Chapter 4

Transportation Model
(Special cases of LP)
 Objective of the chapter

• The objective of this chapter is to minimize cost

of transportation of products when they are shifted
from production center to consumption area
satisfying demand and exhausting the supply fully.
 Overview of transportation

The movement of Every thing (goods, people

and etc)from The place of Origin to the Place
of Destination

• The tradeoff between responsiveness and

efficiency is manifested from the selection of
mode transportation
 Overview of transportation

Example
• Fast modes of transport such as airplanes are
very responsive but also more costly.
• Slower modes such as ship and rail are very cost
efficient but not as responsive
 Overview of transportation

• Since transportation costs can be as much as a

third of the operating cost of a supply chain,
decisions made here are very important.
 Transport

Distributers
Suppliers Producer 1. Wholesalers Consumers
2. Retailers

Transport
 Mode of transport

1. Ship: which is very cost efficient but also the

slowest mode of transport.
2. Rail :which is also very cost efficient but can
be slow.
3. Pipelines: can be very efficient but are
restricted to commodities that are liquids or
gases such as water, oil, and natural gas.
 Mode of transportation

4. Trucks are a relatively quick and very flexible

mode of transport.

5. Airplanes are a very fast mode of transport and

are very responsive.

6. Electronic Transport is the fastest mode of

transport and it is very flexible and cost efficient
 Assumptions:

1. All goods are homogeneous. So any origin can

supply to any destination

Origin Destination

Transportation
Assumptions…

2. The unit cost of transportation is a direct linear function

of the quantity shipped over any route.
3. The supply quantity of origins is equal to the demand
quantity of destination. (Not a necessary assumption).
 Introduction
• In this chapter we will explore three special linear
programming models:
– The transportation problem.
– The assignment problem.

• These problems are members of a category of LP

techniques called network flow problems.
 The Transportation Problem

• The transportation problem deals with the

distribution of goods from several points of
supply (sources) to a number of points of
demand (destinations).
• Usually we are given the capacity of goods at
each source and the requirements at each
destination.
• Typically the objective is to minimize total
transportation and production costs.

9-12
 The Transportation Problem

• The Executive Furniture Corporation manufactures

office desks at three locations: Addis Abeba, Hawasa,
and Bahardar
• The firm distributes the desks through regional
warehouses located in Nekemte, Jima, and Adama.

9-13
 The Transportation Problem
Network Representation of a Transportation Problem, with
Costs, Demands and Supplies
Executive Furniture Company

Factories Warehouses
Supply (Sources) (Destinations) Demand
$5
100 Units Addis abeba jima 300 Units
$4
$3
$8
300 Units Hawasa $4 Nekemte 200 Units
$3
$9
$7
300 Units bahardar Adama 200 Units
$5

9-14
 Linear Programming for the Transportation: Example

• Let Xij = number of units shipped from source i to

destination j,
– Where:
• i = 1, 2, 3, with 1 = Addis Abeba, 2 = Hawasa, and 3 =
bahardar
• j = 1, 2, 3, with 1 = jima, 2 =Nekemte, and 3 = Adama

9-15
Linear Programming for the Transportation: Example

• Minimize total cost = 5X11 + 4X12 + 3X13 +

8X21 + 4X22 + 3X23
+ 9X31 +7X32 + 5X33
• Subject to:
– X11 + X12 + X13 ≤ 100 (Addis Abeba supply)
– X21 + X22 + X23 ≤ 300 (Hawasa supply)
– X31 + X32 + X33 ≤ 300 (Bahardar supply)
– X11 + X21 + X31 = 300 (jima demand)
– X12 + X22 + X32 = 200 (Nekemte demand)
– X13 + X23 + X33 = 200 (Adama demand)
– Xij ≥ 0 for all i and j. 9-16
 A General LP Model for Transportation Problems
Let:

• Xij = number of units shipped from source i to

destination j.

• cij = cost of one unit from source i to destination j.

• si = supply at source i.

• dj = demand at destination j.

9-17
A General LP Model for Transportation Problems
Minimize cost =
Subject to:

i = 1, 2,…, m.

j = 1, 2, …, n.

xij ≥ 0 for all i and j.

9-18
 The Assignment Problem
• This type of problem determines the most
efficient assignment of people to particular tasks,
etc.
• Objective is typically to minimize total cost or
total task time.

