Title of The Project Using A Suitable Data Find The Minimum Cost by Applying The Concept of Transportation Problem
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YASIN CAFETitle of The Project Using A Suitable Data Find The Minimum Cost by Applying The Concept of Transportation Problem
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YASIN CAFETitle of the Project
Using a suitable Data
find the minimum
cost by applying the
concept of
transportation
problem
Transportation Problem
Transportation problem is a special kind of Linear Programming Problem (LPP) in
which goods are transported from a set of sources to a set of destinations subject to the
supply and demand of the sources and destination respectively such that the total cost of
transportation is minimized. It is also sometimes called as Hitchcock problem.
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the
problem is said to be a balanced
transportation problem.
Unbalanced: When the supply and demand are not equal then it is
said to be an unbalanced
transportation problem. In this type of problem, either a dummy row or a
dummy column is added
according to the requirement to make it a balanced problem. Then
it can be solved similar to the
balanced problem.
Methods to Solve:
To find the initial basic feasible solution there are three methods:
1. NorthWest Corner Cell Method.
2. Least Call Cell Method.
3. Vogel’s Approximation Method (VAM).
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the
problem is said to be a balanced
transportation problem.
Unbalanced: When the supply and demand are not equal then it is
said to be an unbalanced
transportation problem. In this type of problem, either a dummy row or a
dummy column is added
according to the requirement to make it a balanced problem. Then
it can be solved similar to the
balanced problem.
Methods to Solve:
To find the initial basic feasible solution there are three methods:
1. NorthWest Corner Cell Method.
2. Least Call Cell Method.
3. Vogel’s Approximation Method (VAM).
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the
problem is said to be a balanced
transportation problem.
Unbalanced: When the supply and demand are not equal then it is
said to be an unbalanced
transportation problem. In this type of problem, either a dummy row or a
dummy column is added
according to the requirement to make it a balanced problem. Then
it can be solved similar to the
balanced problem.
Methods to Solve:
To find the initial basic feasible solution there are three methods:
1. NorthWest Corner Cell Method.
2. Least Call Cell Method.
3. Vogel’s Approximation Method (VAM).
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the
problem is said to be a balanced
transportation problem.
Unbalanced: When the supply and demand are not equal then it is
said to be an unbalanced
transportation problem. In this type of problem, either a dummy row or a
dummy column is added
according to the requirement to make it a balanced problem. Then
it can be solved similar to the
balanced problem.
Methods to Solve:
To find the initial basic feasible solution there are three methods:
1. NorthWest Corner Cell Method.
2. Least Call Cell Method.
3. Vogel’s Approximation Method (VAM).
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the
problem is said to be a balanced
transportation problem.
Unbalanced: When the supply and demand are not equal then it is
said to be an unbalanced
transportation problem. In this type of problem, either a dummy row or a
dummy column is added
according to the requirement to make it a balanced problem. Then
it can be solved similar to the
balanced problem.
Methods to Solve:
To find the initial basic feasible solution there are three methods:
1. NorthWest Corner Cell Method.
2. Least Call Cell Method.
3. Vogel’s Approximation Method (VAM).
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the
problem is said to be a balanced
transportation problem.
Unbalanced: When the supply and demand are not equal then it is
said to be an unbalanced
transportation problem. In this type of problem, either a dummy row or a
dummy column is added
according to the requirement to make it a balanced problem. Then
it can be solved similar to the
balanced problem.
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the problem is said to be a
balanced transportation problem.
Unbalanced: When the supply and demand are not equal then it is said to be an
unbalanced transportation problem. In this type of problem, either a dummy row or a
dummy column is added according to the requirement to make it a balanced problem.
Then it can be solved similar to the balanced problem.
Methods to Solve:
To find the initial basic feasible solution there are three methods:
1. NorthWest Corner Cell Method.
2. Least Call Cell Method.
3. Vogel’s Approximation Method (VAM).
Basic structure of transportation problem:
a) Transportation Problem : (NorthWest Corner Method)
The North West Corner Method is a technique used to calculate an initial solution to
transportation problems. It's a simple and efficient method that's used in linear programming
and operations research. The method involves:
Starting at the top-left corner of a cost matrix, also known as the "northwest corner"
Allocating as much as possible to the cells, while ensuring that supply and demand
constraints are met
Moving down or right only after allocating to the cells in the northwest corner
Example-1
1. Find Solution using North-West Corner method
D Supply
D2 D3 D4
1
S1 19 30 50 10 7
S2 70 30 40 60 9
S3 40 8 70 20 18
Demand 5 8 7 14
Solution:
TOTAL number of supply constraints : 3
TOTAL number of demand constraints : 4
Problem Table is
D D Supply
D1 D3
2 4
S1 19 30 50 10 7
S2 70 30 40 60 9
S3 40 8 70 20 18
Demand 5 8 7 14
The rim values for S1=7 and D1=5 are compared.
The smaller of the two i.e. min(7,5) = 5 is assigned to S1 D1
This meets the complete demand of D1 and leaves 7 - 5=2 units with S1
Move horizontally,
The rim values for S1=2 and D2=8 are compared.
The smaller of the two i.e. min(2,8) = 2 is assigned to S1 D2
This exhausts the capacity of S1 and leaves 8 - 2=6 units with D2
Move vertically,
The rim values for S2=9 and D2=6 are compared.
The smaller of the two i.e. min(9,6) = 6 is assigned to S2 D2
This meets the complete demand of D2 and leaves 9 - 6=3 units with S2
Move horizontally,
The rim values for S2=3 and D3=7 are compared.
The smaller of the two i.e. min(3,7) = 3 is
assigned to S2 D3
This exhausts the capacity of S2 and leaves 7 - 3=4 units with D3
Move vertically,
The rim values for S3=18 and D3=4 are compared.
