TRANSPORTATION

AND
ASSIGNMENT
MODELS
Overview
 The transportation model and assignment model are considered special-purpose
algorithm linear programming models because of their structures.

 These two quantitative models have the objective of maximizing profit or

minimizing cost, and they require variables to be linearly related.

 Although transportation and assignment models are more efficient. Both

transportation and assignment problems are associated with networks flow
problems of linear programming.
Transportation Model
 The transportation model is used when a business intends to distribute
goods from various sources (i.e, supply) to different destinations (i.e,
demand) with varying unit cost of transportation. This indicates that this
model is not applicable when there is only one source of only one
destination.
 Transportation model can be balanced or unbalanced
1. Stepping Stone Method - is used to check the optimality of initial feasible
solution determined by any of the method. North - West Corner, Least Cost
Method or Vogel's Approximation Method.

2. Modified Distribution Method (MODI) Method - provides a minimum cost

solution to the transportation problems. This model studies the minimization of
the cost of transporting a commodity from a number of sources to several
destinations.
The supply at each source and the demand at each destination are known. The
objectives are to develop and review an integral transportation schedule that
meets all demands from the inventory at a minimum total transportation cost.
Transportation Model

Two (2) methods are used in finding the initial solution to a transportation
problem.
1. Northwest Corner Method (NWCM) - Is a procedure for obtaining an initial
feasible solution to a transportation problem that starts with allocating units
to the upper left-hand corner of any transportation problem.
2. Vogel's Approximation Method (VAM) - Is used to find the feasible solution
for transportation of goods where the solution is either optimal or near to the
optimal solution.
These are the steps in solving transportation problems:
1. Set up the initial transportation table.
2. Compute the transportation cost.
3. Test if improvements should be made.
4. Improve the transportation table and repeat step 2.
5. Make a recommendation.
Stepping Stone Method: Balance Transportation
 In a balance transportation problem, the supply (source) is equal to the
demand (destination).
NORTHWEST METHOD
 The North-West Corner Rule is a technique for calculating the first feasible
solution to a transportation problem. The method is called North-West
Corner because the basic variables are chosen from the far left corner.
Solving a Balanced Transportation Problem Using the Stepping-
Stone Method (Northwest Corner Method for the Initial Solution)

Jenny Company is engaged in the production of special window frames for

commercial buildings. It has three warehouses located in different locations in
Mindanao with the following available units: warehouse A, 150 frames;
warehouse B, 450 frames; and warehouse C, 450 frames. For the month, ABC
Company took three projects at different locations with the following
requirements: project 1, 450 frames; project, 300 frames; and project 3, 300
frames the unit costs of transporting the frames from the three warehouses to
the three projects are as follows:
 Project 1 Project 2 Project 3

Warehouse A Php6.00 Php5.00 Php4.00

Warehouse B Php9.00 Php5.00 Php4.00

Warehouse C Php10.00 Php8.00 Php6.00

Required: Using stepping-stone method, determine the distribution of the frames from
the three warehouses to the projects.
Answer: The following steps are performed to determine the distribution of the frames
to the projects.
Step 1.
 Construct the initial transportation table. The total available window frames in the
warehouses are 1,050 (150 + 450 + 450), and the total requirements of the three projects
are 1,050 frames (450 + 300 + 300) as well. The total supply is equal to the total demand.
Hence, the transportation problem is balanced. Table 1a shows the initial table with vacant
cells.
Table 1a. Initial Table
To Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A 150
9 8 4
Warehouse B 450
10 8 6
Warehouse C 450

1,050
Total Demand 450 300 300 1,050
 The unit cost of transporting the goods is placed on the upper right corner of a cell. Using
the northwest corner rule, the first cell to be filled up is a cell A1. Project 1 needs 450
frames, but warehouse A only has 150 frames available. The balance (450-150) will come
from warehouse B.
This movement is shown in Table 1b.
Table 1b. Improved Initial Table
To Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A 150 150
9 5 4
Warehouse B 300 450
10 8 6
Warehouse C 450
1,050
Total Demand 450 300 300 1,050
 The requirements of project 1 have been met already with 150 frames from warehouse 1
and 300 frames from warehouse 2. At this point, warehouse B still has 150 frames
available (450 – 300 frames). This unit will be supplied to project 2. However, project 2
needs 300 units. The balance of 150 (300 – 150) will come from warehouse C. The
movement is shown in Table 1c.
Table 1c. Improved Initial Table

