Operations Research

Transportation Simplex

Transportation simplex
Steps
1.

2.
3.

4.

Find a bfs for the problem

If the problem is unbalanced, balance it
Use one of the methods to find a bfs for the problem
Determine whether the current bfs is optimal. If it is optimal, stop.
If the current bfs is not optimal, determine which nonbasic variable should
become a basic variable and which basic variable should become a nonbasic
variable to find a new bfs with a better objective function value.
Go back to Step 2.

Determine whether the current bfs is

optimal using dual method

Determine whether the current bfs is

optimal

Pivoting procedure
1.

2.

3.

Find the loop (there is only one possible loop!) involving the entering
variable (determined at step 4 of the transportation simplex method)
and some or all of the basic variables.
Counting only cells in the loop, label those that are an even number (0, 2, 4,
and so on) of cells away from the entering variable as even cells. Also label
those that are an odd number of cells away from the entering variable as
odd cells.
Find the odd cell whose variable assumes the smallest value. Call this
value . The variable corresponding to this odd cell will leave the basis.
To perform the pivot, decrease the value of each odd cell by and
increase the value of each even cell by . The values of variables not in
the loop remain unchanged.
The pivot is now complete. If = 0, the entering variable will equal 0,
and odd variable that has a current value of 0 will leave the basis.

Powerco
Transportation Tableau

City 1
Plant 1
Plant 2
Plant 3
DEMAND

45

City 2

City 3

City 4

SUPPLY

10

12

13

14

16

20

30

30

35
50
40
125
6

Powerco
Step 1. Find a bfs for the problem
The problem is balanced
A bfs using NWC method:

City 1
Plant 1

35

Plant 2

10

8
9

12

20

45

20

City 4

City 3
6

14

Plant 3
DEMAND

City 2

20
10

30

SUPPLY

10

13

16

30

30

35
50
40
125
7

Powerco

Determine whether the current bfs is optimal

Assume u1 = 0
Find ui and vj values using ui + vj = cij for the current basic variables

v1
u1

35

u2

10

8
9

45

v3
6
12

20

14

u3
8

v2

20

20

v4
10

13

16

10

30

30

30

35
50
40
125

u1 = 0
u 1 + v1 = 8
u 2 + v1 = 9
u2 + v2 = 12
u2 + v3 = 13
u3 + v3 = 16
u 3 + v4 = 5

v1 = 8
u2 = 1
v2 = 11
v3 = 12
u3 = 4

v4 = 1

For some nanbasic variables

ui + vj cij 0 is not applicable, go
to step 3!

10

Step 3: If the current bfs is not optimal, determine which nonbasic variable should
become a basic variable and which basic variable should become a nonbasic
variable
The nonbasic variable having the most positive ui + vj cij d will enter the basis
35

x32 is entering

=10
x33 is leaving

10

8
9
14

35
10

20-

8
9
14

11

6
12
9

20+
10-

10
10

12
9

30

10

13

16

30

10

13

16

30

2nd iteration; x12 is entering; x22 is leaving

v1=8
u1=0

35

u2=1

10

v2=11
8

10

14

u3=-2

v3=12

10

12

30

v4=7

10

13

16

30

3rd iteration; x13 is entering; x11 is leaving

v1=8
u1=0
u2=1
u3=3
12

25
20

v2=6
8

v3=12

v4=2

10

12

13

14

16

10

10

30

30

4th iteration; optimal tableau

v1=6
8

u1=0
u2=3
u3=3

v2=6

45

10

9
14

v3=10
6
12

10

25
5

v4=2

10

13

16

30

Z = 6(10) + 10(25) + 9(45) + 13(5) + 9(10) + 5(30) = 1020

13

Example

Two reservoirs are available to supply the water needs of three cities. Each
reservoir can supply up to 50 million gallons of water per day. Each city
would like to receive 40 million
gallons per day. For each million gallons per day of unmet demand, there is a
penalty.
At city 1, the penalty is $20; at city 2, the penalty is $22; and at city 3, the
penalty is $23.
The cost of transporting 1 million gallons of water from each reservoir to
each city is shown in the table below.
Formulate a balanced transportation problem that can be used to minimize
the sum of shortage and transport costs.

14

City 1

City 2

City 3

Reservoir 1

7$

8$

10$

Reservoir 2

9$

7$

8$

City 2

City 1
7

10

20

22

23

Reservoir 1
Reservoir 2
Dummy

City 3

40

40

40

50
50

20
120

A bfs using minimum cost method

40

40

20
15

40

22

40

10

10

10

23

20

40

50
50
20

120

Example
A company produces cars in Atlanta, Boston, Chicago,
and Los Angeles. The cars are then shipped to
warehouses in Memphis, Milwaukee, New York City,
Denver, and San Francisco.
Assuming that the cost (in dollars) of shipping a car
equals the distance between two cities, formulate a
balanced transporation problem to determine an
optimal shipping schedule.
Find bfss using the three methods.

Warehouse

Cars
required

Memphis

6.000

Milwaukee

4.000

N.Y.

4.000

Denver

2.000

San Francisco

2.000

Distance in 100 miles

Atlanta

Memphis

Milwaukee

N.Y.

Denver

San Frans.

14

25

Boston

13

11

19

31

Chicago

10

21

L.A.

18

20

28

11

16

Plant

Cars
Availab
le

Atlanta

5.000

Boston

6.000

Chicago

4.000

L.A.

3.000

Example
a bfs using minimum cost method
Mem.
Atl.

Bos.

Chi.

13

11

18

N.Y.

L.A.
DEMAND

Mil.

Den.

SUPPLY

S.F.

