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Balanced and Unbalanced Transportation Model

The document describes balanced and unbalanced transportation models. A balanced model has equal supply and demand units while an unbalanced model has unequal supply and demand, where either supply or demand can exceed the other. It provides an example of an unbalanced transportation problem for a furniture company with supply exceeding demand. The objective is to minimize shipping costs by determining the optimal allocation of products from plants to demand locations.

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Sophia Garcia
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556 views7 pages

Balanced and Unbalanced Transportation Model

The document describes balanced and unbalanced transportation models. A balanced model has equal supply and demand units while an unbalanced model has unequal supply and demand, where either supply or demand can exceed the other. It provides an example of an unbalanced transportation problem for a furniture company with supply exceeding demand. The objective is to minimize shipping costs by determining the optimal allocation of products from plants to demand locations.

Uploaded by

Sophia Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Balanced and Unbalanced

Transportation Model
• A Balanced Transportation has equal number of
units of demand and supply
• An Unbalanced Transportation has unequal
demand and supply units.
S>D or D>S
Case 1. Demand exceeds Supply. Whenever
demand exceeds supply a dummy source
(dummy row) is added to a transportation
problem.
Case 2. Supply exceeds Demand. Whenever
supply exceeds demand a dummy destination
(dummy column) is added to a transportation
problem.
Example 1: (unbalanced)
A furniture company recently began construction of a
new warehouse. During the construction period, several
changes have occurred that require development of a new
distribution plan. The current figures for supply and current
figures for demand are shown below:
Plant Capacity (pieces/week) Plant Demand (pieces/week)
A 1000
1 2500
B 2000
2 4400
C 4000
3 3000
D 2000

The shipping cost per unit is shown below. The


objective of the company is to minimize the cost NCR -
MODI. To
From A B C D
1 1 2 4 5
2 2 3 3 2
3 4 1 2 1
Plant Capacity (pieces/week) Plant Demand (pieces/week)
A 1000
1 2500
B 2000
2 4400
C 4000
3 3000
D 2000

To
From A B C D
1 1 2 4 5
2 2 3 3 2
3 4 1 2 1

A B C D SUPPLY
1 1 2 4 5 25
2 2 3 3 2 44
3 4 1 2 1 30
DEMAND 10 20 40 20 99
Decision:
Since the improvement index does not contain
any negative value the solution is optimum.
The optimal solution and the minimum cost of
transportation will be:
1A = 10 1B = 15 2C = 35
3B = 5 3C = 5 3D = 20

Maximum Profit of Transportation:


Zj = 18, 000
Problem 2
Objective Function:
Minimize: C = 20x1A + 18x1B + 25x1C + 12x2A + 11x2B + 33x2C +
17x3A + 17x3B + 40x3C
Constraints:
Supply Constraints:
x1A + x1B + x1C = 24
x2A + x2B + x2C = 6
x3A + x3B + x3C = 11
Demand Constraints:
x1A + x2A + x3A = 15
x1B + x2B + x3B = 10
x1C + x2C + x3C = 10
xij ≥ 0
Problem 2
Objective Function:
Maximize: P = 45x1A + 37x1B + 40x1C + 28x2A + 30x2B + 32x2C +
36x3A + 33x3B + 30x3C

Subject to:
Supply Constraints:
x1A + x1B + x1C = 66
x2A + x2B + x2C = 44
x3A + x3B + x3C = 35
Demand Constraints:
x1A + x2A + x3A = 60
x1B + x2B + x3B = 50
x1C + x2C + x3C = 50
xij ≥ 0

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