Management Science Chapter 5 Transportation, Assignment, and Transshipment Problems - A11.4801i Chapter 5 Transportation Problem

  1 Slide

  Management Science Management Science

  Chapter 5 Chapter 5 Transportation, Assignment, and Transportation, Assignment, and Transshipment Problems Transshipment Problems

  2 Slide

  and functions (e.g. costs, supplies, demands, etc.) associated with the arcs and/or nodes. etc.) associated with the arcs and/or nodes.

  and PERT/CPM problems (Chapter 10) are all

  tree, and maximal flow problems (Chapter 9)

  tree, and maximal flow problems (Chapter 9)

  well as the shortest route, minimal spanning

  well as the shortest route, minimal spanning

  transshipment problems of this chapter, as

  transshipment problems of this chapter, as

  Transportation, assignment, and

  Transportation, assignment, and

  

  and functions (e.g. costs, supplies, demands,

  

Transportation, Assignment, and

Transportation, Assignment, and

  represented by a set of nodes, a set of arcs,

  represented by a set of nodes, a set of arcs,

  is one which can be

  is one which can be

  network model

  network model

  A

  A

  

  Transshipment Problems Transshipment Problems

  and PERT/CPM problems (Chapter 10) are all examples of network problems. examples of network problems.

  3 Slide

  

Transportation, Assignment, and

Transportation, Assignment, and

  Transshipment Problems Transshipment Problems

   Each of the three models of this chapter

  Each of the three models of this chapter (transportation, assignment, and transshipment

  

(transportation, assignment, and transshipment

models) can be formulated as linear programs

models) can be formulated as linear programs

and solved by general purpose linear and solved by general purpose linear programming Algorithms (simplex method). programming Algorithms (simplex method).

  

For each of the three models, if the right-hand

  

For each of the three models, if the right-hand

side of the linear programming formulations are

side of the linear programming formulations are

all integers, the optimal solution will be in terms all integers, the optimal solution will be in terms of integer values for the decision variables. of integer values for the decision variables.

   However, there are many computer packages

  However, there are many computer packages (including

  (including The Management Scientist, DS, QSB

  The Management Scientist, DS, QSB )

  ) which contain separate computer codes for which contain separate computer codes for these models which take advantage of their these models which take advantage of their network structure. network structure.

  4 Slide

  

Transportation Problem

Transportation Problem

   The

  The transportation problem transportation problem seeks to seeks to minimize the total shipping costs of minimize the total shipping costs of transporting goods from transporting goods from m m origins or origins or sources (each with a supply sources (each with a supply s s i i ) to

  ) to n n destinations (each with a demand destinations (each with a demand d d j j ),

  ), when the unit shipping cost from source, when the unit shipping cost from source, i i

  , to a destination, , to a destination, j j

  , is , is c c ij ij .

  .

   The

  The network representation network representation for a for a transportation problem with two sources transportation problem with two sources and three destinations is given on the and three destinations is given on the next slide. next slide.

  5 Slide

  3

  DESTINATIONS

  2 c c 11 11 c c 12 12 c c 13 13 c c 21 21 c c 22 22 c c 23 23 d d 1 1 d d 2 2 d d 3 3 s s 1 1 s 2 SOURCES SOURCES

  2

  1

  1

  3

  2

  

Transportation Problem

Transportation Problem

  2

  1

  1

  Network Representation

  Network Representation

  

  DESTINATIONS

  6 Slide

  

Transportation Problem

Transportation Problem

   LP Formulation

  LP Formulation The linear programming formulation in terms of the

  The linear programming formulation in terms of the amounts shipped from the sources to the destinations, amounts shipped from the sources to the destinations, x x ij ij , , can be written as: can be written as:

  Min Min

    c c ij ij x x ij ij (total transportation cost) (total transportation cost) i j i j s.t. s.t.

    x x ij ij < < s s i i for each source for each source i i

  (supply constraints) (supply constraints) j j

    x x ij ij = = d d j j for each destination for each destination j (demand j (demand constraints) constraints) i i x x ij ij > > for all for all i i and and j (nonnegativity constraints) j (nonnegativity constraints)

  7 Slide

  Transportation Problem Transportation Problem

  