The smaller of the two i.e. min(18,4) = 4 is assigned to S3 D3
This meets the complete demand of D3 and leaves 18 - 4=14 units with S3
Move horizontally,
The rim values for S3=14 and D4=14 are compared.
The smaller of the two i.e. min(14,14) = 14 is assigned to S3 D4
The minimum total transportation cost =19×5+30×2+30×6+40×3+70×4+20×14=1015
∴ This solution is non-degenerate
Here, the number of allocated cells = 6 is equal to m + n - 1 = 3 + 4 - 1 = 6
b) Transportation Problem: (Least Cost Cell Method)
The Least Cost Method is another method used to obtain the initial feasible solution for the
transportation problem. Here, the allocation begins with the cell which has the minimum
cost. The lower cost cells are chosen over the higher-cost cell with the objective to have the
least cost of transportation.
Example-2
2. Find Solution using Least Cost method
Solution:
TOTAL number of supply constraints : 3
TOTAL number of demand constraints : 4
Problem Table is
The smallest transportation cost is 8 in cell S3D2
The allocation to this cell is min(18,8) = 8.
This satisfies the entire demand of D2 and leaves 18 - 8 = 10 units with S3
The smallest transportation cost is 10 in
cell S1D4
The allocation to this cell is min(7,14) = 7.
This exhausts the capacity of S1 and leaves 14 - 7 = 7 units with D4
The smallest transportation cost is 20 in cell S3D4
The allocation to this cell is min(10,7) = 7.
This satisfies the entire demand of D4 and leaves 10 - 7 = 3 units with S3
The smallest transportation cost is 40 in cell S2D3
The allocation to this cell is min(9,7)
= 7.
This satisfies the entire demand
of D3 and leaves 9 - 7 = 2 units
with S2
The smallest transportation cost is 40 in cell S3D1
The allocation to this cell is min(3,5) = 3.
This exhausts the capacity of S3 and leaves 5 - 3 = 2 units with D1
The smallest transportation cost is 70 in cell S2D1
The allocation to this cell is min(2,2) = 2.
The minimum total transportation cost =10×7+70×2+40×7+40×3+8×8+20×7=814
∴ This solution is non-degenerate
Here, the number of allocated cells = 6 is equal to m + n - 1 = 3 + 4 - 1 = 6
c) Transportation Problem: (Vogel’s Approximation Method)
Vogel's Approximation Method (VAM) is a heuristic method used to find an initial solution
to transportation problems. The goal of VAM is to minimize the total cost. Here are the steps
for using VAM:
1. Identify the two lowest costs in each row and column of the cost matrix.
2. Calculate the absolute difference between the two costs for each row and column.
3. Identify the row or column with the highest penalty.
4. Assign the minimum of the supply and demand to the corresponding cell in the row or
column with the highest penalty.
5. If the assignment in the previous step satisfies the supply at the origin, remove the
corresponding row.
6. Repeat steps 2–5 until the supply at each origin is 0 and the demand at each destination is 0.
VAM is considered a better method than the Northwest Corner method and Least Cost
method. However, if there is a tie between the highest penalty costs for rows and columns, an
arbitrary choice may be made, which could lead to a solution that is far from optimal.
3. Find Solution using Voggel's Approximation method
Solution:
TOTAL number of supply constraints : 3
TOTAL number of demand constraints : 4
Problem Table is
The maximum penalty, 22, occurs in column D2.
The minimum cij in this column is c32 = 8.
The maximum allocation in this cell is min(18,8) = 8.
It satisfy demand of D2 and adjust the supply of S3 from 18 to 10 (18 - 8 = 10).
The maximum penalty, 21, occurs in column D1.
The minimum cij in this column is c11 = 19.
The maximum allocation in this cell is min(7,5) = 5.
It satisfy demand of D1 and adjust the supply of S1 from 7 to 2 (7 - 5 = 2).
The maximum penalty, 50, occurs in row S3.
The minimum cij in this row is c34 = 20.
The maximum allocation in this cell is min(10,14) = 10.
It satisfy supply of S3 and adjust the demand of D4 from 14 to 4 (14 - 10 = 4).
The maximum penalty, 50, occurs in column D4.
The minimum cij in this column is c14 = 10.
The maximum allocation in this cell is min(2,4) = 2.
It satisfy supply of S1 and adjust the demand of D4 from 4 to 2 (4 - 2 = 2).
The maximum penalty, 60, occurs in column D4.
The minimum cij in this column is c24 = 60.
The maximum allocation in this cell is min(9,2) = 2.
It satisfy demand of D4 and adjust the supply of S2 from 9 to 7 (9 - 2 = 7).
The maximum penalty, 40, occurs in row S2.
The minimum cij in this row is c23 = 40.
The maximum allocation in this cell is min(7,7) = 7.
It satisfy supply of S2 and demand of D3.
The minimum total transportation cost =19×5+10×2+40×7+60×2+8×8+20×10=779
∴ This solution is non-degenerate
Here, the number of allocated cells = 6 is equal to m + n - 1 = 3 + 4 - 1 = 6
Conclusion
Linear programming is a powerful technique for dealing with resource-allocation prob- lems,
cost–benefit–trade-off problems, and fixed-requirements problems, as well as other problems
having a similar mathematical formulation. It has become a standard tool of great importance
for numerous business and industrial organizations. Furthermore, almost any social
organization is concerned with similar types of problems in some context, and there is a
growing recognition of the extremely wide applicability of linear programming. However,
not all problems of these types can be formulated to fit a linear program- ming model, even as
a reasonable approximation. When one or more of the assumptions of linear programming is
violated seriously, it may then be possible to apply another mathe- matical programming
