Transportation Assignment

1. Find an initial solution to the following transportation problem

a. Use the northwest- corner method
b. Use the intuitive lowest-cost method
c. What is the total cost of each method?
d. Use stepping- stone method, find the optimal solution and
compute the total cost.

To
From Los Anglos Calgary Panama Supply
Mexico $6 $18 $8 100
Detroit $17 $13 $19 60
Ottawa $20 $10 $24 40
Demand 50 80 70 200

Solution

a. The northwest- corner method

Destination

Los
Source Anglos Calgary Panama Supply
6 18 8
Mexico 50 50 - 100

17 13 19
Detroit - 30 30 60

20 10 24
Ottawa - - 40 40

Demand 50 80 70 200

Total cost = 50X6 + 50X18+ 30X13 + 19X30 + 24X40 =

=300 + 900+390+570+ 960 =3120
 b. Use the intuitive lowest-cost method

Destination

Los
Source Anglos Calgary Panama Supply
6 18 8
Mexico 50 - 50 100

17 13 19
Detroit - 40 20 60

20 10 24
Ottawa - 40 - 40

Demand 50 80 70 200

Total cost = 50X6 + 50X 8+ 40X13 + 40X10 + 20X19 =

= 300+400+520+400+380 = 2,000

c. Use stepping- stone method, find the optimal solution and

compute the total cost.

Destination

Los
Source Anglos Calgary Panama Supply
6 18 8
Mexico 50 +16 50 100

17 13 19
Detroit 0 40 20 60

20 10 24
Ottawa +6 40 +8 40

Demand 50 80 70 200

+24 -19+13-10 = +8
+18-13+19-8= + 16
+17 -6+8-19= 0
+20-10+13-19+8-6= +6
 2. Find an initial solution to the following transportation problem
a. Use the northwest- corner method
b. Use the intuitive lowest-cost method
c. What is the total cost of each method?
Use stepping- stone method, find the optimal solution and compute the total cost.
To
From A B C Supply
X $10 $18 $12 100
Y $17 $13 $9 50
Z $20 $18 $14 75
Demand 50 80 70

Solution
a. Use the northwest- corner method

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 50 - - 100

17 13 9 0
y - 30 20 - 50

20 18 14 0
7 - - 50 25 75

Demand 50 80 70 25 225

Total cost = 50X10 + 50X 18+ 30X13 + 20X9 + 50X14+ 25X0 =

= 500+900+390+180+700 + 0 = 2,670
 a. Use the northwest- corner method

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 50 100

17 13 9 0
y - 30 20 - 50

20 18 14 0
7 - 50 25 75

Demand 50 80 70 25 225

Total cost = 50X10 + 50X18+ 30X13 + 20X9+ 50X14 + 25X0 =

= 2,670

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 50 -2 100

17 13 9 0
y +12 30 20 - 50

20 18 14 0
7 +10 0 50 25 75

Demand 50 80 70 25 225

+17-10+18-13 = +12
+12-18+13-9 = -2
20-10+18-13+9-14= +10
18-13+9-14 = 0
1st iteration

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 30 20 100

17 13 9 0
y 50 - - 50

20 18 14 0
7 50 25 75

Demand 50 80 70 25 225

Total cost = 50X10 + 30X18+ 20X12 + 50X13+ 50X14 + 25X0 =

= 500+540+240+650+700= 2,630

2nd iteration

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 30 20 100

17 13 9 0
y +12 50 +2 - 50

20 18 14 0
7 +8 -2 50 25 75

Demand 50 80 70 25 225

+17-10+18 -13= +12

+9-13+18-12 = 2
+18-18+12-14 = -2
+20-10+12 -14 = 8
 Destination
Source A B C Dummy Supply
10 18 12 0
x 50 - 50 100

17 13 9 0
y 50 - 50

20 18 14 0
7 30 20 25 75

Demand 50 80 70 25 225

Total cost = 50X10 + 50X12+ 50X13 + 30X18+ 20X14 + 25X0 =

= 500+600+650+540+280 +0 = 2,570

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 +2 50 100

17 13 9 0
y +10 50 0 - 50

20 18 14 0
7 +8 30 20 25 75

Demand 50 80 70 25 225

+17-10+12-14+18-13 = +10
+20-10+12-14 = +8
+18-12+14-18= +2
+9-13+18-14 = 0

Destination
Source A B C Dummy Supply
10 18 12 0
x 50 - 50 100

17 13 9 0
y 50 - 50

20 18 14 0
7 30 20 25 75

Demand 50 80 70 25 225

This is the optimal solution

3. Find an initial solution to the following transportation problem
a. Use the intuitive lowest-cost method and find the total cost?
b. Use stepping-stone method, find the optimal solution. And compute
the total cost. (4marks)

To
From 1 2 3 Supply
A $2 $5 $6 50
B $9 $3 $7 50
C $1 $8 $4 50
Demand 20 70 60 150

a. lowest-cost method and find the total cost?

Destination

Source 1 2 3 Supply
2 5 6
A -1 20 30 50

9 3 7
B +8 50 +3 50

1 8 4
C 20 +5 30 50

Demand 20 70 60 150

Total cost = 20X1 + 20X5+ 50X3 + 30X6 + 30X4 =

=20 + 100+150+180+ 120 =570

Stepping stone
+2-1+4-6 = -1
+7-6+5 -3 = +3
+8-5+6 -4 = +5
+9-1 +4 -6 +5-3 = +8
 Destination

Source 1 2 3 Supply
2 5 6
A 20 20 10 50

9 3 7
B 50 50

1 8 4
C - 50 50

Demand 20 70 60 150

Total cost = 20X2 + 50X4+ 10X6 + 50X3 + 20X5 =

=40 + 200+60+150+ 100 =550

2nd iteration
Destination

Source 1 2 3 Supply
2 5 6
A 20 20 10 50

9 3 7
B +9 50 +3 50

1 8 4
C +1 +5 50 50

Demand 20 70 60 150

+9-2+5-3 = +9
+7-3+5-6 = +3
+8-5+6-4 = +5
+1-2+6-4 = +1
 Destination

Source 1 2 3 Supply
2 5 6
A 20 20 10 50

9 3 7
B 50 50

1 8 4
C - 50 50

Demand 20 70 60 150

This is the optimal solution