Operations Research I

Transportation problems

Ing. Lenka Skanderová, Ph.D.

 • Introduction
• Model creation
Typical example •
•
Initial BF solution
Optimality test

Factory

Ship

Warehouse
Goods

Operations research I 2/60

 • Introduction
• Model creation
P & T Company •
•
Initial BF solution
Optimality test

• Product: canned peas

• Canneries:
• Bellingham, Washington
• Eugene, Oregon
• Albert Lea, Minesota

• Warehouses
• Sacramento, California
• Salt Lake City, Utah
• Rapid City, South Dakota,
• Albuquerque, New Mexico

• Shipping costs are the major expense COST MINIMIZATION

Operations research I 3/60

 • Introduction
P & T Company •
•
Model creation
Initial BF solution
Table • Optimality test

Shipping Cost ($) per Truckload

Warehouse
Constraints
1 2 3 4 Output
of canneries
Cannery 1 464 513 654 867 75
2 352 416 690 791 125
3 995 682 388 685 100
Allocation 80 65 70 85

Constraints of warehouses

Operations research I 4/60

 • Introduction
P & T Company •
•
Model creation
Initial BF solution
Model creation • Optimality test

• Minimize

𝑍 = 464𝑥11 + 513𝑥12 + 654𝑥13 + 867𝑥14 + 352𝑥21 + 416𝑥22 + 690𝑥23 +

791𝑥24 + 995𝑥31 + 682𝑥32 + 388𝑥33 + 685𝑥34
• Subject to:
𝑥11 + 𝑥12 + 𝑥13 + 𝑥14 = 75
𝑥21 + 𝑥22 + 𝑥23 + 𝑥24 = 125
𝑥31 + 𝑥32 + 𝑥33 + 𝑥34 = 100
𝑥11 + 𝑥21 + 𝑥31 = 80
𝑥12 + 𝑥22 + 𝑥32 = 65
𝑥13 + 𝑥23 + 𝑥33 = 70
𝑥14 + 𝑥24 + 𝑥34 = 85

Typical structure of constraint coefficients in the transportation problem

Operations research I 5/60

 • Introduction
P & T Company •
•
Model creation
Initial BF solution
Model creation • Optimality test

• Minimize

𝑍 = 464𝑥11 + 513𝑥12 + 654𝑥13 + 867𝑥14 + 352𝑥21 + 416𝑥22 + 690𝑥23 +

791𝑥24 + 995𝑥31 + 682𝑥32 + 388𝑥33 + 685𝑥34
• Subject to:
𝑥11 + 𝑥12 + 𝑥13 + 𝑥14 = 75
𝑥21 + 𝑥22 + 𝑥23 + 𝑥24 = 125
𝑥31 + 𝑥32 + 𝑥33 + 𝑥34 = 100
𝑥11 + 𝑥21 + 𝑥31 = 80
𝑥12 + 𝑥22 + 𝑥32 = 65
𝑥13 + 𝑥23 + 𝑥33 = 70
𝑥14 + 𝑥24 + 𝑥34 = 85

Do not forget the nonnegative coefficients! 𝑥𝑖𝑗 ≥ 0

Operations research I 6/60

 • Introduction
P & T Company •
•
Model creation
Initial BF solution
Graph representation • Optimality test

W1 [-80]
[75] C1

W2 [-65]

[125] C2

W3 [-70]

[100] C3

W4 [-85]

Operations research I 7/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Assumptions • Optimality test

• The requirements assumption: Each source has a fixed supply of units, where
this entire supply must be distributed to the destinations. Similarly, each
destination has a fixed demand for units, where this entire demand must be
received from the sources.

• The cost assumption: The cost of distributing units from any particular source
to any particular destination is directly proportional to the number of units
distributed. Therefore, this cost is just the unit cost of distribution times the
number of units distributed.

