Transportation, Assignment and Transshipment Problems
Transportation, Assignment and Transshipment Problems
Transportation, Assignment and Transshipment Problems
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Description
A transportation problem basically deals with the
problem, which aims to find the best way to fulfill
the demand of n demand points using the
capacities of m supply points. While trying to find
the best way, generally a variable cost of shipping
the product from one supply point to a demand
point or a similar constraint should be taken into
consideration.
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7.1 Formulating Transportation
Problems
Example 1: Powerco has three electric
power plants that supply the electric needs
of four cities.
•The associated supply of each plant and
demand of each city is given in the table 1.
•The cost of sending 1 million kwh of
electricity from a plant to a city depends on
the distance the electricity must travel.
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Transportation tableau
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Table 1. Shipping costs, Supply, and Demand
for Powerco Example
From To
City 1 City 2 City 3 City 4 Supply
(Million kwh)
Plant 1 $8 $6 $10 $9 35
Plant 2 $9 $12 $13 $7 50
Plant 3 $14 $9 $16 $5 40
Demand 45 20 30 30
(Million kwh)
Transportation
5 Tableau
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Solution
1. Decision Variable:
Since we have to determine how much electricity
is sent from each plant to each city;
Minimize Z = 8X11+6X12+10X13+9X14
+9X21+12X22+13X23+7X24
+14X31+9X32+16X33+5X34
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3. Supply Constraints
Since each supply point has a limited production
capacity;
X11+X12+X13+X14 <= 35
X21+X22+X23+X24 <= 50
X31+X32+X33+X34 <= 40
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4. Demand Constraints
Since each supply point has a limited production
capacity;
X11+X21+X31 >= 45
X12+X22+X32 >= 20
X13+X23+X33 >= 30
X14+X24+X34 >= 30
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5. Sign Constraints
Since a negative amount of electricity can not be
shipped all Xij’s must be non negative;
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LP Formulation of Powerco’s Problem
Min Z = 8X11+6X12+10X13+9X14+9X21+12X22+13X23+7X24
+14X31+9X32+16X33+5X34
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Xij = number of units shipped from supply point i to
demand point j
i m j n
min cijXij
i 1 j 1
j n
s.t. Xij si (i 1,2,..., m)
j 1
i m
X
i 1
ij dj ( j 1,2,..., n)
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Balanced Transportation Problem
If Total supply equals to total demand, the
problem is said to be a balanced
transportation problem:
i m j n
s d
i 1
i
j 1
j
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Balancing a TP if total supply exceeds total
demand
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Balancing a transportation problem if total
supply is less than total demand
3. Vogel’s Method
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1. Northwest Corner Method
To find the bfs by the NWC method:
Begin in the upper left (northwest) corner of the
transportation tableau and set x11 as large as
possible (here the limitations for setting x11 to a
larger number, will be the demand of demand
point 1 and the supply of supply point 1. Your
x11 value can not be greater than minimum of
this 2 values).
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According to the explanations in the previous slide
we can set x11=3 (meaning demand of demand
point 1 is satisfied by supply point 1).
5
3 5 2 3
3 2
X 5 2 3
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After we check the east and south cells, we saw that
we can go east (meaning supply point 1 still has
capacity to fulfill some demand).
3 2 X
X 3 2 3
3 2 X
3 3
X X 2 3
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After applying the same procedure, we saw that we
can go south this time (meaning demand point 2
needs more supply by supply point 2).
3 2 X
3 2 1
X X X 3
3 2 X
3 2 1 X
22 X X X 2
3 2 X
3 2 1 X
2 X
X X X X
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2. Minimum Cost Method
The Northwest Corner Method dos not utilize shipping
costs. It can yield an initial bfs easily but the total
shipping cost may be very high. The minimum cost
method uses shipping costs in order come up with a
bfs that has a lower cost. To begin the minimum cost
method, first we find the decision variable with the
smallest shipping cost (Xij). Then assign Xij its largest
possible value, which is the minimum of si and dj
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After that, as in the Northwest Corner Method we
should cross out row i and column j and reduce the
supply or demand of the noncrossed-out row or
column by the value of Xij. Then we will choose the
cell with the minimum cost of shipping from the
cells that do not lie in a crossed-out row or column
and we will repeat the procedure.
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An example for Minimum Cost Method
Step 1: Select the cell with minimum cost.
2 3 5 6
5
2 1 3 5
10
3 8 4 6
15
12 8 4 6
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Step 2: Cross-out column 2
2 3 5 6
5
2 1 3 5
2
8
3 8 4 6
15
12 X 4 6
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Step 3: Find the new cell with minimum shipping
cost and cross-out row 2
2 3 5 6
5
2 1 3 5
X
2 8
3 8 4 6
15
10 X 4 6
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Step 4: Find the new cell with minimum shipping
cost and cross-out row 1
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
15
5 X 4 6
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Step 5: Find the new cell with minimum shipping
cost and cross-out column 1
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
10
5
X X 4 6
30
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Step 6: Find the new cell with minimum shipping
cost and cross-out column 3
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
6
5 4
X X X 6
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Step 7: Finally assign 6 to last cell. The bfs is found
as: X11=5, X21=2, X22=8, X31=5, X33=4 and X34=6
2 3 5 6
X
5
2 1 3 5
X
2 8
3 8 4 6
X
5 4 6
X X X X
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3. Vogel’s Method
Begin with computing each row and column a penalty.
