D2 Maths (1) Transportation Problems (Key Terms (Demand, Unit cost,…
1) Transportation Problems
North-West corner method
Create a table, with one row for every source and one column for every destination. Each destination's demand is given at the foot of each column and each sources stock is given at the end of each row. Enter numbers in each cell to show how many units are to be sent along that route.
As each stock is emptied, move one square down and allocate as many units as possible from the next source until the demand of the destination is met.
As each demand is met, move one square to the right and again allocate as many units as possible.
Begin with the top left hand corner. Allocate the maximum available quantity to meet the demand at this destination (but do not exceed the stock of the source).
Stop when all the stock is assigned and all the demands are met
If the number of cells used in a feasible solution is less than n + m - 1 (m rows, n columns)
0 in unused cells
Step 2: Use the shadow costs and the empty cells to find the
Step 3: Use the improvement indices and the
to find an improved solution
Step 1: Find
using non-empty shells
Costs of using a route
Worked out by:
Starting with the north-west corner, set the cost linked with its source to zero
2) Allocation Problems
7) Dynamic Programming
6) Network Flows
4) Linear Programming
5) Game Theory
3) Travelling Salesman Problem