Operations research I 8/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Feasible solution • Optimality test

The feasible solution property: A transportation problem will have feasible

solutions if and only if
𝑚 𝑛

෍ 𝑠𝑖 = ෍ 𝑑𝑖
𝑖=1 𝑗=1

number of units being

number of units being received by destination 𝑗
supplied by source 𝑖

Operations research I 9/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
General structure • Optimality test

• 𝑍 is the total distribution cost

• 𝑥𝑖𝑗 is the number of units distributed from the source 𝑖 to the destination 𝑗

Minimize 𝑍 = σ𝑚 𝑛
𝑖=1 σ𝑗=1 𝑐𝑖𝑗 𝑥𝑖𝑗
Any linear programming
problem that fits the special
subject to
formulation is of the
σ𝑚𝑖=1 𝑥𝑖𝑗 = 𝑠𝑖 for 𝑖 = 1, 2, … , 𝑚
transportation problem type,
σ𝑛𝑗=1 𝑥𝑖𝑗 = 𝑑𝑗 for 𝑗 = 1,2, … , 𝑛 regardless of its physical
and context
𝑥𝑖𝑗 ≥ 0 for all 𝑖 and 𝑗

Operations research I 10/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
General structure • Optimality test

Cost per Unit Distributed

Destination
1 2 𝑛 Supply
Source 1 𝑐11 𝑐12 … 𝑐1𝑛 𝑠1
2 𝑐21 𝑐22 … 𝑐2𝑛 𝑠2
… ⋮
𝑚 𝑐𝑚1 𝑐𝑚2 … 𝑐𝑚𝑛 𝑠𝑚
Demand 𝑑1 𝑑2 … 𝑑𝑛

Integer solution property: For transportation problems where every 𝑠𝑖 and 𝑑𝑗

have an integer value, all the basic variables (allocations) in every basic feasible
(BF) solution (including an optimal one) also have integer values.

Operations research I 11/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Example • Optimality test

• Northern airplane company builds the airplanes for various airline

companies.

• The company has some contracts to the airplanes and the production of the
jet engines must be scheduled.
Month Scheduled Maximum Unit Cost of Unit Cost of
Installations Production Production Storage
1 10 25 1.08 0.015
2 15 35 1.11 0.015
3 25 30 1.10 0.015
4 20 10 1.13
Cost is expressed in milions of dollars

Operations research I 12/60

 • Introduction
•
Transportation problem •
Model creation
Initial BF solution
• Optimality test
Example

• The company must supply engines for installation as mentioned in the 2nd
column of the table

• The company can produce more engines than scheduled and these ones
must be storaged.
Month Scheduled Maximum Unit Cost of Unit Cost of
Installations Production Production Storage
1 10 25 1.08 0.015
2 15 35 1.11 0.015
3 25 30 1.10 0.015
4 20 10 1.13
Cost is expressed in milions of dollars

Operations research I 13/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Supply and demand • Optimality test

• The goal: to minimize the costs for production and storage of the jet engines

Month Scheduled Maximum Unit Cost of Unit Cost of

Installations Production Production Storage
1 10 25 1.08 0.015
2 15 35 1.11 0.015
3 25 30 1.10 0.015
4 20 10 1.13

• Task:
• Identify supply and demand

Operations research I 14/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Supply and demand • Optimality test

• The goal: to minimize the costs for production and storage of the jet engines

Month Scheduled Maximum Unit Cost of Unit Cost of

Installations Production Production Storage
1 10 25 1.08 0.015
2 15 35 1.11 0.015
3 25 30 1.10 0.015
4 20 10 1.13
demand supply
• Task:
• Create table using Big M method

Operations research I 15/60

 • Introduction
Transportation problem • Model creation
• Initial BF solution
Supply and demand • Optimality test

• The goal: to minimize the costs for production and storage of the jet engines

𝑥11 + 𝑥12 + 𝑥13 + 𝑥14 ≤ 25

𝑥21 + 𝑥22 + 𝑥23 + 𝑥24 ≤ 35
𝑥31 + 𝑥32 + 𝑥33 + 𝑥34 ≤ 30
𝑥41 + 𝑥42 + 𝑥43 + 𝑥44 ≤ 10
We need „=“
• What we will use?

Operations research I 16/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Slack variable • Optimality test

• The goal: to minimize the costs for production and storage of the jet engines

𝑥11 + 𝑥12 + 𝑥13 + 𝑥14 ≤ 25

𝑥21 + 𝑥22 + 𝑥23 + 𝑥24 ≤ 35
𝑥31 + 𝑥32 + 𝑥33 + 𝑥34 ≤ 30
𝑥41 + 𝑥42 + 𝑥43 + 𝑥44 ≤ 10
We need „=“
• What we will use? SLACK VARIABLE

• Slack variable express the number of built engines which have not been used

• How many jet engines have not been used?