9-19
 Linear Program for Assignment: Example
• The Fix-it Shop has just received three new repair
projects that must be repaired quickly: a radio, a toaster
oven, and a coffee table.
• Three workers with different talents are able to do the
jobs.
• The owner estimates the cost in wages if the workers are
assigned to each of the three jobs.
• Objective: minimize total cost.

9-20
Example of an Assignment Problem in a Transportation
Network Format

9-21
 Linear Program for Assignment: Example
Let:
– Xij = 1 if person i is assigned to project j, or 0
otherwise.
Where:
– i = 1,2,3 with 1 = Adams, 2 = Brown, and 3 = Cooper
– j = 1,2,3, with 1 = Project 1, 2 = Project 2, and 3 =
Project 3.

9-22
Linear Program for Assignment: Example
Minimize total cost = 11X11 + 14X12 +
6X13 + 8X21 + 10X22 + 11X23 + 9X31
+ 12X32 + 7X33
Subject to:
– X11 + X12 + X13 ≤ 1
– X21 + X22 + X23 ≤ 1
– X31 + X32 + X33 ≤ 1
– X11 + X21 + X31 = 1
– X12 + X22 + X32 = 1
– X13 + X23 + X33 = 1
– Xij = 0 or 1 for all i and j

9-23
 The Transportation Algorithm

• This is an iterative procedure in which a solution to a

transportation problem is found and evaluated using a
special procedure to determine whether the solution is
optimal.
– When the solution is optimal, the process stops.
– If not, then a new solution is generated.

9-24
Transportation Table for :Executive Furniture Corporation
Addis
Abeba
capacity
constraint

TO WAREHOUSE
WAREHOUSE WAREHOUSE
AT
FROM AT JIMA ADAMA FACTORY
NEKEMTE
CAPACITY
ADDIS ABEBA $5 $4 $3
100
FACTORY

HAWASA $8 $4 $3
300
FACTORY

BAHARDAR $9 $7 $5
300
FACTORY

WAREHOUSE
300 200 200 700
REQUIREMENTS
Cell representing a source-to-
Total supply destination (hawasa to
Cost of shipping 1 unit from ADAMA s Adama ) shipping assignment
and demand
BAHARDAR factory to Nekemte warehouse that could be made
warehouse demand 9-25
Developing an Initial Solution: Northwest Corner Rule

• Once we have arranged the data in a table,

we must establish an initial feasible solution.
• One systematic approach is known as the
northwest corner rule.

9-26
Developing an Initial Solution: Northwest Corner Rule

• Start in the upper left-hand cell and allocate units to

shipping routes as follows:
1. Exhaust the supply (factory capacity) of each row
before moving down to the next row.
2. Exhaust the demand (warehouse) requirements of
each column before moving to the right to the next
column.
3. Check that all supply and demand requirements are
met.
• This problem takes five steps to make the initial shipping
assignments.
 Developing an Initial Solution: Northwest Corner Rule
1. Beginning in the upper left hand corner, we assign 100 units from
ADDIS ABEBA to JIMA. This exhaust the supply from Addis Abeba but
leaves Jima 200 desks short. We move to the second row in the same
column.

TO NEKEMTE
JIMA (J) ADAMA (A) FACTORY
FROM (N)
CAPACITY
$5 $4 $3
ADDIS ABEBA
100 100
(AA)

$8 $4 $3
HAWASA
300
(H)

$9 $7 $5
BAHARDAR (BH) 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-28
 Developing an Initial Solution: Northwest Corner Rule

2. Assign 200 units from HAWASA to JIMA. This meets jima’s

demand. Hawasa has 100 units remaining so we move to the
right to the next column of the second row.
TO NEKEMTE(
jima (J) ADAMA(A) FACTORY
FROM N) CAPACITY
$5 $4 $3
Addis abeba
100 100
(AA)

$8 $4 $3
Hawasa
200 300
(H)

$9 $7 $5
Ba hardar(BH) 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-29
Developing an Initial Solution: Northwest Corner Rule
3. Assign 100 units from HAWASA to NEKEMTE. The HAWASA supply has now
been exhausted but NEKEMTE is still 100 units short. We move down
vertically to the next row in the NEKEMTE column.

