TRANSPORTATION PROBLEM

Lect. univ. dr. Mihaela Albici Constantin Brancoveanu University Pitesti Faculty of Management Marketing in Business Affairs Rm. Valcea mturmacu@yahoo.com Lect. univ. dr. Delia Teselios Constantin Brancoveanu University Pitesti Faculty of Management Marketing in Business Affairs Pitesti delia_teselios@yahoo.com Lect. univ. dr. Cristina Tenovici Constantin Brancoveanu University Pitesti Faculty of Management Marketing in Business Affairs Rm. Valcea cris2001vl@yahoo.com Conf. univ. dr. Carmen Radut Constantin Brancoveanu University Pitesti Faculty of Management Marketing in Business Affairs Rm. Valcea c_radut@yahoo.com

Abstract: Transportation problem at its general form consists in finding an optimum transportation plan of a product from the receiving centers to consuming centers, so that the transportation costs to be minimal Keywords: mathematical transportation problem

model,

linear

programming

problem,

1. Problem formulation and mathematical model

Problems of transportation type represent a particular case of linear programming problems [2]. The suppliers F1 ,- , Fm of a particular product, who dispose the quantities D1 ,- respectively Dm , supply with that product the beneficiaries B1 ,- , Bn , whose necessary is N 1 ,- respectively N n . The supply requires the unit transportation costs c ij from the supplier Fi to the beneficiary B j , i ! 1,- , m , j ! 1,- , n . There are searched the xij quantities, transported from each supplier Fi to each beneficiary B j , so that the total costs of supply to be minimum.
1

The mathematical model of transportation problem is the following:

min f ! c ij xij
i !1 j !1 m n

(11) (12) (13) (14) (15) Fi  j , and function

xij e
j !1 m

xij e N j , j ! 1,- , n
i !1

xij u 0 , i ! 1,- , m , j ! 1,- , n

f ! cij xij represents the total cost of transportation.

i !1 j !1

Restriction (12) shows that the total of quantities allocated to beneficiaries by the supplier Fi does not exceed its available quantity. Restrictions (13) impose the conditions that all transported quantity from the suppliers to the beneficiary B j is at least equal to his needs. Restriction (14) are conditions of non-negativity. Note 15: Most often, the restrictions (12) and (13) arise in practice as equalityes. Moreover, by elementary transformation, any problem of type (11) (15) can be brought to the form in which restrictions are equalities. For these reasons, we will consider the following transportation problem:
m n

min f ! cij xij

i !1 j !1

x
j !1 m

ij

x
i !1

ij

! N j , j ! 1,- , n

where the problem parameters meet the conditions: Di 0 , j u 0 , c ij u 0 , i ! 1,- , m , j ! 1,- , n We will consider the total demand ( the total necessary)

and the total supply (total available quantity)

!
i !1

Definition 16: A transportation problem is balanced if the total demand is equal to the total supply, that is N ! D . If the total demand is different from the total supply ( N { D ), then the problem is unbalanced, being possible the situations N " D and N D . Developing a transportation problem, is most often
2

xij

0 , i ! 1,- , m , j ! 1,- , n

, i ! 1,- , m

N ! Nj
j !1 m

where the problem parameters meets the conditions i u 0 , N j u 0 , c ij u 0 , i ! 1,- , m , j ! 1,- , n cij xij is the transportation cost on the route

, i ! 1,- , m

(16) (17) (18) (19) (20)

done by organizing data (quantities required, available quantities and unit costs of transport) in a table:
Beneficiaries Suppliers
F1 . . . Fi . . . Fm

B1
c11 . . . ci1 . . . cm1

. . . . . .

Bj
c1 j . . . cij . . . c mj

. . . . . .

Bn
c1n . . . cin . . . cmn
n

Available quantity
D1 . . . Di . . . Dm

. . .

. . .

. . . . . .

. . . . . .