Operations research I 17/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Slack variable • Optimality test

• The number of built engines which have not been used:

𝑚𝑎𝑥𝑖𝑚𝑢𝑚 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 – 𝑠𝑐ℎ𝑒𝑑𝑢𝑙𝑒𝑑 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛

25 + 35 + 30 + 10 − 10 + 15 + 25 + 20 = 30

Month Scheduled Maximum Unit Cost of Unit Cost of

Installations Production Production Storage
1 10 25 1.08 0.015
2 15 35 1.11 0.015
3 25 30 1.10 0.015
4 20 10 1.13

Operations research I 18/60

 • Introduction
Transportation problem •
•
Model creation
Initial BF solution
Table • Optimality test

• What the 𝑀 means?

• Write equations dummy source

Cost per Unit Distributed

Destination
Supply
1 2 3 4 5(D)
1 1.080 1.095 1.110 1.125 0 25
2 M 1.110 1.125 1.140 0 35
Source
3 M M 1.100 1.115 0 30
4 M M M 1.130 0 10
Demand 10 15 25 20 30

Operations research I 19/60

 Trensportation and assignment problems
Streamlined simplex method

Operations research I
 • Introduction
Example •
•
Model creation
Initial BF solution
Water for cities • Optimality test

• How to supply cities from three rivers to satisfy the needs of cities and
minimize the total cost to the district

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10
Requested 50 70 30 infinity

Operations research I 21/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Supply and demand • Optimality test

• Identify supply and demand

• Where is the problem?

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10
Requested 50 70 30 infinity

Operations research I 22/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Supply and demand • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10
? demand
Requested 50 70 30 infinity

• Problem: Which row is the demand? Minimum need or Requested?

Operations research I 23/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Upper and lower bounds for demand • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10 lower bound
Requested 50 70 30 infinity upper bound

• We need to identify the upper bound for Hollyglass

Operations research I 24/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Upper bound for Hollyglass • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10 lower bound
Requested 50 70 30 infinity upper bound

• Upper bound for Hollyglass: 𝑡𝑜𝑡𝑎𝑙 𝑠𝑢𝑝𝑝𝑙𝑦 − 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑛𝑒𝑒𝑑𝑒𝑑

• 50 + 60 + 50 − 30 + 70 + 0 = 60

Operations research I 25/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Upper bound for Hollyglass • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10 lower bound
Requested 50 70 30 60 upper bound

• Problem: Deman must be constants. Not bounded decision variables

Operations research I 26/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Dummy source • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10
Requested 50 70 30 60

• Problem: Deman must be constants. Not bounded decision variables

Operations research I 27/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Dummy source • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Minimum needed 30 70 0 10
Requested 50 70 30 60
• Total requested: 50 + 70 + 30 + 60 = 210
dummy supply
• Total supply: 50 + 60 + 50 = 160

𝑡𝑜𝑡𝑎𝑙 𝑟𝑒𝑞𝑢𝑒𝑠𝑡𝑒𝑑 − 𝑡𝑜𝑡𝑎𝑙 𝑠𝑢𝑝𝑝𝑙𝑦 = 210 − 160 = 50

Operations research I 28/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Table with dummy source • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 M 50
Dummy source 0 0 0 0 50

Demand 50 70 30 60

Operations research I 29/60

 • Introduction
Example •
•
Model creation
Initial BF solution
Don‘t forget minimum request • Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Los Devils San Go Hollyglass Supply
Colombo River 16 13 22 17 50
Sacron River 14 13 19 15 60
Calorie River 19 20 23 - 50
Dummy source 0 0 0 0 50
Minimum request 30 70 0 10
Demand 50 70 30 60

• How many acres must be taken from dummy for each city?

Operations research I 30/60

 • Introduction
• Model creation
Example – where is the penalization? • Initial BF solution
• Optimality test

Cost (Ten of $) per Acre Foot

Berdoo Berdoo Los San Go Hollyglass Supply
(min) (extra) Devils
Colombo River 16 16 13 22 17 50
Sacron River 14 14 13 19 15 60
Calorie River 19 19 20 23 M 50
Dummy source M 0 M 0 0 50
Minimum request 30 0 70 0 10
Demand 30 20 70 30 60

Operations research I 31/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
1st step • Optimality test

• For each row and column:

• Calculate difference between two smallest values

Destination
1 2 3 4 5 Supply Diff.
1 16 16 13 22 17 50 3
2 14 14 13 19 15 60 1
3 19 19 20 23 M 50 0
4 M 0 M 0 0 50 0
Demand 30 20 70 30 60

