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Transportation Model
ME F344 Engineering Optimization
Dr. Priyank Upadhyaya
𝑎2 2 2 𝑏2
Units …… Units
of
……
of
Supply demand
𝑎𝑚 𝑚 𝑐𝑚𝑛 : 𝑥𝑚𝑛
𝑛 𝑏𝑛
Subjected to constraints
𝑛
𝑖=1
Dr. Priyank Upadhyaya 4
Example 5.1-1
MG Auto has three plants in Los Angeles, Detroit and New Orleans and two major distribution
centers in Denver and Miami. The capacities of three plants during the next quarter are 1000,
1500 and 1200 cars. The quarterly demands at the two distribution centers are 2300 and
1400 cars. The mileage chart between the plants and the distribution canters is given in Table.
The trucking company in charge of transporting the cars charges 8 cents per mile per car.
$12 $7 $9 $20
𝑢2 = Silo-2 0 5 15 5 25
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Multipliers Interation-1
Calculate multipliers 𝑢𝑖 and 𝑣𝑗 for current basic variables using 𝑢𝑖 + 𝑣𝑗 = 𝑐𝑖𝑗 .
Arbitrarily take 𝑢1 = 0.
Transportation Tableau
𝑣1 = 10 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 1
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 5 10 0 0 15
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 5 15 5 25
Demand 5 15 15 15 50
13
Dr. Priyank Upadhyaya
MODI: Opportunity cost Interation-1
Calculate the opportunity cost 𝑢𝑖 + 𝑣𝑗 − 𝑐𝑖𝑗 for all non-basic variables. Find the
highest opportunnity cost. If all 𝑢𝑖 + 𝑣𝑗 − 𝑐𝑖𝑗 ≤ 0 ⇒ we found the optimum cost.
Transportation Tableau
𝑣1 = 10 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 1
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 5 10 0 0 15
-$16 $4
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 5 15 5 25
$3
$4 $14 $16 $18
𝑢3 = 3 Silo-3 0 0 0 10 10
$9 -$9 -$9
Demand 5 15 15 15 50
𝑥31 becomes entering variable Dr. Priyank Upadhyaya
Highest Opportunity Cost 14
MODI: How to make Loop
If 𝑥31 ships 𝜃 units then the maximum vale of 𝜃 is determined based on two conditions.
Demand and supply
Shipments from all sources should be positive.
Guidelines to follow
Construct a closed loop that starts and ends at the entering variable cell.
The loop consists of horizontal and vertical segments only (no diagonals).
Corners of the loop (excluding entering variable) must coincide with a current basic variable.
To satisfy the demand and supply, we must alternate between adding and subtracting 𝜃
from subsequent corners.
Loop can be clockwise or anticlockwise.
Calculate the maximum value from the cells 𝑥𝑖𝑗 − 𝜃 ≥ 0.
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Dr. Priyank Upadhyaya
MODI: Loop Interation-1
Entering variable: 𝑥31
Only one closed loop possible.
Transportation Tableau
𝑣1 = 10 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 1
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟓−𝜽 𝟏𝟎 + 𝜽 0 0 15
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟓−𝜽 15 𝟓+𝜽 25
Demand 5 15 15 15 50
Dr. Priyank Upadhyaya 16
MODI: Max 𝜃 Iteration-1
Entering variable: 𝑥31 , Only one closed loop possible.
From 5 − 𝜃 ≥ 0 and 10 − 𝜃 ≥ 0 ⇒ Maximum value of 𝜃 = 5
Transportation Tableau
𝑣1 = 10 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 1
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟓−𝟓 𝟏𝟎 + 𝟓 0 0 15
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟓−𝟓 15 𝟓+𝟓 25
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Iteration-1 Solution
Either 𝑥11 or 𝑥22 leaves. We choose 𝑥11 to leave.
Transportation Tableau
𝑣1 = 10 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 1
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟎 𝟏𝟓 0 0 15
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟎 15 𝟏𝟎 25
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Cost Iteration-1
Current cost 𝑧 = 15 × 2 + 0 × 7 + 15 × 9 + 10 × 20 + 5 × 4 + 5 × 18 = $475
Transportation Tableau
𝑣1 = 𝑣2 = 𝑣3 = 𝑣4 =
Iteration: 1
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = Silo-1 𝟎 𝟏𝟓 0 0 15
$12 $7 $9 $20
𝑢2 = Silo-2 0 𝟎 15 𝟏𝟎 25
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Multipliers Iteration-2
Calculate multipliers 𝑢𝑖 and 𝑣𝑗 for current basic variables using 𝑢𝑖 + 𝑣𝑗 = 𝑐𝑖𝑗 .
Arbitrarily take 𝑢1 = 0. Only 𝑣1 changes.
Transportation Tableau
𝑣1 =1 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 2
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟎 𝟏𝟓 0 0 15
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟎 15 𝟏𝟎 25
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Opportunity cost Iteration-2
Calculate the opportunity cost 𝑢𝑖 + 𝑣𝑗 − 𝑐𝑖𝑗 for all non-basic variables.
