Chapter Three

Transportation and Assignment

Department of
models
Management
Transportation
 Transportation problem

• A model/algorithm that is applied in distribution type.

• The objective of this model is to minimize the

transportation costs of goods from the origin or
source to destination.

3 main information are important to solve the problem:

1. The capacities of each origin (Supply)

2. Demand of each destination

3. Transportation cost per unit from each source to the

destination.
infotesfish@[Link]
 Assumptions of Transportation Model

• Total supply is equal to total demand

• Transportation cost per unit of goods are certainly known and

proportional to the number of units shipped on a given route.

• Goods are transported only from sources to destinations.

• The objective of the model is to minimize the total cost of transportation

while satisfying demand and supply constraints.

• Goods are homogeneous

infotesfish@[Link]
Steps in transportation model

• Step 1: develop a transportation tableau In a meaningful way,

formulate the LPM.

To A B C SS Where x= demand
From y= supply
A= transport cost per unit

1 A A A Y
2 A A A Y
3 A A A Y
DD x x x X=Y

infotesfish@[Link]
Step 2: develop initial feasible solution

There are Three methods of finding and initial solution for transportation problems:

• Northwest-corner method

• Least-cost method and

• Vogel’s approximation method

Step 3: check for optimality: two methods

• Stepping stone method

• MODI method (modified distribution method)

infotesfish@[Link]
Example 1

XYZ company’s Wheat is harvested in the Midwest and stored in grain elevators

in three different cities Jimma, Mekelle, and Bahir Dar. These grain elevators

supply three flour mills, located in Addis Ababa, Dire Dawa, and Dilla. Grain is

shipped to the mills in railroad cars, each car capable of holding one ton of

wheat. Each grain elevator is able to supply the following number of tons (i.e.,

railroad cars) of wheat to the mills on a monthly basis.

infotesfish@[Link]
Example …
Grain Elevator Supply • Each mill demands the following

1. Jimma 150 number of tons of wheat per month

2. Mekelle 175 Mill Demand

3. Bahir Dar 275 A. Addis Ababa 200

Total 600 tons B. Dire Dawa 100

C. Dilla 300

Total 600 tons

infotesfish@[Link]
Example …
• The cost of transporting one ton of wheat from each grain elevator (source) to
each mill (destination) differs according to the distance and road system.

Mill

Grain elevator A. Addis Ababa B. Dire Dawa C. Dilla

1. Jimma 6 8 10

2. Mekelle 7 11 11

3. Bahir Dar 4 5 12

The problem is to determine how many tons of wheat to transport from each grain elevator
to each mill on a monthly basis in order to minimize the total cost of transportation.

infotesfish@[Link]
Solution
Step 1 • Transportation models are solved manually within the context of a
tableau, as in the simplex method. The tableau for our wheat
transportation model is shown in Table 1.

• Table 1: the transportation model

A B C Supply
From To

1 6 8 10 150
2 7 11 11 175 rim requirements.
3 4 5 12 275
Demand 200 100 300 600

rim requirements. infotesfish@[Link]

Solution
Step 1
The linear programming model for this problem is formulated in the equations that follow

Supply constraints i.e. Jimma, Mekelle, and Bahir Dar

respectively

Demand constraints i.e. A.A, Dire Dawa, and Dilla

respectively

infotesfish@[Link]
A. Northwest corner method
• With the northwest corner method,
• an initial allocation is made to the cell in the upper left-hand corner of the tableau (i.e., the
"northwest corner").
• The amount allocated is the most possible, subject to the supply and demand constraints for that
cell.

• In our example, we first allocate as much as possible to cell 1A (the northwest corner).
• This amount is 150 tons, since that is the maximum that can be supplied by grain elevator 1 at
Jimma, even though 200 tons are demanded by mill A at Addis Ababa.
• See Table 2.

infotesfish@[Link]
• Table 2: The initial NW corner solution

To A B C Supply
Steps

From 1. Allocate as much as possible to

1 150 6 8 10 150 the cell in the upper left-hand

7 11 corner, subject to the supply and

2 50 100 25 11 175
demand constraints.
3 4 5 275 12 275 2. Allocate as much as possible to
Demand 200 100 300 600 the next adjacent feasible cell.
3. Repeat step 2 until all rim
NB. In the northwest corner method the largest possible requirements have been met
allocation is made to the cell in the upper left-hand corner of
the tableau, followed by allocations to adjacent feasible cells.
The initial solution is complete when all rim requirements are
satisfied. infotesfish@[Link]
• The transportation cost of this solution is computed by substituting the cell allocations (i.e.,
the amounts transported),

• x1A = 150 x2A = 50

• x2B = 100 x2C = 25

• x3C = 275 substitute into the objective function.