Operations research I 32/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
1st iteration • Optimality test

• For each row and column:

• Calculate difference between two smallest values
Destination
1 2 3 4 5 Supply Diff.
1 16 16 13 22 17 50 3
2 14 14 13 19 15 60 1
3 19 19 20 23 M 50 0
4 M 0 M 0 0 50 0
Demand 30 20 70 30 60
Diff. 2 14 0 19 15

Operations research I 33/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
1st iteration • Optimality test

• For each row and column:

• Largest difference is circled, smallest unit cost in the same row or column
is enclosed in the box
Destination
1 2 3 4 5 Supply Diff.
1 16 16 13 22 17 50 3
2 14 14 13 19 15 60 1
3 19 19 20 23 M 50 0
4 M 0 M 0 0 50 0 30 < 50
Demand 30 20 70 30 60 𝒙𝟒𝟒 = 𝟑0 Eliminate column 4
Diff. 2 14 0 19 15

Operations research I 34/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
2nd iteration • Optimality test

• For each row and column calculate the difference between two smallest values
• Select the largest difference and in the same row or column select the smallest
unit cost
Destination
1 2 3 5 Supply Diff.
1 16 16 13 17 50 3 𝒙𝟒𝟒 =30
2 14 14 13 15 60 1
3 19 19 20 M 50 0
4 M 0 M 0 50-30 0 Eliminate row 4
Demand 30 20 70 60 𝒙𝟒𝟓 = 𝟐𝟎
Diff. 2 14 0 15

Operations research I 35/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
3rd iteration • Optimality test

• For each row and column calculate the difference between two smallest values
• Select the largest difference and in the same row or column select the smallest
unit cost
Destination
1 2 3 5 Supply Diff.
1 16 16 13 17 50 3 Eliminate row 1
2 14 14 13 15 60 1
3 19 19 20 M 50 0
Demand 30 20 70 40 𝒙𝟏𝟑 = 𝟓𝟎
Diff. 2 2 0 2

Operations research I 36/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
4th iteration • Optimality test

• For each row and column calculate the difference between two smallest values
• Select the largest difference and in the same row or column select the smallest
unit cost

Destination
1 2 3 5 Supply Diff.
2 14 14 13 15 60 1
3 19 19 20 M 50 0
Demand 30 20 20 40 𝒙𝟐𝟓 = 𝟒𝟎
Diff. 5 5 7 M-15

Eliminate column 5

Operations research I 37/60

 • Introduction
Vogel‘s approximation method •
•
Model creation
Initial BF solution
5th iteration • Optimality test

• For each row and column calculate the difference between two smallest values
• Select the largest difference and in the same row or column select the smallest
unit cost

Destination
1 2 3 Supply Diff.
2 14 14 13 20 1 Eliminate row 2
3 19 19 20 50 0
Demand 30 20 20 𝒙𝟐𝟑 = 𝟐𝟎
Diff. 5 5 7

Operations research I 38/60

 •
Vogel‘s approximation method •
Introduction
Model creation
• Initial BF solution
solution • Optimality test

Destination Variable values:

1 2 3 Supply Diff. 𝒙𝟒𝟒 = 𝟑𝟎
3 19 19 20 50 0 𝒙𝟒𝟓 = 𝟐𝟎
𝒙𝟏𝟑 = 𝟓𝟎
Demand 30 20 0 𝒙𝟑𝟐 = 𝟑𝟎 𝒙𝟐𝟓 = 𝟒𝟎
Diff. 5 5 7 𝒙𝟑𝟐 = 𝟐𝟎 𝒙𝟐𝟑 = 𝟐𝟎
𝒙𝟑𝟑 = 𝟎 𝒙𝟑𝟏 = 𝟑𝟎
𝒙𝟑𝟐 = 𝟐𝟎
𝒙𝟑𝟑 = 𝟎
The value of the remaining variables is 0

𝑍 = 0 ∗ 30 + 0 ∗ 20 + 13 ∗ 50 + 15 ∗ 40 + 13 ∗ 20 + 19 ∗ 30 + 19 ∗ 20 + 20 ∗ 0
𝑍 = 0 + 0 + 650 + 600 + 260 + 570 + 380 + 0 = 𝟐𝟒𝟔𝟎

Operations research I 39/60

 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
Principle • Optimality test