To Project 1 Project 2 Project 3 Total Supply

From
6 5 4
Warehouse A 150 150
9 5 4
Warehouse B 300 150 450
10 8 6
Warehouse C 150 450
1,050
Total Demand 450 300 300 1,050
 At this time, warehouse C has 300 (450 – 150) available frames. These frames will be
supplied to project 3, which needs 300 frames. The initial table with the complete data
is shown in Table 1d.
Table 1d. Complete Initial Table
To Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A 150 150

9 5 4
Warehouse B 300 150 450
10 8 6
Warehouse C 150 300 450
1,050
Total Demand 450 300 300 1,050
Step 2.
 Compute the transportation cost. The transportation cost shown in Table
1d is determined as follows:
A1 (150 x Php6.00) Php900.00
B1 (300 x Php9.00) 2,700.00
B2 (150 x Php5.00) 750.00
C2 (150 x Php8.00) 1,200.00
C3 (300 x Php6.00) 1,800.00
Total Cost Php7,350.00
Step 3
Test if the table is optimal. A table is optimal if there is no negative improvement index on
the empty cells. If a vacant cell has a negative improvement index, the table has to be
improved.

A negative improvement index indicates that if the corporation allocates on that vacant
cell, the overall cost per unit may be decreased by that amount.

However, before a transportation table can be improved, the solution’s degeneracy must
be determined. The number of occupied cells is equal to the total number of columns and
rows minus one, according to the law of degeneracy.
 There are five occupied cells in table 1d (A1, B1, B2, C2 and C3). It has three
rows and three columns.

 Hence, the number of occupied cells, which is five, is equal to the total number
of rows and columns minus one (5 = 3 + 3 – 1). The rule of degeneracy,
therefore, is not violated.

 To improve the table, the vacant cells A2, A3, B3 and C1 shall be tested whether
the transfer of one unit produces a positive or negative value.
THE FOLLOWING ARE THE PROCEDURES THAT MUST BE
OBSERVED WHEN TESTING A VACANT CELL:
1) Select any vacant cell to be tested.

2) Test the vacant cell by making a horizontal or vertical path back to the
original vacant cell.

3) Begin with a plus sign on the original vacant cell and alternately place
minus and plus signs on each square of the path.

4) Ensure that the path always lands in an occupied cell.

5) End the path on an occupied cell that is perpendicular to the original

vacant cell.
SELECT ANY VACANT CELL.
To Project 1 Project 2 Project 3 Total Supply
From

6 5 4
Warehouse A 150 Vacant cell A2 Vacant cell A3 150

9 5 4
Warehouse B 300 150 Vacant cell B3 450

10 8 6
Warehouse C Vacant cell C1 150 300 450

1,050
Total Demand 450 300 300 1,050
* The vacant cells are: A2, A3, B3, and C1

* The vacant cells shall be tested whether the transfer

of one unit produces a positive or negative value.
TO TEST THE VACANT CELLS.
Vacant Cell A2
To Project 1 Project 2 Project 3 Total Supply
From
-6 +5 4
Warehouse A 150 Vacant cell A2 Vacant cell A3 150
+9 -5 4
Warehouse B 300 150 Vacant cell B3 450
10 8 6
Warehouse C Vacant cell C1 150 300 450
1,050
Total Demand 450 300 300 1,050
 Vacant Cell A2 has a path of +5 -5 +9 -6
 The test has an improvement index of +3. This indicates that the transportation cost
will increase by Php3.00 per unit if units are transferred to cell A2.
TO TEST THE VACANT CELLS.
Vacant Cell A3
To Project 1 Project 2 Project 3 Total Supply
From
-6 5 +4
Warehouse A 150 Vacant cell A2 Vacant cell A3 150
+9 -5 4
Warehouse B 300 150 Vacant cell B3 450
10 +8 -6
Warehouse C Vacant cell C1 150 300 450
1,050
Total Demand 450 300 300 1,050
 Vacant Cell A3 has a path of +4 -6 +8 -5 +9 -6.
 The test has an improvement index of +4. This means that the transportation cost
will increase by Php4.00 per unit if units are transferred to cell A3.
TO TEST THE VACANT CELLS.
Vacant Cell B3
To Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A 150 Vacant cell A2 Vacant cell A3 150
9 -5 +4
Warehouse B 300 150 Vacant cell B3 450
10 +8 -6
Warehouse C Vacant cell C1 150 300 450
1,050
Total Demand 450 300 300 1,050
 Vacant Cell B3 has a path of +4 -6 +8 -5.
 The test has an improvement index of +1. A Php1.00 increase in the transportation
cost per unit will occur if units are transferred to cell B3.
TO TEST THE VACANT CELLS.
Vacant Cell C1
To Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A 150 Vacant cell A2 Vacant cell A3 150
-9 +5 4
Warehouse B 300 150 Vacant cell B3 450
+10 -8 6
Warehouse C Vacant cell C1 150 300 450
1,050
Total Demand 450 300 300 1,050
 Vacant Cell C1 has a path of +10 -8 +5 -9.
 The test has an improvement index of -2. This implies that the reduction of Php2.00
per unit will occur if units are transferred to cell C1.
In summary, the tests for vacant cells appear as follows:

Vacant Cells (Table 1d) Path and Improvement Index

A2 +5 -5 +9 -6 = +3
A3 +4 -6 +8 -5 +9 -6 = +4
B3 +4 -6 +8 -5 = +1
C1 +10 -8 +5 -9 = -2
* It can observed that cell C1 has a negative improvement index.
Therefore, Table 1d must be improved by transferring a certain number of
units to cell C1.
 To improve cell C1, simply focus on its path. The path shows that there are two
cells that have negative values, namely cells C2 and B1.

 Compare the contents of these two negative cells and transfer all the contents
of the cell with the lower value.

 Cell B1 has 300 units, while cell C2 has 150 units. Therefore, the contents of
the cell C2 should be transferred to cell C1.
Improvement of Cell C1
-9 +5

300 150
+10 -8

C1 150

1. Focus to the cells that have negative values.

2. Choose the cell that has a minimum value. (150units)
We can see that cell -8 has a lower value of 150 units. We will add or subtract
150 units in every cell except to the cell -8.
Improvement of Cell C1
-9 +5 9 5

150 300
300 150
+10 -8 10 8

150
C1 150
1. Add 150 units to 150 units in cell +5. (300)
2. Subtract 150 units from 300. (150)
Subtract because the sign of 9 is negative.
3. Lastly, we’ll add 150 to the cell +10.
Another Examples:
Path: +8 -24 +16 -4 = -4 Path: +16 -24 +16 -24 = -16

-4 +8 -24 +16

56 Vacant cell 66 Vacant cell

+16 - 24 +16 -24

16 66 36 41

4 8 24 16

56 25 41

16 24 16 24

72 10 77
STEP 4: IMPROVE THE TRANSPORTATION TABLE AND REPEAT
STEP 2.
FIRST ITERATION
To
Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A
150 150
9 5 4
Warehouse B
150 300 450
10 8 6
Warehouse C
150 300 450
1,050
Total Demand
450 300 300 1,050
The transportation cost of table 2 is computed as follows:

A1 (150 x Php6.00) Php900.00

B1 (150 x Php9.00) 1, 350.00
B2 (300 x Php5.00) 1,500.00
C1 (150 x Php10.00) 1,500.00
C3 (300 x Php6.00) 1,800.00
Total Cost Php7, 050.00
 This time, the cost of transportation is reduced by Php300.00, that is, from
Php7,350.00 to Php7,050.00.
 This is the result of the transfer of 150 window frames to cell C1 at a reduced cost of
Php2.00 per frame.
 The vacant cells are to be tested again for further improvement. The vacant cells
with their corresponding paths and improvement indices are as follows:

Vacant Cells Path and Improvement Index

A2 +5 -5 +9 -6 = +3
A3 +4 -6 +10 -6 = +2
B3 +4 -6 +10 -9 = -1
C2 +8 – 10 +9 -5 = +2
 Complete Initial Table 1d and Table 2. First Iteration
To Project 1 Project 2 Project 3 Total Supply
From
Warehouse 1 6 5 4
150 150
Warehouse 2 9 5 4
300 150 450
Warehouse 3 10 8 6
150 300 450
1,050
Total Demand 450 300 300 1,050

