TRANSPORTATION MODEL

MINERÌA A CIELO ABIERTO

Asieh Hekmat
Optimization model
Optimization model prescribes the behavior for an organization that will enable it to best
meets in goal. Components of this model include:

– Objective function(s)

– Decision variables

– Constraints

An optimization model seeks to find values of the decision variables that optimize
(maximize or minimize) an objective among the set of values for the decision variables
that satisfy the given constraints.
Linear programming - Example
Universal Mines Inc. operates three mines in West Virginia. The ore from each mine is separated
into two grades before it is shipped; the daily production capacities of mines, as well as their daily
operating costs, are as follows:
High- grade ore, Low- grade ore, Operating cost,
(t/day) (t/day) $1000/day
Mine I 4 4 20
Mine II 6 4 22
Mine III 1 6 18
Universal has committed itself to deliver 54 tons of high-grade ore and 65 tons of low-grade ore
by the end of the week. It also has labor contracts that guarantee employees in each mine a full
day`s pay for each day or fraction of a day the mine is open. Determine the number of days each
mine should be operated during the upcoming week if Universal Mines is to fulfill its commitment
at minimum total cost.
Linear programming - Example
High- grade ore, Low- grade ore, Operating cost,
(t/day) (t/day) $1000/day
Mine I 4 4 20
Mine II 6 4 22
Mine III 1 6 18

O.F . Min Z  20 x1  22 x2  18 x3
S .t.
4 x1  6 x2  x3  54
4 x1  4 x2  6 x3  65
x1 , x2 , x3  0
x1 , x2 , x3  7
The Knapsack Problem
Consider a set of items each of which has a predefined weight and a monetary value (profit).
These items have to be packed into a bag whose maximum weight is limited in such a way that it
can not carry all of the available items. The problem consists in choosing a subset of items which

1. fit into the bag with respect to the weight limit and

2. yield a maximum total profit

Max Z= c1x1 + c2x2 + … +cnxn

a1x1 +a2x2 +… +anxn ≤ C
xj = 0 or 1 (j= 1,2, …, n)
The Knapsack Problem

There is a fire in John`s apartment.

He decides to take some valuable items and get out the building.
He can only use one knapsack that holes a maximum weight of 14 kg.
Which items should John take with him?

Item Weight (kg) Value ($100)

1 5 16
2 7 22
3 4 12
4 3 8
The Knapsack Problem
Item Weight (kg) Value ($100)
1 5 16
2 7 22
3 4 12
4 3 8

Xj =1 : if John takes item j in the knapsack; Xj =0, otherwise. John has to take at least one
of the items 1 and 4:
Max: Z= 16 X1 + 22 X2 + 12 X3 + 8 X4 X1 + X4 = 1

John has to take both items

Subject to: 5 X1 + 7 X2 + 4 X3 + 3 X4 ≤ 14
of 1 and 4:

Xj =1 or Xj =0 for j= 1, 2, 3, 4 X1 + X4 = 2
The Traveling Salesman Problem
The traveling salesman problem consists of a salesman and a set of cities. The
salesman has to visit each one of the cities starting from a certain one (e.g. the
hometown) and returning to the same city. The challenge of the problem is that the
traveling salesman wants to minimize the total length of the trip.
n n
MinZ   cij xij i j
i j

n
Enter x 1 i  1,2,.., n
j 1
ij
1
xij  
0
n

Exit x ij 1  j  1,2,.., n 
i 1
The Traveling Salesman Problem

The problem lies in finding a minimal

path passing from all vertices once.
For example:
The path Path1 {A, B, C, D, E, A} and the
path Path2 {A, B, C, E, D, A} pass all the
vertices but Path1 has a total length of
24 and Path2 has a total length of 31.
The Traveling Salesman Problem-
Example
The following table shows the distance between 4 places:

1 2 3 4
1 X 8 7 5
2 2 X 6 4
3 3 10 X 3
4 7 5 4 X

Min Z= 8x12 +7x13 +5x14 + 2x21 +6x23 +4x24 +3x31 +10x32 +3x34 +7x41 +5x42 +4x43
The Traveling Salesman Problem-
Example
Constraint:
1 Will travel
xij  
0 Will not travel

Travel from place i just to one place j Arrive to place j just from one place i
x12 +x13 +x14 = 1 x21 +x31 +x41 = 1
x21 +x23 +x24 = 1 x12 +x32 +x42 = 1
x31 +x32 +x34 = 1 x13 +x23 +x43 = 1
x41 +x42 +x43 = 1 x14 +x24 +x34 = 1
The Traveling Salesman Problem-
Example
Constraint:
If the salesman travel from i to j, cannot go back from j to i.