TO N ekemte
jima (J) Adama(A) FACTORY
FROM (N)
CAPACITY
$5 $4 $3
Addis Abeba
100 100
(AA)

$8 $4 $3
HAWASA
200 100 300
(H)

$9 $7 $5
BAHARDAR(Bh) 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-30
 Developing an Initial Solution: Northwest Corner Rule
4. Assign 100 units from BAHARDAR to NEKEMTE . This fulfills
NEKEMTES’ demand and BAHARDAR still has 200 units available.

TO NEKEMTE
JIMA(J) ADAMA (A) FACTORY
FROM (N)
CAPACITY
$5 $4 $3
ADDIS ABEBA
100 100
(AA)

$8 $4 $3
HAWASA
200 100 300
(H)

$9 $7 $5
BAHARDAR(BH) 100 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-31
 Developing an Initial Solution: Northwest Corner Rule

5. Assign 200 units from BAHARDAR to ADAMA. This exhausts

bahards’ supply and Adams’ demand. The initial shipment
schedule is now complete.
TO NEKEMTE
JIMA (J) ADAMA (A) FACTORY
FROM (N) CAPACITY
$5 $4 $3
Addis Abeba
100 100
(AA)

$8 $4 $3
Hawasa
200 100 300
(H)

$9 $7 $5
Bahardar (BH) 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-32
 Developing an Initial Solution: Northwest Corner Rule

The cost of this shipping assignment:

ROUTE

FROM TO UNITS PER UNIT TOTAL

SHIPPED x COST ($) = COST ($)
AA J 100 5 500

H J 200 8 1,600

H N 100 4 400

BH N 100 7 700

BH A 200 5 1,000

4,200

This solution is feasible but we need to check to see if it is optimal.

9-33
Stepping-Stone Method: Finding a Least Cost Solution

• The stepping-stone method is an iterative technique for

moving from an initial feasible solution to an optimal
feasible solution.
• There are two distinct parts to the process:
– Testing the current solution to determine if improvement is
possible.
– Making changes to the current solution to obtain an improved
solution.

• This process continues until the optimal solution is reached.

9-34
Stepping-Stone Method: Finding a Least Cost Solution

• There is one very important rule: The number of occupied routes

(or squares) must always be equal to one less than the sum of the
number of rows plus the number of columns
– In the Executive Furniture problem this means the initial
solution must have 3 + 3 – 1 = 5 squares used.

Occupied shipping routes Number of Number

(squares) = +
rows + of –1
columns

 When the number of occupied rows is less than this, the

solution is called degenerate.

9-35
Testing the Solution for Possible Improvement

• The stepping-stone method works by testing each

unused square in the transportation table to see what
would happen to total shipping costs if one unit of the
product were tentatively shipped on an unused route.
• There are five steps in the process.

9-36
Five Steps to Test Unused Squares with the Stepping-Stone
Method
1. Select an unused square to evaluate.
2. Beginning at this square, trace a closed path back to the original
square via squares that are currently being used with only
horizontal or vertical moves allowed.
3. Beginning with a plus (+) sign at the unused square, place
alternate minus (–) signs and plus signs on each corner square of
the closed path just traced.

9-37
 Five Steps to Test Unused Squares with the
Stepping-Stone Method

4. Calculate an improvement index by adding together the unit

cost figures found in each square containing a plus sign and
then subtracting the unit costs in each square containing a
minus sign.
5. Repeat steps 1 to 4 until an improvement index has been
calculated for all unused squares. If all indices computed are
greater than or equal to zero, an optimal solution has been
reached. If not, it is possible to improve the current solution
and decrease total shipping costs.

9-38
 Five Steps to Test Unused Squares with the
Stepping-Stone Method
For the Executive Furniture Corporation data:
Steps 1 and 2. Beginning with Addis Abeba– nekemte route we
trace a closed path using only currently occupied squares,
alternately placing plus and minus signs in the corners of the
path.

 In a closed path, only squares currently used for shipping

can be used in turning corners.
 Only one closed route is possible for each square we wish
to test.

9-39
 Five Steps to Test Unused Squares with the Stepping-Stone
Method

Step 3. Test the cost-effectiveness of the Addis Abeba–nekemte

shipping route by pretending that we are shipping one desk from
Addis Abeba to nekemte . Put a plus in that box.