Min C = ETB6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C

Min C = ETB6(150) + 8(0) + 10(0) + 7(50) + 11(100) + 11(25) + 4(0) + 5(0) + 12(275)

=ETB5925

infotesfish@[Link]
B. The minimum cell cost method
• With the minimum cell cost method,
• the basic logic is to allocate to the cells with the lowest costs.
• The initial allocation is made to the cell in the tableau having the lowest cost.

• In the transportation tableau for our example problem, cell 3A has the minimum
cost of $4.
• As much as possible is allocated to this cell; the choice is either 200 tons or 275 tons.
• Even though 275 tons could be supplied to cell 3A, the most we can allocate is 200 tons, since
only 200 tons are demanded.
• See Table 3.
infotesfish@[Link]
• Table 3: The initial minimum cell cost allocation

To A B C Supply Steps
From
1. Allocate as much as possible
1 6 25 8 125 10 150
to the feasible cell with the
2 7 11 175 11 175
minimum transportation cost,
3 200 4 75 5 12 275 and adjust the rim
Demand 200 100 300 600 requirements.
2. Repeat step 1 until all rim
In the minimum cell cost method as much as possible is
requirements have been met.
allocated to the cell with the minimum cost

Min C = ETB6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C
Min C = ETB6(0) + 8(25) + 10(125) + 7(0) + 11(0) + 11(175) + 4(200) + 5(75) + 12(0) =ETB4550

infotesfish@[Link]
C. Vogel’s approximation method (VAM)

• The third method for determining an initial solution, Vogel's approximation model
(also called VAM), is based on the concept of penalty cost or regret.
• If a decision maker incorrectly chooses from several alternative courses of action, a penalty
may be suffered (and the decision maker may regret the decision that was made).

• In a transportation problem, the courses of action are the alternative routes, and a wrong
decision is allocating to a cell that does not contain the lowest cost.

• A penalty cost is the difference between the most least and the next smallest cell
cost in a row (or column).

infotesfish@[Link]
The steps of Vogel's approximation model

1. developing the penalty cost

penalty cost is the difference between of the smallest cell cost and the next smallest cost.

2. identify the largest penalty, it can be either from row penalty or column penalty

3. assign as many quantity as possible in the cell with the smallest cell cost in the
row/column with the largest penalty.

4. make adjustment and develop new transportation table

5. repeat step 1-4 until the assignment will be made

infotesfish@[Link]
• Table 4: The VAM penalty cost

To A B C Supply Penalty
From cost
1 6 8 10 150 2
2 175 7 11 11 175 4 This row will not appear in the next table
3 4 5 12 275 1
Demand 200 100 300 600

Penalty 2 3 2
cost

VAM allocates as much as possible to the minimum cost cell in the row or
column with the largest penalty cost

infotesfish@[Link]
• Table 5: The VAM penalty cost

To A B C Supply Penalty
From cost
1 6 8 10 150 2
2 175 7 11 11 175 4 This row will not appear in the next table
3 4 5 12 275 1
Demand 200 100 300 600

Penalty 2 3 2
cost

VAM allocates as much as possible to the minimum cost cell in the row or
column with the largest penalty cost

infotesfish@[Link]
Table 6: The initial VAM solution
after all the operations

A B C Supply
From To

1 6 8 150 10 150
2 175 7 11 11 175
3 25 4 100 5 150 12 275
Demand 200 100 300 600

Min C = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C
Min C = $6(0) + 8(0) + 10(150) + 7(175) + 11(0) + 11(0) + 4(25) + 5(100) + 12(150)
=$5125
infotesfish@[Link]
Conclusion

infotesfish@[Link]
Activity 2
3 suppliers weekly SS • 3 demanders weekly DD
1 100 A 50
2 200 B 150
3 200 C 300
Total 500 Total 500

Per unit transportation cost (from source to destination)

A B C
1 4 2 8
2 5 1 9
3 7 6 3
infotesfish@[Link]
Solution A. Develop the initial transportation tableau

To A B C SS
From

1 4 2 8 100

2 5 1 9 200

3 7 6 3 200

DD 50 150 300 500

infotesfish@[Link]
Solution A. Develop LPP

Supply constraints i.e. 1, 2, 3 respectively

Demand constraints i.e. A, B,C respectively

Where i= 1,2,3
j= A,B,C
infotesfish@[Link]
 B (1). Find the initial feasible solution using NW corner method