x12 +x21 ≤ 1
x13 +x31 ≤ 1
x14 +x41 ≤ 1
x23 +x32 ≤ 1
x42 +x24 ≤ 1
x43 +x34 ≤ 1
The Traveling Salesman Problem- Example
Constraint:
If the salesman travel from i to j and then to k, cannot go back from k to i.

x12 +x23 +x31 ≤ 2 x12 +x24 +x41 ≤ 2 x13 +x32 +x21 ≤ 2

x13 +x34 +x41 ≤ 2
x21 +x13 +x32 ≤ 2
x23 +x34 +x42 ≤ 2
x31 +x12 +x23 ≤ 2
x32 +x24 +x43 ≤ 2
x41 +x12 +x24 ≤ 2
x42 +x23 +x34 ≤ 2
x14 +x42 +x21 ≤ 2
x21 +x14 +x42 ≤ 2
x24 +x41 +x12 ≤ 2
x31 +x14 +x43 ≤ 2
x34 +x41 +x13 ≤ 2
x41 +x13 +x34 ≤ 2
x43 +x31 +x14 ≤ 2
x14 +x43 +x31 ≤ 2
x23 +x31 +x12 ≤ 2
x24 +x43 +x32 ≤ 2
x32 +x21 +x13 ≤ 2
x34 +x42 +x23 ≤ 2
x42 +x21 +x14 ≤ 2
x43 +x32 +x24 ≤ 2
Transportation problems

A transportation problem basically deals with the problem, which aims to find the best
way to fulfill the demand of n demand points using the capacities of m supply points.
While trying to find the best way, generally a variable cost of shipping the product from
one supply point to a demand point or a similar constraint should be taken into
consideration.
Transportation problems
A typical transportation problem requires three sets of numbers:

– Capacities (or supplies) Indicate the most each plant can supply in a given time
period.

– Demands (or requirements) They are typically estimated from some type of
forecasting model. Often demands are based on historical customer demand
data.

– Unit shipping (and possibly production) cost It is calculated through a

transportation cost analysis.
Transportation problems
The transportation or shipping problem involves determining the amount of goods or
items to be transported from a number of sources to a number of destinations.

■ Usually the objective is to minimize total shipping costs or distances.

■ Transportation problem is a specific case of Linear Programming problems and a

special algorithm has been developed to solve it.

The problem: Given needs at the demand locations, how should we take the limited
supply at supply locations and move the goods. The objective is to minimize the total
transportation cost.
Transportation problems

To demonstrate the transportation in context, consider a company that produces copper

plate at three refinery locations in the following amounts (t).
Refinery 1: 1,400 ton
Refinery 2: 2,600 ton
Refinery 3: 2,900 ton
The total amount of 6,900t must be shipped in various amounts (t) to meet orders at seven
locations for use in manufacturing.
Factory A: 900
Factory B: 1,200
Factory C: 600
Factory D: 400
Factory E: 1,700
Factory F: 1,100
Factory G: 1,000
Transportation problems

The company would like to

determine the least expensive
plan for shipping the copper
plate from refinery to factory
given the transportation costs
($/t)
Transportation problems
Variables
x11 = Tonnes of copper plate to go from Refinery 1 to Factory A
x12 = Tonnes of copper plate to go from Refinery 1 to Factory B
x13 = Tonnes of copper plate to go from Refinery 1 to Factory C
x14 = Tonnes of copper plate to go from Refinery 1 to Factory D
x15 = Tonnes of copper plate to go from Refinery 1 to Factory E
x16 = Tonnes of copper plate to go from Refinery 1 to Factory F
x17 = Tonnes of copper plate to go from Refinery 1 to Factory G
x21 = Tonnes of copper plate to go from Refinery 2 to Factory A
x22 = Tonnes of copper plate to go from Refinery 2 to Factory B
x23 = Tonnes of copper plate to go from Refinery 2 to Factory C
x24 = Tonnes of copper plate to go from Refinery 2 to Factory D
x25 = Tonnes of copper plate to go from Refinery 2 to Factory E
x26 = Tonnes of copper plate to go from Refinery 2 to Factory F
x27 = Tonnes of copper plate to go from Refinery 2 to Factory G
x31 = Tonnes of copper plate to go from Refinery 3 to Factory A
x32 = Tonnes of copper plate to go from Refinery 3 to Factory B
x33 = Tonnes of copper plate to go from Refinery 3 to Factory C
x34 = Tonnes of copper plate to go from Refinery 3 to Factory D
x35 = Tonnes of copper plate to go from Refinery 3 to Factory E
x36 = Tonnes of copper plate to go from Refinery 3 to Factory F
x37 = Tonnes of copper plate to go from Refinery 3 to Factory G
Transportation problems

■ Refinery 1: 1,400
Refinery 2: 2,600
Refinery 3: 2,900
■ Factory A: 900
Factory B: 1,200
Factory C: 600
Factory D: 400
Factory E: 1,700
Factory F: 1,100
Factory G: 1,000
Transportation problems
Transportation model
A transportation problem involves m sources, each of which has available ai (i = 1, 2, …, m) units
of homogeneous product, and n destinations, each of which requires bj (j = 1, 2, …, n) units of the
product.