 But if we ship one more unit out of Addis Abeba we will

be sending out 101 units.
 Since the Addis abeba factory capacity is only 100, we
must ship fewer desks from Addis Abeba to jima so
place a minus sign in that box.
 But that leaves Jima one unit short so increase the
shipment from hawasa to jima by one unit and so on
until the entire closed path is completed.
9-40
Five Steps to Test Unused Squares with the Stepping-Stone Method

Evaluating the unused Addis abeba – Warehouse J Warehouse N

$5 $4
Nekemte shipping route Factory
AA 100
– +

+ $8 – $4
Factory
H 200 100

TO FACTORY
jima Nekemte Adama
FROM CAPACITY
$5 $4 $3
Addis Abeba 100 100

$8 $4 $3
Hawasa 200 100 300

$9 $7 $5
Bahardar 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS
9-41
 Five Steps to Test Unused Squares with the
Stepping-Stone Method
Evaluating the unused Addis Abeba Warehouse J Warehouse N

99 $5 $4
–Nekemte shipping route Factory
AA 100 1
– +

+ $8 – $4
Factory 201 99
H 200 100

TO FACTORY
jima nekemte adama
FROM CAPACITY
$5 $4 $3
Addis Abeba 100 100

$8 $4 $3
Hawasa 200 100 300

$9 $7 $5
Bahardar 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS
9-42
 Five Steps to Test Unused Squares with the
Stepping-Stone Method
Evaluating the unused Addis Warehouse J Warehouse N

99 $5 $4
Abeba–nekemte shipping route Factory
AA 100 1
– +

+ $8 – $4
Factory 201 99
H 200 100

TO FACTORY
Jima Nekemte Adama
FROM Result of
CAPACITY Proposed Shift
$5 $4 $3 in Allocation
Addis Abeba 100 100
= 1 x $4
$8 $4 $3
– 1 x $5
Hawasa 200 100 300 + 1 x $8
– 1 x $4 = +$3
$9 $7 $5
Bahardar 100 200 300

WAREHOUSE
REQUIREMENTS
300 200 200 700 Table 9.4
9-43
 Five Steps to Test Unused Squares with the
Stepping-Stone Method

Step 4. Now compute an improvement index (Iij) for the Addis

Abeba –Nekemte route.
Add the costs in the squares with plus signs and subtract the costs in the squares
with minus signs:

Addis Abeba –nekemte

index = IAAN = +$4 – $5 + $5 – $4 = + $3

This means for every desk shipped via the Addis

Abeba –Nekemte route, total transportation cost
will increase by $3 over their current level.

9-44
 Five Steps to Test Unused Squares with the
Stepping-Stone Method

Step 5. Now examine the Addis Abeba –Adama unused route

which is slightly more difficult to draw.

 Again, only turn corners at squares that represent existing routes.

 Pass through the hawasa –Adama square but we can not turn there or put a +
or – sign.
 The closed path we will use is:
+ AAA – AAA + HJ – HN + BHN – BHA

9-45
 Five Steps to Test Unused Squares with the
Stepping-Stone Method
Evaluating the Addis Abeba – Adama Shipping Route

TO FACTORY
Jima Nekemte Adama
FROM CAPACITY
$5 $4 Start $3
Addis Abeba 100 100
– +
$8 $4 $3
Hawasa 200 100 300
+ –
$9 $7 $5
Bahardar 100 200 300
+ –
WAREHOUSE
300 200 200 700
REQUIREMENTS

Table 9.5

Addis Abeba–adama
improvement index = I AAA = + $3 – $5 + $8 – $4 + $7 – $5 = + $4

9-46
Five Steps to Test Unused Squares with the Stepping-Stone Method
Opening the Addis Abeba –Adama route will not lower our total shipping costs.
Evaluating the other two routes we find:

Hawasa –adama index

The closed path is : + HA – HAA + BhN – BrA
= IHA = + $3 – $4 + $7 – $5 = + $1
Bahardar –jima index
The closed path is
+ BhJ – BhN + HN – HJ
= IBhJ = + $9 – $7 + $4 – $8 = – $2

Opening the Bahardar -Jima route will lower our total

transportation costs.