To A B C SS
From

1 4 2 8 100
50 50 In the initial feasible solution SS
2 5 1 9 200 and DD (rim requirements) must
100 100
3 7 6 3 200 be satisfied
200
DD 50 150 300 500

Min C = ETB4x1A + 2x1B + 8x1C + 5x2A + 1x2B + 9x2C + 4x3A + 6x3B + 3x3C
Min C = ETB4(50) + 2(50) + 1(100) + 9(100)+ 3(200)
= ETB1900
infotesfish@[Link]
B (2). Develop initial feasible solution using minimum cell cost method

To A B C SS
From

1 4 2 8 100
50 50
2 5 1 9 200
150 50
3 7 6 3 200
200
DD 50 150 300 500

Min C = ETB4x1A + 2x1B + 8x1C + 5x2A + 1x2B + 9x2C + 4x3A + 6x3B + 3x3C
Min C = ETB4(50) + 8(50) + 1(150) + 9(50)+ 3(200) = ETB1800
infotesfish@[Link]
 Step1: developing the penalty cost

• penalty cost is the difference between of the smallest cell cost and the
next smallest cost.

Step 2: identify the largest penalty, it can be either from row penalty or
Steps in VAM

column penalty

Step 3: assign as many quantity as possible in the cell with the

infotesfish@[Link]
smallest cell cost in the row/column with the largest penalty.

Step 4: make adjustment and develop new transportation table

Step 5: repeat step 1-4 until the assignment will be made.

B (3). VAM

To A B C SS Penalty
From

1 4 2 8 100 2

2 5 1 9 200 4

3 7 6 3 200 3
200
DD 50 150 300 500

Penalty 1 1 5

infotesfish@[Link]
Cont’d…

To A B C SS Penalty
From

1 4 2 8 100 2

2 5 1 9 200 4
150
3 7 6 3

DD 50 150 100

Penalty 1 1 1

infotesfish@[Link]
Cont’d…

To A B C SS Penalty
From

1 4 2 8 100 4
50
2 5 1 9 50 4

3 7 6 3

DD 50 100
Penalty 1 1

infotesfish@[Link]
Cont’d…

To A B C SS Penalty
From

1 4 2 8 50 8
50
2 5 1 9 50 9
50
3 7 6 3

DD
100
Penalty 1

infotesfish@[Link]
B (3). VAM initial feasible solution

To A B C SS
From

1 4 2 8 100
50 50
2 5 1 50 9 200
150
3 7 6 3 200
200
DD 50 150 300 500

Min C = ETB4x1A + 2x1B + 8x1C + 5x2A + 1x2B + 9x2C + 4x3A + 6x3B + 3x3C
Min C = ETB4(50) + 8(50) + 1(150) + 9(50)+ 3(200) = 1800
infotesfish@[Link]
Evaluating a feasible solution for optimality

Two methods

• Stepping stone method

• The Modified Distribution (MoDi) method

infotesfish@[Link]
The Stepping stone
method
Answering “what if Question”
✓Determines if there is a cell with no allocation that would reduce cost if used.

infotesfish@[Link]
 The Stepping stone method

Steps of stepping stone

1. Determine the stepping-stone paths and cost changes for each empty cell in the
tableau.

2. Allocate as much as possible to the empty cell with the greatest net decrease in
cost.

3. Repeat steps 1 and 2 until all empty cells have positive cost changes that
indicate an optimal solution.

infotesfish@[Link]
 Rules
1. all unoccupied/ empty cells must be evaluated; Evaluate cells one at time

2. Except for cell being evaluated, only add or subtract, in occupied cell

3. A path will consist of only horizontal and vertical move, starting and ending
with the empty cell that’s being evaluated.

