Classic formulation ¶.
Let \(\mathcal{G}\) be a complete bipartite directed graph , with disjoint sets of vertices \(\mathcal{S}=\{s_i\}_{i=1}^{m}\) and \(\mathcal{D}=\{d_j\}_{j=1}^{n}\) interpreted respectively as supply nodes and demand nodes .
For all \(i=1,\dots,m,\;j=1,\dots,n\) let:
We then define the transportation problem as the linear programming problem of minimize the total transportation cost subject to supply and demand constraints i.e.,
\(\min\limits_{x}\sum\limits_{i=1}^m\sum\limits_{j=1}^n c_{ij}x_{ij}\) s.t.
We define two quantities that play a crucial role within transportation problem framework: total supply and total demand in the network, respectively expressed as \(S^*=\sum_{i=1}^m S_i\) and analogously \(D^*=\sum_{j=1}^n D_j\) . The problem is said to be balanced if \(S^* = D^*\) and unbalanced otherwise. In case of an unbalanced transportation problem, is convenient to distinguish two cases:
Since in the former case is possible to state a priori that the problem will result in an infeasible one, is convenient to propose a general balancing method for a transportation problem:
In the following we will consider only balanced transportation problems, in which the balancing has might been restored with one of the above procedures. In particular, we will therefore consider both the constraints as equalities. For such a problem the following holds:
Given a balanced transportation problem assigned over a complete bipartite directed graph \(\mathcal{G}\) , the problem admits at least one feasible solution.
Transportation problem data are often summarized and visualized on a table called transportation tableau (see picture above). It basically consists in the costs matrix \(C\) , with the addition of a bottom row containing the demands and a right column containing the supplies. Moreover, it’s useful also to hold the decision variables \(x_{ij}\) as well as the total supply \(S^*\) and the total demand \(D^*\) .
Based on the transportation tableau, several heuristics have been studied in order to find an initial basic feasible solution to the transportation problem. The most used are:
They basically consist in algorithm than can be performed (also) by a human in order to match the problem constraints while distributing product amount amongst each \(x_{ij}\) (in a “Sudoku-like” approach) see here . Given an initial basic feasible solution, several techniques can be used to improve it in order to lower the corresponding objective function value (e.g. simplex method, evolutionary algorithms, Hungarian method).
We have seen that a classic transportation problem can be solved through several heuristics, even if possibly not in an optimal way. It’s anyway convenient, whenever possible, to approach it in a LP perspective, mostly to take advantages of all the linear programming techniques and libraries available.
The transportation problem can be approach as:
Sensitivity analysis ¶.
LP formulation and implementation can guarantee several advantages in approaching a transportation problem.
One of them is the sensitivity analysis : defined \(x^*\) as the optimal solution (or the set of optimal solutions) and \(f\) the problem objective function, the sensitivity analysis leds to study changes in \(x^*\) and \(f(x^*)\) as functions of problem data.
For example, in the transportation problem framework, one of the sensitivity analysis goal is to answer to questions such as:
Another advantage of a LP approach is represented by slack variables , which enable the elastic relaxation of a given problem.
For example, we can consider the supply constraint \(\sum_{j=1}^n x_{ij}\leq S_i\) for a given supply node \(s_i\) . This constraint requires that the amount of product going out from \(s_i\) is at most equal to the node capacity i.e., \(S_i\) . Another way to monitor such a request is to keep track of the difference \(\nu_i:= \sum_{j=1}^n x_{ij} - S_i\) . If \(\nu_i\leq 0\) , the constraint has been observed, if \(\nu_i>0\) the constraint has been violated.
Having observed so, we can then relax the supply constraint by restating it as follows:
\(\sum\limits_{j=1}^n x_{ij}-\nu_i\leq S_i\)
where \(\nu_i\) is a decision variable taking values in \([0, U_i]\) - called slack variable - which objective is to soften the constraint possibly allowing to excess the given supply \(S_i\) .
The main purpose of slack variables is to locate infeasibility causes: if the resolution of the problem seems impossible, we can add one slack variable for each constraint, taking care of adding it also to the objective function multiplying it by a (big) penalty factor. After the successful resolution procedure, whenever a slack variable hits a nonzero value it means that, despite its penalty factor in the objective function, its usage has been crucial to the resolution itself i.e., in making the problem actually feasible.
In general:
If any slack variable has been introduced and has been used in problem resolution, we must refactor the objective function value to restore its meaning with respect to the underlying business framework and units of measurements.
LP framework enables also to address multi-objective problems, in which for example we are interested in chase both \(\min f_1\) and \(\min f_2\) - we can consider both as minimization objectives thanks to the equivalence \(\max(f) = -\min(-f)\) . A more rigorous definition of chasing more objectives can be stated in a Pareto perspective: we could be interested in finding \(x^*\) such that, if there exists another \(x'\) such that \(f_1(x')<f_1(x^*)\) , then \(f_2(x')>f_2(x^*)\) . In other words our aim could be find a \(x^*\) which is Pareto-optimal i.e., a preferred solution such that any other candidate solution which significantly improves one of the objectives ends up worsening the other see here .