Note 17. Mathematical model (16)-(20) has numerous applications in economic practice [2]. Thus, with the transportation problem set forth, we have the example: If D1 ,- , Dm represent crop areas of same quality, and 1 ,- , n are n crops, then the problem of optimal location of crops has the mathematical model (11)-(15) - If F1 ,- , Fm are m banks which finance n projects B1 ,- , Bn , cij being the unit profits of the financial placement, then the financing problem of these projects has the mathematical model (21), (12) -(15), where
m n

max f ! cij xij

i !1 j !1

(21)

Mathematical model (16) -(20) is a linear programming problem. Indeed, this model can be rewritten as: min f ! cx (22) (23) Ax ! b xu0 (24) t where x ! x11 , x12 ,- , x1n , x21 ,- , x2 n ,- , xm1 ,- , xmn
c ! c11 , c12 ,- , c1n ,c 21 ,- ,c 2 n ,- ,c m1 ,- ,c mn b ! D1 ,- , Dm , N1 ,- , N n
t

Requirement

 11- 1 00 - 0 ......... 00 - 0 A! 10 - 0 01- 0 ......... 00 - 1

00 - 0 ......... 00 - 0 11- 1 ......... 00 - 0 ......... ......... ......... 00 - 0 ......... 11- 1 10 - 0 ......... 10- 0 01- 0 ......... 01- 0 ......... ......... ......... 00 - 1 ......... 00 - 1

(25)

4. Solving the problem of transportation 4.1 Determination of an initial basic solution

We consider the transportation problem of minimum (16) -(20) as balanced. According to Note 17, equality type restrictions of this problem form a linear system of equations with unknows, whose matrix is given by (25). It is noted that by adding the first m equations (restrictions (12)) and the last n equations (restrictions (13)) we reach to the same equation, since N ! D , the problem being balanced. It results that rangA e m  n  1 . The theorem which follows justify the definitions which will be given. Theorem 18. The matrix A of restriction system on transportation problem (16)-(20) has the rank m  n  1 . The demonstration can be done by induction after r ! m  n  1 . Note 19. From theorem results that the system (23) has m  n  1 principal unknows and mn  m  n  1 secondary unknows. So, a basic solution of transportation problem (16)-(20) has at most m  n  1 strictly positive components (the basic ones), others being zero (the non-basic ones). A basic solution is nondegenerate if it has exactly m  n  1 strictly positive components and degenerate if it has less than m  n  1 strictly positive components. As we have seen, for solving a linear programming problem it is first necessary to have a basic solution. Due the particular form of transportation problems, were also found specific methods for determining an initial basic solution, such as: North-West corner method; Row minimum method; Column minimum method; Minimum cost method; Maximum difference method.
North-West Corner Method

It is allocated to cell (1,1) from xij transported quantities table the value equal to the minimum between the adequate necessary N 1 and the adequate disposable D1 , namely:
N , if N 1 e D1 x11 ! 1 D 1 , if N1 " D1

Thus, the first line is saturated, that is x1 j ! 0 , j ! 2,- ,n , if N1 D1 , or the first column, that is xi1 ! 0 , i ! 2,- , m , if N1 " D1 , or even both, if N1 ! D1 . It is eliminated the first line or the first column or even both (where appropriate) and the process continues for the table thus obtained. So, it is assigned value to cell (2,1) or (1,2) or (2,2), as N1 D1 , N1 " D1 or N1 ! D1 , the allocation rule being the same: the minimum between the necessary and the disposable existing during allocation time. The algorithm continues in the same manner, until all cells are assigned values.
Row Minimum Method

The allocation rule is the same, n amely the quantity xij is equal to the minimum between the necessary and the disposable existing at the time of allocation, but the process is applied on each line, in order of increasing unit costs of transport cij . It begins with the first line and go through all the others, on each line being allocated value the cell corresponding to minimum cost and where that line is not saturated, it is continued to the cell corresponding to minimum cost from those remaining on that line.

