IE 301 – Deterministic Models in OR – Spring 2017-2018

Recitation 9 – Solution
1- A company supplies goods to three customers, who each require 30 units. The company
has two warehouses. Warehouse 1 has 40 units available, and warehouse 2 has 30 units
available. The costs of shipping 1 unit from warehouse to customer are shown in Table 7.
Suppose that extra units could be purchased and shipped to either warehouse for a total
cost of $100 per unit and that all customer demand must be met. Obtain bfs by use of NW
corner method and solve it using transportation simplex.

Solution.
By NW corner method we obtain the following bfs:

C1 C2 C3 DUMMY
15 35 25 0 40
W1 30 10
10 50 40 0 30
W2 20 10
115 135 125 0 20
W1 EXTRA 20 0
110 150 140 0 20
W2 EXTRA 20
30 30 30 20

u1 + v1 – 15 = 0
u1 + v2 – 35 = 0
u2 + v2 – 50 = 0
u2 + v3 – 40 = 0
u3 + v3 – 125 = 0
u3 + v4 – 0 = 0
u4 + v4 – 0 = 0
u1 = 0, v1 = 15 c13 = 0 + 25 – 25 = 0
v2 = 35 c14 = 0 – 100 – 0 = -100
u2 = 15 c21 = 15 + 15 – 10 = 20 the most positive
v3 = 25 c24 = 15 – 100 – 0 = -85 so, we would next enter
u3 = 100 c31 = 100 + 15 – 115 = 0 x21 into the basis
v4 = -100 c32 = 100 + 35 -135 = 0
u4 = 100 c41 = 100 + 15 – 110 = 5
c42 = 100 + 35 – 150 = -15
c43 = 100 + 25 -140 = -15
 C1 C2 C3 DUMMY
15 35 25 0 40
W1 30 10
10 50 40 0 30
W2 20 10
115 135 125 0 20
W1 EXTRA 20 0
110 150 140 0 20
W2 EXTRA 20
30 30 30 20
x21 enters and x22 exits yielding

C1 C2 C3 DUMMY
15 35 25 0
W1 10 30 40
10 50 40 0
W2 20 10 30
115 135 125 0
W1 EXTRA 20 0 20
110 150 140 0
W2 EXTRA 20 20
30 30 30 20

u1 + v1 – 15 = 0
u1 + v2 – 35 = 0
u2 + v1 – 10 = 0
u2 + v3 – 40 = 0
u3 + v3 – 125 = 0
u3 + v4 – 0 = 0
u4 + v4 – 0 = 0
u1 = 0, v1 = 15 c13 = 0 + 45 – 25 = 20
v2 = 35 c14 = 0 – 80 – 0 = -80
u2 = -5 c22 = -5 + 35 – 50 = -20 the most positive
v3 = 45 c24 = -5 – 80 – 0 = -85 so, we would next enter
u3 = 80 c31 = 80 + 15 – 115 = -20 x13 into the basis
v4 = -80 c32 = 80 + 35 -135 = -20
u4 = 80 c41 = 80 + 15 – 110 = -15
c42 = 80 + 35 – 150 = -35
c43 = 80 + 45 -140 = -15

C1 C2 C3 DUMMY
15 35 25 0
W1 10 30 40
10 50 40 0
W2 20 10 30
115 135 125 0
W1 EXTRA 20 0 20
110 150 140 0
W2 EXTRA 20 20
30 30 30 20

x13 enters and either x11 or x23 exits (we choose x23 to exit) yielding
 C1 C2 C3 DUMMY
15 35 25 0
W1 0 30 10 40
10 50 40 0
W2 30 30
115 135 125 0
W1 EXTRA 20 0 20
110 150 140 0
W2 EXTRA 20 20
30 30 30 20

