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    Modified Distribution Method

    Uploaded by

    Didiek Nurdiansyah
    The MODI (Modified Distribution) Method provides a step-by-step process to find the minimum cost solution to a transportation problem. It begins with an initial basic feasible solution using methods like the Northwest Corner Rule. It then calculates dual variables ui and vj to determine opportunity costs. The cell with the most negative opportunity cost is selected to draw a closed path around. Units are then redistributed along the path to make the previously unoccupied cell occupied and get closer to the optimal solution. This process repeats until all opportunity costs are non-negative, indicating optimality.

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    © All Rights Reserved
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    Modified Distribution Method

    Uploaded by

    Didiek Nurdiansyah
    297 views13 pages
    The MODI (Modified Distribution) Method provides a step-by-step process to find the minimum cost solution to a transportation problem. It begins with an initial basic feasible solution using methods like the Northwest Corner Rule. It then calculates dual variables ui and vj to determine opportunity costs. The cell with the most negative opportunity cost is selected to draw a closed path around. Units are then redistributed along the path to make the previously unoccupied cell occupied and get closer to the optimal solution. This process repeats until all opportunity costs are non-negative, indicating optimality.

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    The MODI (Modified Distribution) Method provides a step-by-step process to find the minimum cost solution to a transportation problem. It begins with an initial basic feasible solution using methods like the Northwest Corner Rule. It then calculates dual variables ui and vj to determine opportunity costs. The cell with the most negative opportunity cost is selected to draw a closed path around. Units are then redistributed along the path to make the previously unoccupied cell occupied and get closer to the optimal solution. This process repeats until all opportunity costs are non-negative, indicating optimality.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    297 views13 pages

    Modified Distribution Method

    Uploaded by

    Didiek Nurdiansyah
    The MODI (Modified Distribution) Method provides a step-by-step process to find the minimum cost solution to a transportation problem. It begins with an initial basic feasible solution using methods like the Northwest Corner Rule. It then calculates dual variables ui and vj to determine opportunity costs. The cell with the most negative opportunity cost is selected to draw a closed path around. Units are then redistributed along the path to make the previously unoccupied cell occupied and get closer to the optimal solution. This process repeats until all opportunity costs are non-negative, indicating optimality.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 13

    Example: MODI Method (Modified Distribution Method)

    Consider the transportation problem presented in the following table.

    Distribution centre
    D1 D2 D3 D4 Supply
    Plant P1 19 30 50 12 7
    P2 70 30 40 60 10
    P3 40 10 60 20 18
    Requirement 5 8 7 15

    Determine the optimal solution of the above problem.

    Solution.

    An initial basic feasible solution is obtained by Matrix Minimum Method and is shown in table 1.

    Table 1

    Distribution centre
    D1 D2 D3 D4 Supply
    Plant P1 19 30 50 7
    P2 30 60 10
    P3 60 18
    Requirement 5 8 7 15

    Initial basic feasible solution

    12 X 7 + 70 X 3 + 40 X 7 + 40 X 2 + 10 X 8 + 20 X 8 = Rs. 894.

    Calculating ui and vj using ui + vj = cij

    Substituting u1 = 0, we get

    u1 + v4 = c14 ⇒ 0 + v4 = 12 or v4 = 12


    u3 + v4 = c34 ⇒ u3 + 12 = 20 or u3 = 8
    u3 + v2 = c32 ⇒ 8 + v2 = 10 or v2 = 2
    u3 + v1 = c31 ⇒ 8 + v1 = 40 or v1 = 32
    u2 + v1 = c21 ⇒ u2 + 32 = 70 or u2 = 38
    u2 + v3 = c23 ⇒ 38 + v3 = 40 or v3 = 2

    Table 2

    Distribution centre
    D1 D2 D3 D4 Supply ui
    Plant P1 19 30 50 7 0
    Plant
    P2 30 60 10 38
    P3 60 18 8
    Requirement 5 8 7 15
    vj 32 2 2 12

    Calculating opportunity cost using cij – ( ui + vj )

    Unoccupied cells Opportunity cost


    (P1, D1) c11 – ( u1 + v1 ) = 19 – (0 + 32) = –13
    (P1, D2) c12 – ( u1 + v2 ) = 30 – (0 + 2) = 28
    (P1, D3) c13 – ( u1 + v3 ) = 50 – (0 + 2) = 48
    (P2, D2) c22 – ( u2 + v2 ) = 30 – (38 + 2) = –10
    (P2, D4) c14 – ( u2 + v4 ) = 60 – (38 + 12) = 10
    (P3, D3) c33 – ( u3 + v3 ) = 60 – (8 + 2) = 50

