Lecture Day 11
Specialized Linear Programming Models
Transportation Model
Modified Distribution Method
When Supply Is Not Equal To Demand
Degeneracy
Transshipment Model
Assignment Model
More Popular Heuristics
Row-Minimum Method
Vogels Approximation Method
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
50
40
14
Iloilo
11
12
Davao
Supply
16
X
5
40
10
X
6
50
80
40
40
30
50
120
70
90
70
40
50
250
40
30
40
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
Demand
Davao
Iloilo
11
16
12
50
Laguna
Batangas
Cebu
Supply
40
14
40
10
40
30
50
90
70
40
50
K1
K2
K3
K4
50
R1
80
R2
120
R3
250
Ri + Kj = Cij
R1 + K1 = 8
R2 + K2 = 7
R2 + K3 =
R3 + K1 =
R3 + K2 =
R3 + K4 =
5
14
10
7
R1 = 0
R2 = 3
R3 = 6
K1
K2
K3
K4
=
=
=
=
8
4
2
1
Ri + Kj = Cij
R1 + K1 = 8
R2 + K2 = 7
R2 + K3 =
R3 + K1 =
R3 + K2 =
R3 + K4 =
5
14
10
7
R1 = 0
R2 = 3
R3 = 6
K1
K2
K3
K4
=
=
=
=
8
4
2
1
Cij (Ri + Kj) = OC
9 (0 + 4) = + 5
11 (0 + 2) = + 9
16 (0 + 1) = +15
12 (3 + 8) = + 1
8 (3 + 1) = + 4
6 (6 + 2) = - 2
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
8
Demand
Davao
Iloilo
11
16
40
+ 6
50
Laguna
Batangas
Cebu
Supply
12
14
40
- 10
40
30
90
70
50
40
50
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
Demand
Davao
Iloilo
11
16
12
50
Laguna
Batangas
Cebu
Supply
70
14
10
10
40
30
50
90
70
40
50
K1
K2
K3
K4
50
R1
80
R2
120
R3
250
Ri + Kj = Cij
R1 + K1 = 8
R2 + K2 = 7
R2 + K3 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
5
14
6
7
R1 =
R2 =
R3 =
K1 =
K2 =
K3 =
K4 =
0
5
6
8
2
0
1
Ri + Kj = Cij
R1 + K1 = 8
R2 + K2 = 7
R2 + K3 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
5
14
6
7
R1 =
R2 =
R3 =
K1 =
K2 =
K3 =
K4 =
0
5
6
8
2
0
1
Cij (Ri + Kj) = OC
9 (0 + 2) = + 7
11 (0 + 0) = +11
16 (0 + 1) = +15
12 (5 + 8) = - 1
8 (5 + 1) = + 2
10 (6 + 2) = + 2
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Davao
50
+ 12
10
70
-
14
40
90
70
Supply
Iloilo
11
16
10
+ 6
30
50
40
50
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Supply
Davao
Iloilo
11
16
12
10
50
10
70
14
30
40
50
90
70
40
50
K1
K2
K3
K4
50
R1
80
R2
120
R3
250
Ri + Kj = Cij
R1 + K1 = 8
R2 + K1 = 12
R2 + K2 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
7
14
6
7
R1 =
R2 =
R3 =
K1 =
K2 =
K3 =
K4 =
0
4
6
8
3
0
1
Ri + Kj = Cij
R1 + K1 = 8
R2 + K1 = 12
R2 + K2 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
7
14
6
7
R1 =
R2 =
R3 =
K1 =
K2 =
K3 =
K4 =
0
4
6
8
3
0
1
Cij (Ri + Kj) = OC
9 (0 + 3) = + 6
11 (0 + 0) = +11
16 (0 + 1) = +15
5 (4 + 0) = + 1
8 (4 + 1) = + 3
10 (6 + 3) = + 1
The Cordoba Company
Warehouse
To
From
Baguio
Cavite
Cebu
Supply
Davao
Iloilo
11
16
12
10
50
Laguna
10
Batangas
Demand
70
14
30
90
70
40
50
40
50
Minimum transportation cost = P2,020
Next Topic
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
8
50
Laguna
Batangas
Demand
Cebu
90
Davao
Supply
Iloilo
11
16
12
14
10
70
40
50
40
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
8
50
Laguna
Batangas
Demand
Cebu
90
Davao
Supply
Iloilo
11
16
12
14
10
70
40
50
40
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
8
50
Davao
Iloilo
11
12
Laguna
16
X
5
70
14
Batangas
Demand
Cebu
Supply
10
X
90
70
40
50
40
50
80
10
120
250
2
1
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
8
50
Davao
Iloilo
11
12
Laguna
16
X
5
70
14
Batangas
Demand
Cebu
Supply
10
X
90
70
40
50
40
50
80
10
120
250
3
1
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
50
70
14
Iloilo
11
12
Davao
Supply
16
X
5
10
10
X
6
40
30
50
90
70
40
50
40
30
50
80
10
