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Neha Tikoo, Lovely Professional University Unit 6: Transportation Problem – Optimality Tests

Unit 6: Transportation Problem – Optimality Tests Notes

CONTENTS
Objectives
Introduction

6.1 Techniques of Finding Optimal Solution
6.2 Stepping Stone Method
6.3 Modified Distribution Method (MODI)

6.4 Procedure for Shifting of Allocations
6.5 Prohibited Routes Problem
6.6 Transshipment Problem
6.7 Summary
6.8 Keywords

6.9 Review Questions
6.10 Further Readings

Objectives

After studying this unit, you will be able to:

 Understand the significance of optimality tests in transportation problem
 Learn to drive optimal solution using Modified Distribution method and Stepping stone
Method

 Construct the transshipment transportation table for transshipment problem
 Examine multiple optimal solutions, and prohibited routes in the transportation problem

Introduction

Once the initial feasible solution is reached, the next step is to check the optimality. An optimal
solution is one where there is no other set of transportation routes that would reduce the total
transportation cost, for which we have to evaluate each unoccupied cell (which represents unused
routes) in terms of opportunity cost. In this process, if there is no negative opportunity cost, the
solution is an optimal solution.

6.1 Techniques of Finding Optimal Solution

Optimality can be tested by two ways namely:

1. Stepping Stone Method
2. Modified Distribution Method
Let us understand each of them one by one.

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