Transportation and Assignment Problem Notes
1. Transportation Problem
Transportation problem is a special type of linear programming problem concerned with
transporting goods from sources to destinations at minimum cost.
Objectives:
• Minimize transportation cost
• Minimize time
• Maximize profit
Mathematical Formulation:
Let xij = units transported from source i to destination j.
Objective:
Minimize Z = ΣΣ cij xij
Subject to:
Supply constraints
Demand constraints
xij ≥ 0
Balanced Transportation Problem:
Total Supply = Total Demand
Unbalanced Transportation Problem:
If supply and demand are unequal, add dummy source or destination.
Initial Basic Feasible Solution Methods:
A) North West Corner Method (NWCM)
B) Least Cost Method (LCM)
C) Vogel’s Approximation Method (VAM)
Comparison between all the methods
Degeneracy:
Occurs when number of allocations is less than (m+n−1).
Use epsilon allocation to remove degeneracy.
Optimality Methods:
A) MODI Method
B) Stepping Stone Method
Applications:
• Logistics
• Supply chain management
• Manufacturing
• Distribution systems
• Production planning
2. Assignment Problem
Introduction:
Assignment problem is a special case of transportation problem where one source is
assigned to one destination.
Mathematical Formulation:
xij = 1 if assignment is made
xij = 0 otherwise
Hungarian Method Steps:
1. Row reduction
2. Column reduction
3. Cover zeros
4. Check optimality