The penalty will be equal to the difference between the
two smallest shipping costs in the row or column.
Identify the row or column with the largest penalty.
Find the first basic variable which has the smallest
shipping cost in that row or column. Then assign the
highest possible value to that variable, and cross-out
the row or column as in the previous methods.
Compute new penalties and use the same procedure.
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An example for Vogel’s Method
Step 1: Compute the penalties.
6 7 8
10 7-6=1
15 80 78
15 78-15=63
Demand 15 5 5
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Step 2: Identify the largest penalty and assign the
highest possible value to the variable.
6 7 8
5 8-6=2
5
15 80 78
15 78-15=63
Demand 15 X 5
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Step 3: Identify the largest penalty and assign the
highest possible value to the variable.
6 7 8
0 _
5 5
15 80 78
15 _
Demand 15 X X
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Step 4: Identify the largest penalty and assign the
highest possible value to the variable.
6 7 8
X _
0 5 5
15 80 78
15 _
Demand 15 X X
Column Penalty _ _ _
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Step 5: Finally the bfs is found as X11=0, X12=5,
X13=5, and X21=15
6 7 8
X _
0 5 5
15 80 78
X _
15
Demand X X X
Column Penalty _ _ _
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7.3 The Transportation Simplex
Method
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How to Pivot a Transportation Problem
10 20 20 50
4 3
2 10 30
1 40
45 20 30 30
E O E O E O
20-20
10+20 20 50
(nonbasic)
10+20 30-20 40
45 20 30 30
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Pricing out nonbasic variables
1
0
0
č22= [u2 u3 v1 v2 v3 v4] -12 = u2+v2-12=0
1
0
0
1
0
0
č23= [u2 u3 v1 v2 v3 v4] -13 = u2+v3-13=0
0
1
0
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0
1
0
č33= [u2 u3 v1 v2 v3 v4] -16 = u3+v3-16=0
0
1
0
0
1
0
č34= [u2 u3 v1 v2 v3 v4]
0
-5 = u3+v4-5=0
1
0
We obtain:
č12 = 0+11 – 6 = 5 č13 = 0+12 – 10 = 2
č14 = 0+1 – 9 = -8 č24 = 1+1 – 7 = -5
č31 = 4+8 – 14 = -2 č32 = 4+11 – 9 = 6
10 20 20 50
10 30 40
45 20 30 30
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The resulting bfs will be:
X11=35, X32=10, X21=10, X22=10, X23=30 and X34=30
The ui’s and vj’s for the new bfs were obtained by
solving
u1=0
u2+v2=12
u3+v4=5
u1+v1=8
u2+v3=13
u2+v1=9
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In computing čij = ui+vj – cij for each nonbasic variable,
we find that č12 = 5, č13 = 2 and č24 = 1 are the only
positive čij‘s. Thus we next enter X12 into the basis. By
applying the same steps we will finally get a solution
where all čij’s are less then or equal to 0, so an optimal
solution has been obtained.
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1. Changing the objective function coefficient
of a nonbasic variable.
Changing the objective function coefficient of a
nonbasic variable Xij will leave the right hand side of
the optimal tableau unchanged. Thus the current
basis will still be feasible. Since we are not changing
cBVB-1, the ui’s and vj’s remain unchanged. In row 0
only the coefficient of Xij will change. Thus as long
as the coefficient of Xij in the optimal row 0 is
nonpositive, the current basis remains optimal.
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Let’s try to answer the following question about
Powerco as an example:
For what range of values of the cost of shipping 1
million kwh of electricity from plant 1 to city 1 will the
current basis remain optimal?
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Let’s try to answer the following question about Powerco
as an example:
For what range of values of the cost of shipping 1 million
kwh of electricity from plant 1 to city 3 will the current
basis remain optimal?
Suppose we change c13 from 10 to 10+ Δ.
Now č13=0 changes from u1+v3=10 to u1+v3=10+ Δ.
Thus, to find the ui’s and vj’s we must solve the
following equations:
u1=0 u1+v2=6 u2+v1=9 u2+v3=13
u3+v2=9 u1+v3=10+ Δ u3+v4=5
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Solving these equations, we obtain u1=0, v2=6, v3=10+ Δ,
v1=6+ Δ , u2=3- Δ, u3=3, and v4=2.
We now price out each nonbasic variable. The current
basis will remain optimal as long as each nonbasic
variable has a nonpositive coefficient in row 0.