4. Alternate (+ and -) signs, beginning with positive sign in the cell being evaluated.

NB: If the result is –ve; the initial solution is not optimal, but if the result of all
empty cells evaluations are +ve, then the initial solution is optimal.

infotesfish@[Link]
Example. consider the initial feasible (NW corner method)

To A B C SS
From

1 4 2 8 100
50 50
2 5 1 9 200
100 100
3 7 6 3 200
200
DD 50 150 300 500
TC: 1800

Cells that are to be evaluated

1C, 2A, 3A, and 3B

infotesfish@[Link]
 Stepping stone path for cell 1C

To A B C SS 1C
From
+-
1 4 - 2 + 8 100 8 2
50 50 1 9
2 5 + 1 - 9 200
100 100 -2
3 7 6 3 200 Desirable cell
200
DD 50 150 300 500

Therefore, the initial feasible solution is not optimal

infotesfish@[Link]
Stepping stone path for cell 2A

To A B C SS 2A
From
+-
1 - 4 + 2 8 100 5 1
50 50 2 4
2 + 5 - 1 9 200 2
100 100
3 7 6 3 200
200 Undesirable cell
DD 50 150 300 500

infotesfish@[Link]
Stepping stone path for cell 3A

To A B C SS
From 3A
+-
1 - 4 + 2 8 100 7 3
50 50 9 1
2 5 - 1 + 9 200 2 4
100 100
3 + 7 6 - 3 200 10
200 Undesirable cell
DD 50 150 300 500

infotesfish@[Link]
Stepping stone path for cell 3B

To A B C SS
From

1 4 2 8 100
3B
50 50
+-
2 5 - 1 + 9 200 6 3
100 100 9 1
3 7 + 6 - 3 200 11
200
DD 50 150 300 500
Undesirable cell

infotesfish@[Link]
• Therefore, the initial feasible solution is not optimal because cell 1C is the

potential cell to shift some quantities to it.

• The question here is, how much quantity to be shifted?

• The quantity is indicated by the closed path that starts and ends at the cell (1C).

The quantity is the smallest quantity through the closed path with –ve sign.

• NB: then all the cells under the path will be adjusted accordingly to their sign.

infotesfish@[Link]
 Check for optimality

Cells to be evaluated:
To A B C SS 1B, 2A, 3A, and 3B
From
2B 2A
4 2 8 + - + -
1 + 50 100
50 - 2 8 5 4
9 1 8 9
2 5 - 1 + 9 200
150 50 2 0
3 7 6 3 200
Not desirable Multi optimal solution
200 TC= 1800
DD 50 150 300 500 3A 3B
+ - + -
7 4 6 1
8 3 9 3
The solution is optimal with TC= 1800
8 11

Not desirable Not desirable

infotesfish@[Link]
Example 2: Stepping stone method

• Since, the initial solution obtained by the minimum cell cost method had the
lowest total cost of the three initial solutions, we will use it as the starting solution.
Table 11 repeats the initial solution that was developed from the minimum cell
cost method.

infotesfish@[Link]
Activity 2: check optimality for the following BFS using Stepping stone method
BFS - The minimum cell cost method

A B C Supply
From To

1 6 25 8 125 10 150
2 7 11 175 11 175
3 200 4 75 5 12 275
Demand 200 100 300 600
TC: 4550

Once an initial solution is derived, the problem must be solved using either the
stepping-stone method or MODI.
infotesfish@[Link]
MODI
 The modified distribution method (MODI)

• The modified distribution method (MODI) is basically a modified version of the

stepping-stone method.
• However, in the MODI method the individual cell cost changes are determined
mathematically, without identifying all of the stepping-stone paths for the empty cells.

infotesfish@[Link]
The steps of the modified distribution method

1. Develop an initial solution using one of the three methods available.

2. Compute ui and vj values for each row and column by applying the formula
ui + vj = cij to each cell that has an allocation.
3. Compute the cost change, kij, for each empty cell using cij - ui - vj = kij.
4. Allocate as much as possible to the empty cell that will result in the greatest net
decrease in cost (most negative kij). Allocate according to the stepping-stone
path for the selected cell.
5. Repeat steps 2 through 4 until all kij values are positive or zero.
Where: i are suppliers and j are demanders Cij= unit TC for cell ij.

infotesfish@[Link]
Example: The Initial Solution with All ui and vj Values (LCM)

Vj VA= VB= VC=

Ui A B C Supply
From To

U1= 1 6 25 8 125 10 150

U2= 2 7 11 175 11 175

U3= 3 200 4 75 5 12 275

Demand 200 100 300 600

MODI is a modified version of the stepping-stone method in which math equations replace
the stepping-stone paths.
infotesfish@[Link]
Steps
• The extra left-hand column with the ui symbols and the extra top row with the vj
symbols represent row and column values that must be computed in MODI. These
values are computed for all cells with allocations by using the following formula.

ui + vj = cij

• The value cij is the unit transportation cost for cell ij. For example, the formula for
cell 1B is

u1 + vB = c1B and, since c1B = 8,

u1 + vB = 8

infotesfish@[Link]
steps…
• The formulas for the remaining cells that presently contain allocations are
• X1C: U1+Vc=10

• X2C: U2+Vc= 11

• X1A= U3+VA=4

• X3A: U3+VB=5

• Now there are five equations with six unknowns.