𝑥14 becomes entering variable Highest Opportunity Cost
Transportation Tableau
𝑣1 = 1 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 2
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟎 𝟏𝟓 0 0 15
−$𝟗 −$𝟏𝟔 $𝟒
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟎 15 𝟏𝟎 25
−$𝟔
$4 $14 $16 $18
𝑢3 = 3 Silo-3 𝟓 0 0 𝟓 10
−$𝟗 −$𝟗
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Loop, Max 𝜃 Iteration-2
Calculate the opportunity cost 𝑢𝑖 + 𝑣𝑗 − 𝑐𝑖𝑗 for all non-basic variables.
Max value of 𝜃 = 10 ⇒ 𝑥24 becomes leaving variable.
Transportation Tableau
𝑣1 = 1 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟎 𝟏𝟓 − 𝜽 0 𝟎+𝜽 15
−$𝟗 −$𝟏𝟔 $𝟒
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟎+𝜽 15 𝟏𝟎 − 𝜽 25
−$𝟔
$4 $14 $16 $18
𝑢3 = 3 Silo-3 𝟓 0 0 𝟓 10
−$𝟗 −$𝟗
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
MODI: Cost Iteration-2
Current cost 𝑧 = 5 × 2 + 10 × 11 + 10 × 7 + 15 × 9 + 5 × 4 + 5 × 18 = $435
Transportation Tableau
𝑣1 = 1 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 2
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟎 𝟓 0 𝟏𝟎 15
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟏𝟎 15 𝟎 25
Demand 5 15 15 15 50
23
Dr. Priyank Upadhyaya
MODI: Multipliers/Opportunity cost Iteration-3
Calculate the opportunity cost 𝑢𝑖 + 𝑣𝑗 − 𝑐𝑖𝑗 for all non-basic variables.
Transportation Tableau
𝑣1 = 1 𝑣2 = 2 𝑣3 = 4 𝑣4 = 15
Iteration: 3
Mill-1 Mill-2 Mill-3 Mill-4 Supply
$10 $2 $20 $11
𝑢1 = 0 Silo-1 𝟎 𝟓 0 𝟏𝟎 15
−$𝟗 −$𝟏𝟔
$12 $7 $9 $20
𝑢2 = 5 Silo-2 0 𝟏𝟎 15 𝟎 25
−$𝟔 −$𝟒
$4 $14 $16 $18
𝑢3 = 3 Silo-3 𝟓 0 0 𝟓 10
−$𝟗 −$𝟕
Demand 5 15 15 15 50
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Dr. Priyank Upadhyaya
Unbalanced Model
Supply > Demand
Add Dummy Supply
https://goo.gl/forms/yZtO0Ygq9yLZgy3D3
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Dr. Priyank Upadhyaya
Assignment Problem
Joe Klyne's three children, John, Karen, and Terri, want to earn some money to take care of
personal expenses during a school trip to the local zoo. Mr. Klyne has chosen three chores
for his children: mowing the lawn, painting the garage door, and washing the family cars.
To avoid anticipated sibling competition, he asks them to submit (secret) bids for what they
feel is fair pay for each of the three chores. The understanding is that all three children will
abide by their father's decision as to who gets which chore. Table below summarizes the
bids received. Based on this information, how should Mr. Klyne assign the chores?
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Dr. Priyank Upadhyaya
Assignment Problem
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Dr. Priyank Upadhyaya
Assignment Problem
Calculate the row minimum
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Dr. Priyank Upadhyaya
Assignment Problem
Subtract the row minimum from respective rows
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Dr. Priyank Upadhyaya
Assignment Problem
Calculated the column minimum from the updated table
Underlined
zero cells give
optimum
assignment
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Dr. Priyank Upadhyaya
Assignment Problem
The optimum assignment table
Total Cost Calculation Karen mows ($9) + John paints ($10) + Terri washes ($8) = $27
Summation
of p’s and q’s
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Dr. Priyank Upadhyaya
Example: Assignment
Calculate
the column
minimum
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Dr. Priyank Upadhyaya
Example: Assignment
Calculate
the row
minimum
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Dr. Priyank Upadhyaya
Example: Assignment
Draw
minimum
number of
lines to cover
all zeros
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Dr. Priyank Upadhyaya
Example: Assignment
Select the smallest uncovered entry, subtract it from every uncovered entry, then add it
to every entry at the intersection of two lines.
Subtract it
from every
uncovered
entry
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Dr. Priyank Upadhyaya
Example: Assignment
Select the smallest uncovered entry, subtract it from every uncovered entry, then add it
to every entry at the intersection of two lines.
Add it to
every entry
at the
intersection
Child 1 can do only Chore-1 With Child assigned, Child 2 can only do Chore 3
Child 2 still has two options Child left with only one option of Chore 4
Child 3 has only one option of Chore 2
Summation of Ps and Qs
First Iteration
P: 1,7,4,5
Q: 3
Second Iteration
Add/Subtract: 1
Total = 1 + 7 + 4 + 5 + 3 + 1
4 2
Dr. Priyank Upadhyaya 44
Add Dummy Job to Balance
4 2
4 2
Order of matrix = 5
Dr. Priyank Upadhyaya 45
Row Reduction
4 2
Step 5 is needed
Total Cost = 15
Add high costs (denoted by H) to the cells where assignments are blocked
Optimum Solution
Dr. Priyank Upadhyaya 55
Assignment
Total Cost = 10