• For each source row 𝑖 determine 𝑢ത - largest unit cost 𝑐𝑖𝑗 in that row
• For each destination column 𝑗 determine 𝑣ҧ - largest unit cost 𝑐𝑖𝑗 in that column

Destination ഥ𝟏
𝒖 ഥ𝟐 𝒖
𝒖 ഥ𝟑 𝒖
ഥ𝟒 𝒗
ഥ𝟏 𝒗
ഥ𝟐 𝒗
ഥ𝟑 𝒗
ഥ𝟒 ഥ𝟓
𝒗
1 2 3 4 5 S 22 19 M M M 19 M 23 M
1 16 16 13 22 17 50
2 14 14 13 19 15 60 • For each variable 𝑥𝑖𝑗 calculate
∆𝑖𝑗 = 𝑐𝑖𝑗 − 𝑢ത 𝑖 − 𝑣𝑗ҧ
3 19 19 20 23 M 50
4 M 0 M 0 0 50 • Select the variable with the largest
D 30 20 70 30 60 negative value ∆𝑖𝑗

Operations research I 40/60

 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
1st iteration • Optimality test

Destination ∆11 = −6 − 𝑀 ∆31 = 19 − 2𝑀

∆12 = −25 ∆32 = −M
1 2 3 4 5 S ഥ𝒊
𝒖
∆13 = −9 – M ∆33 = 20 – 2M
1 16 16 13 22 17 50 22 ∆14 = −23 ∆34 = 23 − 𝑀
2 14 14 13 19 15 60 19 ∆15 = −5 – M ∆35 = – M
∆21 = −5 − 𝑀 ∆41 = −𝑀
3 19 19 20 23 M 50 M
∆22 = −24 ∆42 = −𝑀 − 19
4 M 0 M 0 0 50 M ∆23 = −6 − 𝑀 ∆43 = −𝑀
D 30 20 70 30 60 ∆24 = −23 ∆44 = −𝑀 − 23
∆25 = −4 − 𝑀 ∆45 = −2𝑀
ഥ𝒊 M
𝒗 19 M 23 M

The largest negative value of ∆𝑖𝑗

Operations research I 41/60

 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
1st iteration • Optimality test

Destination ∆11 = −6 − 𝑀 ∆31 = 19 − 2𝑀

∆12 = −25 ∆32 = −M
1 2 3 4 5 S ഥ𝒊
𝒖
∆13 = −9 – M ∆33 = 20 – 2M
1 16 16 13 22 17 50 22 ∆14 = −23 ∆34 = 23 − 𝑀
2 14 14 13 19 15 60 19 ∆15 = −5 – M ∆35 = – M
∆21 = −5 − 𝑀 ∆41 = −𝑀
3 19 19 20 23 M 50 M
∆22 = −24 ∆42 = −𝑀 − 19
4 M 0 M 0 0 50 M ∆23 = −6 − 𝑀 ∆43 = −𝑀
D 30 20 70 30 60 ∆24 = −23 ∆44 = −𝑀 − 23
∆25 = −4 − 𝑀 ∆45 = −2𝑀
ഥ𝒊 M
𝒗 19 M 23 M

Allocation of 𝒙𝟒𝟓 = 𝟓𝟎. It uses up the supply in row 4 ⇒ the row 4 will be eliminated

Operations research I 42/60

 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
2nd iteration • Optimality test

• Recalculate 𝑢ത 𝑖 and 𝑣𝑗ҧ

∆11 = −25 ∆31 = −𝑀
Destination ∆12 = −25 ∆32 = −M
1 2 3 4 5 S ഥ𝒊
𝒖 ∆13 = −29 ∆33 = −M
∆14 = −23 ∆34 = 23 − 𝑀
1 16 16 13 22 17 50 22 ∆35 = – M
∆15 = −5 – M
2 14 14 13 19 15 60 19 ∆21 = −24 𝒙𝟒𝟓 = 𝟓𝟎
3 19 19 20 23 M 50 M ∆22 = −24
∆23 = −26
D 30 20 70 30 10 ∆24 = −23
ഥ𝒊 19
𝒗 19 20 23 M ∆25 = −4 − 𝑀

Allocation of 𝒙𝟏𝟓 = 𝟏𝟎. It uses up the supply in column 5 ⇒ the column 5 will be
eliminated

Operations research I 43/60

 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
3rd iteration • Optimality test