• To solve these equations, it is necessary to assign only one of the unknowns a

value of zero.

• Thus, if we let u1 = 0, we can solve for all remaining ui and vj values.

infotesfish@[Link]
Steps…

• X1B: U1+VB=8 X3B: U3+VB= 5 X2C: U2+VC=11

0+VB= 8 U3+8= 5 U2+10=11

U2= 1
VB=8 U3= -3

• X1C: U1+VC= 10 X3A: U3+VA= 4

0+VC=10 -3+VA=4

VC= 10 VA=7
NB: the equation for cell 3B had to be solved before the cell 3A equation could be solved. Now all the ui and vj
values can be substituted into the tableau, as shown in the next 26.

infotesfish@[Link]
• The Initial Solution with All ui and vj Values

Vj VA=7 VB=8 VC=10

Ui A B C Supply
From To

U1=0 1 6 25 8 125 10 150

U2=1 2 7 11 175 11 175

U3=-3 3 200 4 75 5 12 275

Demand 200 100 300 600

infotesfish@[Link]
Steps …
• Next, we use the following formula to evaluate all empty cells:

Cij - ui - vj = kij
• where kij equals the cost increase or decrease that would occur by allocating to a
cell.

• For the empty cells in the next slide, the formula yields the following values:

infotesfish@[Link]
 Steps ….

X1A: k1A = c1A - u1 - vA = 6 -0 -7 =-1

Each MODI allocation replicates
X2A: k2A = c2A - u2 - vA = 7 -1- 7 = -1
the stepping-stone allocation
X2B: k2B = c2B - u2 - vB = 11 – 1- 8 = + 2

X3C: k3C = c3C - u3 - vC = 12- (-3) 10 = + 5

• These calculations indicate that either cell 1A or cell 2A will decrease cost by $1 per allocated ton.

• NB: those are exactly the same cost changes for all four empty cells as were computed in the stepping-
stone method.
• That is, the same information is obtained by evaluating the paths in the stepping-stone method and by using the mathematical
formulas of the MODI.

infotesfish@[Link]
• The Second Iteration of the MODI Solution Method

Vj VA= VB= VC=

Ui A B C Supply
From To

U1= 1 25 6 8 125 10 150

U2= 2 7 11 175 11 175

U3= 3 175 4 100 5 12 275

Demand 200 100 300 600

After each allocation to an empty cell, the ui and vj values must be recomputed.

infotesfish@[Link]
• The ui and vj values for Table 27 must now be recomputed using our formula for

the allocated-to cells.

X1A: U1+VA= 6 X3A: U3+VA=4
0+VA= 6 U3+6= 4
VA= 6 U3= -2
X1C: U1+VC= 10 X3B: U3+VB= 5
0+VC= 10 -2+VB=5
VC= 10 VB= 7
X2C: U2+VC= 11
U2+10=11
U2 11

These new ui and vj values are shown in next infotesfish@[Link]

 • The New ui and vj Values for the Second Iteration

Vj VA=6 VB=7 VC=10

Ui A B C Supply
From To

U1=0 1 25 6 8 125 10 150

U2=1 2 7 11 175 11 175

U3=-2 3 175 4 100 5 12 275

Demand 200 100 300 600

infotesfish@[Link]
The cost changes for the empty cells are now computed using the formula cij - ui - vj = kij.

x1B: k1B = c1B - u1 - vB = 8 0 7 = +1

x2A: k2A = c2A - u2 - vA = 7 1 6 = 0
x2B: k2B = c2B - u2 - vB = 11 1 7 = +3
x3C: k3C = c3C - u3 - vC = 12 (2) 10 = +4

Because none of these values is negative, the solution shown in previous Table is
optimal. However, as in the stepping-stone method, cell 2A with a zero cost change
indicates a multiple optimal solution.
infotesfish@[Link]
Activity 3: consider the NWC initial solution, check optimality using MODI

Vj
VA= VB= VC=

Ui To A B C SS
From

U1= 1 4 2 8 100
50 50
U2= 2 5 1 100 9 200
100
U3= 3 7 6 3 200
200
DD 50 150 300 500

Occupied cells: 1A, 1B, 2B, 2C and 3C

infotesfish@[Link]
Exercise
To A B C D Supply • Required
From A. Formulate LPM
1 8 6 10 9 35
B. Solve the initial
feasible solution
9 13 using NWCM and
2 12 7 50
LCM
3 14 9 16 5 40

