1. Transportation Problem Required information:
Supply/source points and their capacity
Demand/destination points and their capacity
Unit cost of shipment for all routes
Representation methods:
Graphical
Mathematical
Transportation tableau
IE 416, Chap 7, Sept 2009

2. IE 416, Chap 7, July 99

3. IE 416, Chap 7, July 99

4. IE 416, Chap 7, July 99

5. Balanced Transportation=
* If >
add dummy demand point with
capacity = , Cij= 0
* If <
add dummy supply point with
capacity = , Cij= penalty cost
IE 416, Chap 7:1, July 98

6. Added Transportation Practical Simplex Application Application
Dummy Create balance Extra capacity not used.
Demand Cij = Do not produce or
find new demand points
Dummy Create balance Demand not met.
Supply Cij = penalty Can find new supplier
or add to the capacity
IE 416, Chap 7, Feb. 99

7. Transportation Heuristic Methods
Rule of thumb to find initial bfs
North West Corner (NWC)
Minimum Cost (MC)
Vogel Method
and many more
IE 416, Chap 7:2, July 98

8. IE 416, Chap 7, July 99

9. Foster Generator, Optimal Shipment Plan
From To Amount Unit Total Mathematical
Cost Cost
Clev Bos X11 = 3500
Clev Chi X12 = 1500
Bed Chi X22 = 2500
Bed Lou X23 = 2000
Bed Lex X24 = 1500
York Bos X31 = 2500
Total cost Z = 39500
IE 416, Chap 7, July 99