Transportation Model

Ms. Stephanie G. Quiambao

Methods in Establishing the Optimal Feasible Solution:
Stepping Stone Method (SSM)
- A procedure for determining if a solution to a
transportation problem is optimal. It involves
tracing closed paths from each unused square
(water) through used squares (stones).

Ms. Stephanie G. Quiambao

Example:
GQ company sells LED TVs to three retail stores in Metro
Manila, and ships them from three distribution warehouses
located in three different areas. The company has stocks of
150, 200 and 50 units of LED TV in Warehouses 1 ,2 and 3
respectively. The demand for LED TVs for retail stores A, B
and C are 100, 80 and 220 respectively. The shipping costs
per LED TV unit from each warehouse to each retail store
are as follows:
To
Find the optimum minimal solution From A B C
using Northwest Corner Rule (NCR) 1 7 5 9
for the initial solution and the 2 10 12 10
Stepping Stone Method (SSM) for the 3 6 3 14
optimal solution.
Ms. Stephanie G. Quiambao
Solution:
From To A B C Supply
7 5 9
1 X1A X1B X1C 150
10 12 10
2 X2A X2B X2C 200
6 3 14
3 X3A X3B X3C 50
Demand 100 80 220 400
Objective Function:
Minimize: C = 7X1A + 5X1B + 9X1C + 10X2A + 12X2B + 10X2C +
6X3A + 3X3B + 14X3C
Ms. Stephanie G. Quiambao
Solution:
From To A B C Supply
7 5 9
1 X1A X1B X1C 150
10 12 10
2 X2A X2B X2C 200
6 3 14
3 X3A X3B X3C 50
Demand 100 80 220 400
Constraints: Subject to:
X1A + X1B + X1C = 150 X1A + X2A + X3A = 100
X2A + X2B + X2C = 200 X1B + X2B + X3B = 80 Xij ≥ 0
X3A + X3B + X3C = 50 X1C + X2C + X3C = 220
Ms. Stephanie G. Quiambao
Solution:
Initial Solution: Using Northwest Corner Rule (NCR)
From To A B C Supply
7 5 9
1 100 50 150
10
2 10 30 12
170 200
6 3 14
3 50 50
Demand 100 80 220 400
C = (7)(100) + (5)(50) + (12)(30) + (10)(170) + (14)(50)
Total Transportation Cost = Php 3,710
Ms. Stephanie G. Quiambao
Using SSM:
After having an initial solution, compute for
closed path and improvement indices for the
initial tableau.
Improvement Index
- Is the increase/decrease in a total cost (for
minimization) and total profit (for maximization)
that would result from reallocating one unit to an
unused square (water).
Ms. Stephanie G. Quiambao
Tableau 1: Closed Path for X1C
From To A B C
1 100 7
50 5 + 9
150
–
2 10 + 12 – 10
200
30 170
6 3 14
3 50 50
100 80 220 400
Improvement Index Computation for X1C:
+X1C − X2C + X2B − X1B = +9 − 10 + 12 − 5 = 6
Ms. Stephanie G. Quiambao
Tableau 1: Closed Path for X2A
From To A B C
1 100 7 50 5 9
150
– +
2 10 – 12 10
200
+ 30 170
6 3 14
3 50 50
100 80 220 400
Improvement Index Computation for X2A:
+X2A − X1A + X1B − X2B = +10 − 7 + 5 − 12 = −4
Ms. Stephanie G. Quiambao
Tableau 1: Closed Path for X3A
From To A B C
1 100 7 50 5 9
150
– +
2 10 – 12
+ 170 10
200
30
6 3 14
3 + – 50 50
100 80 220 400
Improvement Index Computation for X3A:
+X3A − X1A + X1B − X2B + X2C − X3C = +6 − 7 + 5 − 12 + 10 − 14 = −12
Ms. Stephanie G. Quiambao
Tableau 1: Closed Path for X3B
From To A B C
1 100 7 50 5 9
150
2 10 30
–
12
+ 170
10
200
6 3 14
3 + – 50 50
100 80 220 400
Improvement Index Computation for X3B:
+X3B − X2B + X2C − X3C = +3 − 12 + 10 − 14 = −13
Ms. Stephanie G. Quiambao
Tableau 1:
Summary of Improvement Indices of Unused Squares
Unused Computation of Improvement
Closed Path
Squares Indices

X1C +X1C − X2C + X2B − X1B +9 − 10 + 12 − 5 = 6

X2A +X2A − X1A + X1B − X2B +10 − 7 + 5 − 12 = −4
X3A +X3A − X1A + X1B − X2B + X2C − X3C +6 − 7 + 5 − 12 + 10 − 14 = −12
X3B +X3B − X2B + X2C − X3C +3 − 12 + 10 − 14 = −13