DD 45 20 30 30

infotesfish@[Link]
Exercise
To A B C D E SS • Required
From A. Formulate
LPM
1 1 9 13 36 51 50
B. Solve the
24 16 initial feasible
2 12 20 1 100
solution using
NWCM and
3 14 33 1 23 26 150 LCM
DD 100 60 50 50 40

infotesfish@[Link]
Special case in transportation
model

infotesfish@[Link]
1. Unbalanced transportation model

infotesfish@[Link]
Unbalanced….
• The amount is the difference between SS and DD i.e.(SS-DD for dummy row and
DD-SS for dummy column)

• What are the unit cost in the cells? Unit cost in the cell is equal to zero (0)

• When we use the least cost method we only consider non zero cell cost.

• The purpose of dummy row or column is just to balance the problem.

✓ Realistically, however, an unbalanced problem is a more likely occurrence.

infotesfish@[Link]
• Example: An Unbalanced Model (Demand > Supply)

To A B C Suppl To A B C SS
A.A Dire D. Dilla y A.A Dire D. Dilla
From From
1 Jimma 6 8 10 150 6 8 10
1 Jimma 150

2 7 11 11 175 2 Mekelle 7 11 11 175

Mekelle
3 [Link] 4 5 12 275 3 [Link] 4 5 12 275

Demand 200 100 350 Dummy 0 0 0 50

DD 200 100 350 650

When demand exceeds supply, a dummy row is added to the tableau.

infotesfish@[Link]
• Example: An Unbalanced Model (Demand < Supply)

To A B C Suppl To A B C DC SS
A.A Dire D. Dilla y A.A Dire Dill
From7 From D. a
1 Jimma 6 8 10 150 6 8 10 0
1 Jimma 150

2 7 11 11 175 2 7 11 11 0 175
Mekelle Mekelle
3 [Link] 4 5 12 375 3 [Link] 4 5 12 0 375

Demand 200 100 300 DD 200 100 300 100 700

When supply exceeds demand, a dummy column is added to the tableau.

infotesfish@[Link]
Activity 4

Ware house I Ware house Ware house III SS

(A) II (C)
(B)
Plant I (1) 7 8 10 50

Plant II (2) 9 7 8 60

DD 70 30 40

Required
A. Show the transportation problem is unbalanced and draw transportation tableau for
corresponding balanced problem.
B. Find the initial solution using NWC method and by using Stepping-stone method or MODI
method of evaluation, find the optimal solution infotesfish@[Link]
 2. Degeneracy
• Exist when the number of occupied cells are less than the sum of row and
number of column.
• i.e. when the number of occupied cell are not enough to make useable to evaluate the
optimality.

• For example, in any of the balanced tableaus for wheat transportation, the number of rows
was three (i.e., m = 3) and the number of columns was three (i.e., n = 3); thus, 3 + 3 - 1 = 5
cells with allocations.

• In a transportation tableau with m rows and n columns, there must be m + n - 1 cells with allocations; if not, it
is degenerate.
• Consider the wheat transportation example with the supply values changed to the amounts shown in next Table
• The initial solution shown in this tableau was developed using the minimum cell cost method.
infotesfish@[Link]
• Example: the minimum cell cost initial solution

A B C Supply
From To

1 6 100 8 50 10 150

2 7 11 250 11 250

3 200 4 5 12 200

Demand 200 100 300 600

infotesfish@[Link]
Facts for degeneracy problem

infotesfish@[Link]
• Solution: the initial solution

A B C Supply
From To

1 6 100 8 50 10 150

7 11 11
2 250 250

3 200 4 5 12 200

Demand 200 100 300 600

To rectify a degenerate tableau, an empty cell must artificially be

treated as an occupied cell.
infotesfish@[Link]
3. Prohibited Routes

• Sometimes one or more of the routes in the transportation model are

prohibited.
• That is, units cannot be transported from a particular source to a particular

destination.

• When this situation occurs, we must make sure that no units in the optimal solution are

allocated to the cell representing this route.

• A prohibited routes is assigned a large cost such as m so that it will never

receive an allocation.
infotesfish@[Link]
Prohibited….

• In the Real world transportation from certain source to some destination may not

be possible due to road hazard (i.e. snow, flood etc.), traffic regulation, road

maintenance, safety problem etc.