u1 + v1 – 15 = 0 u1 = 0, v1 = 15 c14 = 0 - 100– 0 = -100

u1 + v2 – 35 = 0
u1 + v3 – 25 = 0
u2 + v1 – 10 = 0
u3 + v3 – 125 = 0
u3 + v4 – 0 = 0
u4 + v4 – 0 = 0
v2 = 35 c22 = -5 + 35 – 50 = -20
v3 = 25 c23 = -5 + 25 – 40 = -20
u2 = -5 c24 = -5 – 100 – 0 = -105 the most positive
u3 = 100 c31 = 100 + 15 – 115 = 0 so, we would next enter
v4 = -100 c32 = 100 + 35 – 135 = 0 x41 into the basis
u4 = 100 c41 = 100 + 15 – 110 = 5
c42 = 100 + 35 – 150 = -15
c43 = 100 + 25 -140 = -15

C1 C2 C3 DUMMY
15 35 25 0
W1 0 30 10 40
10 50 40 0
W2 30 30
115 135 125 0
W1 EXTRA 20 0 20
110 150 140 0
W2 EXTRA 20 20
30 30 30 20

x41 enters yielding the following optimal tableau:

C1 C2 C3 DUMMY
15 35 25 0
W1 30 10 40
10 50 40 0
W2 30 30
115 135 125 0
W1 EXTRA 20 0 20
110 150 140 0
W2 EXTRA 0 20 20
30 30 30 20
u1 + v2 – 35 = 0 u1 = 0, v2 = 35 c11 = 0 +10 – 15 = -5
u1 + v3 – 25 = 0 v3 = 25 c14 = 0 - 100– 0 = -100
u2 + v1 – 10 = 0 u2 + v1 = 10 c22= 0 + 35 – 50 = -15
u3 + v3 – 125 = 0 u3 = 100 c23 = 0 + 25 – 40 = -15
u3 + v4 – 0 = 0 v4 = -100 c24 = 0 - 100 – 0 = -100
u4 + v1 – 110 = 0 u4 + v1 = 110 c31 = 100 + 10 – 115 = -5
u4 + v4 – 0 = 0 u4 = 100 c32 = 100 + 35 – 135 = 0
v1 = 10 c42 = 100 + 35 – 150 = -15
u2 = 0 c43 = 100 + 25 -140 = -15

2- Steelco manufactures three types of steel at different plants. The time required to
manufacture 1 ton of steel (regardless of type) and the costs at each plant are shown in
Table 8. Each week, 100 tons of each type of steel (1, 2, and 3) must be produced. Each
plant is open 40 hours per week. Solve the problem with transportation simplex method.

Solution.
Using the NW method we obtain following bfs:

60 40 28 0
(60/20)*40 = 120
50 30 30 0
(60/16)*40 150
43 20 20 0
(60/15)*40 160
100 100 100 130

60 40 28 0
100 20
50 30 30 0
150
43 20 20 0
160
0 100 100 130
 60 40 28 0
100 20 0
50 30 30 0
150
43 20 20 0
160
0 80 100 130

60 40 28 0
100 20 0
50 30 30 0
80 70
43 20 20 0
160
0 0 100 130

60 40 28 0
100 20 0
50 30 30 0
80 70 0
43 20 20 0
160
0 0 30 130

60 40 28 0
100 20 0
50 30 30 0
80 70 0
43 20 20 0
30 130
0 0 0 130

60 40 28 0
100 20 0
50 30 30 0
80 70 0
43 20 20 0
30 130 0
0 0 0 0
 Steel 1 Steel 2 Steel 3 Dummy
60 40 28 0
Plant 1 100 20 120
50 30 30 0
Plant 2 80 70 150
43 20 20 0
Plant 3 30 130 160
100 100 100 130

u1 + v1 – 60 = 0
u1 + v2 – 40 = 0
u2 + v2 – 30 = 0
u2 + v3 – 30 = 0
u3 + v3 – 20 = 0
u3 + v4 – 0 = 0
u1 = 0, v1 = 60 c13 = 0 + 40 – 28 = 12
v2 = 40 c14 = 0 + 20 – 0 = 20
u2 = -10 c21 = -10 + 60 – 50 = 0 the most positive
v3 = 40 c24 = -10 + 20 – 0 = 10 so, we would next enter
u3 = -20 c31 = -20 + 60 – 43 = -3 x14 into the basis
v4 = 20 c32 = -20 + 40 -20 = 0