To solve the transportation problem by its special

  

To solve the transportation problem by its special

purpose algorithm, it is required that the sum of purpose algorithm, it is required that the sum of

the supplies at the sources equal the sum of the

the supplies at the sources equal the sum of the demands at the destinations. If the total supply is

demands at the destinations. If the total supply is

greater than the total demand, a dummy greater than the total demand, a dummy destination is added with demand equal to the destination is added with demand equal to the excess supply, and shipping costs from all sources excess supply, and shipping costs from all sources are zero. Similarly, if total supply is less than are zero. Similarly, if total supply is less than total demand, a dummy source is added. total demand, a dummy source is added.

   When solving a transportation problem by its

  When solving a transportation problem by its

special purpose algorithm, unacceptable shipping

special purpose algorithm, unacceptable shipping

routes are given a cost of + routes are given a cost of +

  M M (a large number).

  (a large number).

  8 Slide

  30

  35

  20

  20

  40

  40

  30

  30

  Demand

  50

  10

  10

  45

  45

  25

  25 S1 S1 S2 S2 D3 D3 D2 D2 D1 D1

  15

  35

  50

  Transportation Problem Transportation Problem

  cell represents a shipping route (which is an

  

  A

  A

  transportation tableau

  transportation tableau

  is given below. Each

  is given below. Each

  cell represents a shipping route (which is an

  30

  arc on the network and a decision variable in

  arc on the network and a decision variable in

  the LP formulation), and the unit shipping

  the LP formulation), and the unit shipping

  costs are given in an upper right hand box in

  costs are given in an upper right hand box in the cell. the cell.

  Supply Supply

  30

  15

  • 30 X
  • 30 X
  • 12 12<
  • 20 X
  • 20 X
  • 13 13<
  • 30 X
  • 30 X
  • 21 21<
  • 40X
  • 40X
  • 22 22<
  • 35X
  • 35X
  • 23 23 S.t.
  • X
  • X
  • 21 21

      9 Slide

      

    Problem formulation

    Problem formulation

      

      The LP model for this problem is as follows: The LP model for this problem is as follows:

      Min Z = 15 X Min Z = 15 X 11 11

      X X 11 11 + X + X 12 12 + X + X 13 13 ≤ 50 ≤ 50 Supply constraints Supply constraints

      X X 21 21 + X + X 22 22 + X + X 23 23 ≤ 30 ≤ 30

      X X 11 11

      = 25 = 25

      X X 12 12 + X + X 22 22 = 45 = 45

      X X 13 13 + X + X 23 23 = 10 demand constraints = 10 demand constraints

      X X 11 11 , …, X

      , …, X 23 23

      

    • Phase I -- Obtaining an initial feasible solution
    • Phase II -- Moving toward optimality

      10 Slide

      Transportation Problem Transportation Problem

       The transportation problem is solved in two

      The transportation problem is solved in two phases: phases:

      Phase I -- Obtaining an initial feasible solution

      Phase II -- Moving toward optimality 

      In Phase I, the Minimum-Cost Procedure can be In Phase I, the Minimum-Cost Procedure can be

    used to establish an initial basic feasible solution

    used to establish an initial basic feasible solution

    without doing numerous iterations of the simplex

    without doing numerous iterations of the simplex

    method. method.

       In Phase II,

      In Phase II, the Stepping Stone, by using the the Stepping Stone, by using the

      MODI method for evaluating the reduced costs MODI method for evaluating the reduced costs may be used to move from the initial feasible may be used to move from the initial feasible solution to the optimal one. solution to the optimal one.

      11 Slide

      

    Initial Tableau

    Initial Tableau

      

      There are many method for finding the initial

      

    There are many method for finding the initial

      tableau for the transportation problem which

      

    tableau for the transportation problem which

      are:

      are: 1.

