modi method

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WHAT IS MODI METHOD

• It is used to save the time over stepping stone method

• It provides a new means of finding the unused route with the largest negative improvement index.

• Once largest index identified ,we are required to trace only one path, just as with the stepping stone approach, this helps to determine the maximum number of unit that can be shipped by the best unused route.

STEPS

1.Construct a transportation table with the given cost of transportation and rim requirement.

2.Determine IBFS.

3.For current basic feasible solution check degeneracy and non-degeneracy.

rim requirement=stone square(non-degeneracy)

rim requirement != stone square(degeneracy)

4.Find occupied matrix.

5.Find unoccupied matrix.

Steps (contd…)

6.Find opportunity cost of unoccupied cells using formula:

opportunity cost =actual cost-implied cost dij= cij - (ri+kj)7.Unoccupied cell evaluation: (a) if dij>0 then cost of transportation

unchanged. (b) if dij=0 then cost of transportation

unchanged. (c) if dij<0 then improved solution can be obtain

and go to next step.

STEPS(contd…)

8.Select an unoccupied cell with largest –ve opportunity cost among all unoccupied cell.

9.Construct closed path for the unoccupied cell determined in step 8.

10.Assign as many as units as possible to the unoccupied cell satisfying rim conditions.

11.Go to step 4 and repeat procedure until

All dij>=0 i.e. reached to the optimal solution.

SPECIAL CASES

• Balanced problem• Unbalanced problem• Non -degeneracy• Degeneracy :occurs in two cases

1. Degeneracy occurs in initial basic solution.

2. Degeneracy occurs in during the test of optimality.

• Profit maximization

.

PROBLEM1: What shipping schedule should be used. if the matrix given below the kilometers from source to destination and Shipping costs are Rs. 10 per kilometer.

50 30 220

90 45 170

50 200 50

3 3 2

1

3

4

A B C

X

Y

Z

DESTINATION

SOURSE

REQUIREMENT

CAPACITY

88

A B C

X

Y

Z

30 220

50

90 45 170

50 200 50

30 220

1

2

3

2

2

2 2

3

P1 P2 P3 P4

20 20 20 20

45 45 45 _

150 150 _ _

P1 40 15 120

P2 40 15 _

P3 40 15 _

IBFS BY USING VAM METHOD

3050 220

90 45 170

50 200 50

1 E

3

2 2

STONE SEQUARE =4

RIM REQUIREMENT =M+N-1=3+3-1=5

DEGENERACY

NOW STONE SEQUARE =5

RIM REQUIREMENT =5

NON –DEGENERACY

IBFS OCCUPIED MATRIX

1 E

3

2 2

50

90

50

30

45

200

220

170

50

50 30

45

50 50

0

15

0

50 30 50

50 30

45

50 50

50 30 50

0

15

0

UNOCCUPIED MATRIX

10525

170

50

65

30

65

170

OCCUPIED MATRIX

OPTIMUL SOLUTION

X A 50*1=50

X B 30*E=_

Y B 45*3=135

Z A 50*2=100

Z C 50*2=100

385 *10=3850

OPTIMUL SOLUATION

PROBLEM2:DETERMINE THE OPTIMUM SOLUTION FOR THE COMPANY OF TRASPOTATION PROBLEM(USING NWCM AND MODI METHOD)

8 8 15

15 10 17

3 9 10

REQUIREMENT 150 80 50

120

80

80

CAPACITY

F1

F2

F3

W1 W2 W3

WAREHOUSE

FACTORY

W1 W2 W3

F1

F2

F3

8 8 15

15

3

10 17

9 10

120

30 50

30 50

150 80 50

120

80

80

IBFS WITH NWCM

OCCUPIED MATRIX UNOCCUPIED MATRIX

8

15 10

9 10

15 10 11

-7

0

-1

15 10 11

-7

0

-1

5 11

6

-11

3 4

11

14

1588

15 10 17

3 9 10

10

120

30 50

30 50+

+_

_

8

15

3

8 15

10 17

9 10

120 E

80

30 50

STONE SEQUARE=RIM REQUIREMENTDEGENERACY OCCUAR

LOOP CONSTRUCT

OCCUPIED MATRIX UNOCCUPIED MATRIX

8 8

10

3 10

3 3 10 3 3 10

5

7

0

5

7

0

5

6

0

0

15

1710

3

OPTIMUM SOLUTIONF1 W1 8*120 =960

F1 W2 8*E = _

F2 W2 10*80 =800

F3 W1 3*30= 90

F3 W3 10*50 =500

2,350 RS

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