To Project 1 Project 2 Project 3 Total Supply

From
Warehouse 1 6 5 4
150 150
Warehouse 2 9 5 4
150 300 450
Warehouse 3 10 8 6
150 300 450
1,050
Total Demand 450 300 300 1,050
 VACANT CELLS
FIRST ITERATION
To
Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A Vacant Cell A2 Vacant Cell A3
150 150
9 5 4
Warehouse B Vacant Cell B3
150 300 450
10 8 6
Warehouse C Vacant Cell C2
150 300 450
1,050
Total Demand
450 300 300 1,050
 VACANT CELL A2
VACANT CELL A2 HAS A PATH OF:
+5 -5 +9 -6 = +3
To
Project 1 Project 2 Project 3 Total Supply
From
-6 +5 4
Warehouse A Vacant Cell A2
150 150
+9 -5 4
Warehouse B
150 300 450
10 8 6
Warehouse C
150 300 450
1,050
Total Demand
450 300 300 1,050
 VACANT CELL A3
VACANT CELL A3 HAS A PATH OF:
+4 -6 +10 -6 = +2
To
Project 1 Project 2 Project 3 Total Supply
From
-6 5 +4
Warehouse A Vacant Cell A3
150 150
9 5 4
Warehouse B
150 300 450
+10 8 -6
Warehouse C
150 300 450
1,050
Total Demand
450 300 300 1,050
 VACANT CELL B3
VACANT CELL B3 HAS A PATH OF:
+4 -6 +10 -9 = -1
To
Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A
150 150
-9 5 +4
Warehouse B Vacant Cell B3
150 300 450
+10 8 -6
Warehouse C
150 300 450
1,050
Total Demand
450 300 300 1,050
 VACANT CELL C2
VACANT CELL C2 HAS A PATH OF:
+8 -10 +9 -5 = +2
To
Project 1 Project 2 Project 3 Total Supply
From
6 5 4
Warehouse A
150 150
+9 -5 4
Warehouse B
150 300 450
-10 +8 6
Warehouse C Vacant Cell C2
150 300 450
1,050
Total Demand
450 300 300 1,050
 FIRST AND SECOND ITERATION
To Project 1 Project 2 Project 3 Total Supply

From
Warehouse A 6 5 4
150 Vacant Cell A2 Vacant Cell A3 150
Warehouse B 9 5 4
150 300 Vacant Cell B3 450
Warehouse C 10 8 6
150 Vacant Cell C2 300 450
1,050
Total Demand 450 300 300 1,050

To Project 1 Project 2 Project 3 Total supply

From
Warehouse A 6 5 4
150 Vacant Cell A2 Vacant Cell A3 150
Warehouse B 9 5 4
Vacant Cell B1 300 150 450
Warehouse C 10 8 6
300 Vacant Cell C2 150 450
1,050
Total Demand 450 300 300 1,050
The transportation cost of Table 3 is computed as follows:

A1 (150 x Php6.00) Php900.00

B2 (300 x Php5.00) 1,500.00
B3 (150 x Php4.00) 600.00
C1 (300 x Php10.00) 3,000.00
C3 (150 x Php6.00) 900.00
Total Cost Php6,900.00
The vacant cell of Table 3 must be tested again to determine whether further improvement
can be made.

Before a test is conducted, the table must be checked whether it is degenerate or not.

Table 3 has three columns , three rows, and five occupied cells.
The total number of columns and rows minus one is equal to the number of occupied cells.

Hence, the table is not degenerate. The tests for vacant cells of Table 3 appear as follows:
 Vacant Cells (Table 3) Path and Improvement
A2 +5 -5 +4 -6 +10 = +2
A3 +4 -6 +10 -6 =+2
B1 +9 -4 +6 -10 =+1
C2 +8 -6 +4 -5 = +1

The tests for vacant cells produced positive values for the
improvement indices. Hence, the optimal solution has been reached.
Table 3. Second Iteration
To
Project 1 Project 2 Project 3 Total Supply
From

6 5 4
Warehouse A
150 Vacant Cell A2 Vacant Cell A3 150

9 5 4
Warehouse B
Vacant Cell B1 300 150 450

10 8 6
Warehouse C
300 Vacant Cell C2 150 450

1,050
Total Demand
450 300 300 1,050
Step 5. Makes a recommendation. Based on Table 3, Jenny Company should distribute the
window frames to the three projects as follows:

From Number of Frames To Transportation Cost

Warehouse A 150 units Project 1 150 x Php6 = Php900.00
Warehouse B 300 units Project 2 300 x Php5 = 1,500.00
150 units Project 3 150 x Php4 = 600.00
Warehouse C 300 units Project 1 300 x Php10 = 3,000.00
150 units Project 3 150 x Php6 = 900.00
Total transportation cost Php6,900.00
Stepping-Stone Method: Unbalanced
Transportation Problem
 In an unblanced transportation problem, the supply is not equal to the
demand. The supply may be greater than the demand or vice-versa.