In such cases we can exploit one of the following techniques:
Transshipment nodes ¶.
The classic formulation can be extended to a more general case where the product goes from the supply nodes to the demand ones through one (resp. \(k\) ) layer of intermediary nodes, which is implicitly equivalent to change the underlying graph structure to the union of two (resp. \(k+1\) ) complete bipartite graphs which share one set of nodes. In such a case, we refer to the shared layer of nodes with \(\mathcal{T}=\{t_k\}_{k=1}^p\) and the problem objective will change as follows
\(\min\limits_{x}\sum\limits_{i=1}^m\sum\limits_{k=1}^p c_{ik}x_{ik} + \sum\limits_{k=1}^p\sum\limits_{j=1}^n c_{kj}x_{kj}\)
Both the supply and demand constraints must be changed accordingly (since no longer exists a direct connection between \(\mathcal{S}\) and \(\mathcal{D}\) ), and the transshipment constraint must be added in the following form
\(\sum\limits_{i=1}^m x_{ik}=\sum\limits_{j=1}^n x_{kj}\;,\;\;\forall k=1,\dots,p\)
assuming no storage is allowed within transshipment nodes.
The intermediaries of the middle layer can be interpreted also as sortation centers. In this case, a mixture between transportation problem and assignment problem better fits our needs: the classic transportation problem can be applied to the transportation of products between supply nodes and sortation centers, and then an assignment problem can be used to optimize the accountability of sortation centers with respect to final customer demands (this strategy is a simple yet good model of Amazon logistics).
In this case, the problem formulation can be changed as follows
\(\min\limits_{x,y}\sum\limits_{i=1}^m\sum\limits_{k=1}^p c_{ik}x_{ik} + \sum\limits_{k=1}^p\sum\limits_{j=1}^n c_{kj}y_{kj}\)
where the introduced new decision variables \(y_{kj}\in\{0,1\}\) are binary variables which represent the assignment of sortation between \(t_k\) and \(d_j\) , with corresponding sortation cost \(c_{kj}\) . The constraint of such a model are the following:
In the case of a transportation problem which involves the transportation of more than one product, the “product” variable can be taken into account in the LP framework switching to a three-dimension tensor of decision variables \(x_{ijh}\) , each representing the amount of product \(p_h\) transported from \(s_i\) to \(d_j\) .
For reference see this article .
Let us consider the following maximization problem \(\max 2x_1 + 3x_2\) s.t.
Thanks to nonnegativity constraint (4), we can observe for example that the objective function has an upper bound given by the left side of (1): this ensures that the objective function is bounded by 12. Similarly, the same holds dividing the left side of (1) by 2: we have then a better upper bound on the objective function i.e., 6: this is the inspiration for the following discussion.
Given \(f\) the objective function of our LP problem, is then possible to write \(f\) as a linear combination of variables \(x_j\) i.e., \(f(x_1,\dots,x_n)=\sum_{j=1}^nc_jx_j\) , and the same holds for the left side of each constraint, which can be represented by a function \(g_i\) such that \(g_i(x_1,\dots,x_n)=\sum_{j=1}^na_{ij}x_j\leq b_i\) . As in the above example, we are then interested in finding a linear combination of the given constraints which constitutes an upper bound on \(f\) i.e., \(f\leq\sum_{j=1}^nd_jx_j\leq M\) where \(d_j\geq c_j\) for all \(j=1,\dots, n\) . In the example, we are looking for a combination
\(d_1x_1 + d_2x_2\leq M\)
where \(d_1\geq 2\) and \(d_2\geq 3\) .
For doing so, we can consider a linear combination \(\sum_{j=1}^nd_j(y_1,\dots,y_p)x_j=\sum_{i=1}^py_ig_i(x_1,\dots,x_n)\leq\sum_{i=1}^pb_iy_i=M\) where \(y_i\geq 0\) are brand new variables linked with the original constraints. In the example, the linear combination is
\(y_1\left(4x_1 + 8x_2\right) + y_2\left(2x_1 + x_2\right) + y_3\left(3x_1 + 2x_2\right) \leq 12y_1 + 3y_2 + 4y_3\)
which correspondes to
\(\left(4y_1+2y_2+3y_3\right)x_1 + \left(8y_1+y_2+2y_3\right)x_2\leq 12y_1 + 3y_2 + 4y_3\)
As per the intro of this section, our goal is to find the best possible upper bound on \(f\) i.e., to lower as much as we can the upper bound \(M\) which controls \(f\) from above while respecting the constraints \(d_j\geq c_j\) for all \(j=1,\dots,n\) . We have then implicitly defined a new LP problem, corresponding to the original one, i.e. \(\min 12y_1 + 3y_2 + 4y_3\) s.t.
We have just figured out that a minimization problem corresponds in a “natural way” to a maximization one, and viceversa. In general we have that to a minimization problem \(\min b^Ty\) s.t.
corresponds a maximization problem \(\max c^Tx\) s.t.
Given the privileged perspective of the transportation problem framework (minimization), we will call the former primal problem \(\mathfrak{P}\) and the latter its dual problem \(\mathfrak{D}\) .