• In this case, the restricted cell may either be completely crossed out or a very large

per unit transportation cost “m” is assigned.

• After placing “m” the prohibited cell ignore that cell from further analysis.

infotesfish@[Link]
Exercise:
Take ABC Company’s transportation problem. But, now assume that it is not
possible to transport the product from Gambela to Addis Ababa directly
because the route is not operational due to road maintenance taking place.
Destination
Origin Addis Ababa (1) Gondar (2) Jigjiga (3) Supply

Mekele (1) 3 2 5 3000

Hawasa (2) 1 3 4 4000

Gambela (3) 3 5 6 2500

Demand 4500 3500 1500 9500

Required: Solve the transportation problem by using least-cost method for initial solution
infotesfish@[Link]
 Solution: LCM
Origin A.A (1) Gondar Jigjiga Supply
(2) (3)
Mekele (1) 3 2 5 3000
3000
NB: Addis Ababa’s demand is not
Hawasa (2) 1 3 44 4000
4000 fully satisfied (is short of 500 units)
because of the restriction.
Gambela (3) M 5 6 2500
500 1500 2000 •The 500 units are retained by the
500 Gambela plant.
Demand 4500 3500 1500 9500
500 500 •The problem is degenerate case

Initial Total cost=21,500 Birr

infotesfish@[Link]
Optimal solution table
Origin Addis Ababa Gondar Jigjiga Supply
(1) (2) (3)
Mekele (1) 3 2 5 3000
3000

Hawasa (2) 1 3 4 4000

4000

Gambela (3) M 5 6 2500

500 1500

Demand 4500 3500 1500 9500

Minimum transportation cost=Br.22,500

infotesfish@[Link]
Assignment model
Assignment model
• The assignment model is a special form of a linear programming model that is
similar to the transportation model.

• An assignment problem is a special form of transportation problem where all

supply and demand values equal one.

• One-to-one pairing.

• Helps in assigning work/jobs to machines or employees with to minimize

or maximize objectives i.e. distance, time, cost, profit….

infotesfish@[Link]
Hungarian Method

• The shortest and easiest method of solving assignment problems is

called Hungarian method is the shorter and easier one.
 The steps of the assignment solution method
Check whether the given matrix is square, if not add suitable dummy
rows/columns
1. Row reductions: subtracting the minimum value in each row from all row values.

2. Column reductions: subtracting the minimum value in each column from all column
values.

3. Checking for optimality: the solution is optimum when all zeros in the table can be
covered with minimum number of vertical/horizontal lines equal to number of row or
column. If the solution is optimum make assignment.

4. If the solution is not optimum, select the minimum value and subtract from all
uncovered values and add to values at the intersection of lines in the table.
5. If m lines are required, the tableau contains the optimal solution and
m unique assignments can be made. If fewer than m lines are required,
repeat step 4.

• Where m is the number of rows or columns

infotesfish@[Link]
Example

Employees
A B C D
1 ETB 15 20 18 24
2 12 17 16 15
Job
3 14 15 19 17
4 11 14 12 13

Required: make the assignment which minimizes cost

infotesfish@[Link]
 Row Reduction

Employees
Opportunity cost
A B C D
Employees
1 15 20 18 24
Job A B C D
2 12 17 16 15
1 0 5 3 9
3 14 15 19 17
Job 2 0 5 4 3
4 11 14 12 13
3 0 1 5 3
4 0 3 1 2

infotesfish@[Link]
 Column Reduction

Employees
A B C D Opportunity cost
1 0 5 3 9
Employees
Job 2 0 5 4 3
A B C D
3 0 1 5 3
1 0 4 2 7
4 0 3 1 2 Job 2 0 4 3 1
3 0 0 4 1
4 0 2 0 0

infotesfish@[Link]
 Covered zero values

Employees
A B C D
1 0 4 2 7
Job 2 0 4 3 1
3 0 0 4 1
4 0 2 0 0

Optimum?
infotesfish@[Link]
 Further Reduction
Employees The minimum number of
lines used to cover zeros are
A B C D equal to number of
rows/columns
1 0 4 2 7
Job 2 0 4 3 11 Employees
3 0 0 4 1 A B C D