The numbers of ai and bj are positive integers. The cost Cij of transporting one unit of product
from the ith source to the jth destination is given for each i and j.

The objective is to develop an integral transportation schedule (the product may not be
fractionalized) that meet all demands from current inventory at the minimum total shipping cost.

That is assumed that total supply and total demand are equal:
𝑚 𝑛

𝑎𝑖 = 𝑏𝑗
𝑖=1 𝑗=1
Standard form
Let xij represent the (unknown) number of units to ship from source i to destination j. then the
standard mathematical mode for this problem is:
𝑚 𝑛

𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒: 𝑧 = 𝑐𝑖𝑗 . 𝑥𝑖𝑗

Subject to: 𝑖=1 𝑗=1

𝑥𝑖𝑗 = 𝑎𝑖 (𝑖 = 1, 2, … . , 𝑚)
𝑖=1
𝑛

𝑥𝑖𝑗 = 𝑏𝑖 (𝑗 = 1, 2, … . , 𝑛)
𝑗=1

With all xij nonnegative and integer

The transportation algorithm

The transportation algorithm is the simplex method specialized to transportation

tableau format (next slide) and it involves:
i. Finding an initial, basic feasible solution
ii. Testing the solution for optimality
iii. Improving the solution when it is not optimal
iv. Repeating steps (ii) and (iii) until the optimal solution is obtained.
Standard form of transportation tableau

Balanced
transportation model
Transportation problem example
A mining company extracts gravel, the basic product it sells, from three mines, L1, L2 and L3. The
weekly production of each mine is 75, 150 and 75 tones of gravel respectively. The gravel has to
be transported to five main consumers, K1, K2, K3, K4 and K5 requiring for their needs 100, 60,
40, 75 and 25 tones of gravel per week respectively.

The problem that concerns the company's management is the minimization of the required cost
for the transportation of the product to the consumers. For this purpose a detailed cost analysis
was carried out which gave the results of the following table (the numbers denote the
transportation cost in $ per ton of gravel).
Transportation problem example
Cost table of gravel transportation

Consumers

Mines
Solution- Step 1: finding an initial basic feasible solution

Methods for finding an initial basic feasible solution:

 Northwest corner method

 Minimum cost method
 Vogel method
Solution- Step 1: Northwest corner method

1. The maximum possible quantity is assigned to the northwest (up left) cell
depending on the supply and demand of the corresponding row or column. The
supply of the row and the demand of the column are adjusted appropriately.

2. Either the row of which the supply is exhausted or the column of which the demand
is satisfied is crossed out.

3. If all supplies are exhausted and all demands are satisfied then END, otherwise:
transfer to step 1.
 Solution- Step 1: Northwest corner method
Initial feasible solution with the Northwest corner method

Total Cost: $765

Solution- Step 1: Minimum cost method

The minimum cost method uses shipping costs in order to come up with a basic feasible
solution that has lower total cost. To begin the method, first the variable xij with the
smallest shipping cost is located. The largest possible value is assigned to variable xij;
this value is the minimum of ai and bj .
After that, as in the Northwest Corner Method, row i or column j is crossed out and the
supply or the demand of the non-crossed out row or column is reduced by the value of
xij. The next route (cell) with the minimum shipping cost is chosen among the ones
which do not belong to the crossed-out row or column. This procedure is repeated until
all capacities are exhausted and all demands are satisfied.
 Solution- Step 1: Minimum cost method
Initial feasible solution with the minimum cost method

Total Cost: $710

Solution- Step 1: Vogel method

1. Addition - below and right of the transportation tableau – of a new row and a new column with
elements the difference of the two smaller cost elements of each row and each column
respectively.
2. Selection of the largest element of the added two new lines.
3. Finding of the minimum element of row i or column j in which belongs the element identified
in step 2.
4. Assignment of the value xij = min (ai , bj) to the route corresponding to the position of the
smallest element in order to meet the capacity of a source or the demand of a destination.
5. If the capacity of a source is exhausted, the demand bj of the corresponding destination is
reduced by ai . In contrary, if the demand of a destination is satisfied, the capacity ai of the
corresponding source is reduced by bj . The source (row) or destination (column) that was
satisfied is crossed-out and is not taken further into account.
Solution- Step 1: Vogel method

Each time the above procedure is repeated the capacity of a source is exhausted or the needs of
a destination are satisfied. The implementation of the method is completed when the capacity of
the last row and the needs of the last column are simultaneously satisfied. The solution yielded is
feasible because it meets all capacities and all needs.
Solution- Step 1: Vogel method
 Solution- Step 1: Vogel method
Initial basic feasible solution (Vogel method)

