Slides by

John
Loucks
St. Edward’s
University

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 Chapter 19: Solution Procedures for
Transportation and Assignment Problems

 Transportation Simplex Method:

A Special-Purpose Solution Procedure
 Hungarian Method:
A Special-Purpose Solution Procedure

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 Transportation Simplex Method

 To solve the transportation problem by its special

purpose algorithm, the sum of the supplies at the
origins must equal the sum of the demands at the
destinations.
• If the total supply is greater than the total demand, a
dummy destination is added with demand equal to
the excess supply, and shipping costs from all
origins are zero.
• Similarly, if total supply is less than total demand, a
dummy origin is added.
 When solving a transportation problem by its special
purpose algorithm, unacceptable shipping routes are
given a cost of +M (a large number).
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 Transportation Simplex Method

 A transportation tableau is given below. Each cell

represents a shipping route (which is an arc on the
network and a decision variable in the LP
formulation), and the unit shipping costs are given in
an upper right hand box in the cell.

D1 D2 D3 Supply
15 30 20
S1 50

30 40 35
S2 30

Demand 25 45 10

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 Transportation Simplex Method

 The transportation problem is solved in two phases:

• Phase I -- Finding an initial feasible solution
• Phase II – Iterating to the optimal solution
 In Phase I, the Minimum-Cost Method can be used
to establish an initial basic feasible solution without
doing numerous iterations of the simplex method.
 In Phase II, the Stepping Stone Method, using the
MODI method for evaluating the reduced costs may
be used to move from the initial feasible solution to
the optimal one.

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 Transportation Simplex Method

 Phase I - Minimum-Cost Method

• Step 1: Select the cell with the least cost. Assign
to this cell the minimum of its remaining row supply
or remaining column demand.
• Step 2: Decrease the row and column availabilities
by this amount and remove from consideration all
other cells in the row or column with zero
availability/demand. (If both are simultaneously
reduced to 0, assign an allocation of 0 to any other
unoccupied cell in the row or column before
deleting both.) GO TO STEP 1.

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 Transportation Simplex Method

 Phase II - Stepping Stone Method

• Step 1: For each unoccupied cell, calculate the
reduced cost by the MODI method described below.
Select the unoccupied cell with the most
negative reduced cost. (For maximization problems
select the unoccupied cell with the largest reduced
cost.) If none, STOP.
• Step 2: For this unoccupied cell generate a stepping
stone path by forming a closed loop with this cell and
occupied cells by drawing connecting alternating
horizontal and vertical lines between them.
Determine the minimum allocation where a
subtraction is to be made along this path.

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 Transportation Simplex Method

 Phase II - Stepping Stone Method (continued)

• Step 3: Add this allocation to all cells where
additions are to be made, and subtract this allocation
to all cells where subtractions are to be made along
the stepping stone path.
(Note: An occupied cell on the stepping stone
path now becomes 0 (unoccupied). If more than one
cell becomes 0, make only one unoccupied; make
the others occupied with 0's.)
GO TO STEP 1.

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 Transportation Simplex Method

 MODI Method (for obtaining reduced costs)

Associate a number, ui, with each row and vj with
each column.
• Step 1: Set u1 = 0.
• Step 2: Calculate the remaining ui's and vj's by
solving the relationship cij = ui + vj for occupied
cells.
• Step 3: For unoccupied cells (i,j), the reduced cost
= cij - ui - vj.

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 Example: Acme Block Co.

Acme Block Company has orders for 80 tons of

concrete blocks at three suburban locations as follows:
Northwood -- 25 tons, Westwood -- 45 tons, and
Eastwood -- 10 tons. Acme has two plants, each of
which can produce 50 tons per week. Delivery cost
per ton from each plant to each suburban location is
shown on the next slide.
How should end of week shipments be made to
fill the above orders?

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 Example: Acme Block Co.

 Delivery Cost Per Ton

Northwood Westwood Eastwood

Plant 1 24 30 40
Plant 2 30 40 42

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 Example: Acme Block Co.

 Initial Transportation Tableau

Since total supply = 100 and total demand = 80, a
dummy destination is created with demand of 20 and 0
unit costs.

Westwood Dummy
Northwood Eastwood Supply
24 30 40 0
Plant 1 50

30 40 42 0
Plant 2 50

Demand 25 45 10 20

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 Example: Acme Block Co.

 Least Cost Starting Procedure

• Iteration 1: Tie for least cost (0), arbitrarily select x14.
Allocate 20. Reduce s1 by 20 to 30 and delete the
Dummy column.
• Iteration 2: Of the remaining cells the least cost is 24
for x11. Allocate 25. Reduce s1 by 25 to 5 and
eliminate the Northwood column.
continued

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 Example: Acme Block Co.

 Least Cost Starting Procedure (continued)

• Iteration 3: Of the remaining cells the least cost is 30
for x12. Allocate 5. Reduce the Westwood column to
40 and eliminate the Plant 1 row.
• Iteration 4: Since there is only one row with two cells
left, make the final allocations of 40 and 10 to x22 and
x23, respectively.