Column Minimum Method

It is proceeded just like with the previous method, but takes up the columns from the first row.
Minimum Cost Method

It is proceeded like with the last two methods, but it starts with the cell corresponding to the minimum cost cij , then continue as in other ways. After the elimination of a line or column, is seeking the minimum value of cost in the table remained. Note 20. In general, application of these methods lead to different basic solutions, although it is possible to obtain some of them, or even all, equal.
5

Often, the closest to the optimal solution is the basic solution obtained by the minimum cost method [4]. To have a basic solution as close to the optimal solution, after applying the four methods we can determine the value of objective function for each solution. Then, choose the basic solution for which the objective function has the smallest value.
Example 1. Three warehouses F1 , F2 , F3 which have the quantities 225, 75, respectively 250 units of a product supply with that product four shops B1 , B2 , B3 , B4 , which need the quantities 100, 150, 200 respectively 100 units. The costs of the product unit transport and the previous data are summarized in the following table:
Available quantity F1 1 3 225 F2 3 1 75 F3 3 2 250 550 Requirement 100 150 200 100 550 B1 1 4 2 B2 2 2 1 B3 B4

There are requested the quantities xij (transported from supplier Fi to beneficiary B j ), i _ ,2,3a, j _ ,2,3,4a, so that the total cost of supply to be minimum. 1 1 According to this table, unit costs of transport are:
c11 ! 1 , c12 ! 2 , c13 ! 1 , c14 ! 3 , c21 ! 4 , c 22 ! 2 , c 23 ! 3 , c 24 ! 1 , c31 ! 2 , c 32 ! 1 , c 33 ! 3 , c 34 ! 2 .

Since the total necessary is N ! 100  150  200  100 ! 550 , and the total disposable D ! 225  75  250 ! 550 , the problem is balanced ( N ! D ). We determine the basic solution of transportation problem through the North-West corner method. According to this method, we will have:
x11 x12 x 22 x 23 x 33 x 34 ! min _ ,100a! 100 , x 21 ! 0 , x 31 ! 0 ; 225 ! min_ ,150a! 125 , x13 ! 0 , x14 ! 0 ; 125 ! min_ ,75a! 25 , x32 ! 0 ; 25 ! min_ ,200a! 50 , x24 ! 0 ; 50 ! min _ ,150a! 150 ; 250 ! min _ ,100a! 100 . 100

Calculations and results are recorded in a 3x4 table containing the cells xij . Judgements are made on a table , in which are no longer written the unit costs of transport, and non-basic cells are left blank.
B1 B2 B3 B4 Available quantity

50 150 100 100 Requirement 100 150 200

F1 F2 F3

100 125 25

225 75 250 550 550

The obtained basic solution in nondegenerate, whereas the number of nonzero basic cells is m  n  1 ! 3  4  1 ! 6 . Using the minimum cost method, obtain the basic solution:
Available quantity F1 100 125 225 F2 75 75 F3 150 75 25 250 550 Requirement 100 150 200 100 550
B1 B2 B3

B4

The basic solution for the row minimum method will be:
Available quantity F1 125 225 F2 75 75 F3 150 75 25 250 550 Requirement 100 150 200 100 550
B1 100 B2 B3 B4

In case of the column minimum method, the basic solution will be degenerate because the number of nonzero basic cells is 5, smaller than
m  n 1 ! 3  4 1 ! 6 . Available quantity F1 125 225 75 75 F2 F3 150 100 250 550 Requirement 100 150 200 100 550 B1 100 B2
B3 B4

4.2 Determination of optimal solutions

We consider again a balanced transportation problem:

min f ! cij xij
i !1 j !1 n m n

(16) (17)

x
j !1

ij

! Di , i ! 1,- , m

x
i !1

ij

! N j , j ! 1,- , n

(18)

(19) Attaching to each restriction of type (17) the dual variable ui , i ! 1,- , m and to each restriction of type (18) the dual variable v j , j ! 1,- , n , we obtain the dual problem of transportation problem:
max g ! Di u i  N j v j
i !1 j !1 m n

xij u 0 , i ! 1,- , m , j ! 1,- , n

(26)

(27) (28) u i , v j - oarecare, i ! 1,- , m , j ! 1,- , n According to the theorem of complementary spacing, the couple of optimal 0 solution xij for primal and  i0 ,v 0j for dual are admissible solutions (satisfy the u relationships (12), (13), respectively (27)) which verify the relation: (29) cij  ui0  v 0j xij0 ! 0 Next, we consider that transportation problem admits nondegenerate solutions. 0 0 Note 21. These relationships shows that if xij { 0 ( xij is a basic component), then:
u i0  v 0 ! c ij j

u i  v j e c ij , i ! 1,- , m , j ! 1,- , n

From the above results the following theorem: Theorem 22. A basic solution x B of transportation problem (16)-(20) is an optimal solution if and only if: cij  u i  v j u 0 , i ! 1,- , m , j ! 1,- , n (30) So, verifying the optimality of a basic solution requires the determination of dual variables ui and v j , which are the solutions of the system: u i  v j ! cij , i , j I x (31) where I x is the set of pairs of basic indices. Theorem 23. Linear system (31) of m  n  1 equations with m  n unknown has an infinity of solutions that depend on a parameter. Thus, if  i0 ,v 0j is a u particular solutio of the system, then: u i ! u i0  k , v j ! v 0  k , k R j is also, a solution.
B B