Any feasible solution of \(\mathfrak{D}\) is a lower bound on the objective function of \(\mathfrak{P}\) .
One of the following holds:
A possible formulation of the dual problem of the (primal) classic transportation problem defined above, with equalities constraints, is the following \(\max\sum\limits_{j=1}^nD_jv_j-\sum\limits_{i=1}^mS_iu_i\) s.t. \(v_j-u_i\leq c_{ij}\)
To understand and interpret this dual problem, let us refer to this notes .
Consider the need of transportation expressed by the business stakeholders and modeled with the primal problem.
Imagine now that the business wants to outsource the transportation and finds an external company which offers such a service in a particular way: it offers to buy product at price \(u_i\) at each supply nodes, transport it and resell the same amount at demand nodes at price \(v_j\) . Since the original transportation cost from \(s_i\) to \(d_j\) was \(c_{ij}\) , from a cost perspective the business should only ensure that \(v_j - u_i\) is lower than \(c_{ij}\) : the dual constraint represents this condition. From the external company point of view, it represents a condition to be matched to make the proposal appealing for the customer (our business).
The dual objective function represents the net revenue of the external company in managing transportation along the network while satisfying customer constraints in terms of supply and demand.
This section goal is to discuss the following question: what happens to Theorem 1 if \(\mathcal{G}\) is not a complete bipartite graph anymore? Or, in other words, which are minimal balancing actions needed to ensure problem feasibility at the change of the underlying graph structure?
This is crucial because in a given business framework not all routes between \(\mathcal{S}\) and \(\mathcal{D}\) might be admissible. In such a case, graph connectivity can be “reduced” and therefore the problem could reveals to be infeasible subject to the given constraint.
Consider a feasible transportation problem assigned over a bipartite directed graph \(\mathcal{G}\) . For each demand node \(d_j\) let \(\mathcal{S}^j\) be the set of indices of supply nodes adjacent to \(d_j\) . Then we have
\(\sum\limits_{i\in\mathcal{S}^j} S_i\geq D_j\)
This theorem provides a necessary condition to be checked in order to ensure feasibility for a transportation problem assigned over a generic bipartite graph: the sum of supplies of supply nodes adjacent to a given demand node must be at least equal to the demand of that node. This is a necessary condition which partially overcomes the possibly “insufficient” graph connectivity.
Unfortunately, since Theorem 1 does not hold if \(\mathcal{G}\) isn’t complete and Theorem 4 gives only a necessary condition, we are still without a set of sufficient conditions for feasibility of a transportation problem assigned over a generic bipartite directed graph. Given the relationship between graph structure and supply-demand constraints, any useful condition must take into account the flow of product that can be assigned over the network ( max-flow connectivity , min-cut connectivity , etc.).
In order to solve a transportation problem over a “generic” graph and to overcome the lack of a proper Theorem to ensure feasibility, a custom heuristics to “balance” the given problem before submitting it to the actual solver is below.
In particular, we search for \(\mathcal{D}^i\) (defined similarly to \(\mathcal{S}^j\) ) sets for each \(s_i\) and define the maximal set of suppliers adjacent to nodes in \(\mathcal{D}^i\) , denoting this set as \(\mathcal{S}(\mathcal{D}^i)\) . Then we refer to supplier nodes in \(\mathcal{S}(\mathcal{D}^i)\) as critical suppliers in the following cases:
We then sum up the supply of all the critical suppliers and create a dummy supply node, adjacent to all demand nodes , accountable for this quantity: this helps preventing the unattainability of the critical suppliers, which might affect problem feasibility.
This tutorial was generated using Literate.jl . Download the source as a .jl file .
This tutorial was originally contributed by Louis Luangkesorn.
This tutorial is an adaptation of the transportation problem described in AMPL: A Modeling Language for Mathematical Programming , by R. Fourer, D.M. Gay and B.W. Kernighan.
The purpose of this tutorial is to demonstrate how to create a JuMP model from an ad-hoc structured text file.
This tutorial uses the following packages:
Suppose that we have a set of factories that produce pogo sticks , and a set of retail stores in which to sell them. Each factory has a maximum number of pogo sticks that it can produce, and each retail store has a demand of pogo sticks that it can sell.
In the transportation problem, we want to choose the number of pogo sticks to make and ship from each factory to each retail store that minimizes the total shipping cost.
Mathematically, we represent our set of factories by a set of origins $i \in O$ and our retail stores by a set of destinations $j \in D$ . The maximum supply at each factory is $s_i$ and the demand from each retail store is $d_j$ . The cost of shipping one pogo stick from $i$ to $j$ is $c_{i,j}$ .
With a little effort, we can model the transportation problem as the following linear program:
\[\begin{aligned} \min && \sum_{i \in O, j \in D} c_{i,j} x_{i,j} \\ s.t. && \sum_{j \in D} x_{i, j} \le s_i && \forall i \in O \\ && \sum_{i \in O} x_{i, j} = d_j && \forall j \in D \\ && x_{i, j} \ge 0 && \forall i \in O, j \in D \end{aligned}\]
We assume our data is in the form of a text file that has the following form. In practice, we would obtain this text file from the user as input, but for the purpose of this tutorial we're going to create it from Julia.