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 Example: Acme Block Co.

 Iteration 1
• MODI Method
1. Set u1 = 0
2. Since u1 + vj = c1j for occupied cells in row 1,
then v1 = 24, v2 = 30, v4 = 0.
3. Since ui + v2 = ci2 for occupied cells in column 2,
then u2 + 30 = 40, hence u2 = 10.
4. Since u2 + vj = c2j for occupied cells in row 2,
then 10 + v3 = 42, hence v3 = 32.

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 Example: Acme Block Co.

 Iteration 1
• MODI Method (continued)
Calculate the reduced costs (circled numbers on
the next slide) by cij - ui + vj.

Unoccupied Cell Reduced Cost

(1,3) 40 - 0 - 32 = 8
(2,1) 30 - 24 -10 = -4
(2,4) 0 - 10 - 0 = -10

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 Example: Acme Block Co.

 Iteration 1 Tableau

Westwood Dummy
Northwood Eastwood ui

Plant 1 24 30 40 0
25 5 +8 20 0

Plant 2 30 40 42 0
-4 40 10 -10 10

vj 24 30 32 0

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 Example: Acme Block Co.

 Iteration 1
• Stepping Stone Method
The stepping stone path for cell (2,4) is (2,4), (1,4),
(1,2), (2,2). The allocations in the subtraction cells are
20 and 40, respectively. The minimum is 20, and
hence reallocate 20 along this path. Thus for the next
tableau:
x24 = 0 + 20 = 20 (0 is its current allocation)
x14 = 20 - 20 = 0 (blank for the next tableau)
x12 = 5 + 20 = 25
x22 = 40 - 20 = 20
The other occupied cells remain the same.
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 Example: Acme Block Co.

 Iteration 2
• MODI Method
The reduced costs are found by calculating
the ui's and vj's for this tableau.
1. Set u1 = 0.
2. Since u1 + vj = cij for occupied cells in row 1,
then v1 = 24, v2 = 30.
3. Since ui + v2 = ci2 for occupied cells in column 2,
then u2 + 30 = 40, or u2 = 10.
4. Since u2 + vj = c2j for occupied cells in row 2,
then 10 + v3 = 42 or v3 = 32; and, 10 + v4 = 0 or v4
= -10.
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 Example: Acme Block Co.

 Iteration 2
• MODI Method (continued)
Calculate the reduced costs (circled numbers on
the next slide) by cij - ui + vj.

Unoccupied Cell Reduced Cost

(1,3) 40 - 0 - 32 = 8
(1,4) 0 - 0 - (-10) = 10
(2,1) 30 - 10 - 24 = -4

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 Example: Acme Block Co.

 Iteration 2 Tableau

Westwood Dummy
Northwood Eastwood ui
24 30 40 0
Plant 1 25 25 +8 +10 0

30 40 42 0
Plant 2 -4 20 10 20 10

vj 24 30 36 -6

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 Example: Acme Block Co.

 Iteration 2
• Stepping Stone Method
The most negative reduced cost is = -4 determined
by x21. The stepping stone path for this cell is (2,1),
(1,1),(1,2),(2,2). The allocations in the subtraction cells
are 25 and 20 respectively. Thus the new solution is
obtained by reallocating 20 on the stepping stone path.
Thus for the next tableau:
x21 = 0 + 20 = 20 (0 is its current allocation)
x11 = 25 - 20 = 5
x12 = 25 + 20 = 45
x22 = 20 - 20 = 0 (blank for the next tableau)
The other occupied cells remain the same.
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 Example: Acme Block Co.

 Iteration 3
• MODI Method
The reduced costs are found by calculating the ui's
and vj's for this tableau.
1. Set u1 = 0
2. Since u1 + vj = c1j for occupied cells in row 1,
then v1 = 24 and v2 = 30.
3. Since ui + v1 = ci1 for occupied cells in column 2,
then u2 + 24 = 30 or u2 = 6.
4. Since u2 + vj = c2j for occupied cells in row 2, then
then 6 + v3 = 42 or v3 = 36, and 6 + v4 = 0 or v4 = -6.
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 Example: Acme Block Co.

 Iteration 3
• MODI Method (continued)
Calculate the reduced costs (circled numbers on
the next slide) by cij - ui + vj.

Unoccupied Cell Reduced Cost

(1,3) 40 - 0 - 36 = 4
(1,4) 0 - 0 - (-6) = 6
(2,2) 40 - 6 - 30 = 4

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 Example: Acme Block Co.

 Iteration 3 Tableau
Since all the reduced costs are non-negative, this is
the optimal tableau.

Westwood Dummy ui
Northwood Eastwood
24 30 40 0
Plant 1 5 45 +4 +6 0

30 40 42 0
Plant 2 20 +4 10 20 6

vj 24 30 36 -6

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 Example: Acme Block Co.