9-47
 Obtaining an Improved Solution

• In the Executive Furniture problem there is only one unused

route with a negative index (Bahardar-- Jima).
– If there was more than one route with a negative index, we would
choose the one with the largest improvement
• We now want to ship the maximum allowable number of
units on the new route
• The quantity to ship is found by referring to the closed path of
plus and minus signs for the new route and selecting the
smallest number found in those squares containing minus
signs.

9-48
 Obtaining an Improved Solution
• To obtain a new solution, that number is added to all squares on
the closed path with plus signs and subtracted from all squares
the closed path with minus signs.
• All other squares are unchanged.
• In this case, the maximum number that can be shipped is 100
desks as this is the smallest value in a box with a negative sign
(BhN route).
• We add 100 units to the BhJ and HN routes and subtract 100 from
BhN and HJ routes.
• This leaves balanced rows and columns and an improved solution.

9-49
 Obtaining an Improved Solution

Stepping-Stone Path Used to Evaluate Route Bh-J

TO FACTORY
J N A
FROM CAPACITY
$5 $4 $3
AA 100 100

$8 $4 $3
H 200 100 300
– +
$9 $7 $5
Bh 100 200 300
+ –
WAREHOUSE
300 200 200 700
REQUIREMENTS

9-50
 Obtaining an Improved Solution

Second Solution to the Executive Furniture Problem

TO FACTORY
J N A
FROM CAPACITY
$5 $4 $3
AA 100 100

$8 $4 $3
H 100 200 300

$9 $7 $5
BH 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

Total shipping costs have been reduced by (100 units) x ($2 saved per unit) and
now equals $4,000.

9-51
 Obtaining an Improved Solution
• This second solution may or may not be optimal.
• To determine whether further improvement is possible, we
return to the first five steps to test each square that is now
unused.
• The four new improvement indices are:
AA to N = IAAN = + $4 – $5 + $8 – $4 = + $3
(closed path: + AAN – AAJ + HJ – HN)
AA to A= IAAA = + $3 – $5 + $9 – $5 = + $2
(closed path: + AAA – AAJ + BhJ – BhA)
H to A = IHA = + $3 – $8 + $9 – $5 = – $1
(closed path: + HA– HJ + BhJ – BhA)
Bh to N = IBhN = + $7 – $4 + $8 – $9 = + $2
(closed path: + BhN – HN + HJ – BhJ)
9-52
 Obtaining an Improved Solution

Path to Evaluate the HAWASA -ADAMA Route

TO FACTORY
J N A
FROM CAPACITY
$5 $4 $3
AA 100 100

H 100
$8
200
$4 Start $3
300
– +
$9 $7 $5
Bh 100 200 300
+ –
WAREHOUSE
300 200 200 700
REQUIREMENTS

An improvement can be made by shipping the maximum allowable

number of units from HAWASA to ADAMA .
9-53
 Obtaining an Improved Solution
Total cost of third solution:
ROUTE

FROM TO DESKS PER UNIT TOTAL

SHIPPED x COST ($) = COST ($)

AA J 100 5 500

H N 200 4 800

H J 100 3 300

Bh A 200 9 1,800

Bh A 100 5 500

3,900

9-54
 Obtaining an Improved Solution

Third and optimal solution:

TO
J N A FACTORY
FROM
CAPACITY

$5 $4 $3
AA 100 100

$8 $4 $3
H 200 100 300

$9 $7 $5
Bh 200 100 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-55
 Obtaining an Improved Solution

This solution is optimal as the improvement indices that can

be computed are all greater than or equal to zero.

AA to N = IAAN = + $4 – $5 + $9 – $5 + $3 – $4 = + $2
(closed path: + AAN – AAJ + BhJ – BhA + HA – HN)
AA to A = IAAA = + $3 – $5 + $9 – $5 = + $2
(closed path: + AAA– AAJ + BhJ – BhA)
H to J = IHJ = + $8 – $9 + $5 – $3 = + $1
(closed path: + HJ – Bhj + BhA – HA)
Bh to N = IBhN = + $7 – $5 + $3 – $4 = + $1
(closed path: + BhN – BhA + HA – HN)

9-56
 Reading
Assignment

Summary of Steps in Transportation Algorithm (Minimization)

1. Set up a balanced transportation table.
2. Develop initial solution using the northwest corner method
3. Calculate an improvement index for each empty cell using the stepping-stone
method. If improvement indices are all nonnegative, stop as the optimal
solution has been found. If any index is negative, continue to step 4.
4. Select the cell with the improvement index indicating the greatest decrease in
cost. Fill this cell using the stepping-stone path and go to step 3.