      1. Northwest corner Northwest corner 2.

      2. Minimum cost of the row Minimum cost of the row 3.

      3. Minimum cost of the column Minimum cost of the column 4.

      4. Least cost Least cost 5.

      5. Vogle’s approximation method Vogle’s approximation method 6.

      6. Russell’s approximation method Russell’s approximation method

      12 Slide

      30

      20

      20

      10

      10

      35

      35

      20

      20

      40

      40

      30

      25

      30

      30 Demand

      Demand

      10

      10

      45

      45

      25

      25 S1 S1 S2 S2 D3 D3 D2 D2 D1 D1

      15

      25

      25

      Northwest corner Northwest corner

      (that is,

      

      Northwest corner: Begin by selecting X

      Northwest corner: Begin by selecting X 11 11 (that is, (that is,

      start in the northwest corner of the transportation

      

    start in the northwest corner of the transportation

      tableau). Therefore, if X

      tableau). Therefore, if X ij ij was the last basic variable was the last basic variable

      (occupied cell) selected, then select X

      (occupied cell) selected, then select X ij+1 ij+1

      (that is,

      move one column to the right) if source I has any

      25

      

    move one column to the right) if source I has any

      supply remaining. Otherwise, next select X

      supply remaining. Otherwise, next select X i+1 j i+1 j

      (that

      (that is, move one row down). is, move one row down).

      Supply Supply

      30

      30

      50

      50

      15 Total cost is $2275

    • Step 1:
    • Step 2:

      30

      30

      35

      35

      20

      20

      40

      40

      30

      10

      30

      

    30

    Demand

      10

      45

      25 S1 S1 S2 S2 D3 D3 D2 D2 D1 D1

      15

      

    15

    Total cost is

      30

      10

      13 Slide

      Decrease the row and column availabilities by Decrease the row and column availabilities by this amount and remove from consideration all other this amount and remove from consideration all other cells in the row or column with zero availability/ cells in the row or column with zero availability/ demand. (If both are simultaneously reduced to 0, demand. (If both are simultaneously reduced to 0, assign an allocation of 0 to any other unoccupied cell in assign an allocation of 0 to any other unoccupied cell in the row or column before deleting both.) GO TO STEP 1. the row or column before deleting both.) GO TO STEP 1.

      Transportation Algorithm Transportation Algorithm

      

      Phase I - Minimum-Cost Method

      Phase I - Minimum-Cost Method

      Step 1:

      Select the cell with the least cost. Assign to Select the cell with the least cost. Assign to this cell the minimum of its remaining row supply or this cell the minimum of its remaining row supply or remaining column demand. remaining column demand.

      Step 2:

      Supply Supply

      15

      30

      30

      50

      50

      25

      25

      15

      $2225

    • Step 1:
    • Step 2:

      14 Slide

      

    Transportation Algorithm

    Transportation Algorithm

       Phase II - Stepping Stone Method

      Phase II - Stepping Stone Method

      Step 1: For each unoccupied cell, calculate the

      For each unoccupied cell, calculate the reduced cost by the MODI method described below. reduced cost by the MODI method described below.

      Select the unoccupied cell with the most negative Select the unoccupied cell with the most negative reduced cost. (For maximization problems select reduced cost. (For maximization problems select the unoccupied cell with the largest reduced cost.) the unoccupied cell with the largest reduced cost.) If none, STOP.

      If none, STOP.

      Step 2: For this unoccupied cell generate a

      For this unoccupied cell generate a stepping stone path by forming a closed loop with stepping stone path by forming a closed loop with this cell and occupied cells by drawing connecting this cell and occupied cells by drawing connecting alternating horizontal and vertical lines between

    alternating horizontal and vertical lines between

    them. them.

      Determine the minimum allocation where a Determine the minimum allocation where a subtraction is to be made along this path. subtraction is to be made along this path.

    • Step 3:

      allocation to all cells where subtractions are to be made along the stepping stone path. be made along the stepping stone path.

      others occupied with 0's.)

      0, make only one unoccupied; make the

      0, make only one unoccupied; make the

      (unoccupied). If more than one cell becomes

      (unoccupied). If more than one cell becomes

      stepping stone path now becomes 0

      stepping stone path now becomes 0

      (Note: An occupied cell on the

      (Note: An occupied cell on the

      allocation to all cells where subtractions are to

      15 Slide

      additions are to be made, and subtract this

      additions are to be made, and subtract this

      Add this allocation to all cells where

      Add this allocation to all cells where

      Step 3:

      Phase II - Stepping Stone Method (continued)

      Phase II - Stepping Stone Method (continued)

      

      

    Transportation Algorithm

    Transportation Algorithm

      others occupied with 0's.) GO TO STEP 1.