 Optimal Solution

From To Amount Cost

Plant 1 Northwood 5 120
Plant 1 Westwood 45 1,350
Plant 2 Northwood 20 600
Plant 2 Eastwood 10 420
Total Cost = $2,490

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 Hungarian Method

 The Hungarian method solves minimization assignment

problems with m workers and m jobs.
 Special considerations can include:
• number of workers does not equal the number of
jobs -- add dummy workers or jobs with 0
assignment costs as needed
• worker i cannot do job j -- assign cij = +M
• maximization objective -- create an opportunity loss
matrix subtracting all profits for each job from the
maximum profit for that job before beginning the
Hungarian method

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 Hungarian Method

 Step 1: For each row, subtract the minimum number in

that row from all numbers in that row.
 Step 2: For each column, subtract the minimum number
in that column from all numbers in that column.
 Step 3: Draw the minimum number of lines to cover all
zeroes. If this number = m, STOP -- an assignment can
be made.
continued

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 Hungarian Method

 Step 4: Determine the minimum uncovered number

(call it d).
• Subtract d from uncovered numbers.
• Add d to numbers covered by two lines.
• Numbers covered by one line remain the same.
• Then, GO TO STEP 3.

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 Hungarian Method

 Finding the Minimum Number of Lines and Determining

the Optimal Solution
• Step 1: Find a row or column with only one unlined
zero and circle it. (If all rows/columns have two or
more unlined zeroes choose an arbitrary zero.)
• Step 2: If the circle is in a row with one zero, draw a
line through its column. If the circle is in a column
with one zero, draw a line through its row. One
approach, when all rows and columns have two or
more zeroes, is to draw a line through one with the
most zeroes, breaking ties arbitrarily.
continued

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 Hungarian Method

 Finding the Minimum Number of Lines and

Determining the Optimal Solution (continued)
• Step 3: Repeat step 2 until all circles are lined. If
this minimum number of lines equals m, the circles
provide the optimal assignment.

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 Example: Who’s Doing What?

An electrical contractor pays his subcontractors a

fixed fee plus mileage for work performed. On a given
day the contractor is faced with three electrical jobs
associated with various projects. Given below are the
distances between the subcontractors and the projects.
Project
Subcontractor A B C
Westside 50 36 16
Federated 28 30 18
Goliath 35 32 20
Universal 25 25 14
How should the subcontractors be assigned to
minimize total mileage costs?
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 Example: Who’s Doing What?

 Initial Tableau Setup

Since the Hungarian algorithm requires that there be
the same number of rows as columns, add a Dummy
column so that the first tableau is:

A B C Dummy
Westside 50 36 16 0
Federated 28 30 18 0
Goliath 35 32 20 0
Universal 25 25 14 0

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 Example: Who’s Doing What?

 Step 1: Subtract minimum number in each row

from all numbers in that row. Since each row has a
zero, we would simply generate the same matrix above.
 Step 2: Subtract the minimum number in each column
from all numbers in the column. For A it is 25, for B it is
25, for C it is 14, for Dummy it is 0. This yields:

A B C Dummy
Westside 25 11 2 0
Federated 3 5 4 0
Goliath 10 7 6 0
Universal 0 0 0 0

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 Example: Who’s Doing What?

 Step 3: Draw the minimum number of lines to

cover all zeroes using the following rules. If a
"remaining" row has only one zero, draw a line through
the column. If a remaining column has only one zero in
it, draw a line through the row.

A B C Dummy
Westside 25 11 2 0
Federated 3 5 4 0
Goliath 10 7 6 0
Universal 0 0 0 0
 Step 4: The minimum uncovered number is 2 (circled).

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 Example: Who’s Doing What?

 Step 5: Subtract 2 from uncovered numbers; add

2 to all numbers covered by two lines. This gives:

B A C Dummy
Westside 23 9 0 0
Federated 1 3 2 0
Goliath 8 5 4 0
Universal 0 0 0 2

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 Example: Who’s Doing What?

 Step 3: Draw the minimum number of lines to

cover all zeroes.

A B C Dummy
Westside 23 9 0 0
Federated 1 3 2 0
Goliath 8 5 4 0
Universal 0 0 0 2

 Step 4: The minimum uncovered number is 1 (circled).

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 Example: Who’s Doing What?

 Step 5: Subtract 1 from uncovered numbers. Add

1 to numbers covered by two lines. This gives:

A B C Dummy
Westside 23 9 0 1
Federated 0 2 1 0
Goliath 7 4 3 0
Universal 0 0 0 3

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 Example: Who’s Doing What?

 Step 4: The minimum number of lines to cover all

0's is four. Thus, there is a minimum-cost assignment
of 0's with this tableau. The optimal assignment is:

Subcontractor Project Distance

Westside C 16
Federated A 28
Goliath (unassigned)
Universal B 25
Total Distance = 69 miles

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 End of Chapter 19

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