Here the rows are the origins, the columns are the destinations, and the values are the cost of shipping one pogo stick from the origin to the destination. If pogo stick cannot be transported from a source to a destination, then the value is . . The final row and final column are the demand and supply of each location respectively.
We didn't account for arcs which do not exist in our formulation, but we can make a small change and fix $x_{i,j} = 0$ if $c_{i,j} = "."$ .
Our first step is to convert this text format into an appropriate Julia datastructure that we can work with. Since our data is tabular with named rows and columns, one option is JuMP's Containers.DenseAxisArray object:
Following Design patterns for larger models , we code our JuMP model as a function which takes in an input. In this example, we print the output to stdout :
Let's solve and view the solution:
Theme Automatic (OS) documenter-light documenter-dark
This document was generated with Documenter.jl version 1.4.1 on Monday 17 June 2024 . Using Julia version 1.10.4.
In this chapter and the chapter that follows, we explore the special structure of network models. This chapter focuses on the problems of product distribution.
The transportation problem is a special type of linear programming problem, where the objective is to minimize the cost of distributing a product from a number of sources to a number of destinations.
The transportation problem deals with a special class of linear programming problems in which the objective is to transport a homogeneous product manufactured at several plants (origins) to a number of different destinations at a minimum total cost. The total supply available at the origin and the total quantity demanded by the destinations are given in the statement of the problem. The cost of shipping a unit of goods from a known origin to a known destination is also given. Our objective is to determine the optimal allocation that results in minimum total shipping cost.
The transportation (or distribution) problem is significant for most commercial organizations that operate several plants and hold inventory in regional warehouses.
Warehouse | |||||
---|---|---|---|---|---|
Factory | B | C | D | M | Supply |
A | 6 | 8 | 8 | 5 | 30 |
E | 5 | 11 | 9 | 7 | 40 |
K | 8 | 9 | 7 | 13 | 50 |
Demand | 35 | 28 | 32 | 25 |
The problem is to determine a routing plan that minimizes total transportation costs.
Let x ij = no. of units of a product transported from ith factory(i = 1, 2, 3) to jth warehouse (j = 1, 2, 3, 4).
It should be noted that if in a particular solution the x ij value is missing for a cell, this means that nothing is shipped between factory and warehouse.
The problem can be formulated mathematically in the linear programming form as Minimize = 6x 11 + 8x 12 + 8x 13 + 5x 14 + 5x 21 + 11x 22 + 9x 23 + 7x 24 + 8x 31 + 9x 32 + 7x 33 + 13x 34
subject to Capacity constraints x 11 + x 12 + x 13 + x 14 = 30 x 21 + x 22 + x 23 + x 24 = 40 x 31 + x 32 + x 33 + x 34 = 50
Requirement constraints x 11 + x 21 + x 31 = 35 x 12 + x 22 + x 32 = 28 x 13 + x 23 + x 33 = 32 x 14 + x 24 + x 34 = 25
x ij ≥ 0
The above problem has 7 constraints and 12 variables.Since no. of variables is very high, simplex method is not applicable. Therefore, more efficient methods have been developed to solve transportation problems .
x ij ≥ 0
For a feasible solution to exist, it is necessary that total capacity equals total requirements. Total supply = total demand. Or Σ a i = Σ b j .
If total supply = total demand then it is a balanced transportation problem. There will be (m + n 1) basic independent variables out of (m x n) variables.
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Operations Research Simplified Back Next
Goal programming Linear programming Simplex Method Assignment Problem
The North-West Corner method has been discussed in the previous article. In this article, the Least Cost Cell method will be discussed.
Solution: According to the Least Cost Cell method, the least cost among all the cells in the table has to be found which is 1 (i.e. cell (O1, D2) ). Now check the supply from the row O1 and demand for column D2 and allocate the smaller value to the cell. The smaller value is 300 so allocate this to the cell. The supply from O1 is completed so cancel this row and the remaining demand for the column D2 is 350 – 300 = 50 .
Now find the cell with the least cost among the remaining cells. There are two cells with the least cost i.e. (O2, D1) and (O3, D4) with cost 2 . Lets select (O2, D1) . Now find the demand and supply for the respective cell and allocate the minimum among them to the cell and cancel the row or column whose supply or demand becomes 0 after allocation.
Now the cell with the least cost is (O3, D4) with cost 2 . Allocate this cell with 200 as the demand is smaller than the supply. So the column gets cancelled.
There are two cells among the unallocated cells that have the least cost. Choose any at random say (O3, D2) . Allocate this cell with a minimum among the supply from the respective row and the demand of the respective column. Cancel the row or column with zero value.
Now the cell with the least cost is (O3, D3) . Allocate the minimum of supply and demand and cancel the row or column with zero value.
The only remaining cell is (O2, D3) with cost 5 and its supply is 150 and demand is 150 i.e. demand and supply both are equal. Allocate it to this cell.