120
250
90
3
1
40
The Cordoba Company
Warehouse
To
From
Cavite
Baguio
Demand
Davao
Iloilo
11
16
12
50
Laguna
Batangas
Cebu
Supply
70
14
10
10
40
30
50
90
70
40
50
K1
K2
K3
K4
50
R1
80
R2
120
R3
250
Ri + Kj = Cij
R1 + K1 = 8
R2 + K2 = 7
R2 + K3 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
5
14
6
7
R1 = 0
R2 = 5
R3 = 6
K1
K2
K3
K4
=
=
=
=
8
2
0
1
Ri + Kj = Cij
R1 + K1 = 8
R2 + K2 = 7
R2 + K3 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
5
14
6
7
R1 = 0
R2 = 5
R3 = 6
K1
K2
K3
K4
=
=
=
=
8
2
0
1
Cij (Ri + Kj) = OC
9 (0 + 2) = + 7
11 (0 + 0) = +11
16 (0 + 1) = +15
12 (5 + 8) = - 1
8 (5 + 1) = + 2
10 (6 + 2) = + 2
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Davao
50
+ 12
10
70
-
14
40
90
70
Supply
Iloilo
11
16
10
+ 6
30
50
40
50
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Supply
Davao
Iloilo
11
16
12
10
50
10
70
14
30
40
50
90
70
40
50
K1
K2
K3
K4
50
R1
80
R2
120
R3
250
Ri + Kj = Cij
R1 + K1 = 8
R2 + K1 = 12
R2 + K2 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
7
14
6
7
R1 =
R2 =
R3 =
K1 =
K2 =
K3 =
K4 =
0
4
6
8
3
0
1
Ri + Kj = Cij
R1 + K1 = 8
R2 + K1 = 12
R2 + K2 =
R3 + K1 =
R3 + K3 =
R3 + K4 =
7
14
6
7
R1 =
R2 =
R3 =
K1 =
K2 =
K3 =
K4 =
0
4
6
8
3
0
1
Cij (Ri + Kj) = OC
9 (0 + 3) = + 6
11 (0 + 0) = +11
16 (0 + 1) = +15
5 (4 + 0) = + 1
8 (4 + 1) = + 3
10 (6 + 3) = + 1
The Cordoba Company
Warehouse
To
From
Baguio
Cavite
Cebu
Supply
Davao
Iloilo
11
16
12
10
50
Laguna
10
Batangas
Demand
70
14
30
90
70
40
50
40
50
Minimum transportation cost = P2,020
50
80
120
250
For maximization problems, either change
the signs of the objective function values
and minimize, or choose the non-basic cell
with the most positive Cij (Ri + Kj) value
to enter the solution; all other steps
remain the same.
When Supply
Is Not Equal To
Demand
When supply is not equal to demand . . .
. . . adjust accordingly.
Make supply always equal to demand
by adding either a dummy supplier
or a dummy demand point.
Example: If Supply > Demand or Demand < Supply
Warehouse
To
From
Baguio
Cavite
Laguna
Batangas
Demand
90
Cebu
Supply
Davao
11
12
14
10
70
40
50
80
120
Example: If Supply > Demand or Demand < Supply
Warehouse
To
From
Baguio
Cavite
Laguna
Batangas
Demand
90
Cebu
Supply
Davao
Dummy
11
12
14
10
70
40
50
50
80
120
250
Units assigned to cells in the dummy column show
which suppliers have excess supply and by how much.
Example: If Supply > Demand or Demand < Supply
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
50
40
14
Dummy
11
12
40
Davao
Supply
0
X
5
10
X
6
50
80
40
30
40
50
120
90
90
70
40
50
250
40
30
50
Example: If Demand > Supply or Supply < Demand
Warehouse
To
From
Baguio
Cavite
Laguna
Demand
90
Cebu
Supply
Davao
Iloilo
11
16
12
70
40
50
50
80
Example: If Demand > Supply or Supply < Demand
Warehouse
To
From
Baguio
Cavite
Laguna
Dummy
Demand
90
Cebu
Supply
Davao
Iloilo
11
16
12
70
40
50
50
80
120
250
Units assigned to cells in the dummy row show which
demand points would have demands not fully met.
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Dummy
Demand
Baguio
Cebu
50
12
40
Davao
Supply
11
X
7
40
0
Iloilo
16
X
5
X
0
X
0
50
80
40
30
40
50
120
90
90
70
40
50
250
40
30
50
Degeneracy
Degeneracy occurs whenever a basic variable assumes
a zero value. This condition violates the M + N 1
basic cells requirement.
Degeneracy can arise in the following situations:
1. In determining a feasible starting solution,
fewer than M + N 1 cells are used.