    • Step 1:
    • Step 2:

      by solving the relationship c c ij ij

      cost =

      ), the reduced

      ), the reduced

      , j j

      ,

      For unoccupied cells ( i i

      For unoccupied cells (

      Step 3:

      for occupied cells. occupied cells.

      for

      v v j j

      = u u i i

      =

      by solving the relationship

      Calculate the remaining u u i i 's and 's and v v j j 's 's

      Calculate the remaining

      Step 2:

      Set u u 1 1 = 0. = 0.

      Set

      Step 1:

      Associate a number, u u i i , with each row and , with each row and v v j j with each column. with each column.

      Associate a number,

      MODI Method (for obtaining reduced costs)

      MODI Method (for obtaining reduced costs)

      

      

    Transportation Algorithm

    Transportation Algorithm

      • Step 3:

      16 Slide

      cost = c c ij ij - - u u i i - - v v j j . .

      17 Slide

      40

      42

      40

      40

      30

      30

      40 Plant 2 Plant 2

      30

      Example: BBC Example: BBC

      30

      Plant 1 24 Plant 1 24

      Eastwood Eastwood

      Westwood Westwood

      Northwood Northwood

      How should end of week shipments be made to fill How should end of week shipments be made to fill the above orders given the following delivery cost the above orders given the following delivery cost per ton: per ton:

      Building Brick Company (BBC) has orders for 80 Building Brick Company (BBC) has orders for 80 tons of bricks at three suburban locations as tons of bricks at three suburban locations as follows: Northwood -- 25 tons, Westwood -- 45 follows: Northwood -- 25 tons, Westwood -- 45

    tons, and Eastwood -- 10 tons. BBC has two plants,

    tons, and Eastwood -- 10 tons. BBC has two plants,

    each of which can produce 50 tons per week. each of which can produce 50 tons per week.

      42

      18 Slide

      45

      Demand Supply Supply

      50

      50

      50

      50

      20

      20

      10

      10

      45

      30

      25

      25 Dummy Dummy

      Plant 1 Plant 1

      Plant 2 Plant 2

      Eastwood Eastwood

      Westwood Westwood

      Northwood Northwood

      24

      24

      24

      30

      30

      

    Example: BBC

    Example: BBC

      42

      

      Initial Transportation Tableau

      Initial Transportation Tableau

      Since total supply = 100 and total demand =

      Since total supply = 100 and total demand =

      80, a dummy destination is created with demand

      80, a dummy destination is created with demand of 20 and 0 unit costs. of 20 and 0 unit costs.

      42

      42

      42

      40

      30

      40

      40

      40

      40

      40

      40

      40

      30

      30

      30

      24

    • Iteration 1:

    • Iteration 2:
    • Iteration 3:
    • Iteration 4:

      19 Slide

      

    Example: BBC

    Example: BBC

       Least Cost Starting Procedure

      Least Cost Starting Procedure

      Iteration 1: Tie for least cost (0), arbitrarily select

      Tie for least cost (0), arbitrarily select x x 14 14 . Allocate 20. Reduce . Allocate 20. Reduce s s 1 1 by 20 to 30 and by 20 to 30 and delete the Dummy column. delete the Dummy column.

      Iteration 2: Of the remaining cells the least cost

      Of the remaining cells the least cost is 24 for is 24 for x x 11 11 . Allocate 25. Reduce

    . Allocate 25. Reduce

    s s 1 1 by 25 to 5 by 25 to 5 and eliminate the Northwood column. and eliminate the Northwood column.

      Iteration 3: Of the remaining cells the least cost

      Of the remaining cells the least cost is 30 for is 30 for x x 12 12 . Allocate 5. Reduce the Westwood . Allocate 5. Reduce the Westwood column to 40 and eliminate the Plant 1 row. column to 40 and eliminate the Plant 1 row.

      Iteration 4: Since there is only one row with two

      Since there is only one row with two cells left, make the final allocations of 40 and 10 cells left, make the final allocations of 40 and 10 to to x x 22 22 and and x x 23 23 , respectively.