Now just multiply the cost of the cell with their respective allocated values and add all of them to get the basic solution i.e. (300 * 1) + (250 * 2) + (150 * 5) + (50 * 3) + (250 * 3) + (200 * 2) = 2850
Similar reads.
The two categories of transportation problems are balanced and unbalanced transportation problems . As we all know, a transportation problem is a type of Linear Programming Problem (LPP) in which items are carried from a set of sources to a set of destinations based on the supply and demand of the sources and destinations, with the goal of minimizing the total transportation cost. It is also known as the Hitchcock problem.
Balanced transportation problem.
The problem is considered to be a balanced transportation problem when both supplies and demands are equal.
Unbalanced Transportation Problem
Unbalanced transportation problem is defined as a situation in which supply and demand are not equal. A dummy row or a dummy column is added to this type of problem, depending on the necessity, to make it a balanced problem. The problem can then be addressed in the same way as the balanced problem.
There are three ways for determining the initial basic feasible solution. They are
1. NorthWest Corner Cell Method.
2. Vogel’s Approximation Method (VAM).
3. Least Call Cell Method.
The following is the basic framework of the balanced transportation problem:
The destinations D1, D2, D3, and D4 in the above table are where the products/goods will be transported from various sources O1, O2, O3, and O4. The supply from the source Oi is represented by S i . The demand for the destination Dj is d j . If a product is delivered from source Si to destination Dj, then the cost is called C ij .
Let us now explore the process of solving the balanced transportation problem using one of the ways known as the NorthWest Corner Method in this article.
Consider this scenario:
With three sources (O1, O2, and O3) and four destinations (D1, D2, D3, and D4), what is the best way to solve this problem? The supply for the sources O1, O2, and O3 are 300, 400, and 500, respectively. Demands for the destination D1, D2, D3, and D4 are 250, 350, 400, and 200, respectively.
The starting point for the North West Corner technique is (O1, D1), which is the table’s northwest corner. The cost of transportation is calculated for each value in the cell. As indicated in the diagram, compare the demand for column D1 with the supply from source O1 and assign a minimum of two to the cell (O1, D1).
Column D1’s demand has been met, hence the entire column will be canceled. The supply from the source O1 is still 300 – 250 = 50.
Analyze the northwest corner, i.e. (O1, D2), of the remaining table, excluding column D1, and assign the lowest among the supply for the appropriate column and rows. Because the supply from O1 is 50 and the demand for D2 is 350, allocate 50 to the cell (O1, D2).
Now, row O1 is canceled because the supply from row O1 has been completed. Hence, the demand for Column D2 has become 350 – 50 = 50.
The northwest corner cell in the remaining table is (O2, D2). The shortest supply from source O2 (400) and the demand for column D2 (300) is 300, thus putting 300 in the cell (O2, D2). Because the demand for column D2 has been met, the column can be deleted, and the remaining supply from source O2 is 400 – 300 = 100.
Again, find the northwest corner of the table, i.e. (O2, D3), and compare the O2 supply (i.e. 100) to the D2 demand (i.e. 400) and assign the smaller (i.e. 100) to the cell (O2, D2). Row O2 has been canceled because the supply from O2 has been completed. Column D3 has a leftover demand of 400 – 100 = 300.
Continuing in the same manner, the final cell values will be:
It should be observed that the demand for the relevant columns and rows is equal in the last remaining cell, which was cell (O3, D4). In this situation, the supply from O3 was 200, and the demand for D4 was 200, therefore this cell was assigned to it. Nothing was left for any row or column at the end.
To achieve the basic solution, multiply the allotted value by the respective cell value (i.e. the cost) and add them all together.
I.e., (250 × 3) + (50 × 1) + (300 × 6) + (100 × 5) + (300 × 3) + (200 × 2) = 4400.
: |
---|
An unbalanced transportation problem is provided below. Because the sum of all the supplies, O1, O2, O3, and O4, does not equal the sum of all the demands, D1, D2, D3, D4, and D5, the situation is unbalanced.
The idea of a dummy row or dummy column will be applied in this type of scenario. Because the supply is more than the demand in this situation, a fake demand column will be inserted, with a demand of (total supply – total demand), i.e. 117 – 95 = 22, as seen in the image below. A fake supply row would have been introduced if demand was greater than supply.
Now this problem has been changed to a balanced transportation problem, and it can be addressed using any of the ways listed below to solve a balanced transportation problem, such as the northwest corner method mentioned earlier.
What is meant by balanced and unbalanced transportation problems.
The problem is referred to as a balanced transportation problem when both supplies and demands are equal. Unbalanced transportation is defined as a situation where supply and demand are not equal.
The transportation problem is a type of Linear Programming Problem in which commodities are carried from a set of sources to a set of destinations while taking into account the supply and demand of the sources and destinations, respectively, in order to reduce the total cost of transportation.
The following are three approaches to solve the transportation issue:
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Transportation problem explained and how to solve it.