    Table 3

    Distribution centre
    D1 D2 D3 D4 Supply ui
    Plant P1 7 0
    P2 10 38
    P3 18 8
    Requirement 5 8 7 15
    vj 32 2 2 12

    Now choose the smallest (most) negative value from opportunity cost (i.e., –13) and draw a closed path fro

    Table 4

    Choose the smallest value with a negative position on the closed path(i.e., 2), it indicates the number of un

    Now again calculate the values for u i & vj and opportunity cost. The resulting matrix is shown below.

    Table 5

    Distribution centre
    D1 D2 D3 D4 Supply ui
    Plant P1 7 0
    P2 10 51
    P3 18 8
    Requirement 5 8 7 15
    vj 19 2 –11 12

    Choose the smallest (most) negative value from opportunity cost (i.e., –23). Now draw a closed path from  

    Table 6

    Now again calculate the values for u i & vj and opportunity cost

    Table 7: MODI Method


    Distribution centre
    D1 D2 D3 D4 Supply ui
    Plant P1 7 0
    P2 10 28
    P3 18 8
    Requirement 5 8 7 15
    vj 19 2 12 12

    Since all the current opportunity costs are non–negative, this is the optimal solution. The minimum transpo
    n Method)
    raw a closed path from  P1D1. The following table shows the closed path.

    tes the number of units that can be shipped to the entering cell. Now add this quantity to all the cells on the corner po

    shown below.
    w a closed path from  P2D2 .

    he minimum transportation cost is: 19 X 5 + 12 X 2 + 30 X 3 + 40 X 7 + 10 X 5 + 20 X 13 = Rs. 799


    cells on the corner points of the closed path marked with plus signs and subtract it from those cells marked with min
    cells marked with minus signs. In this way, an unoccupied cell becomes an occupied cell.
    Modified Distribution Method (MODI) or (u - v) Method
             

    The modified distribution method, also known as MODI method or (u - v) method provides a minimum

    MODI method is an improvement over stepping stone method.


    In the stepping stone method, we have to draw as many closed paths as equal to the unoccupied cells for their evaluation. To the contrary, in

    Steps, Example-1

    The method, in outline, is :

     Steps in Modified Distribution Method (MODI)

    1. Determine an initial basic feasible solution using any one of the three methods given below:

    North West Corner Rule


    Matrix Minimum Method
    Vogel Approximation Method

    2. Determine the values of dual variables, u i and vj, using ui + vj = cij

    3. Compute the opportunity cost using c ij – ( ui + vj ).

    4. Check the sign of each opportunity cost. If the opportunity costs of all the unoccupied cells are either po

    5. Select the unoccupied cell with the smallest negative opportunity cost as the cell to be included in the ne

    6. Draw a closed path or loop for the unoccupied cell selected in the previous step. Please note that the rig

    7. Assign alternate plus and minus signs at the unoccupied cells on the corner points of the closed path wi

    8. Determine the maximum number of units that should be shipped to this unoccupied cell. The smallest va

    "A man has a burger and you give him one burger more, that's addition." -Vinay Chhabra & Manish Dewan

    9. Repeat the whole procedure until an optimal solution is obtained.


    v) Method

    d provides a minimum cost solution to the transportation problem.

    aluation. To the contrary, in MODI method, only closed path for the unoccupied cell with highest opportunity cost is drawn.

    ied cells are either positive or zero, the given solution is the optimal solution. On the other hand, if one or more unocc

    o be included in the next solution.

    lease note that the right angle turn in this path is permitted only at occupied cells and at the original unoccupied cell.

    of the closed path with a plus sign at the cell being evaluated.

    d cell. The smallest value with a negative position on the closed path indicates the number of units that can be shippe

    abra & Manish Dewan


    , if one or more unoccupied cell has negative opportunity cost, the given solution is not an optimal solution and furthe

    ginal unoccupied cell.

    nits that can be shipped to the entering cell. Now,  add this quantity to all the cells on the corner points of the closed
    mal solution and further savings in transportation cost are possible.

    r points of the closed path marked with plus signs, and subtract it from those cells marked with minus signs. In this w
    h minus signs. In this way, an unoccupied cell becomes an occupied cell.

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