      , respectively.

      20 Slide

      10

      30

      30

      30

      30 Demand

      Demand Supply Supply

      50

      50

      50

      50

      20

      20

      10

      30

      45

      45

      25

      25 Dummy Dummy

      Plant 1 Plant 1

      Plant 2 Plant 2

      Eastwood Eastwood

      Westwood Westwood

      Northwood Northwood

      24

      24

      24

      30

      30

      

    Example: BBC

    Example: BBC

      10

      

      Initial tableau

      Initial tableau

      25

      25

      5

      5

      20

      20

      40

      40

      10

      30

      42

      42

      42

      42

      40

      40

      40

      40

      40

      40

      40

      40

      24 Total transportation cost is $2770

    • MODI Method

      3. Since

      = = c c 2 2 j j for occupied cells in row 2, for occupied cells in row 2, then then

      v v j j

      4. Since u u 2 2

      4. Since

      2, 2, then then u u 2 2 + 30 = 40, hence + 30 = 40, hence u u 2 2 = 10. = 10.

      = = c c i i 2 2 for occupied cells in column for occupied cells in column

      v v 2 2

      3. Since u u i i

      2. Since u u 1 1 + + v v j j = = c c 1 1 j j for occupied cells in row 1, for occupied cells in row 1, then then v v 1 1 = 24, = 24, v v 2 2 = 30, = 30,

    v

    v

    4 4 = 0. = 0.

      2. Since

      = 0 = 0

      1. Set u u 1 1

      1. Set

      MODI Method

      Iteration 1

       Iteration 1

      

    Example: BBC

    Example: BBC

      21 Slide

      10 + 10 + v v 3 3 = 42, hence = 42, hence v v 3 3 = 32. = 32.

      Example: BBC Example: BBC

       Iteration 1

      Iteration 1

    • MODI Method (continued)

      MODI Method (continued)

      Calculate the reduced costs (circled numbers

      Calculate the reduced costs (circled numbers ij i j + . - on the next slide) by c u v on the next slide) by c ij u i v j .

      Unoccupied Cell Reduced Cost

      Unoccupied Cell Reduced Cost

      (1,3) 40 - 0 - 32 = 8

      (1,3) 40 - 0 - 32 = 8

      (2,1) 30 - 24 -10 = -4

      (2,1) 30 - 24 -10 = -4

      (2,4) 0 - 10 - 0 = -10

      (2,4) 0 - 10 - 0 = -10

    • Since some of the reduced cost are negative, the current solution is not optimal.
    • Cell (2,4) has the most negative; therefore, it will be the basic variable that must be occupied in the next iteration.

      22 Slide

      24

      10

      40

      40

      40

      40

      40

      30

      30

      30

      30

      30

      30

      30

      30 v v j j u u i i

      10

      40

      32

      32

      30

      30

      24

      24 Dummy Dummy

      Plant 1 Plant 1

      Plant 2 Plant 2 Eastwood

      Eastwood Westwood

      Westwood Northwood

      Northwood

      24

      24

      24

      40

      40

    • 8
    • >>8

        42

        23 Slide

        

      Example: BBC

      Example: BBC

        

        Iteration 1 Tableau

        Iteration 1 Tableau

        25

        25

        25

        25

        5

        5

        5

        5

        20

        20

        20

        20

        42

        42

        42

      • 4

      • 10
      • >4 -4

          10

          40

          10

          10

          40

          40

        • 10>410
        •   40

            10

          • Stepping Stone Method

            24 Slide

            

          Example: BBC

          Example: BBC

             Iteration 1

            Iteration 1

            Stepping Stone Method The stepping stone path for cell (2,4) is (2,4), (1,4),

            The stepping stone path for cell (2,4) is (2,4), (1,4), (1,2), (2,2). The allocations in the subtraction cells are

            (1,2), (2,2). The allocations in the subtraction cells are 20 and 40, respectively. The minimum is 20, and

            20 and 40, respectively. The minimum is 20, and hence reallocate 20 along this path. Thus for the next hence reallocate 20 along this path. Thus for the next tableau: tableau: x x 24 24

            = 0 + 20 = 20 (0 is its current allocation) = 0 + 20 = 20 (0 is its current allocation) x x 14 14

            = 20 - 20 = 0 (blank for the next = 20 - 20 = 0 (blank for the next tableau) tableau) x x 12 12

            = 5 + 20 = 25 = 5 + 20 = 25 x x 22 22

            = 40 - 20 = 20 = 40 - 20 = 20 The other occupied cells remain the same.

