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| 1 | +# Transportation Problem Solution in Excel (Markdown + LaTeX for README.md) |
| 2 | + |
| 3 | +This guide explains, step by step, how to solve the given transportation problem in Excel using the Solver add-in. It includes all necessary formulas and tables in Markdown and LaTeX, with ready-to-copy Excel formulas. |
| 4 | + |
| 5 | + |
| 6 | +**You can now copy the formulas above and use them directly in your Excel sheet. The step-by-step process will allow you to model and solve any similar transportation problem using Excel Solver.** |
| 7 | + |
| 8 | +--- |
| 9 | + |
| 10 | +## **Problem Statement** |
| 11 | + |
| 12 | +Given the following transportation cost matrix, supply, and demand: |
| 13 | + |
| 14 | + |
| 15 | +| | Consumer 1 | Consumer 2 | Consumer 3 | Supply | |
| 16 | +| :-- | :--: | :--: | :--: | :--: | |
| 17 | +| Supplier 1 | 12 | 22 | 30 | 100 | |
| 18 | +| Supplier 2 | 18 | 24 | 32 | 140 | |
| 19 | +| Supplier 3 | 22 | 15 | 34 | 160 | |
| 20 | +| **Demand** | 120 | 130 | 150 | | |
| 21 | + |
| 22 | +**Objective:** |
| 23 | +Minimize the total transportation cost. |
| 24 | + |
| 25 | +--- |
| 26 | + |
| 27 | +## **Mathematical Formulation (LaTeX)** |
| 28 | + |
| 29 | +Let \$ x_{ij} \$ be the number of units shipped from supplier \$ i \$ to consumer \$ j \$. |
| 30 | + |
| 31 | +**Minimize:** |
| 32 | + |
| 33 | +$$ |
| 34 | +Z = \sum_{i=1}^{3} \sum_{j=1}^{3} c_{ij} x_{ij} |
| 35 | +$$ |
| 36 | + |
| 37 | +**Subject to:** |
| 38 | + |
| 39 | +$$ |
| 40 | +\sum_{j=1}^{3} x_{ij} = \text{Supply}_i \quad \forall i = 1,2,3 |
| 41 | +$$ |
| 42 | + |
| 43 | +$$ |
| 44 | +\sum_{i=1}^{3} x_{ij} = \text{Demand}_j \quad \forall j = 1,2,3 |
| 45 | +$$ |
| 46 | + |
| 47 | +$$ |
| 48 | +x_{ij} \geq 0 \quad \forall i, j |
| 49 | +$$ |
| 50 | + |
| 51 | +--- |
| 52 | + |
| 53 | +## **Step-by-Step Solution in Excel** |
| 54 | + |
| 55 | +### **1. Data Layout** |
| 56 | + |
| 57 | +| | B | C | D | E | F | |
| 58 | +| :-- | :-- | :-- | :-- | :-- | :-- | |
| 59 | +| | Cons1 | Cons2 | Cons3 | Supply | | |
| 60 | +| Sup1 | 12 | 22 | 30 | 100 | | |
| 61 | +| Sup2 | 18 | 24 | 32 | 140 | | |
| 62 | +| Sup3 | 22 | 15 | 34 | 160 | | |
| 63 | +| Demand | 120 | 130 | 150 | | | |
| 64 | + |
| 65 | +### **2. Decision Variables Table** |
| 66 | + |
| 67 | +Below the cost table, create a table for the shipment variables (\$ x_{ij} \$), e.g., in cells B7:D9. |
| 68 | + |
| 69 | + |
| 70 | +| | Cons1 | Cons2 | Cons3 | |
| 71 | +| :-- | :-- | :-- | :-- | |
| 72 | +| Sup1 | x11 | x12 | x13 | |
| 73 | +| Sup2 | x21 | x22 | x23 | |
| 74 | +| Sup3 | x31 | x32 | x33 | |
| 75 | + |
| 76 | +**In Excel:** |
| 77 | +Enter `0` in each cell as the initial value. |
| 78 | + |
| 79 | +### **3. Total Cost Formula** |
| 80 | + |
| 81 | +Below the variable table, calculate the total cost using `SUMPRODUCT`: |
| 82 | + |
| 83 | +```excel |
| 84 | +=SUMPRODUCT(B2:D4, B7:D9) |
| 85 | +``` |
| 86 | + |
| 87 | +- `B2:D4` is the cost matrix. |