 When the supply (source) is greater than the demand (destination), a dummy
column or dummy destination is added. On the other hand, when the
demand is greater than the supply, a dummy row or dummy source is added
with artificial values.
 A dummy column or dummy row is added to balance the source and the with
artificial values. A dummy column or dummy row is added to balance the
source and the destination.

 In either case, the transportation cost assigned to the dummy cell is equal to
zero. The dummy cells are not tested for improvement since their value is
equal to zero, and there is no actual transfer that will be made on them.
Illustration 2
Solving an Unbalanced Transportation Problem Using the Stepping-Stone
Method (Supply is Greater than Demand)
 Use the same information in Illustration 1, but assume that warehouse A has
375 units of window frames. This time, the supply is 1,275 units of window
frames, while the demand is 1,050 units. In such a case, a dummy column is
added with an artificial value to make the supply and demand equal. The
initial table appears as follows:
Table 4. Initial Table with a Dummy Column
To Project 1 Project 2 Project 3 Dummy Project Total Supply

From
6 5 4
Warehouse A
375 375
9 5 4
Warehouse B
75 300 75 450
10 8 6 0
Warehouse C
225 225 450
1,275
Total Demand
450 300 300 225 1,275
Table 4 has a transportation cost of Php6,075.00, which is computed as follows:

A1 (375 x Php6.00) Php2,250.00

B1 (75 x Php9.00) 675.00
B2 (300 x Php5.00) 1,500.00
B3 (75 x Php4.00) 300.00
C3 (225 x Php6.00) 1,350.00
Total Cost Php6,075.00
 Table 4 has four columns and three rows, and it has six occupied cells.
Hence, Table 4 does not violate the rule of degeneracy. The tests for the
vacant cells of Table 4 are conducted as follows:
Vacant Cells (Table 4) Path and Improvement Index
A2 +5 -5 +9 -6 = +3
A3 +4 -4 +9 -6 = +3
C1 +10 -9 +4 -6 = -1
C2 +8 -6 +4 -5 = +1
 The dummy cell is not tested since no actual shipments will be made to such
dummy location. Since cell C1 has an improvement index of -1, a certain
number of units should be transferred to it.

 The two negative cells in the path of cell C1 are cells B1 and C3 with 75 units
and 225 units, respectively. Since the contents of cell B1 are lower than that of
cell C3, all the contents of cell B1 will be transferred to cell C1.
Table 5. Improved Table
To Project 1 Project 2 Project 3 Dummy Project Total Supply

From
6 5 4
Warehouse A
375 375
9 5 4
Warehouse B
300 150 450
10 8 6 0
Warehouse C
75 150 225 450
1,275
Total Demand
450 300 300 225 1,275
Table 5 has a transportation cost of Php6,000.00, which is computed as follows:
A1 (375 x Php6.00) Php2,250.00
B2 (300 x Php5.00) 1,500.00
B3 (150 x Php4.00) 600.00
C1 (75 x Php10.00) 750.00
C3 (150 x Php6.00) 900.00
Total Cost Php6,000.00
 The transportation cost is reduced by Php75.00 because of the 75 units
transferred to cell C1. The vacant cells of Table 5 are then tested for further
improvement as follows:
Vacant Cells (Table 5) Path and Improvement Index
A2 +5 -5 +4 -6 +10 -6 = +2
A3 +4 -6 +10 -6 = +2
B1 +9 -4 +6 -10 = +1
C2 +8 -6 +4 -5 = +1
 The improvement indices have a positive values. Hence, the optimal solution
has been reached.
Illustation 3
 Solving an Unbalanced Transportation in Illustration 1, but assume that
project 1 needs 550 units of window frames. Since the demand of
1,150 is greater than the the supply of 1,050, a dummy row is added.
The initial table appears as follows:
Table 6. Initial Table with Dummy Row
To Project 1 Project 2 Project 4 Total Supply
From

