quantitative methods of business decisions chapter 5 part 2

School of Business
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions

Chapter 5 | Part 2


Transportation Model & It’s Variants

Spring 2020 - 2021

BMIS355- CHAPTER 5

, Outline
I. Definition of the transportation problem.
II. Balancing the transportation Model:
A. Balanced Transportation Model.
B. Un-Balanced Transportation Model.

III. The Transportation Algorithm:
I. Determination of the starting basic feasible solution
◦ Northwest Corner Method
II. Iterative computations of the Transportation Algorithm
1. Determine the “Entering Variable”.
2. Determine the “Leaving Variable”




BMIS355- CHAPTER 5

, Transportation Model & Its Variants
1. Determination of the “Starting Basic Feasible D1 D2 D3 D4
Solution”: 4 6 8
S1
10 15 7
S2
▪Before starting, verify if the problem is a balanced or
an unbalanced problem. 3 4 13
▪If so it’s balanced, start with the “Transportation S3
Algorithm”.
2 14 4
S4
▪If it’s unbalanced, convert it into a balanced problem
(add a dummy source or a dummy destination), then 31 10 5
start with the “Transportation Algorithm”. S5

Deman
10 20 25 15
d
Total Supply = Total Demand ⇒ the transportation problem is balanced.

BMIS355- CHAPTER 5