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    Transportation and

    Assignment Models

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    Specialized Problems

    Transportation Problem Distribution of items from several sources

    to several destinations. Supply capacities

    and destination requirements known. Assignment Problem

    One-to-one assignment of people to jobs,etc.

    Special ized algo ri thm s

    save t ime!

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    Transportation Problem

    Goal ~To determine the delivery routes tobe used & units delivered so as tominimise total transportation cost

    Initial sol. technique ~ North west cornerrule, Vogels approx., Lowest cost,

    Final sol. ~ Stepping Stone, MODI,

    Involves step by step process

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    Example of transportation problem

    Masjid Tanah(D)

    Banting(E)

    Taiping(F)

    Kuantan(A)

    Johor Bahru(B)

    Gombak(C)

    Factories

    (Sources)

    Retail-shops

    (destinations)

    Capacities requirementsroutes

    100units

    300units

    300units

    300units

    200units

    200units

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    Transportation Problem

    Des Moines

    (100 units)

    capacity

    Cleveland

    (200 units)

    required

    Boston(200 units)

    requiredEvansville

    (300 units)

    capacity

    Ft. Lauderdale

    (300 units)

    capacity

    Albuquerque(300 units)

    required

    D

    A

    E

    C B

    F

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    Transportation Costs

    From

    (Sources)

    To(Destinations)

    Albuquerque(A)Boston(B)

    Cleveland(C)

    Des Moines(D)

    Evansville(E)

    FortLauderdale(F)

    $5

    $8

    $9

    $4

    $4

    $7

    $3

    $3

    $5

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    Unit Shipping Cost:1Unit, Factory toWarehouse

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale (F)

    Warehouse

    Req.

    Albuquerque

    (A) Boston (B)Cleveland

    (C) Factory

    Capacity5 4 3

    57

    48

    9

    3

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    Total Demand and Total Supply

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    100

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    ranspor a on a e or xecu veFurniture Corp.

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

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    Initial Solution Using the NorthwestCorner Rule

    Start in the upper left-hand cell andallocate units to shipping routes asfollows:

    Exhaust the supply (factory capacity) ofeach row before moving down to the nextrow.

    Exhaust the demand (warehouse)requirements of each column beforemoving to the next column to the right.

    Check that all supply and demand

    requirements are met.

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    Initial SolutionNorth West Corner Rule

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    100

    200 100

    100 200

    Total Transportation cost = 100x5 + 200x8 + 100x4 + 100x7 + 200x5= $4200

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    1. Find the difference between the two lowest unittransportation costs for each row & column

    2. Determine the row or column with the greatest

    difference3. Assign as many units as possible to the cost

    square in the row or column selected

    4. Eliminate any row or column that has just beencompletely satisfied by the assignment made

    5. Repeat steps 1-4

    Initial SolutionVogels Approximation steps (refer p 424)

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    Vogels Approximation1. For each row/column of table, find

    difference between two lowest costs.(Opportunity cost)

    2. Find greatest opportunity cost.

    3. Assign as many units as possible tolowest cost square in row/column with

    greatest opportunity cost.

    4. Eliminate row or column which has beencompletely satisfied.

    4. Begin again, omitting eliminated

    rows/columns.

    I iti l S l ti

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    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    Total Transportation cost = $3900

    Initial SolutionVogels Approximation (refer p 427)

    100

    200

    200 100

    100

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    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

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    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

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    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

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    The Stepping-Stone Method

    1. Select any unused square to evaluate.

    2. Begin at this square. Trace a closed path back tothe original square via squares that are currentlybeing used (only horizontal or vertical movesallowed).

    3. Place + in unused square; alternate - and + oneach corner square of the closed path.

    4. Calculate improvement index: add together theunit cost figures found in each square containing a

    +; subtract the unit cost figure in each squarecontaining a -.

    5. Repeat steps 1 - 4 for each unused square.

    If all indices computed > = 0, optimal sol.

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    Stepping-Stone Method - The DesMoines-to-Cleveland Route

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    200

    100

    100

    100 200

    - +

    -

    +

    +

    -

    Start

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    Stepping-Stone MethodAn Improved Solution

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    100

    100

    200

    200100

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    Third and Final Solution

    Des Moines

    (D)

    Evansville

    (E)

    Ft Lauderdale

    (F)

    Warehouse

    Req.

    Albuquerque(A)

    Boston(B)

    Cleveland(C)

    FactoryCapacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    100

    200

    100200

    100

    I iti l S l ti

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    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    Using stepping stone:Each improvement index in the unoccupied cell >=0, optimal solutionTotal Transportation cost = $3900

    Initial SolutionVogels Approximation (refer p 427)

    100

    200

    200 100

    100

    +2 +2

    +1

    +1

    MODI Method: 5 Steps

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    MODI Method: 5 Steps1. Compute the values for each row and column: set Ri+ Kj= Ci jfor

    those squares current ly used o r occu pied.2. After writing all equations, set R1 = 0.

    3. Solve the system of equations forRiand Kjvalues.4. Compute the improvement index for each unused square by the

    formula improvement index:

    Ii j = Ci j- Ri- Kj5. Select the largest negative index and proceed to solve the problem

    as you did using the stepping-stone method.

