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MODI Method for Transportation Optimality

This document outlines methods for testing optimality and solving transportation problems. It describes the MODI method for obtaining reduced costs by associating numbers with rows and columns and solving relationships. For unbalanced problems, it explains how a dummy warehouse or factory can be added to absorb excess supply or demand, with zero transportation costs. The goal is to reach an optimal solution to balanced and unbalanced transportation problems using these distribution and modified distribution methods.

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sheffali
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85 views12 pages

MODI Method for Transportation Optimality

This document outlines methods for testing optimality and solving transportation problems. It describes the MODI method for obtaining reduced costs by associating numbers with rows and columns and solving relationships. For unbalanced problems, it explains how a dummy warehouse or factory can be added to absorb excess supply or demand, with zero transportation costs. The goal is to reach an optimal solution to balanced and unbalanced transportation problems using these distribution and modified distribution methods.

Uploaded by

sheffali
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Testing Optimality: Modified

Distribution Method

BBA 104 1
Outline
• Finding an optimum solution to the balanced
transportation problem by using MODI
method.
• Reaching optimum solution from initial
solution.
• Solving unbalanced transportation problem.

BBA 104 2
Testing Optimality
• MODI Method (for obtaining reduced costs)
Associate a number, ui, with each row and
vj with each column.
– Step 1: Set u1 = 0.
– Step 2: Calculate the remaining ui's and vj's by
solving the relationship cij = ui + vj for occupied
cells.
– Step 3: For unoccupied cells (i,j), the reduced cost
= cij - ui - vj.
BBA 104 3
Modified distribution Method

BBA 104 4
BBA 104 5
BBA 104 6
BBA 104 7
BBA 104 8
BBA 104 9
Unbalanced
Transportation Problem
In some situations the total supply and the total
demand are not equal. For example: if total
demand is less than total supply , a dummy
warehouse is created to absorb the excess
supply. The transportation cost to this dummy
warehouse is taken as Zero. Similarly, if total
demand is greater than total supply, a dummy
factory is added up to make a shortage in
supply. . The transportation cost from this
dummy factory is taken as Zero.
BBA 104 10
BBA 104 11
Summary
Student is able to answer :
How to test optimality with the help of Modified
distribution method.
How to solve unbalanced transportation
method.

BBA 104 12

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