6 5 4
Warehouse A 150 150

9 5 4
Warehouse B 400 50 450

10 8 6
Warehouse C 250 200 450

0 0 0
Dummy Warehouse 100 100

1,150
Total Demand 550 300 300 1,150
Table 6 has a transportation cost of Php7,950.00, which is computed as follows:
A1 (150 x Php6.00) Php900.00
B1 (400 x Php9.00) 3,600.00
B2 ( 50 x Php5.00) 250.00
C2 (250 x Php8.00) 2,000.00
C3 (200 x Php6.00) 1,200.00
Total Cost Php7,950.00
Table 6 is not degenerate. Hence, the vacant cells are tested for further
Improvement as follows:
Vacant Cells (Table 6) Path and Improvement Index
A2 +5 -5 +9 -6 = +3
A3 +4 -6 +8 -5 +9 -6 = +4
B3 +4 -6 +8 -5 = +1
C1 +10 -8 +5 -9 = -2
 Cell C1 has an has an improvement index of -2; hence, a certain number of
units shoulb be transferred to it. The cells that have negative values in cell
C1’s path are cells B1 and C2. The contents of cell C2 are lower than that of
cell B1; hence, 250 units should be transffered to cell C1.
Table 7. Improved Table
To Project 1 Project 2 Project 3 Total Supply
From

6 5 4
Warehouse A 150 150

9 5 4
Warehouse B 150 300 450

10 8 6
Warehouse c 250 200 450

0 0 0
Dummy Warehouse 100 100

1,050
Total Demand 550 300 300 1,050
The Transportation cost of Table 7 is computed as follows:

A1 (150 x Php6.00) Php900.00

B1 (150 x Php9.00) 1,350.00
B2 (300 x Php5.00) 1,500.00
C1 (250 x Php10.00) 2,500.00
C3 (200 x Php6.00) 1,200.00
Total Cost Php7,450.00
As Table 7 is not degenerated,further tests for vacant cells are made as follows:
Vacant Cells (Table 7) Path and Improvement Index
A2 +5 -5 +9 -6 = +3
A3 +4 -6 +10 -6 = +2
B3 +4 -6 +10 -9 = -1
C2 +8 -5 +9 -10 = +2
 Some units should be tranferred to cell B3 since it has an improvement index
of -1. The negative cells on the path of cell B3 are cells B1 and C3. The
contents of cell B1 are lower compared with that of cell C3; hence, the 150
units in cell B1 should be transffered to cell B3.
Table 8. Improved Table
To Project 1 Project 2 Project 3 Total Supply
From

6 5 4
Warehouse A 150 150

9 5 4
Warehouse B 300 150 450

10 8 6
Warehoouse C 400 50 450

0 0 0
Dummy Warehouse 100 100

1, 150
Total Demand 550 300 300 1,150
The transportation cost of Table 8 is computed as follows:

A1 (150 x Php6.00) Php900.00

B2 (300 x Php5.00) 1,500.00
B3 (150 x Php4.00) 600.00
C1 (400 x Php10.00) 4,000.00
C3 (50 x Php6.00) 300.00
Total Cost Php7,300.00
The vacant cells of Table 8 are tested for further improvement as follows:
Vacant Cells(Table 8) Path and Improvement Index
A2 +5 -5 +4 -6 +10 -6 = +2
A3 +4 -6 +10 -6 = +2
B1 +9 -4 +6 10 = +1
C2 +8 -6 +4 -5 = +1
 All the improvement indices of the vacant cells have positive values. Hence,
the optimal solution has been reached.
SEATWORK: Show the Complete Initial Table and Compute the
Transportation Cost. Test the vacant cells and show the path of each cells.
Destination S1 S2 S3 S4 Total Supply
Source
11 13 17 14
Factory A 250
16 18 14 10
Factory B 300
21 24 13 10
Factory C 400
950
Total Demand 200 225 275 250 950
Complete Initial Table
S1 S2 S3 S4 Total Supply
Destination
Source
11 13 17 14
Factory A 200 50 Vacant Cell Vacant Cell 250
16 18 14 10
Factory B Vacant Cell 175 125 Vacant Cell 300
21 24 13 10
Factory C Vacant Cell Vacant Cell 150 250 400
950
Total Demand 200 225 275 250 950
Transportation Cost Vacant Cells
A1 (200 x 11) 2,200 A3 path: +17 -14 +18 -13 = +8
A2 (50 x 13) 650 A4 path: +14 -10 +13 -14 +18 -13 = +8
B2 (175 x 18) 3,150 B1 path: +16 -18 +13 -11 = 0
B3 (125 x 14) 1,750 B4 path: +10 -10 +13 -14 = -1
C3 ( 150 x 13) 1,950 C1 path: +21 -13 +14 -18 +13 -11 = +6
C4 (250 x 10) 2,500 C2 path: +24 -13 +14 -18 = +7
Total Cost Php7,350.00