24 February 2011

Linear Programming applied on Transportation problem


Transportation Problems can be unbalanced:
     capacities≠requirements
     and the constraints functions are inequalities.

Transportation Problems can be balanced:
     capacities=requirements
     and the constraints functions are equalities.

Balanced Problems can be solved by the following algorithms
     First identify basic feasible solutions using:
  • North West Rule
  • Minimum Cost method
  • Penalty Cost (Vogel's approximation)
    Then identify optimal solution, using:
  • Stepping Stone
  • MODI or UV (Modified distribution)

Minimize        ΣΣ cij xij
Subject to:     Σxij = Σai
                      Σxij = Σbj
                      Σai=Σbj
Where:           xij = amount transport from I to j
                      cij = cost of transport from I to j

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