Contributed by: Patrick
Operations Research (OR) is a state of art approach used for problem-solving and decision making. OR helps any organization to achieve their best performance under the given constraints or circumstances. The prominent OR techniques are,
One of the problems the organizations face is the transportation problem. It originally means the problem of transporting/shipping the commodities from the industry to the destinations with the least possible cost while satisfying the supply and demand limits. It is a special class of linear programming technique that was designed for models with linear objective and constraint functions. Their application can be extended to other areas of operation, including
The notations of the representation are:
m sources and n destinations
(i , j) joining source (i) and destination (j)
c ij 🡪 transportation cost per unit
x ij 🡪 amount shipped
a i 🡪 the amount of supply at source (i)
b j 🡪 the amount of demand at destination (j)
Transportation problem works in a way of minimizing the cost function. Here, the cost function is the amount of money spent to the logistics provider for transporting the commodities from production or supplier place to the demand place. Many factors decide the cost of transport. It includes the distance between the two locations, the path followed, mode of transport, the number of units that are transported, the speed of transport, etc. So, the focus here is to transport the commodities with minimum transportation cost without any compromise in supply and demand. The transportation problem is an extension of linear programming technique because the transportation costs are formulated as a linear function to the supply capacity and demand. Check out the course on transportation analytics .
Transportation problem exists in two forms.
It is the case where the total supply equals the total demand.
It is the case where either the demand is greater than the supply, or vice versa.
In most cases, the problems take a balanced form. It is because usually, the production units work, taking the inventory and the demand into consideration. Overproduction increases the inventory cost whereas under production is challenged by the demand. Hence the trade-off should be carefully examined. Whereas, the unbalanced form exists in a situation where there is an unprecedented increase or decrease in demand.
Let us understand this in a much simpler way with the help of a basic example.
Let us assume that there is a leading global automotive supplier company named JIM. JIM has it’s production plants in many countries and supplies products to all the top automotive makers in the world. For instance, let’s consider that there are three plants in India at places M, N, and O. The capacity of the plants is 700, 300, 550 per day. The plant supplies four customers A, B, C, and D, whose demand is 650, 200, 450, 250 per day. The cost of transport per unit per km in INR and the distance between each source and destination in Kms are given in the tables below.
Here, the objective is to determine the unknown while satisfying all the supply and demand restrictions. The cost of shipping from a source to a destination is directly proportional to the number of units shipped.
Many sophisticated programming languages have evolved to solve OR problems in a much simpler and easier way. But the significance of Microsoft Excel cannot be compromised and devalued at any time. It also provides us with a greater understanding of the problem than others. Hence we will use Excel to solve the problem.
It is always better to formulate the working procedure in steps that it helps in better understanding and prevents from committing any error.
Steps to be followed to solve the problem:
Creating a transportation matrix:
A transportation matrix is a way of understanding the maximum possibilities the shipment can be done. It is also known as decision variables because these are the variables of interest that we will change to achieve the objective, that is, minimizing the cost function.
Define the objective function:
An objective function is our target variable. It is the cost function, that is, the total cost incurred for transporting. It is known as an objective function because our interest here is to minimize the cost of transporting while satisfying all the supply and demand restrictions.
The objective function is the total cost. It is obtained by the sum product of the cost per unit per km and the decision variables (highlighted in red), as the total cost is directly proportional to the sum product of the number of units shipped and cost of transport per unit per Km.
The column “Total shipped” is the sum of the columns A, B, C, and D for respective rows and the row “Total Demand” is the sum of rows M, N, and O for the respective columns. These two columns are introduced to satisfy the constraints of the amount of supply and demand while solving the cost function.
Formulate the constraints:
The constraints are formulated concerning the demand and supply for respective rows and columns. The importance of these constraints is to ensure they satisfy all the supply and demand restrictions.
For example, the fourth constraint, x ma + x na + x oa = 650 is used to ensure that the number of units coming from plants M, N, and O to customer A should not go below or above the demand that A has. Similarly the first constraint x ma + x mb + x mc + x md = 700 will ensure that the capacity of the plant M will not go below or above the given capacity hence, the plant can be utilized to its fullest potential without compromising the inventory.
Solve using LP method:
The simplest and most effective method to solve is using solver. The input parameters are fed as stated below and proceed to solve.
This is the best-optimized cost function, and there is no possibility to achieve lesser cost than this having the same constraints.
From the solved solution, it is seen that plant M ships 100 units to customer A, 350 units to C and 250 units to D. But why nothing to customer B? And a similar trend can be seen for other plants as well.
What could be the reason for this? Yes, you guessed it right! It is because some other plants ship at a profitable rate to a customer than others and as a result, you can find few plants supplying zero units to certain customers.
So, when will these zero unit suppliers get profitable and can supply to those customers? Wait! Don’t panic. Excel has got away for it too. After proceeding to solve, there appears a dialogue box in which select the sensitivity report and click OK. You will get a wonderful sensitivity report which gives details of the opportunity cost or worthiness of the resource.