Note 24. The significance of this theorem is that it can arbitrarily fix one of the systems variables (31), and the others are then determined in a unique manner. In this way, the optimality of the situation is not influenced. Using the presented results, the potential method consists in doing the followin g steps: 1. It solves the system (31). To determine a solution is given a convenient value to one of the variable, usually 0.
8

2.

It verifies the optimality of the basic solution x B by calculating the differences

H ij ! u i  v j  cij , i , j I x B

There are possible the following situations: a) If H ij e 0 , i, j I x , then the basic solution is optimal. When H ij 0 , i , j I x ,, the optimal solution is unique, and when the re is H i j ! 0 for i0 , j0 I x , the problem admits more optimal solutions b) If there is H ij " 0 , then the considered solution is not optimal and it improves like this: It is allocated an amount U u 0 in cell i0 , j0 in the table of solution x B corresponding to the larger H ij element. It is built a cycle, a sequence of cells beginning and ending with i0 , j0 . This cycle contains only basic cells, except i0 , j0 cell, and two consecutive cells are on the same row or the same column. It is established a manner to go over and the cycles cells are numbered, beginning with i0 , j0 . In the cells of even rank it is subtracted U , and in the cells of odd rank it is added U to quantities xij . It is determined U to be equal to the smallest quantity xij from which it is subtracted. It is found a new solution replacing U previously determined. 3. With the obtained solution it is resumed the process from step 1).
B B 0 0 B

Note 25. From the manner in which the cycle is obtained, it results that the necessary and the disposable does not modify, as in any column and row of the cycle in one of the cells it is added U , and in the other U is subtracted. Note 26. The algorithm presented above it is applied only to balanced transportation problems which admit nondegenerate basic solutions. Example 2. For the problem set out above, we consider the basic solution obtained with the help of the North-West corner method:
Available quantity 225 F1 F2 50 75 F3 150 100 250 550 Requirement 100 150 200 100 550 B1 B2 100 125 25 B3 B4

In order to test the optimality of this solution, first, there are determined the dual variables u1 , u 2 , u 3 , v1 , v 2 , v3 , v4 , solving the system u i  v j ! cij for all basic cells i , j . As we specified earlier, it is assigned the 0 value to one of the dual

variables in the in the equation corresponding to the first basic cell considered and then are determined the other dual variables. We have:

1,1 : u1  v1 ! 1, v1 ! 0 u1 ! 1; 1,2 : u1  v 2 ! 2 , u1 ! 1 v 2 ! 1 ; 2,2 : u 2  v 2 ! 2 , v 2 ! 1 u 2 ! 1 ; 2,3 : u 2  v3 ! 3 , u 2 ! 1 v3 ! 2 ; 3,3 : u 3  v3 ! 3 , v3 ! 2 u 3 ! 1 ; 3,4 : u3  v4 ! 2 , u3 ! 1 v 4 ! 1 ;

We calculate the sizes H ij ! u i  v j  cij for all non basic cells i , j : 1,3 : H 13 ! u1  v3  c13 ! 1  2  1 ! 2 ; 1,4 : H 14 ! u1  v 4  c14 ! 1  1  3 ! 1 ; 2,1 : H 21 ! u 2  v1  c21 ! 1  0  4 ! 3 ; 2,4 : H 24 ! u 2  v 4  c24 ! 1  1  1 ! 1 ; 3,1 : H 31 ! u3  v1  c31 ! 1  0  2 ! 1; 3,2 : H 32 ! u 3  v 2  c32 ! 1  1  1 ! 1 ; The matrix of the elements H ij and the dual variables are written in the following table:
v1 ! 0 u1 ! 1 u2 ! 1 u3 ! 1
3 1

v2 ! 1

v3 ! 2 2

v4 ! 1
1 1

The solution is not optimal because we have H 13 ! 2 " 0 . We form the cycle:

1,3

p 2,3 p 2,2 p  ,2 1

1 2 3 4 odd even odd even It takes x13 ! U and form the cycle of solution improvement
125  U o 25  U B1 F1 F2 F3 B2
p n U q 50  U

B3
U

B4

100 125  U 25  U

50  U 150

100

125 Because U ! min _ ,50a! 50 , we obtained nondegenerated basic solution:

F1

B1 100

B2 75

B3 50

B4

10

F2 F3

75 150 100

Next, we need to test the optimality of this solution. It is solved, again, the system ui  v j ! cij for the basic cells i , j :

1,1 : u1  v1 ! 1, v1 ! 0 u1 ! 1; 1,2 : u1  v 2 ! 2 , u1 ! 1 v 2 ! 1 ; 1,3 : u1  v3 ! 1, u1 ! 1 v3 ! 0 ; 2,2 : u 2  v 2 ! 2 , v 2 ! 1 u 2 ! 1 ; 3,3 : u3  v3 ! 3 , v3 ! 0 u3 ! 3 ; 3,4 : u3  v 4 ! 2 , u3 ! 3 v 4 ! 1 ; For non-basic cells i , j , there are calculated the differences 1,4 : H 14 ! u1  v4  c14 ! 1  1  3 ! 3 ; 2,1 : H 21 ! u 2  v1  c21 ! 1  0  4 ! 3 ; 2,3 : H 23 ! u 2  v3  c 23 ! 1  0  3 ! 2 ; 2,4 : H 24 ! u 2  v 4  c 24 ! 1  1  1 ! 1 ; 3,1 : H 31 ! u3  v1  c31 ! 3  0  2 ! 1 ; 3,2 : H 32 ! u3  v2  c32 ! 3  1  1 ! 3 ;
v1 ! 0 u1 ! 1 u2 ! 1 u3 ! 3
3 1

H ij ! u i  v j  cij :

So, for the matrix of elements H ij and for dual variables we have the table:
v2 ! 1 v3 ! 0
2

v 4 ! 1 3 1

The solution not being optimal ( H 32 ! 3 " 0 ), we form the cycle

2,2 p 1,2 p 1,3

1 odd that is 2 even 3 odd

p 2,3

4 even

75  U o U B1 F1 F2 F3 100

p n

50  U q 150  U B3 50  U
150  U

B2 75  U 75 U

B4

100

We choose U ! min _ ,150a! 75 and obtain the solution: 75

B1 B2 B3 B4

F1

100

125

11

F2 F3

75 75

75

100

For testing the optimality of current solution, by calculating the elements H ij , we have:
v1 ! 0 u1 ! 1 u2 ! 4 u3 ! 3 0 1 v 2 ! 2
3 v3 ! 0

v 4 ! 1
3 2

The solution not being optimal (H 24 ! 2 " 0 ), we form the cycle 1 odd 2 even 3 odd

that is
B1 F1 F2 F3 100 75  U 75  U B2 B3 125 75
U 100  U

We choose U ! min _ ,100a! 75 and obtain the solution: 75

B1 B2 B3

For testing the optimality of current solution, by calculating elements H ij , we have:

v1 ! 0 v 2 ! 2 3 2 1 2 1 v3 ! 0 v 4 ! 1 3

u1 ! 1 u2 ! 2 u3 ! 3

The solution not being optimal (H 31 ! 1 " 0 ), we form the cycle: 1 odd 2 even 3 odd

that is
B1 B2 B3

3,1

1,1

1,3

2,4

3,4

3,2

2,2
4 even

B4

B4 75 25

F1 F2 F3

100 150

125 75

3,3
4 even

B4

12

F1 F2 F3

100  U U

125  U

150

75  U

75 25

We choose U ! min _ ,75a! 75 and obtain the solution: 100

B1 B2 B3 B4

F1 F2 F3

25 75 150

200 75 25

For testing the optimality of current solution, by calculating elements H ij , we have:

v1 ! 0
u1 ! 1 u2 ! 1 u3 ! 2 3

v 2 ! 1
2 2

v3 ! 0 2 1

v4 ! 0
2

1 1 The obtained solution is optimal, because H ij e 0 ,  i _,2,3a,  j _,2,3,4a. Therefore, the optimal solution of the given problem is : x11 ! 25 , x12 ! 0 , x13 ! 200 , x14 ! 0 , x21 ! 0 , x 22 ! 0 , x 23 ! 0 , x 24 ! 75 , x 31 ! 75 , x 32 ! 150 , x33 ! 0 , x 34 ! 25 , and the total cost minimum of transportat ion is: min f ! 25 1  200 1  75 1  75 2  150 1  25 2 ! 650

5. Solutions degeneration

We consider balanced the transportation problem (16) -(20). According to relations (29), the system (31) is simply undetermined only if the basic solution x B is nondegenerate. If the basic solution is degenerate, the system (31) is a linear system with m  n unknown with a number of equations equal to the number of nonzero basic cells. Because of this, it would be necessary to also set other variables, which can create difficulties. Therefore, for the removal of degeneration it is achieved the disturbance of problem, which can be made, for example, by changing the necesarry and the disposable quantities as:
! Did Di  I , i ! 1,- , m , N d N j , j ! 1,- ,n  1 , j ! d N n ! N n  mI ,

13

where I " 0 is small enough. The disturbed problem, which is also balanced, can be solved in an usual manner, and when it is reached the opti mal solution, it takes I ! 0 . Note 27. It is possible that degeneration occur in the initial basic solution, when the number of cells which are given values is strictly smaller than m  n  1 , or over improving solution, when there are at least two alternatives that give the parameters value U . In each of the situations it can be considered the disturbed problem as above. To recognize degeneration from the beginning, we have the following theorem. Theorem 28. Balanced transportation problem (16)-(20) admits degenerate basic solution if and only if there are the sets M _ ,2 ,- ,ma and P _ ,2 ,- ,naso 1 1 that:

D ! N
i i

Example 3. For the problem set out in Example 1, consi der the basic solution obtained using the column minimum method:
Available quantity 3 225 F1 1 75 F2 F3 2 250 550 Requirement 100 150 200 100 550 B1 1 4 2 B2 2 2 1 B3 1 3 3 B4

The problem is balanced, becau se the total supply is equal to the total demand: N ! 100  150  200  100 ! 550 , D ! 225  75  250 ! 550 . We determine an initial basic solution with the co lumn minimum method:
Available quantity F1 125 225 F2 75 75 F3 150 100 250 550 Requirement 100 150 200 100 550 B1 100 B2
B3 B4

The obtained solution is degenerate because the number of occupied cells (5) is strictly smaller than m  n  1 ! 3  4  1 ! 6 . Proceeding as above, we consider a new problem, in which the unit costs of transportation are the same, to each of the disposable quantities it is added I , the necessary quantities for B1 , B2 and B3 are maintained, and to the necessary of B4 it is added 3I , where I " 0 is a small enought positive parameter, that is:

jP

14

F1 F2 F3

B1 1 4 2

B2 2 2 1

B3 1 3 3

B4 3 1 2

Requirement 100 150 200 100  3I

Available quantity 225  I 75  I 250  I 550  3I 550  3I

With the column minimum method, for the problem above, we find the solution :
B1 100 B2 B3 125  I 75  I 150 200 B4 2I 100  I 100  3I Available quantity 225  I 75  I 250  I 550  3I 550  3I

F1 F2 F3

Requirement 100 150

For dual variables and the differences H ij we have the table:

v1 ! 0

v 2 ! 3 0
2 1

v3 ! 0

v 4 ! 2

u1 ! 1 u2 ! 3 u3 ! 4

1 2

Because the solution is not optimal ( H 31 ! 2 " 0 ), we apply the procedure of current solution improvement:
B1 F1 F2 F3 100  U
U