č11 = u1+v1-8=Δ-2<=0 for Δ<=2
č14 = u1+v4-9=-7
č22 = u2+v2-12=-3-Δ<=0 for Δ>=-3
č24 = u2+v4-7=-2-Δ<=0 for Δ>=-2
č31 = u3+v1-14=-5+Δ<=0 for Δ<=5
č = u3+v3-16=Δ-3<=0
60 33 for Δ<=3
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Thus, the current basis remains optimal for –2<=Δ<=2,
or 8=10-2<=c13<=10+2=12
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3. Increasing Both Supply si and Demand dj by Δ.
Changing both supply and demand by the same amount
will maintain the balance of the transportation problem.
Since ui’s and vj’s may be thought of as the negative of
each constraint’s shadow price, we know that if the
current basis remains optimal,
New Z value = old Z value+Δui+Δvj
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Setup times
(Also called the cost matrix)
Time (Hours)
Job1 Job2 Job3 Job4
Machine 1 14 5 8 7
Machine 2 2 12 6 5
Machine 3 7 8 3 9
Machine 4 2 4 6 10
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The Model
According to the setup table Machinco’s problem can be
formulated as follows (for i,j=1,2,3,4):
min Z 14 X 11 5 X 12 8 X 13 7 X 14 2 X 21 12 X 22 6 X 23 5 X 24
7 X 31 8 X 32 3 X 33 9 X 34 2 X 41 X 42 6 X 43 10 X 44
s.t. X 11 X 12 X 13 X 14 1
X 21 X 22 X 23 X 24 1
X 31 X 32 X 33 X 34 1
X 41 X 42 X 43 X 44 1
X 11 X 21 X 31 X 41 1
X 12 X 22 X 32 X 42 1
X 13 X 23 X 33 X 43 1
X 14 X 24 X 34 X 44 1
Xij 0orXij 1
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For the model on the previous page note that:
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DEPOT MAX
• 在 Falls Church (FC) 與 Bethesda (BA)
兩家店面目前快要面臨 型號 65A 模型缺貨問題
• DATA:
-12
5 FC
-13
71
6 BA
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DEPOT MAX
•在 Alexandria (AA) and Chevy Chase (CC) 兩家店面可以分
別提供 10 與 17 單位 產品
• DATA:
-12
+10
1 5 FC
AA
+15 -13
72 CC 2 6 BA
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DEPOT MAX
• DATA:
FX -12
+10 FC
AA 1 3 5
GN
+15 -13
73
2 4 6 BA
CC
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DEPOT MAX
• 可能路線與運送單位成本如下圖所列
• DATA: 20
FX -12
+10 10 7 FC
AA 1 3 FC
6 5 12 7 11
GN
+17 -13
2 4 BA BA
74
CC 15 15
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DEPOT MAX
• Data( 資料 )
– 不同路線有最大產上限
– 不同路線有不同運送單位成本
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DEPOT MAX –
Types of constraints( 限制式類型 )
20
-12
+10 10 7
1 3 5
–供應節點 (Supply nodes)
–[中繼轉運節點
節點淨流出量(Intermediate ] < = [ 節點供應量 ]
transshipment nodes)
–需求節點 (Demand nodes) 7
6 5 [X 12 + X13 + X15 - X21
節點總流出量 ] = [ 節點總流入量
12 <= 10 (Node ]1) 11
[ 節點總流入量 ] = [ 需求節點量 ]
XX3421+X+35X=24 X13
- X12 (Node3)
<= 17 (Node 2)
7
X46X=15X+24X+35X+X34
65 - X56 = 12 (Node
(Node 4) 5)
X46 +X56 - X65 = 13 (Node 6)
+17 2 4 6 -13
15 15
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DEPOT MAX
• 完整數學模式
Min 5X12 + 10X13 + 20X15 + 6X21 + 15X24 + 12X34 + 7X35 + 15X46 + 11X56 + 7X65
S.T. X12 + X13 + X15 – X21 10
- X12 + X21 + X24 17
– X13 + X34 + X35 =0
– X24 – X34 + X46 =0
– X15 – X35 + X56 - X65 = -12
-X46 – X56 + X65 = -13
X12 3; X15 6; X21 7; X24 10; X34 8; X35 8; X46 17; X56 7; X65 5
All variables are non-negative
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The following steps describe how the optimal solution to
a transshipment problem can be found by solving a
transportation problem.
Step1. If necessary, add a dummy demand point (with a
supply of 0 and a demand equal to the problem’s excess
supply) to balance the problem. Shipments to the dummy
and from a point to itself will be zero. Let s= total
available supply.
Step2. Construct a transportation tableau as follows: A
row in the tableau will be needed for each supply point
and transshipment point, and a column will be needed for
each demand point and transshipment point.
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Each supply point will have a supply equal to it’s
original supply, and each demand point will have a
demand to its original demand. Let s= total available
supply. Then each transshipment point will have a supply
equal to (point’s original supply)+s and a demand equal
to (point’s original demand)+s. This ensures that any
transshipment point that is a net supplier will have a net
outflow equal to point’s original supply and a net
demander will have a net inflow equal to point’s original
demand. Although we don’t know how much will be
shipped through each transshipment point, we can be
sure that the total amount will not exceed s.
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