            The other occupied cells remain the same.

            25 Slide

            45

            30

            30 Demand

            Demand Supply Supply

            50

            50

            50

            50

            20

            20

            10

            10

            45

            30

            25

            25 Dummy Dummy

            Plant 1 Plant 1

            Plant 2 Plant 2

            Eastwood Eastwood

            Westwood Westwood

            Northwood Northwood

            24

            24

            24

            24 Total transportation cost is $2570 = 2770 – 10 (20) Reduced cost of cell (2,4)

            30

            30

            Example: BBC Example: BBC

            42

            25

            25

            25

            25

            20

            20

            

          10

            

          10

            20

            20

            42

            42

            30

            42

            40

            40

            40

            40

            40

            40

            40

            40

            30

            30

            New quantity

          • MODI Method

            = 0.

            10 + 10 + v v 3 3 = 42 or = 42 or v v 3 3 = 32; and, 10 + = 32; and, 10 + v v 4 4 = =

            4. Since u u 2 2 + + v v j j = = c c 2 2 j j for occupied cells in row 2, then for occupied cells in row 2, then

            4. Since

            3. Since u u i i + + v v 2 2 = = c c i i 2 2 for occupied cells in column 2, for occupied cells in column 2, then then u u 2 2 + 30 = 40, or + 30 = 40, or

          u

          u

          2 2 = 10. = 10.

            3. Since

            2. Since u u 1 1 + + v v j j = = c c ij ij for occupied cells in row 1, then for occupied cells in row 1, then v v 1 1 = 24, = 24, v v 2 2 = 30. = 30.

            2. Since

            1. Set u u 1 1 = 0.

            26 Slide

            1. Set

            's for this tableau.

            's and 's and v v j j 's for this tableau.

            The reduced costs are found by calculating the the u u i i

            MODI Method The reduced costs are found by calculating

            Iteration 2

             Iteration 2

            

          Example: BBC

          Example: BBC

            0 or 0 or v v 4 4 = -10. = -10.

          • MODI Method (continued)
            • u i i
            • >

            Reduced Cost

            30 - 10 - 24 = -4

            (2,1)

            (2,1)

            = 10

            = 10

            0 - 0 - (-10)

            0 - 0 - (-10)

            (1,4)

            (1,4)

            40 - 0 - 32 = 8

            40 - 0 - 32 = 8

            (1,3)

            (1,3)

            Reduced Cost

            Unoccupied Cell

            27 Slide

            Unoccupied Cell

            .

            v v j j .

            next slide) by c c ij ij

            next slide) by

            on the

            on the

            Calculate the reduced costs (circled numbers

            Calculate the reduced costs (circled numbers

            MODI Method (continued)

            Iteration 2

            Iteration 2

            

            

          Example: BBC

          Example: BBC

            30 - 10 - 24 = -4 Since there is still negative reduced cost for cell (2,1), the solution is not optimal. Cell (2,1) must be occupied

            24

            10

            40

            

          40

            40

            40

            40

            

          30

            30

            30

            

          30

            30

            30

            30

            30 v v j j u u i i

            10

            40

            36

            36

            30

            30

            24

            24 Dummy Dummy

            Plant 1 Plant 1

            Plant 2 Plant 2

            Eastwood Eastwood

            Westwood Westwood

            Northwood Northwood

            24

            24

            24

            40

            40

            25

            Iteration 2 Tableau

            25

            25

            25

            42

            25

            25

            20

            25

            Iteration 2 Tableau

            25

            10

            

            

          Example: BBC

          Example: BBC

          • 8
          • 10>8 <>10 8

              20

              42

              42

              42

            • 4

            • >4
            •   20

                20

                10

                10

                10

                20

                20

              • 6
              • 6

                28 Slide

                20

                20

              • Stepping Stone Method

                29 Slide

                

