner and
ends in the lower right corner of any transportation problem.
Solution:
 METHODS OF
ESTABLISHING THE
OPTIMAL FEASIBLE
SOLUTION
1. Stepping Stone Method (SSM)
2. Modified Distribution Method (MODI)
 OTHER
TRANSPORTATION
PROBLEMS

1. Degeneracy
2. Maximization Problems
3. Unbalanced Transportation Problem
Degeneracy

Degeneracy in a transportation problem occurs when any solution has a number of

occupied cells that is less than the number of rows plus the number of columns
minus one, or R + C – 1.
Degeneracy (cont.)

To resolve degeneracy, we simply place 𝜀 (eplison), an exceedingly small amount of

material, in some cells until R + C – 1 cells have some amount in them. The 𝜀 is
assigned to that unoccupied cell which has the minimum transportation cost.
Degeneracy (cont.)
Maximization Problem

Maximization transportation problem can be converted into minimization

transportation problem by subtracting each transportation cost from maximum
transportation cost.
Unbalanced Transportation
Problem
The total supply is not equal to the total demand.
To solve:
– If supply is greater than demand, add another column
– If demand is greater than supply, add another row.
Sources

 http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/degen.htm
 http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/max.htm
 http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/unbal.htm
– Dilworth, J.B. (1993). The Transportation Method. Linear Programming, 703-
705.
– Ibid., 710-713
– Sirug, W.S. (2012). Methods in Establishing the Initial and Optimal Feasible
Solution. Transportation Model, 142-166.