Basic explanation for the report variables,
Cell: The cell ID in the excel
Name: The supplier customer pairing
Final value: Number of units shipped (after solving)
Reduced cost: How much should the transportation cost per unit per km should be reduced to make the zero supplying plant profitable and start supplying
Objective coefficient: Current transportation cost per unit per Km for each supplier customer pair
Allowable Increase: It tells us the maximum cost of the current transportation cost per unit per Km can be increased which doesn’t make any changes to the solution
Allowable Decrease: It tells how much maximum the current transportation cost per unit per Km can be lowered which doesn’t make any changes to the solution
Here, look into the first row of the sensitivity report. Plant M supplies to customer A. Here, the transportation cost per unit per Km is ₹14 and 100 units are shipped to customer A. In this case, the transportation cost can increase a maximum of ₹6, and can lower to a maximum of ₹1. For any value within this range, there will not be any change in the final solution.
Now, something interesting. Look at the second row. Between MB, there is not a single unit supplied to customer B from plant M. The current shipping cost is ₹22 and to make this pair profitable and start a business, the cost should come down by ₹6 per unit per Km. Whereas, there is no possibility of increasing the cost by even a rupee. If the shipping cost for this pair comes down to ₹16, we can expect a business to begin between them, and the final solution changes accordingly.
The above example is a balanced type problem where the supply equals the demand. In case of an unbalanced type, a dummy variable is added with either a supplier or a customer based on how the imbalance occurs.
Thus, the transportation problem in Excel not only solves the problem but also helps us to understand how the model works and what can be changed, and to what extent to modify the solution which in turn helps to determine the cost and an optimal supplier.
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I know that an unbalanced transportation problem could be made a balanced transportation problem by adding a dummy node which equals the difference between demand and supply.
In literature, dummy nodes are inserted with a cost of 0. Wouldn't this lead to the problem that the algorithm will always fulfill this dummy amount first? So it can't be insured that we get a realistic result, can it?
The "goods" going to or coming from the dummy node are not really moved; hence the cost of zero, no matter the quantity.
If the problem is solved to optimality, using Network Simplex, or whatever, there is no "first" which can't be changed later as the algorithm proceeds. The algorithm ensures the total cost for moving everything is minimized. Do not think in terms of a "greedy" algorithm which initially makes an irrevocable assignment of what appears to be an attractive first assignment to make, and never reconsiders that first greedy assignment which winds up not being optimal in the grand scheme of things. Network Simplex may make some initial assignment which is not truly optimal, but then iterates until criteria ensuring optimality are reached.
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A graph is said to be two connected if between every pair of nodes there are at least two node-disjoint paths. Given weights on the edges of the graph, the two connected subgraph problem is to find a two connected spanning subgraph of G whose weight is minimum. This problem has many applications in telecommunications. In this paper we consider a new variant of this problem with additional disjunctive constraints (called also conflict constraints) related to the survivability of telecommunication networks. This can be called the Disjunctive Two-Connected Subgraph Problem (DTCSP). First, we give an extended formulation for the problem whose variables are the cycles of the graph. Then, we use a column generation algorithm to solve its linear relaxation, and further show that the pricing reduces to finding a specific cycle in the graph which can be formulated as an integer programming problem. We also describe several valid inequalities for the polytope. Moreover, we study the related separation problems and devise separation routines for these inequalities. Using this, we devise a Branch-and-Cut-and-Price algorithm for the problem along with an extensive experimental study.
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Department of Statistics and Operations Research, College of Science, Kuwait University, Kuwait, Kuwait
Fatmah Almathkour
LMAH, Le Havre Normandie University, Le Havre, France
Ibrahima Diarrassouba
LIMOS, UMR CNRS 6158, Clermont Auvergne INP, 63178, Clermont-Ferrand, France
Youssouf Hadhbi
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Almathkour, F., Diarrassouba, I. & Hadhbi, Y. Extended formulation and Branch-and-Cut-and-Price algorithm for the two connected subgraph problem with disjunctive constraints. Ann Oper Res (2024). https://doi.org/10.1007/s10479-024-06123-0
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DOI : https://doi.org/10.1007/s10479-024-06123-0
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An introduction to the basic transportation problem and its linear programming formulation:Transshipment Problem video: https://youtu.be/ABMPgSApdUw Solve Tr...
The transportation problem is a type of Linear Programming problem. In this type of problem, the main objective is to transport goods from source warehouses to various destination locations at minimum cost. In order to solve such problems, we should have demand quantities, supply quantities, and the cost of shipping from source and destination.
Transportation problem is a special kind of Linear Programming Problem (LPP) ... In this article, the method to solve the unbalanced transportation problem will be discussed. Below transportation problem is an unbalanced transportation problem. The problem is unbalanced because the sum of all the supplies i.e. O1 , O2 , O3 and O4 is not equal to t
This essential problem was first formulated as a linear programming problem in the early 1940's and is popularly known as the transportation problem. In this blog, we give an overview of the transportation problem and how the transportation algorithm — as implemented in IMSL — can be used to solve different variations of the ...
The problem of interest is to determine an optimal transportation scheme between the warehouses and the outlets, subject to the specified supply and demand constraints. Graphically, a transportation problem is often visualized as a network with m source nodes, n sink nodes, and a set of m×n "directed arcs." This is depicted in Figure TP-1.