B2

B3

B4
2I  U 100  I  U

125  I  U 75  I  U 150

We choose U ! min _ ,75  I ,100  I a! 75  I and obtained the solution: 100

F1 F2 F3 B1 25  I 75  I B2
B3

B4 75  I 25  2I

200 150

We test the solution optimality, by calculating dual variables and the matrix H i elements ( !  ij !1,3
j !1,3

v1 ! 0 u1 ! 1

v 2 ! 1
2

v3 ! 0

v4 ! 0
2

15

u2 ! 1 u3 ! 2

3

2

2 1

Because H ij e 0 ,  i _ ,2,3a,  j _ ,2,3a, the current solution is optimal. 1 1 Returning to the initial problem, we take I ! 0 in the above solution and we obtain :
B1 B2 B3

B4 75 25

F1 F2 F3

25 75 150

200

Therefore, the optimal solution of the given problem is the same: x11 ! 25 , x12 ! 0 , x13 ! 200 , x14 ! 0 , x 21 ! 0 , x 22 ! 0 , x 23 ! 0 , x 24 ! 75 , x31 ! 75 , x32 ! 150 , x33 ! 0 , x34 ! 25 , and the total cost minimum of transportation is the same: min f ! 25 1  200 1  75 1  75 2  150 1  25 2 ! 650 .

6. Solving unbalanced transportation problems

As we have seen in paragraph 3, the transportation problem (16) -(20) is

n

unbalanced if the total demand N ! N j is different from the total supply

j !1

D ! Di , existing the following situations:

i !1

a) N D (the supply exceeds the demand) b) N " D (the demand exceeds the supply) In the case of a) the problem transforms into a balanced one, if it is inserted a fictitious customer Bn1 , whose unit costs of transportation are zero and whose necessary is the amount that compensates the difference between supply and demand, that is:
c i ,n 1 ! 0 , i ! 1,- , m ; N n 1 ! D  N .

In the case of b) it is reached to a balanced problem by inserting a fictitious provider Fm1 , for which the unit costs of transportation are zero and the disposable is equal to the difference between supply and demand, that is:
c m 1, j ! 0 , j ! 1,- , n ;

Dm 1 ! N  D .

16

In both situations, solving the balanced problem is made as in paragraph 4, and when it is reached the optimal solution, the fictitious customer (the column n  1 ) or the fictitious provider (the row m  1 ) in case b) is given up. Example 4. We consider the minimum transportation problem:
B1 B2 B3

Available quantity 15 5 20 40 60

F1 F2 F3

2 4 1

1 1 1 25

3 2 2 10

Requirement 25

Because the total necessary N ! 25  25  10 ! 60 exceeds the total disposable D ! 15  5  20 ! 40 , the problem is unbalanced. In order to balance the transportation problem, we insert a fictitious provider F4 with the disposable D4 ! N  D ! 60  40 ! 20 and the transportation unit costs c 4 j ! 0 , 1 e j e 3 :
B1 F1 2 F2 4 F3 1 F4 0 Requirement 25 B2 1 1 1 0 25 B3 3 2 2 0 10 Available quantity 15 5 20 20 60

Applying the North-West corner method, we obtain for the balanced problem the following solution:
F1 F2 F3 F4 Requirement 25 B1 15 5 5 B2 B3 Available quantity 15 5 20 20 60

15 10 25

10 10

For verifying the optimality of this solution, we calculate the dual variables and the differences H ij .
v1 ! 0
u1 ! 2 u2 ! 4 u3 ! 1 u4 ! 0

v2 ! 0 1 3

v3 ! 0 1 2 1

0 17

The solution is not optimal, because there is the difference H 22 ! 3 " 0 . We apply the procedure of improving the current solution:
B1 F1 F2 F3
F4

B2
U 15  U

B3

15 5 U 5U

10

10

We choose U ! min _ ,15a! 5 and obtain the solution: 5

B1 F1 F2 F3 F4 15 10 5 10 10 B2
B3

10

For verifying the optimality of this solution, we calculate the dual variables and the differences H ij :
v1 ! 0 v2 ! 0 v3 ! 0 1 1 1

u1 ! 2 u2 ! 1 u3 ! 1 u4 ! 0

1
3

The solution is not optimal, because there is the difference H 12 ! 1 " 0 . We apply the procedure of improving the current solution :
B1 F1 F2 F3 F4
15  U