Example: Using Northwest Corner Rule
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
70
60
14
Iloilo
11
12
20
Davao
Supply
16
X
5
10
X
6
70
80
60
40
60
100
60
90
60
40
60
250
20
Degeneracy occurs whenever a basic variable assumes
a zero value. This condition violates the M + N 1
basic cells requirement.
Degeneracy can arise in the following situations:
1. In determining a feasible starting solution,
fewer than M + N 1 cells are used.
2. In working toward optimality, there may have
been more than one basic cell to leave the
solution at an iteration. This results in fewer
than M + N 1 cells being basic.
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Davao
50
+ 12
10
70
-
14
40
90
70
Supply
Iloilo
11
16
10
+ 6
30
50
40
50
50
80
120
250
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Davao
50
+ 12
10
70
-
14
10
60
70
Supply
Iloilo
11
16
10
+ 6
30
50
40
50
50
80
90
220
In the first situation, degeneracy is handled
by never deleting a row and a column of
the transportation tableau at the same
time. When the maximum supply and
demand values that can be assigned in a
cell are equal, allocate zero units to another
cell at another step in the heuristic.
Example: Using Northwest Corner Rule
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
70
60
14
Iloilo
11
12
20
Davao
Supply
16
X
5
10
X
6
70
80
60
40
60
100
60
90
60
40
60
250
20
In the second case, degeneracy arises
whenever there is more than one basic cell
in the closed loop that is minus labeled and
has the same minimum shipment amount.
In this situation, care must be taken to
delete only one of the cells.
The Cordoba Company
Warehouse
To
From
Cavite
Laguna
Batangas
Demand
Baguio
Cebu
Davao
50
+ 12
10
70
-
14
10
60
70
Supply
Iloilo
11
16
10
+ 6
30
50
40
50
50
80
90
220
Transshipment Model
The transshipment problem is sometimes called the
minimum-cost network flow problem.
It is the most general of the linear network models
and contains transportation and assignment models
as special cases.
Its solution methodology is similar to the
transportation MODI method.
The transshipment model differs from the
transportation model in that it allows nodes or points
that are neither pure origins nor pure destinations.
The origins and destinations of a transportation
problem are sources and sinks, respectively.
Source nodes can be thought of as having supply
available; sink nodes typically represent demand
points.
Transshipment models allow the presence of a
transshipment point that has arcs leading into
and out of the node. Transshipment nodes can
have a supply, or demand; they can also have a
supply or demand of zero.
General Transshipment Model
Let:
N = set of all arcs in the network
n = number of nodes in the network
Xij = amount of flow from node i to node j
Cij = per unit cost of flow from node i to node j
lij = lower bound on flow from node i to node j
uij = upper bound on flow from node i to node j
bj = supply (demand) at node j
Additionally, let (i,j) denote an arc in the
General Transshipment Model
S cij xij
Minimize:
(i,j) e N
Subject to:
total flow out total flow in = node supply or demand
S xjk - S xkj
(j,k) e N
= bj, j = 1, . . . , n
(k,j) e N
lij < xij < uij, all (i,j) e N
Example:
Supply Sites
29
Distribution
Centers
Demand Sites
5
-20
-28
-17
4
36
2
Source
Transshipment
Point
Sink
Let Xij = amount to be shipped
from source i to
destination j
where i = 1, 2, 3, 4
j = 3, 4, 5, 6, 7
Min. Z = 5X13 + 2X14 + 8X24
+ 8X35 + 6X36 + 10X45
+ 7X46 + 2X47
Subject to:
X13 > 0
X13 + X14 = 29
8 < X14 < 20
X24 = 36
X24 > 0
X35 + X36 X13 = 0
0 < X35 < 15
X45 + X46 + X47 X14 X24 = 0
X36 > 5
- X35 - X45 = -20
0 < X45 < 15
- X36 - X46 = -28
X46 > 0
- X47 = -17
10 < X47 < 20
Assignment Model
The assignment model is a special case of the
transportation problem wherein the basic idea is to
assign n single elements rather than many units
from each source to destination.
It can be described as a transportation model with
an equal number of sources and destinations with
all supply and demand values equal to one (1).
Typical applications of the assignment model
include the least-cost or least-time assignment of
jobs to machines, workers to tasks, salespersons to
territories, and contracts to contractors.
In general, if there are n agents to be assigned to
n tasks, the assignment model is stated as:
n
Minimize:
S S cijxij
i=1 j=1
n
Subject to:
S xij = 1,
i = 1,2, . . . , n
j=1
n
S xij = 1,
i = 1,2, . . . , n
i=1
xij > 0
for all i and j
Example:
Vice Presidents
To
From
London
Sec. 1
Sec. 2
Sec. 3
Demand
New York
Supply
Shanghai
11
12
14
10
1
3
End of Lecture Day 11