• Recalculate 𝑢ത 𝑖 and 𝑣𝑗ҧ

∆11 = −25 ∆31 = −23
Destination ∆12 = −25 ∆32 = −23
1 2 3 4 S ഥ𝒊
𝒖 ∆13 = −29 ∆33 = −23
∆14 = −23 ∆34 = −23
1 16 16 13 22 40 22
𝒙𝟏𝟓 = 𝟏𝟎 𝒙𝟒𝟓 = 𝟓𝟎
2 14 14 13 19 60 19 ∆21 = −24
3 19 19 20 23 50 23 ∆22 = −24
∆23 = −26
D 30 20 70 30 ∆24 = −23
ഥ𝒊 19
𝒗 19 20 23

Allocation of 𝒙𝟏𝟑 = 𝟒𝟎. It uses up the supply in row 1 ⇒ the row 1 will be eliminated

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 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
4th iteration • Optimality test

• Recalculate 𝑢ത 𝑖 and 𝑣𝑗ҧ

𝒙𝟏𝟑 = 𝟒𝟎 ∆31 = −23
Destination 𝒙𝟏𝟓 = 𝟏𝟎 ∆32 = −23
1 2 3 4 S ഥ𝒊
𝒖 ∆21 = −24 ∆33 = −23
∆22 = −24 ∆34 = −23
2 14 14 13 19 60 19
∆23 = −26 𝒙𝟒𝟓 = 𝟓𝟎
3 19 19 20 23 50 23 ∆24 = −23
D 30 20 30 30
ഥ𝒊 19
𝒗 19 20 23

Allocation of 𝑥23 = 30. It uses up the supply in column 3 ⇒ the column 3 will be
eliminated

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 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
Result • Optimality test

• Initial BF solution from

Destination
Russell‘s approximation:
1 2 3 4 5 S
𝒙𝟒𝟓 = 𝟓𝟎 1 16 16 13 22 17 50
𝒙𝟏𝟑 = 𝟒𝟎
𝒙𝟏𝟓 = 𝟏𝟎 2 14 14 13 19 15 60
𝒙𝟐𝟑 = 𝟑𝟎 3 19 19 20 23 M 50
𝒙𝟐𝟏 = 𝟑𝟎
4 M 0 M 0 0 50
𝒙𝟑𝟏 =𝟎
𝒙𝟑𝟐 = 𝟐𝟎 D 30 20 70 30 60
𝒙𝟑𝟒 = 𝟑𝟎

𝑍 = 0 ∗ 50 + 13 ∗ 40 + 17 ∗ 10 + 13 ∗ 30 + 14 ∗ 30 + 19 ∗ 0 + 19 ∗ 20 + 23 ∗ 30
𝑍 = 0 + 520 + 170 + 390 + 420 + 0 + 380 + 690 = 𝟐𝟓𝟕𝟎

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 • Introduction
Russell‘s approximation method •
•
Model creation
Initial BF solution
Initial transportation simplex tableau • Optimality test

Iteration Destination

0 1 2 3 4 5 Supply 𝑢𝑖

16 16 13 22 17
1 40 10
50

2 14 14 13 19 15 60
Source 30

3 19 19 20 23 M 50
0 20 30

M 0 M 0
4(D) 0
50 50

Demand 30 20 70 30 60 𝑍 = 2570

𝑣𝑗

Operations research I 47/60

 • Introduction
• Model creation
Russell‘s vs. Vogel‘s approximation •
•
Initial BF solution
Optimality test

• Initial BF solution from • Initial BF solution from

Russell‘s approximation: Vogel‘s approximation:
𝒙𝟒𝟓 = 𝟓𝟎 𝒙𝟒𝟒 = 𝟑𝟎
𝒙𝟏𝟑 = 𝟒𝟎 𝒙𝟒𝟓 = 𝟐𝟎
𝒙𝟏𝟓 = 𝟏𝟎 𝒙𝟏𝟑 = 𝟓𝟎
𝒙𝟐𝟑 = 𝟑𝟎 𝒙𝟐𝟓 = 𝟒𝟎
𝒙𝟐𝟏 = 𝟑𝟎 Better initial 𝒙𝟐𝟑 = 𝟐𝟎
𝒙𝟑𝟏 =𝟎 BF solution 𝒙𝟑𝟏 = 𝟑𝟎
𝒙𝟑𝟐 = 𝟐𝟎 𝒙𝟑𝟐 = 𝟐𝟎
𝒙𝟑𝟒 = 𝟑𝟎 𝒙𝟑𝟑 = 𝟎
𝒁 = 𝟐𝟓𝟕𝟎 𝑍 = 2460
• The Russell‘s approximation often provides better results than Vogel‘s.
For large problems, both methods are usually used.