Lowest
Negative
Ms. Stephanie G. Quiambao
Tableau 1: Tableau 2:
To To
From A B C From A B C
7 5 9 7 5 9
1 100 50 150 1 100 50 150
10 12 10 10 12 10
2 30 170 200 2 200 200
6 3 14 6 3 14
3 50 50 3 30 20 50
100 80 220 400 100 80 220 400
+X3B − X2B + X2C − X3C = −13 C = (7)(100) + (5)(50) + (10)(200)
+ (3)(30) + (14)(20)
Total Transportation Cost = Php 3,320
Ms. Stephanie G. Quiambao
Tableau 2: Closed Path for X1C
From To A B C
7 9
1 100 50
–
5
+ 150
10 12 10
2 200 200
6 + 3 14
3 30 – 20 50
100 80 220 400
Improvement Index Computation for X1C:
+X1C − X3C + X3B − X1B = +9 − 14 + 3 − 5 = -7
Ms. Stephanie G. Quiambao
Tableau 2: Closed Path for X2A
From To A B C
7 9
1 100 50 5
150
– +
10 12 10
2 + – 200 200
6 3 14
3 30 20 50
– +
100 80 220 400
Improvement Index Computation for X2A:
+X2A − X1A + X1B − X3B + X3C − X2C = +10 − 7 + 5 − 3 + 14 − 10 = 9
Ms. Stephanie G. Quiambao
Tableau 2: Closed Path for X2B
From To A B C
7 9
1 100 50 5
150
10 12 10
2 + – 200 200
6 3 14
3 30 20 50
– +
100 80 220 400
Improvement Index Computation for X2B:
+X2B − X2C + X3C − X3B = +12 − 10 + 14 − 3 = 13
Ms. Stephanie G. Quiambao
Tableau 2: Closed Path for X3A
From To A B C
7 9
1 100 50 5
150
– +
10 12 10
2 200 200
6 3 14
3 + 30 20 50
–
100 80 220 400
Improvement Index Computation for X3A:
+X3A − X1A + X1B − X3B = +6 − 7 + 5 − 3 = 1
Ms. Stephanie G. Quiambao
Tableau 1:
Summary of Improvement Indices of Unused Squares
Lowest Negative

Unused Computation of Improvement

Closed Path
Squares Indices

X1C +X1C − X3C + X3B − X1B +9 − 14 + 3 − 5 = −7

X2A +X2A − X1A + X3B − X2B + X3C − X2C +10 − 7 + 5 − 3 + 14 −10 = 9

X2B + X2B − X2C + X3C − X3B +12 − 10 + 14 − 3 = 13

X3A +X3A − X1A + X1B − X3B +6 − 7 + 5 − 3 = 1

Ms. Stephanie G. Quiambao

Tableau 2: Tableau 3:
To To
From A B C From A B C
7 5 9 7 5 9
1 100 50 150 1 100 30 20 150
10 12 10 10 12 10

2 200 200 2 200 200

6 3 14 6 3 14

3 30 20 50 3 50 50
100 80 220 400 100 80 220 400
+X1C − X3C + X3B − X1B = −7 C = (7)(100) + (5)(30) + (9)(20)
+ (10)(200) + (3)(50)
Total Transportation Cost = Php 3,180
Ms. Stephanie G. Quiambao
Tableau 3: Closed Path for X2A
From To A B C
7 9
1 100 30 5
+
20 150
–
10 12 10
2 + – 200 200
6 3 14
3 50 50
100 80 220 400
Improvement Index Computation for X2A:
+X2A − X1A + X1C − X2C = +10 − 7 + 9 − 10 = 2
Ms. Stephanie G. Quiambao
Tableau 3: Closed Path for X2B
From To A B C
7 9
1 100 30 5
+
20 150
–
10 12 10
2 + – 200 200
6 3 14
3 50 50
100 80 220 400
Improvement Index Computation for X2B:
+X2B − X1B + X1C − X2C = +12 − 5 + 9 − 10 = 6
Ms. Stephanie G. Quiambao
Tableau 3: Closed Path for X3A
From To A B C
7 9
1 100 + 30
5
20 150
–
10 12 10
2 200 200
6 3 14
3 + – 50 50
100 80 220 400
Improvement Index Computation for X3A:
+X3A − X1A + X1B − X3B = +6 − 7 + 5 − 3 = 1
Ms. Stephanie G. Quiambao
Tableau 3: Closed Path for X3C
From To A B C
7 9
1 100 30+ 5
– 20 150
10 12 10
2 200 200
6 3 14
3 50 + 50
–
100 80 220 400
Improvement Index Computation for X3C:
+X3C − X3B + X1B − X1C = + 14 − 3 + 5 − 9 = 7
Ms. Stephanie G. Quiambao
Tableau 3:
Summary of Improvement Indices of Unused Squares
Unused Computation of Improvement
Closed Path
Squares Indices

X2A +X2A − X1A + X1C − X2C +10 − 7 + 9 − 10 = 2

X2B +X2B − X1B + X1C − X2C +12 − 5 + 9 − 10 = 6
X3A +X3A − X1A + X1B − X3B +6 − 7 + 5 − 3 = 1
X3C +X3C − X3B + X1B − X1C +14 − 3 + 5 − 9 = 7

Total Transportation Cost = Php 3,180

Ms. Stephanie G. Quiambao
Seatwork 2:
Establish the optimal feasible solution of the LP
model using SSM and NCR as initial feasible solution.
Minimize: C = 15X1A + 24X1B + 12X1C + 19X1D +
10X2A + 11X2B + 13X2C + 13X2D +
16X3A + 21X3B + 11X3C + 26X3D
Subject to:
X1A + X1B + X1C + X1D = 140 X1A + X2A + X3A = 100
X2A + X2B + X2C + X2D = 160 X1B + X2B + X3B = 100 X ≥ 0
ij
X3A + X3B + X3C + X3D = 50 X1C + X2C + X3C = 50
X1D + X2D + X3D = 100
Assignment 2:
Establish the optimal feasible solution of the LP
model using SSM and MCM as initial feasible solution.
Minimize: C = 15X1A + 24X1B + 12X1C + 19X1D +
10X2A + 11X2B + 13X2C + 13X2D +
16X3A + 21X3B + 11X3C + 26X3D
Subject to:
X1A + X1B + X1C + X1D = 140 X1A + X2A + X3A = 100
X2A + X2B + X2C + X2D = 160 X1B + X2B + X3B = 100 X ≥ 0
ij
X3A + X3B + X3C + X3D = 50 X1C + X2C + X3C = 50
X1D + X2D + X3D = 100