    1. Set up equation for each occupied celllet R1=0 then solve for K1=5, R2=3, K2=1, R3=6, and K3= -1

    2. Compute improvement index for each unoccupied cellI_EA = 8 - 3 - 5 = 0I_DB = 4 - 0 - 1 = 3I_DC = 3 - 0 - (-1) = 4I_FB = 7 - 6 - 1 = 0

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    Stepping-Stone Method - The DesMoines-to-Cleveland Route

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)

    Warehouse

    Req.

    Albuquerque

    (A)Boston

    (B)

    Cleveland

    (C)Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    200

    100

    100

    100 200

    Kj K1 K2 K3

    Ri

    R1

    R2

    R3

    3 4

    1

    -2

    Each improvement index Iij in the unoccupied cell >=0, optimal solutionI_FA isve (not optimal yet). Total Transportation cost = $4200

    To

    From

    +

    -

    -

    +

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    Special Problems in TransportationMethod

    Unbalanced Problem

    Demand Less than Supply

    Demand Greater than Supply

    Degeneracy (one or more Iij =0)

    More Than One Optimal Solution

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    Unbalanced ProblemDemand Less than Supply

    Factory 1

    Factory 2

    Factory 3

    Customer

    Requirements

    Customer1 Customer 2

    DummyFactory

    Capacity

    150 80 150 380

    80

    130

    1708 5 0

    0

    09

    1015

    3

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    Unbalanced ProblemSupply Less than Demand

    Factory 1

    Factory 2

    Dummy

    Customer

    Requirements

    Customer1

    Customer2

    Customer3

    FactoryCapacity

    150 80 150 380

    80

    130

    1708 5 16

    7

    00

    1015

    0

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    Degeneracy

    Factory 1

    Factory 2

    Factory 3

    Customer

    Requirements

    Customer1

    Customer2

    Customer3

    FactoryCapacity

    100 100 100 300

    80

    120

    1005 4 3

    3

    57

    48

    9

    100

    100

    80

    20

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    Degeneracy - Coming Up!

    Factory 1

    Factory 2

    Factory 3

    Customer

    Requirements

    Customer1

    Customer2

    Customer3

    FactoryCapacity

    150 80 50 280

    80

    130

    708 5

    7

    9

    16

    10

    1015

    3

    70

    80

    50

    50

    30

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    Stepping-Stone Method - The DesMoines-to-Cleveland Route

    Des Moines

    (D)

    Evansville

    (E)

    Fort

    Lauderdale(F)

    Warehouse

    Req.

    Albuquerque(A)

    Boston

    (B)

    Cleveland(C)

    Factory

    Capacity

    300 200 200 700

    300

    300

    1005 4 3

    3

    57

    48

    9

    Start

    200

    100

    100

    100 200

    - +

    -

    +

    +

    -

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    The Assignment Method

    1. subtract the smallest number in each row fromevery number in that row

    subtract the smallest number in eachcolumn from every number in that column

    2. draw the minimum number of vertical andhorizontal straight lines necessary to coverzeros in the table

    if the number of lines equals the number ofrows or columns, then one can make anoptimal assignment (step 4)

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    The Assignment Method - continued

    3.if the number of lines does not equal thenumber of rows or columns

    subtract the smallest number not covered bya line from every other uncovered number

    add the same number to any number lying atthe intersection of any two lines

    return to step 2

    4. make optimal assignments at locations ofzeros within the table

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    The Assignment Problem

    Project

    Person 1 2 3

    Adams $11 $14 $6

    Brown $8 $10 $11

    Cooper $9 $12 $7

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    Hungarian Method

    Initial TablePerson Project

    1 2 3

    Adams 11 14 6

    Brown 8 10 11

    Cooper 9 12 7

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    Hungarian Method

    Row ReductionPerson Project

    1 2 3

    Adams

    Brown

    Cooper

    5 8 0

    0 2 3

    2 5 0

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    Hungarian Method

    Column Reduction

    Person Project

    1 2 3

    Adams 5 6 0

    Brown 0 0 3

    Cooper 2 3 0

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    Hungarian Method

    Person Project

    1 2 3

    Adams

    Brown

    Cooper

    5 6 0

    0 0 3

    2 3 0

    Testing CoveringLine 2

    CoveringLine

    1

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    Hungarian Method

    Person Project

    1 2 3

    Adams 3 4 0

    Brown 0 0 5

    Cooper 0 1 0

    Revised Opportunity Cost Table

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    Hungarian Method

    Person Project

    1 2 3

    Adams 3 4 0

    Brown0 0 5

    Cooper0 1 0

    TestingCovering Line1

    Covering

    Line 2

    Covering Line 3

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    Hungarian Method

    AssignmentsPerson Project

    1 2 3

    Adams 6

    Brown 10

    Cooper 9

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    Maximization Assignment Problem

    Project

    1 2 3 Dummy

    Adams $11 $14 $6 $0

    Brown $8 $10 $11 $0

    Cooper $9 $12 $7 $0

    Davis $10 $13 $8 $0

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    Maximization Assignment Problem

    Project

    1 2 3 Dummy

    Adams $32 $0 $8 $14

    Brown $6 $4 $3 $14

    Cooper $5 $2 $7 $14

    Davis $4 $1 $6 $14

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    Part A ~ 14 October 2004

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