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 • Introduction
• Model creation
Optimality test •
•
Initial BF solution
Optimality test

• „A BF solution is optimal if and only if 𝒄𝒊𝒋 − 𝒖𝒊 − 𝒗𝒋 ≥ 𝟎 for every (𝒊, 𝒋) such

that 𝒙𝒊𝒋 is nonbasic.“

• If 𝑥𝑖𝑗 is basic variable, then it is required • Initial BF solution from

to be 𝒄𝒊𝒋 − 𝒖𝒊 − 𝒗𝒋 = 𝟎 ⇒ 𝒄𝒊𝒋 = 𝒖𝒊 + 𝒗𝒋 Russell‘s approximation:
𝑥45 = 50 1 allocation
• We will start with selection of 𝑢𝑖 having 𝑥13 = 40
the largest number of allocations in its 2 allocations
𝑥15 = 10
row and we will assign zero to it 𝑥23 = 30
2 allocations
𝑥21 = 30
• This selection does not influence the 𝒙𝟑𝟏 = 𝟎
result, however, it can significantly 𝒙𝟑𝟐 = 𝟐𝟎 3 allocations
simplify the calculation 𝒙𝟑𝟒 = 𝟑𝟎

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 • Introduction
• Model creation
Optimality test •
•
Initial BF solution
Optimality test

Destination 𝒙𝟑𝟏 = 𝟎
𝒙𝟑𝟐 = 𝟐𝟎 → 𝑢3 = 0
1 2 3 4 5 S
𝒙𝟑𝟒 = 𝟑𝟎
1 16 16 13 22 17 50
2 14 14 13 19 15 60 19 = 𝑢3 + 𝑣1 ⇒ 𝑣1 = 19
19 = 𝑢3 + 𝑣2 ⇒ 𝑣2 = 19
3 19 19 20 23 M 50 23 = 𝑢3 + 𝑣1 ⇒ 𝑣3 = 23
4 M 0 M 0 0 50 14 = 𝑢2 + 𝑣1 ⇒ 𝑣1 = 19 ⇒ 𝑢2 = −5
D 30 20 70 30 60
⋮

…and so on

Two of variables 𝑐25 − 𝑢2 − 𝑣5 = −2 and 𝑐44 − 𝑢4 − 𝑣4 = −1 are negative, therefore

this BF is not optimal

Operations research I 50/60

 • Introduction
• Model creation
An iteration •
•
Initial BF solution
Optimality test

• Determine:
1. Entering basic variable
2. Leaving basic variable 𝑐25 − 𝑢2 − 𝑣5 = −2 and 𝑐44 − 𝑢4 − 𝑣4 = −1
3. Resulting new BF

• 𝑐𝑖𝑗 − 𝑢𝑖 − 𝑣𝑗 represents the rate at which the object. funct. will change as the
nonbasic variable 𝑥𝑖𝑗 is increased ⇒ the enterig basic variable must have a
negative value of 𝑐𝑖𝑗 − 𝑢𝑖 − 𝑣𝑗

• We will select the candidate having the largest negative value of 𝑐𝑖𝑗 − 𝑢𝑖 − 𝑣𝑗 ,
so 𝑥25

Operations research I 51/60

 • Introduction
Completed initial transportation •
•
Model creation
Initial BF solution
simplex tableau • Optimality test

Iter. Destination

0 1 2 3 4 5 Supply 𝑢𝑖
16 16 13 22 17 10
1 40 50 -5
+2 +2 +4
Source 2 14 30 14 13 30 19 15 60 -5
0 +1 -2
19 0 19 20 23 M
3 20 30 50 0
+2 M-22
4(D) M 0 M 0 0 50 50 -22
M+3 +3 M+4 -1
Demand 30 20 70 30 60 𝑍 = 2570

𝑣𝑗 19 19 18 23 22

Operations research I 52/60

 • Introduction
Init. transportation simplex tableau •
•
Model creation
Initial BF solution
Chain reaction • Optimality test