              Example: BBC

              Example: BBC

                 Iteration 2

                Iteration 2

                Stepping Stone Method

              The most negative reduced cost is = -4 determined

                

              The most negative reduced cost is = -4 determined

              by by x x 21 21 . The stepping stone path for this cell is (2,1), . The stepping stone path for this cell is (2,1),

                (1,1),(1,2),(2,2). The allocations in the subtraction (1,1),(1,2),(2,2). The allocations in the subtraction cells are 25 and 20 respectively. Thus the new cells are 25 and 20 respectively. Thus the new solution is obtained by reallocating 20 on the stepping solution is obtained by reallocating 20 on the stepping stone path. Thus for the next tableau: stone path. Thus for the next tableau: x x 21 21

                = 0 + 20 = 20 (0 is its current allocation) = 0 + 20 = 20 (0 is its current allocation) x x 11 11

                = 25 - 20 = 5 = 25 - 20 = 5 x x 12 12

                = 25 + 20 = 45 = 25 + 20 = 45 x x 22 22

                = 20 - 20 = 0 (blank for the next tableau) = 20 - 20 = 0 (blank for the next tableau) The other occupied cells remain the same.

                The other occupied cells remain the same.

                30 Slide

                10

                30

                30 Demand

                Demand Supply Supply

                50

                50

                50

                50

                20

                20

                10

                45

                30

                45

                25

                25 Dummy Dummy

                Plant 1 Plant 1

                Plant 2 Plant 2

                Eastwood Eastwood

                Westwood Westwood

                Northwood Northwood

                24

                24

                24

                30

                30

                Example: BBC Example: BBC

                42

                5

                5

                45

                45

                20

                20

                10

                10

                20

                20

                42

                42

                30

                42

                40

                40

                40

                40

                40

                40

                40

                40

                30

                30

                24 Total cost is $2490 = 2570 - 4(20)

              • MODI Method

                3. Since u u i i + + v v 1 1 = = c c i i 1 1 for occupied cells in column 2, for occupied cells in column 2, then then u u 2 2

                = 0 or = 0 or v v 4 4

                = 36, and 6 + = 36, and 6 + v v 4 4

                = 42 or = 42 or v v 3 3

                6 + 6 + v v 3 3

                = = c c 2 2 j j for occupied cells in row 2, then for occupied cells in row 2, then

                v v j j

                4. Since u u 2 2

                4. Since

                = 6.

                u u

              2

              2

              = 6.

                3. Since

                2. Since u u 1 1 + + v v j j = = c c 1 1 j j for occupied cells in row 1, then for occupied cells in row 1, then v v 1 1 = 24 and = 24 and v v 2 2 = 30. = 30.

                2. Since

                1. Set u u 1 1 = 0 = 0

                1. Set

                's 's and and v v j j 's for this tableau. 's for this tableau.

                The reduced costs are found by calculating the the u u i i

                MODI Method The reduced costs are found by calculating

                Iteration 3

                 Iteration 3

                

              Example: BBC

              Example: BBC

              • 24 = 30 or
              • 24 = 30 or
                • 6.

                31 Slide

                = = -6.

              • MODI Method (continued)

                Reduced Cost

                40 - 6 - 30 = 4

                (2,2)

                (2,2)

                6

                6

                0 - 0 - (-6) =

                0 - 0 - (-6) =

                (1,4)

                (1,4)

                40 - 0 - 36 = 4

                40 - 0 - 36 = 4

                (1,3)

                (1,3)

                Reduced Cost

                Unoccupied Cell

                32 Slide

                Calculate the reduced costs (circled numbers

                

              Example: BBC

              Example: BBC

                

                Iteration 3

                Iteration 3

                MODI Method (continued)

                Calculate the reduced costs (circled numbers

                on the

                Unoccupied Cell

                on the

                next slide) by

                next slide) by c c ij ij

                u u i i

                v v j j .

                .

                40 - 6 - 30 = 4 Since all the reduced cost are nonnegative, the current solution is optimal

              • 4
              • <>6 <>>>4

                  6

                  40

                  40

                  

                40

                  40

                  40

                  40

                  

                30

                  30

                  30

                  30

                  30

                  30

                  30