The transportation problem is an important Linear Programming Problem (LPP). This problem depicts the transportation of goods from a group of sources to a group of destinations. The whole process is subject to the availability and demand of the sources as well as destination, respectively in a way, where entire cost of transportation is minimised.
We then define the transportation problem as the linear programming problem of minimize the total transportation cost subject to supply and demand constraints i.e., min x ∑ i = 1 m ∑ j = 1 n c i j x i j s.t. supply constraint : ∑ j = 1 n x i j ≤ S i ∀ i = 1, …, m. demand constraint : ∑ i = 1 m x i j ≥ D j ∀ j = 1, …, n.
In this article, the method to solve the unbalanced transportation problem will be discussed. Below transportation problem is an unbalanced transportation problem. The problem is unbalanced because the sum of all the supplies i.e. O1 , O2 , O3 and O4 is not equal to t ... Transportation problem is a special kind of Linear Programming Problem ...
called the assignment problem. ) We could set up a transportation problem and solve it using the simplex method as with any LP problem (see Using the Simplex Method to Solve Linear Programming Maximization Problems, EM 8720, or another of the sources listed on page 35 for informa-tion about the simplex method). However, the special structure of
The transportation problem. This tutorial was generated using Literate.jl. Download the source as a .jl file. This tutorial was originally contributed by Louis Luangkesorn. This tutorial is an adaptation of the transportation problem described in AMPL: A Modeling Language for Mathematical Programming, by R. Fourer, D.M. Gay and B.W. Kernighan.
Some of the most popular methods are: • Linear Programming: Linear programming techniques have been used to solve the distribution problem, such as the branch-and-cut method. • Heuristic methods: Heuristic methods such as the Clarke-Wright saving algorithm and the Christofides algorithm have been proposed to find approximate ...
The transportation problem deals with a special class of linear programming problems in which the objective is to transport a homogeneous product manufactured at several plants (origins) to a number of different destinations at a minimum total cost. The total supply available at the origin and the total quantity demanded by the destinations are given in the statement of the problem.
To solve a transportation problem, the following information must be given: m= The number of sources. n= The number of destinations. The total quantity available at each source. The total quantity required at each destination. The cost of transportation of one unit of the commodity from each source to each destination.
In this article, the method to solve the unbalanced transportation problem will be discussed. Below transportation problem is an unbalanced transportation problem. The problem is unbalanced because the sum of all the supplies i.e. O1 , O2 , O3 and O4 is not equal to t ... Transportation problem is a special kind of Linear Programming Problem ...
We can solve transportation problems with simplex method, but it will take too much time and very difficult to perform. So we can solve this problem by computer program LINGO or TORA, it is very easy and quick. LINGO or TORA is an interactive computer-software package that can be used to solve linear, integer, and non-linear programming problems.
Cost of transportation is given in terms of 100$ and quantity in tons. Solution: Here , the problem is unbalanced. Now solving the given problem by VAM in single table by calculating penalties for each row and column and assigning maximum amount in minimum cost cell to row/ column with maximum penalty in each round.
The two categories of transportation problems are balanced and unbalanced transportation problems.As we all know, a transportation problem is a type of Linear Programming Problem (LPP) in which items are carried from a set of sources to a set of destinations based on the supply and demand of the sources and destinations, with the goal of minimizing the total transportation cost.
The transportation simplex algorithm is a linear program, a mathematical model representing linear relationships, like the transportation between a supplier and a destination. Linear programming ...
The transportation problem is an extension of linear programming technique because the transportation costs are formulated as a linear function to the supply capacity and demand. Check out the course on transportation analytics. Transportation problem exists in two forms. Balanced.
Running Excel Solver (Linear Programming): When we run the Solver, Solver gives a satisfied solution that states that all the constraints are satisfied. The solution states that we can ship 17 ...
LINGO. 1. Introduction. The transportation problem is a special type of linear programming problem where the objective is to minimise the cost of distributing a product from a number of sources or origins to a number of destinations. Because of its special structure the usual simplex method is not suitable for solving transportation problems.
$\begingroup$ I can solve my problem by writing it as a LP with simplex algorithm. When solving with network simplex I get exactly the trouble which I was afraid of. Following case: totalSupply < totalDemand thus adding a supplyDummy. In the network simplex solution many consumers trade with the added supplyDummy.
A transportation problem in operation research is a special type of Linear Programming Problem used to optimize (minimize) the transportation cost and allocate resources from M source to N destination. This article will briefly discuss transportation problems, types of transportation problems, and how to solve them.
This article takes on two titans of operations research: George Dantzig and Richard Bellman. Those in the O.R. community will immediately recognize Dantzig's contribution of the simplex algorithm for solving linear programs and Bellman's contribution of "Bellman's equation" for solving sequential decision problems that he called "dynamic programs." However, very few people need ...
First, we give an extended formulation for the problem whose variables are the cycles of the graph. Then, we use a column generation algorithm to solve its linear relaxation, and further show that the pricing reduces to finding a specific cycle in the graph which can be formulated as an integer programming problem.
CDK Global says it will likely take several days for its software to be back online and operational, as the company grapples with a system outage that has paralyzed thousands of auto dealerships ...