B2
U 5

B3

10  U

10  U 10

10

We choose U ! min _ ,15a! 10 and obtained the solution: 10

B1 F1 5 B2 10 B3

18

F2 F3 F4

5 20 10 10

For verifying the optimality of this solution, we calculate the dual variables and the differences H ij :
v1 ! 0 u1 ! 2 u2 ! 2 u3 ! 1 u4 ! 1
2 1

v 2 ! 1

v 3 ! 1
2 1 2

The solution is not optimal, because there is the difference H 41 ! 1 " 0 . We apply the procedure of improving the current solution:
B1 F1 F2 F3 F4 5 U 20 U B2 10  U 5 10  U 10 B3

10 We choose U ! min _ ,5a! 5 and obtained the solution: B1 F1 F2 F3 F4 B2 15 5 5

B3

20 5

10

For verifying the optimality of this solution, we calculate the dual vari ables and the differences H ij :
v1 ! 0 v2 ! 0 v3 ! 0 2 1 1

u1 u2 u3 u4

!1 !1 !1 !0

1 3

The solution found is optimal ( H ij e 0 ,  i _,2,3,4a,  j _,2,3a). The optimal 1 1 solution of the initial problem it is obtained from the above table, giving up the fictitious row:

19

x11 ! 0 , x12 ! 15 , x13 ! 0 ,

x 21 ! 0 , x 22 ! 5 , x 23 ! 0 ,

x31 ! 20 , x32 ! 0 , x33 ! 0 , min f ! 15 1  5 1  20 1 ! 40 .

7. Solving the transportation problem with objective function of maxim

Just consider the transportation problem of balanced maximization, which admits nondegenerate solutions:
m n

max f ! cij xij

i !1 j !1 n

(32) (33) (34)

x
j !1

ij

! Di , i ! 1,- , m ! N j , j ! 1,- , n

x
i !1

ij

(35) To determine an initial basic solution it can be used the North-West corner method or row maximum method or column maximum method or maximum cost method, instead of row minimum method or column minimum method or minimum cost method. In this case, the optimal criterion is:
H ij ! u i  v j  cij u 0 , i , j I x B

xij u 0 , i ! 1,- , m , j ! 1,- , n

where I x is the set of pairs of basic indices. To improve a solution, situation in which there are differences H ij 0 , it is allocated a quantity U to cell k ,l corresponding to the difference H kl maximum in modulus, between elements H ij 0 . In addition to these changes, the algorithm for solving develops like in the case of minimum transportation problem. Example 5. Three commercial ban ks finance together three investment projects. The capital available of each bank, the capital necessary for each project (measured in billion of lei), and the unit profits of the investments (profit units for an invested monetary unit) are given in the fo llowing table:
B

Projects P3 Available capital P P2 1 Banks 2 3 1 100 B1 B2 5 1 4 120 B3 3 4 2 230 Required 450 100 140 210 capital 450

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To be determined the best financing programme. The problem is balanced, because the necessary capital and the available capital are equal. Applying the maximum cost method, it is obtained the basic solution:
P 1 P2 P3 Available capital 100 120 230 450

B1 100 B2 100 20 B3 140 90 Required capital 100 140 210

The optimality of this solution is verified in the following table:

v1 ! 0 u1 ! 2 u2 ! 5 u3 ! 3 0 0 v2 ! 1 0 5 v 3 ! 1

Because H ij u 0 ,  i _ ,2,3a,  j _ ,2,3a, the solution is optimal: 1 1 x11 ! 0 , x12 ! 0 , x13 ! 0 , x 21 ! 0 , x 22 ! 5 , x 23 ! 0 , x 31 ! 0 , x 32 ! 0 , x 33 ! 0 , and the maximum total profit of the finance is: max f ! 1 5 ! 5 .

Bibliography:

[1]. B din V., Firic O., (1995) Curs de matematici pentru economi ti, Universitatea Romno-American , Bucure ti. [2]. Dumitru M., Manole S. (coord.) (2006) Editura Independen a Economic , Pite ti. [3]. Oprescu Gh. (coord.) (1999) Editura Independen a Economic , Br ila.

atematici aplicate n economie,

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atematic

economic ,

[4]. Purcaru I. (1997) Matematici generale & Elemente de optimizare, Editura Economic , Bucure ti.

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