4 0 2 0 0 1 00 3 1 6
Job 2 0 3 2 00
3 1 00 4 1
4 1 2 00 0

infotesfish@[Link] Optimum!
 Make assignment

Employees Job-employee assignment

A B C D 1 A birr 15
1 0 3 1 6 2 D 15
Job 3 B 15
2 0 3 2 0
4 C 12
3 1 0 3 1
ETB57
4 1 2 0 0

infotesfish@[Link]
Example 2
• The Ethiopian basketball association has four basketball games on a particular
night. The association office wants to assign four teams of officials to the four
games in a way that will minimize the total distance traveled by the officials. The
distances in meters for each team of officials to each game location are shown in
next Table.

infotesfish@[Link]
 The Travel Distances to Each Game for Each Team of Officials

Game Sites
Officials BOLE LIDETA ARADA YEKA

A 210 90 180 160

B 100 70 130 200
C 175 105 140 170
D 80 65 105 120

Required: Make assignment which can reduce the distance

infotesfish@[Link]
Table 37. The Opportunity Cost Table with the Line Test

Game Sites

Officials BOLE LIDETA ARADA YEKA

A 105 0 55 15
B 15 0 25 75
C 55 0 0 10
D 0 0 5 0

infotesfish@[Link]
Solution

Game Sites
Officials BOLE LIDETA ARADA YEKA
A 90 0 40 0
B 0 0 10 60
C 55 15 0 10
D 0 15 5 0

If the number of unique assignments is less than the number of rows (or
columns), a line test must be used.

infotesfish@[Link]
Make Assignment

A Yeka = 160 A Lideta = 90

B Lideta = 70 B Bole = 100

C Arada = 140 C Arada = 140

D Bole = 80 D Yeka = 120

Total = 450 Total = 450

Is there any other possible Yes!

assignment?
Multiple optimal solution!

infotesfish@[Link]
Special cases in assignment model

infotesfish@[Link]
1. Unbalanced assignment model

infotesfish@[Link]
Example
Jobs
1 2 3 4 Find the optimum assignment
Machines
A 15 19 12 16
B 23 21 18 17
C 20 16 11 19
1. Develop the tableau with dummy row

Jobs
Machines 1 2 3 4
A 15 19 12 16
B 23 21 18 17
C 20 16 11 19
Dummy row 0 0 0 0
infotesfish@[Link]
 Row reduction

Jobs
Machines 1 2 3 4 Column reduction
A 3 7 0 4 • We don’t do column reduction because
B 6 4 1 0
the least number in all columns is zero,
C 9 5 0 8
means number minus zero = no
DR 0 0 0 0
change

infotesfish@[Link]
• Check optimality: the above table is not optimal because the minimum lines used
to cover zeros are less than the number of rows/ columns

• Further reduction

Jobs Make assignment

Machines 1 2 3 4
A 0 4 0 4 Optimum! A-------1 15
B-------4 17
B 3 1 1 0
C-------3 11
C 6 2 0 8
DR 0 0 3 3 43
NB there is no actual
assignment for job 2!
infotesfish@[Link]
2. Maximization objective

• What if the object of assignment problem is maximization

• There will be one additional step at the initial stage

• i.e. conversion of the table to opportunity cost table

• By identifying the largest value in each column then subtract each value from the
largest number in that column.

infotesfish@[Link]
 Example
jobs
Machine 1 2 3 Find the optimum assignment
A 14 22 30
B 20 18 40
C 11 12 50

Develop opportunity cost table

Assignment jobs
A====2-------22 Machine 1 2 3
B====1-------20 A 6 0 20
B 0 4 10
C====3-------50
Optimal! C 9 10 0
profit 92
infotesfish@[Link]
3. Unacceptable pairing

• Sometime some machines or employees are/can not allowed/do some jobs due to
handicap, capacity, skills etc.

• In such case we ignore assignment in the prohibited machine or employee by

assigning “m” then nothing is to be done on the “m” throughout the computation.

infotesfish@[Link]
Example
• Machine B cannot do job 3 Row reduction

jobs jobs
Machine 1 2 3 Machine 1 2 3
A 8 7 2 A 6 5 0
B 1 4 3 B 0 3 M
C 7 9 3 C 4 6 0

infotesfish@[Link]
 Column reduction

jobs
Machine 1 2 3
A 4 2 0
B 0 0 M
C 6 3 0

infotesfish@[Link]
Check optimality

jobs
Machine 1 2 3
A 2 0 0
B 0 0 M Optimum!
C 4 1 0
Assignment
B=====1 1
C=====3 3
A=====2 7
11
infotesfish@[Link]
 ?
Sources:
1. Taylor III (2006)
2. Anderson et al., (2014)
3. Murthy (2007)
4. Others