Steel 1 Steel 2 Steel 3 Dummy

60 40 28 0
Plant 1 100 20 120
50 30 30 0
Plant 2 80 70 150
43 20 20 0
Plant 3 30 130 160
100 100 100 130
x14 enters and x12 exits yielding

Steel 1 Steel 2 Steel 3 Dummy

60 40 28 0
Plant 1 100 20 120
50 30 30 0
Plant 2 100 50 150
43 20 20 0
Plant 3 50 110 160
100 100 100 130

u1 + v1 – 60 = 0
u1 + v4 – 0 = 0
u2 + v2 – 30 = 0
u2 + v3 – 30 = 0
u3 + v3 – 20 = 0
u3 + v4 – 0 = 0
u1 = 0, v1 = 60 c12 = 0 + 20 – 40 = -20
v4 = 0 c13 = 0 + 20 – 28 = -8
v2 = 20 c21 = 10 + 60 – 50 = 10 the most positive
u2 = 10 c24 = 10 + 0 – 0 = 10 so, we would next enter
v3 = 20 c31 = 0 + 60 – 43 = 23 x31 into the basis
u3 = 0 c32 = 0 + 20 -20 = 0

Steel 1 Steel 2 Steel 3 Dummy

60 40 28 0
Plant 1 100 20 120
50 30 30 0
Plant 2 100 50 150
43 20 20 0
Plant 3 50 110 160
100 100 100 130
x31 enters and x11 exits yielding

Steel 1 Steel 2 Steel 3 Dummy

60 40 28 0
Plant 1 120 120
50 30 30 0
Plant 2 100 50 150
43 20 20 0
Plant 3 100 50 10 160
100 100 100 130

We should continue these iterations until all ui + vj –cij be negative or zero

 3- The Carter Caterer Company must have the following number of clean napkins available
at the beginning of each of the next four days: day 1—15; day 2—12; day 3—18; day 4—
6. After being used, a napkin can be cleaned by one of two methods: fast service or slow
service. Fast service costs 10¢ per napkin, and a napkin cleaned via fast service is available
for use the day after it is last used. Slow service costs 6¢ per napkin, and these napkins can
be reused two days after they are last used. New napkins can be purchased for a cost of 20¢
per napkin. Formulate a balanced transportation problem to minimize the cost of meeting
the demand for napkins during the next four days.

Solution.
The demand for a given day (Day j) can be satisfied by either
1. A newly purchased napkin that is being used for the first time.
2. A napkin that was used to satisfy Day k's demand that returns from laundry service in time to
satisfy Day j demand.
Thus the supply points are as follows:
New=Purchased napkins that are used for the first time (at most 15 + 12 + 18 + 6 = 51) new napkins
will be purchased so New has a supply of 51)
Day 1=Napkins used to meet Day 1 demand that can be used to meet later demands (this point has a
supply of 15)
Day 2=Napkins used to meet Day 2 demand that can be used to meet later demands (this point has a
supply of 12)
Day 3=Napkins used to meet Day 3 demand that can be used to meet later demands (this point has a
supply of 18.

We obtain the following balanced transportation problem (optimal solution is also given).
Day 1 Day 2 Day 3 Day 4 Dummy
20 20 20 20 0
New 15 3 33 51
M 10 6 6 0
Day 1 9 6 15
M M 10 6 0
Day 2 12 12
M M M 10 0
Day 3 6 12 18
15 12 18 6 45

Thus Day 1 demand is met with 15 newly purchased napkins. Day 2 demand is met with 3 new
napkins and 9 napkins that were used for Day 1 demand and were laundered via Fast Service. Day 3
demand is met by 6 napkins that were used to meet Day 1 demand and are laundered by Slow Service
and 12 napkins that were used to meet Day 2 demand and are laundered by Fast Service. Day 4
demand is met with 6 napkins that were used to meet Day 3 demand and are laundered by fast service.