9-57
 Unbalanced Transportation Problems

• In real-life problems, total demand is frequently not equal to

total supply.
• These unbalanced problems can be handled easily by
introducing dummy sources or dummy destinations.
• If total supply is greater than total demand, a dummy
destination (warehouse), with demand exactly equal to the
surplus, is created.
• If total demand is greater than total supply, we introduce a
dummy source (factory) with a supply equal to the excess of
demand over supply.

9-58
 Special Situations with the Transportation
Algorithm
• Unbalanced Transportation Problems
– In either case, shipping cost coefficients of zero are assigned to each
dummy location or route as no goods will actually be shipped.
– Any units assigned to a dummy destination represent excess capacity.
– Any units assigned to a dummy source represent unmet demand.

9-59
 Demand Less Than Supply

• Suppose that the Des Moines factory increases its rate of

production from 100 to 250 desks.
• The firm is now able to supply a total of 850 desks each
period.
• Warehouse requirements remain the same (700) so the row
and column totals do not balance.
• We add a dummy column that will represent a fake
warehouse requiring 150 desks.
• This is somewhat analogous to adding a slack variable.
• We use the stepping-stone method to find the optimal
solution.

9-60
 Demand Less Than Supply

Initial Solution to an Unbalanced Problem Where Demand is

Less Than Supply
TO DUMMY TOTAL
FROM
A B C WAREHOUSE AVAILABLE
$5 $4 $3 0
D 250 250

$8 $4 $3 0
E 50 200 50 300

$9 $7 $5 0
F 150 150 300

WAREHOUSE
300 200 200 150 850
REQUIREMENTS

Total cost = 250($5) + 50($8) + 200($4) + 50($3) + 150($5) + 150(0) = $3,350

New Des Moines

capacity
9-61
 Demand Greater than Supply

 The second type of unbalanced condition occurs when total demand is

greater than total supply.
 In this case we need to add a dummy row representing a fake factory.
 The new factory will have a supply exactly equal to the difference between
total demand and total real supply.
 The shipping costs from the dummy factory to each destination will be zero.

9-62
 Demand Greater than Supply
Unbalanced Transportation Table for Happy Sound Stereo Company

TO WAREHOUSE WAREHOUSE WAREHOUSE

FROM A B C PLANT SUPPLY
$6 $4 $9
PLANT W 200

$10 $5 $8
PLANT X 175

$12 $7 $6
PLANT Y 75

Totals do
WAREHOUSE
250 100 150
450 not
DEMAND 500
balance

9-63
 Demand Greater than Supply
Initial Solution to an Unbalanced Problem in Which Demand is Greater Than
Supply

TO WAREHOUSE WAREHOUSE WAREHOUSE

PLANT SUPPLY
FROM A B C

$6 $4 $9
PLANT W 200 200

$10 $5 $8
PLANT X 50 100 25 175

$12 $7 $6
PLANT Y 75 75

0 0 0
PLANT Y 50 50

WAREHOUSE
250 100 150 500
DEMAND

Total cost of initial solution = 200($6) + 50($10) + 100($5) + 25($8) + 75($6)

+ $50(0) = $2,850

9-64
 Degeneracy in Transportation Problems

• Degeneracy occurs when the number of occupied squares

or routes in a transportation table solution is less than the
number of rows plus the number of columns minus 1.
• Such a situation may arise in the initial solution or in any
subsequent solution.
• Degeneracy requires a special procedure to correct the
problem since there are not enough occupied squares to
trace a closed path for each unused route and it would be
impossible to apply the stepping-stone method.

9-65
 Degeneracy in Transportation Problems

• To handle degenerate problems, create an artificially

occupied cell.
• That is, place a zero (representing a fake shipment) in one
of the unused squares and then treat that square as if it
were occupied.
• The square chosen must be in such a position as to allow
all stepping-stone paths to be closed.
• There is usually a good deal of flexibility in selecting the
unused square that will receive the zero.

9-66
• End of Chapter 4

9-67