Total Cost: $640

Solution-Step 2: Checking for optimality

So far we have only looked at ways of obtaining an initial basic feasible solution to the balanced
transportation problem. We now develop a method for checking whether the current basic
feasible solution is optimal. For illustrative purposes, we will start with the initial basic feasible
solution that was provided by the North-West Corner method. Usually, initial basic feasible
solutions obtained by the Least-Cost method or Vogel’s method will give better starting
configurations.
Suppose that the cost cij of transporting 1 unit from source i to destination j is made up of a
dispatch cost ui and a reception cost vj so that

ui + vj = cij
whenever xij is a basic variable
Solution-Step 2: Checking for optimality

Remarks
 The total number of ui and vj variables is n+m. However, there are only n+m−1 basic
variables. Thus, we are free to choose one of the ui ’s or vj ’s arbitrarily. It is usual to set
u1 = 0.
 These “costs” can take negative values if required
Considering only these dispatch and reception costs, it would cost ui + vj to send 1 unit from
source i to destination j. For (i, j) not corresponding to a basic variable, it will often be the case
that ui + vj ≠ cij . In particular, if ui + vj > cij for a particular (i, j) not corresponding to a basic
variable, then there would be a benefit from sending more goods that way.
Solution-Step 2: Checking for optimality

Thus the procedure is as follows:

1. Assign values of ui and vj to the columns.

2. Enter the values Pij = ui + vj - cij in every cell.
3. If all the Pij ’s are negative or zero, we have an optimal solution.
 Successive steps of finding the optimal solution
v1=3 v2=0 v3=1 v4=3 v5=2 Supply
Total Cost: $765
75
u1=0 75
3 2 3 4 1
25 60 40 25 m+n-1 = 7
u2=1 - + 150
4 1 2 4 2
50 25
u3=0 + - 75
1 0 5 3 2
Demand 100 60 40 75 25 300

P12 = 0+3-2=-2 P13 = 0+1-3=-2 P14 = 0+3-4=-1 P15 = 0+2-1=+1

P25 = 1+2-2=+1
P31 = 0+3-1=+2 P32 = 0+0-0=0 P33 = 0+1-5=-4
 Successive steps of finding the optimal solution
v1=3 v2=2 v3=3 v4=5 v5=4 Supply
Total Cost: $715
75 - +
u1=0 75
3 2 3 4 1
60 40 50
u2=-1 150
4 4 2 4 2
25 25 25
u3=-2 + - 75
1 0 5 3 2
Demand 100 60 40 75 25 300

P12 = 0+2-2=0 P13 = 0+3-3=0 P14 = 0+5-4=+1 P15 = 0+4-1=+3

P21 = -1+3-4=-2 P25 = -1+4-2=+1
P32 = -2+2-0=0 P33 = -2+3-5=-4
 Successive steps of finding the optimal solution
v1=3 v2=2 v3=3 v4=5 v5=1 Supply Total Cost: $640
50 - 25
u1=0 + 75
3 2 3 4 1
60 40 50
u2=-1 150
4 4 2 4 2
50 25
u3=-2 + 1 - 75
0 5 3 2
Demand 100 60 40 75 25 300

P12 = 0+2-2=0 P13 = 0+3-3=0 P14 = 0+5-4=+1

P21 = -1+3-4=-2 P25 = -1+1-2=-2
P32 = -2+2-0=0 P33 = -2+3-5=-4 P33 = -2+1-2=+1
 Successive steps of finding the optimal solution
v1=3 v2=1 v3=2 v4=4 v5=1 Supply Total Cost: $615
25 25 25
u1=0 75
3 2 3 4 1
60 40 50 Minimum Cost
u2=0 150
4 4 2 4 2
75
u3=-2 75
1 0 5 3 2
Optimum answer
Demand 100 60 40 75 25 300

P12 = 0+1-2=-1 P13 = 0+2-3=-1

P21 = 0+3-4=-1 P25 = 0+1-2=-1
P32 = -2+1-0=-1 P33 = -2+2-5=-5 P34 = -2+4-3=-1 P35 = -2+1-2=-3
Other example:

To demonstrate the transportation in context, consider a company that produces copper

plate at three refinery locations in the following amounts (t).
Refinery 1: 1,400
Refinery 2: 2,600
Refinery 3: 2,900
The total amount of 6,900t must be shipped in various amounts (t) to meet orders at seven
locations for use in manufacturing.
Factory A: 900
Factory B: 1,200
Factory C: 600
Factory D: 400
Factory E: 1,700
Factory F: 1,100
Factory G: 1,000
The company would like to
determine the least expensive
plan for shipping the copper
plate from refinery to factory
given the transportation costs
($/t)