14

25

19

31

10

21

20

28

11

5
6
4
3

Operations Research
Transshipment & Assignment Problems

Transshipment Problems

Sometimes a point in the shipment process can both receive goods from
other points and send goods to other points.
This point is called as transshipment point through which goods can be
transshipped on their journey from a supply point to demand point.
Shipping problem with this characteristic is a transshipment problem.
The optimal solution to a transshipment problem can be found by
converting this transshipment problem to a transportation problem and
then solving this transportation problem.

19

Steps to Solve Transshipment Problems

1. If the problem is unbalanced, balance it

Let s = total available supply (or demand) for balanced problem

2. Construct a transportation tableau as follows:

A row in the tableau will be needed for each supply point and transshipment
point
A column will be needed for each demand point and transshipment point
Each supply point will have a supply equal to its original supply
Each demand point will have a demand equal to its original demand
Each transshipment point will have a supply equal to that points original
supply + s
Each transshipment point will have a demand equal to that points original
demand + s

3. Solve the transportation problem

20

Example - Kuruolu

Kuruoglu manufactures refrigerators in Malatya and G.Antep.

Capacities of the plants in Malatya and G.Antep are 150 and 200 respectively.

Refrigerators can be transported to markets in stanbul and Izmir via airplane.

The demand is 130 in both markets.
Due to the cost considerations, the refrigerators can be send to Ankara or
Eskiehir and then to the markets.
The transportation costs are given in the following table.

Find the minimum cost of meeting the demands for Kuruolu.

Malatya

G.Antep

Ankara

Eskiehir

stanbul

zmir

Malatya

13

25

28

G.Antep

15

12

26

25

Ankara

16

17

21Eskiehir

14

16

Ankara and Eskiehir are transshipment points

Step 1. Balance the problem
Total supply = 150 + 200 = 350
Total demand = 130 + 130 = 260
Dummy demand = 350 260 = 90
s = 350 (total available supply (or demand) for balanced problem)
Ankara

Eskiehir

stanbul

13

25

28

15

12

26

25

16

17

14

16

Malatya
G.Antep

Ankara
Eskiehir
22
DEMAND

350

350

130

zmir

130

Yapay

90

SUPPLY
150
200
350
350

Solution
Ankara

Eskiehir

stanbul

13

25

28

15

12

26

25

Malatya 130
G.Antep
Ankara 220
Eskiehir
TALEP

23

350

350

350

130

130

zmir

130

Yapay
0

20

70

16

17

14

16

130

ARZ

90

Kuruoglu should manufacture 130 refrigirators in Malatya and send

them to stanbul through Ankara.
130 refrigirators produced in G.Antep should be send to zmir,
directly.
The total transportation cost will be 6370 TL.

150
200

350
350

Assignment problems

Assignment problems:
There is a special case of transportation problems where each supply
point should be assigned to a demand point and each demand should be
met.

For example determining which employee or machine should be assigned

to which job is an assignment problem

24

LP Representation of Assignment problems

25

Hungarian Method

Hungarian method is an efficient method to solve assignment problems.

It is developed for minimization problems.

To solve an assignment problem in which the goal is to maximize the
objective function, multiply the profits matrix through by 1 and solve
the problem as a minimization problem.

If the number of rows and columns in the cost matrix are unequal, the
assignment problem is unbalanced.
Any assignment problem should be balanced by the addition of one or
more dummy points before it is solved by the Hungarian method.

26

Steps of the Hungarian Method

1.
2.
3.
4.
5.

6.
7.

27

Find the minimum cost each row of the mm cost matrix.

Construct a new matrix by subtracting from each cost the minimum cost
in its row
For this new matrix, find the minimum cost in each column
Construct a new matrix (reduced cost matrix) by subtracting from each
cost the minimum cost in its column
Draw the minimum number of lines (horizontal and/or vertical) that are
needed to cover all the zeros in the reduced cost matrix.
If m lines are required, an optimal solution is available among the covered
zeros in the matrix.
If fewer than m lines are needed, proceed to next step
Find the smallest nonzero cost (k) in the reduced cost matrix that is
uncovered by the lines drawn in Step 5
Subtract k from each uncovered element of the reduced cost matrix and
add k to each element that is covered by two lines. Return to Step 5

Example: Flight Crew

Four captain pilots (Ali, Bar, Cezmi, Erdem) has evaluated four flight
officers (Fahri, Gven, Halil, Koray) according to perfection, adaptation,
morale motivation in a 1-20 scale (1: very good, 20: very bad). Evaluation
grades are given in the table.
Flight Company wants to assign each flight officer to a captain pilot
according to these evaluations. Determine possible flight crews.

28

Fahri

Gven

Halil

Koray

Ali

10

Bar

12

Cezmi

Erdem

14

Fahri

Gven

Halil

Koray

Min

Ali

10

Bar

12

Cezmi

Erdem

14

Fahri

Gven

Halil

Koray

Ali

Bar

10

Cezmi

Erdem

Fahri

Gven

Halil

Koray

Ali

Bar

10

Cezmi

Erdem

Min

29

Fahri

Gven

Halil

Koray

Ali

Bar

10

Cezmi

Erdem

Fahri

Gven

Halil

Koray

Ali

Bar

Cezmi

Erdem

10

Fahri

Gven

Halil

Koray

Ali

Bar

Cezmi

10

30Erdem

Fahri

Gven

Halil

Koray

Ali

Bar

Cezmi

Erdem

10

31

Report: following assignmets give minimum cost:

Ali Fahri; Bar-Koray; Cezmi-Halil; Erdem-Gven

Total cost: 2+5 + 3 + 5 = 15