3 Transportation Problems

Operations Research · Unit 3

Transportation Problems

Exam-focused notes for Transportation Problems (Operations Research, ORS255): what the TU syllabus asks and how it has actually been tested, with 11 solved past questions from this unit.

What this unit covers

  • Formulation of transportation problems
  • Initial solution methods: Northwest Corner Rule
  • Vogel's Approximation Method (VAM)
  • Modified Distribution (MODI) method
  • Testing optimality of transportation solutions
  • Minimization and maximization of transportation costs
  • Demand and supply constraints

Minimization and maximization of transportation costs

208210 marks

The table below represent the profit of a company earned from different plants to different market. Develop a transportation schedule that maximizes the profit of the company.

$$\begin{array}{|c|ccc|c|}\hline \text{Plants/Market} & M1 & M2 & M3 & \text{Supply (units)} \ \hline P1 & 22 & 25 & 24 & 170 \ \hline P2 & 15 & 20 & 18 & 130 \ \hline P3 & 30 & 21 & 20 & 100 \ \hline \text{Demand (units)} & 200 & 130 & 120 & 400/450 \ \hline \end{array}$$

[10]

Profit matrix (units per unit shipped): Plant/Market M1 M2 M3 Supply --------------- P1 22 25 24 170 P2 15 20 18 130 P3 30 21 20 100 Demand 200 130 120 - Total Supply = $170 + 130 + 100 = 400$ - Total Demand = $200 + 130 + 120 = 450$ Since Supply (400) < De...

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208110 marks

Transportation Problem - Minimum Cost Solution

Obtain the minimum transportation cost for the following transportation problem.

$$\begin{array}{|c|ccc|c|}\hline \text{Destination/Source} & S1 & S2 & S3 & \text{Units Demanded} \ \hline D1 & 12 & 16 & 10 & 200 \ \hline D2 & 15 & 12 & 10 & 200 \ \hline D3 & 11 & 12 & 12 & 50 \ \hline \text{Units Available} & 200 & 150 & 100 & 450 \ \hline \end{array}$$

[10]

I must read the matrix carefully. The LaTeX has two conflicting layouts. The trailing (cleaner) array is: $$ \begin{array}{ccccc}\hline \text{Destination/Source} & D1 & D2 & D3 & \text{Units Available} \\ \hline S1 & 12 & 15 & 11 & 200 \\ S2 & 16 & 12 & 12 ...

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207910 marks

Transportation Problem

Find transport schedule to minimize the transportation cost for the following transportation problem. The transportation cost per unit and units demanded and available are given in the table.

$$\begin{array}{|c|c|c|c|c|}\hline & \text{A} & \text{B} & \text{C} & \text{Units demanded} \ \hline X & 9 & 10 & 10 & 5 \ Y & 10 & 14 & 8 & 20 \ Z & 13 & 10 & 8 & 20 \ \hline \text{Units available} & 20 & 15 & 10 & 45 \ \hline \end{array}$$

[10]

The table structure needs careful reading. The headers list A, B, C, and "Units demanded" across the top, and the bottom row is "Units available." The row labels X, Y, Z are the supply sources. Cost matrix (rows = X, Y, Z; columns = A, B, C): A B C Units de...

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2080.210 marks

Determine the minimum transportation cost from the following matrix.

Warehouse/Store Cost per unitP₁P₂P₃P₄Supply
W₁4560453070
W₂3515353560
W₃3025455590
Demand60406020220/180

[10]

Cost matrix (per unit): W/S P₁ P₂ P₃ P₄ Supply ----------------------------- W₁ 45 60 45 30 70 W₂ 35 15 35 35 60 W₃ 30 25 45 55 90 Demand 60 40 60 20 Note on data: The supply column shows "$\frac{220}{180}$" which represents total supply = 220 and total dem...

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Modified Distribution

20825 marks

Describe modified distribution (MODI) method of obtaining the optimal solution of transportation problem. [5]

The MODI method (also called the Multiplier method or u-v method) is an iterative technique used to find the optimal solution to a transportation problem after an initial basic feasible solution has been obtained. The MODI method works by calculating opport...

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20815 marks

Explain the algorithm of the Modified Distribution (MODI) method for testing the optimality of the transportation problem. [5]

The MODI method (also called the u-v method) tests whether a basic feasible solution to a transportation problem is optimal. Here is the algorithm: For each basic variable (occupied cell) in the current solution, assign dual variables ui and vj such that: $...

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20795 marks

Describe modified distribution (MODI) method used for testing the optimality of initial solution of transport problem. [5]

The MODI method (also called the u-v method) is a technique used to test whether an initial basic feasible solution of a transportation problem is optimal, and if not, to improve it systematically. The MODI method is based on the duality theory of linear pr...

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010 marks

Find the optimum transportation schedule from the following data in order to minimize transportation costs by using modified distribution method.

PlantXYZSupply (units)
A528150
B435150
C24-200
D634250
Demand (units)250200175625/750

[10]

Cost matrix (Plant → Destination): Plant X Y Z Supply ------------------------ A 5 2 8 150 B 4 3 5 150 C 2 4 - 200 D 6 3 4 250 Demand 250 200 175 - Total Supply = 150+150+200+250 = 750 - Total Demand = 250+200+175 = 625 - Cell C-Z is prohibited (marked "-")...

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Vogel's Approximation Method

20825 marks

Write short notes on: (a) Vogel's Approximation Method (VAM) (b) Objectives of operations research [0+2.5+2.5]

Definition: Vogel's Approximation Method is an improved initial solution technique for the Transportation Problem that generally produces a better starting solution than the North-West Corner Method or Least Cost Method. Principle: VAM is based on the conce...

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20815 marks

Write short notes on: (a) Vogel's Approximation Method (VAM) (b) Dominance rule of game theory [0+2.5+2.5]

Definition: Vogel's Approximation Method is an iterative procedure for finding an initial basic feasible solution to the Transportation Problem. It is more efficient than the North-West Corner Rule as it produces solutions closer to the optimal solution. Pr...

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20805 marks

Find the initial solution by using Vogel's Approximation Method (VAM).

$$\begin{array}{|c|c|c|c|c|c|}\hline \text{From} & P & Q & R & S & \text{Supply} \ \hline A & 19 & 30 & 50 & 10 & 7 \ B & 70 & 30 & 40 & 60 & 9 \ C & 40 & 8 & 70 & 20 & 18 \ \hline \text{Demand} & 5 & 8 & 7 & 14 & 34 \ \hline \end{array}$$

[5]

Cost matrix: From P Q R S Supply ------------------ A 19 30 50 10 7 B 70 30 40 60 9 C 40 8 70 20 18 Demand 5 8 7 14 Total supply = 7 + 9 + 18 = 34; total demand = 5 + 8 + 7 + 14 = 34. Balanced. Penalty = difference between two smallest costs in each row/col...

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