Iter. Destination

0 3 4 5 Supply

13 22 17
1 ⋯ - 50
40 + +4 10

Source -
2 ⋯ 13 19 15 60
30
+1 + -2

⋯ ⋯ ⋯ ⋯

Demand 70 30 60

Operations research I 53/60

 • Introduction
Init. transportation simplex tableau •
•
Model creation
Initial BF solution
Chain reaction • Optimality test

Iter. Destination

0 3 4 5 Supply

1 13 ⋯ 22 17 50
40 + 10 -
+4

Source 2 13 ⋯ - 19 15 60
30
+1 + -2

Demand 70 30 60

• Cells (2,5) and (1,3) = recipient cells (they recieve additional allocation from donor
celss)
• Cells (1,5) and (2, 3) = donor cells

Operations research I 54/60

 • Introduction
Init. transportation simplex tableau •
•
Model creation
Initial BF solution
Chain reaction • Optimality test

Iter. Destination

0 3 4 5 Supply

1 13 ⋯ 22 17 50
40 + 10 -
+4

Source 2 13 ⋯ - 19 15 60
30
+1 + -2

Demand 70 30 60

• The recipient and donor cells correspond to the basic variables in the current
BF solution

Operations research I 55/60

 • Introduction
Init. transportation simplex tableau •
•
Model creation
Initial BF solution
Chain reaction • Optimality test

Iter. Destination

0 3 4 5 Supply

1 13 ⋯ 22 17 50
40 + 10 -
+4

Source 2 13 ⋯ - 19 15 60
30
+1 + -2

Demand 70 30 60

• When we find the chain reaction, the donor cell having the smallest
allocation automaticaly provides the leaving basic variable.

Operations research I 56/60

 • Introduction
Init. transportation simplex tableau •
•
Model creation
Initial BF solution
New BF solution • Optimality test

Iter. Destination

0 3 4 5 Supply
13 22 17
1 ⋯ + - 50
50 +4

Source 2 ⋯ 13 - 19 15 60
20 10
+1 -2

Demand 70 30 60

• Add the value of the leaving basic variable to the allocation for each recipient
cell
• Subtract the same amount from the allocation for each donor cell

Operations research I 57/60

 • Introduction
Init. transportation simplex tableau •
•
Model creation
Initial BF solution
New BF solution • Optimality test

• Allways test, whether some 𝑐𝑖𝑗 − 𝑢𝑖 − 𝑣𝑗 is negative

• If some 𝒄𝒊𝒋 − 𝒖𝒊 − 𝒗𝒋 is negative, then repeat iteration

Operations research I 58/60

 •• Introduction
Introduction
Transportation simplex
Init. transportation tableau
simplex tableau •
•• Model creation
Model creation
Initial BF solution
•• Initial BFtest
solution
Optimal
Optimalsolution
solution Optimality
• Optimality test
Iter. Destination

0 1 2 3 4 5 Supply 𝑢𝑖
16 16 13 22 17
1 50 50 -7
+4 +4 +7 +2
Source 2 14 14 13 20 19 15 40 60 -7
+2 +2 +4
19 30 19 20 23 M
3 20 0 50 0
+1 M-22
4(D) M 0 M 0 30 0 20 50 -22
M+3 +3 M+2
Demand 30 20 70 30 60 𝑍 = 2460

𝑣𝑗 19 19 20 22 22

Operations research I 59/60

 •• Introduction
Introduction
Transportation simplex
Init. transportation tableau
simplex tableau •
•• Model creation
Model creation
Initial BF solution
•• Initial BFtest
solution
Optimal
Optimalsolution
solution Optimality
• Optimality test
Iter. Destination

0 1 2 3 4 5 Supply 𝑢𝑖
16 16 13 22 17
1 50 50 -7
+4 +4 +7 +2
Source 2 14 14 13 20 19 15 40 60 -7
+2 +2 +4
19 30 19 20 23 M
3 20 0 50 0
+1 M-22
4(D) M 0 M 0 30 0 20 50 -22
M+3 +3 M+2
Demand 30 20 70 30 60 𝑍 = 2460

𝑣𝑗 19 19 20 22 22

Operations research I 60/60

 •• Introduction
Introduction
•
Init. transportation simplex tableau
Literature •• Model creation
Model creation
Initial BF solution
•• Initial BFtest
Optimality solution
Optimal solution • Optimality test

[1] Literature: Hillier and Lieberman: Introduction to Operations Research, 8th edition,
2005

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