TRANSPORTATI

ON MODEL
GROUP 1
TRANSPORTATION MODEL

 finds the least-cost means of shipping

supplies from several origins to several
destinations.
The model requires only a few data elements:

 origin of supply

 destination

 per-unit cost of shipping

Origin points (or sources)
- it can be factories, warehouses, car rental agencies from
which goods are shipped.

Destinations
- are any points that receive goods.

Capacity or Availability
– ability of each source to supply a fixed number of units of the
product

Requirement
- fixed demand of each destination
Figure 5-1 shows the
relationship of the
source and destination,
the goal is to select the
shipping to minimize
total transportation
cost.
 We use the model to determine the minimum cost
to ship from several sources to several destinations.
Because it is a model, we have to make some
assumptions. These assumptions are:

 items are homogeneous

 shipping costs per unit are the same, no matter the
quantity
 only one route is chosen between origin and
destination
UNUSED SQUARES (unused cells)
 are squares which routes where no quantity is
shipped between a source and a destination

STONE SQUARES (used cells)

 are used squares in the transportation problem
EXAMPLE:
 The WWS Company sells desktop computers to IT companies in Metro
Manila, and ships them from three destination warehouses located in 3
different areas. The company is able to supply the following numbers of
desktop computers to IT companies by the beginning of the year.

DISTRIBUTION WAREHOUSE SUPPLY

Warehouse 1 150
Warehouse 2 200
Warehouse 3 50
TOTAL 400

IT COMPANY DEMAND
AUS Link 100
SJS Networking Inc. 80
RFS Data Limited 220
TOTAL 400
The shipping costs per desktop computer from each distributor
to each company are as follows:

FROM AT
A B C
1 7 5 9
2 10 12 10
3 6 3 14

With cost minimization as a criterion, WSS Company wants

to determine how many desktop computers should be
shipped from each warehouse to each IT company.
Construct the linear programming model.
 Let 1= Warehouse 1 A= AUS Link
2= Warehouse 2 B= SJS Networking Inc.
3=Warehouse 3 C= RFS Data Limited

FIGURE 5.2 shows the network graph of transportation problem. For example,
variable X2A represents the amount flow on the arc leading from Warehouse 2 to
AUS Link.
 Distribution
X1A – Warehouse 1 to IT Company A
X1B – Warehouse 1 to IT Company B
X1C – Warehouse 1 to IT Company C
X2A – Warehouse 2 to IT Company A
X2B – Warehouse 2 to IT Company B
X2C – Warehouse 2 to IT Company C
X3A – Warehouse 3 to IT Company A
X3B – Warehouse 3 to IT Company B
X3C – Warehouse 3 to IT Company C

Thus, the LP formulation of the transportation above is as follows:

Objective Function:
Minimize: C = 7X1A + 5X1B + 9X1C + 10X2A + 12X2B + 10X2C + 6X3A + 3X3B + 14X3C
Constraints:
Subject to: X1A + X1B + X1C = 150
X2A + X2B + X2C = 200
X3A + X3B + X3C = 50
X1A + X2A + X3A =100
X1B + X2B + X3B = 150
X1C + X2C + X3C = 220
Xij ≥ 0