| 88 | +- `B7:D9` is the variable matrix. |
| 89 | + |
| 90 | + |
| 91 | +### **4. Supply Constraints** |
| 92 | + |
| 93 | +For each supplier, sum the variables in the row and set equal to the supply. |
| 94 | + |
| 95 | + |
| 96 | +| | Formula (Excel) | |
| 97 | +| :-- | :-- | |
| 98 | +| Sup1 | =SUM(B7:D7) | |
| 99 | +| Sup2 | =SUM(B8:D8) | |
| 100 | +| Sup3 | =SUM(B9:D9) | |
| 101 | + |
| 102 | +### **5. Demand Constraints** |
| 103 | + |
| 104 | +For each consumer, sum the variables in the column and set equal to the demand. |
| 105 | + |
| 106 | + |
| 107 | +| | Formula (Excel) | |
| 108 | +| :-- | :-- | |
| 109 | +| Cons1 | =SUM(B7:B9) | |
| 110 | +| Cons2 | =SUM(C7:C9) | |
| 111 | +| Cons3 | =SUM(D7:D9) | |
| 112 | + |
| 113 | +### **6. Setting Up Solver** |
| 114 | + |
| 115 | +- **Set Objective:** The total cost cell (e.g., `B12`) - set to Min. |
| 116 | +- **By Changing Variable Cells:** The shipment variables (`B7:D9`). |
| 117 | +- **Subject to Constraints:** |
| 118 | + - Each row sum equals the corresponding supply. |
| 119 | + - Each column sum equals the corresponding demand. |
| 120 | + - All variables \$ \geq 0 \$. |
| 121 | + |
| 122 | + |
| 123 | +#### **Solver Constraints (in Excel)** |
| 124 | + |
| 125 | +- `SUM(B7:D7) = F2` (Supply for Sup1) |
| 126 | +- `SUM(B8:D8) = F3` (Supply for Sup2) |
| 127 | +- `SUM(B9:D9) = F4` (Supply for Sup3) |
| 128 | +- `SUM(B7:B9) = B5` (Demand for Cons1) |
| 129 | +- `SUM(C7:C9) = C5` (Demand for Cons2) |
| 130 | +- `SUM(D7:D9) = D5` (Demand for Cons3) |
| 131 | +- `B7:D9 >= 0` |
| 132 | + |
| 133 | + |
| 134 | +### **7. Solving and Results** |
| 135 | + |
| 136 | +After running Solver, you will get the optimal shipment plan. For this problem, the optimal solution is: |
| 137 | + |
| 138 | + |
| 139 | +| | Cons1 | Cons2 | Cons3 | |
| 140 | +| :-- | :-- | :-- | :-- | |
| 141 | +| Sup1 | 100 | 0 | 0 | |
| 142 | +| Sup2 | 10 | 130 | 0 | |
| 143 | +| Sup3 | 10 | 0 | 150 | |
| 144 | + |
| 145 | +**Total Cost:** |
| 146 | + |
| 147 | +```excel |
| 148 | +=SUMPRODUCT(B2:D4, B7:D9) |
| 149 | +``` |
| 150 | + |
| 151 | +Result: **9820** |
| 152 | + |
| 153 | +--- |
| 154 | + |
| 155 | +## **Excel Formulas (Copy-Paste Ready)** |
| 156 | + |
| 157 | +Assuming: |
| 158 | + |
| 159 | +- Cost matrix in `B2:D4` |
| 160 | +- Variables in `B7:D9` |
| 161 | +- Supplies in `F2:F4` |
| 162 | +- Demands in `B5:D5` |
| 163 | + |
| 164 | +**Total Cost:** |
| 165 | + |
| 166 | +```excel |
| 167 | +=SUMPRODUCT(B2:D4, B7:D9) |
| 168 | +``` |
| 169 | + |
| 170 | +**Supply Constraints:** |
| 171 | + |
| 172 | +```excel |
| 173 | +=SUM(B7:D7) // For Sup1 |
| 174 | +=SUM(B8:D8) // For Sup2 |
| 175 | +=SUM(B9:D9) // For Sup3 |
| 176 | +``` |
| 177 | + |
| 178 | +**Demand Constraints:** |
| 179 | + |
| 180 | +```excel |
| 181 | +=SUM(B7:B9) // For Cons1 |
| 182 | +=SUM(C7:C9) // For Cons2 |
| 183 | +=SUM(D7:D9) // For Cons3 |
| 184 | +``` |
| 185 | + |
| 186 | + |
| 187 | +--- |
| 188 | + |
| 189 | +## **References** |
| 190 | + |
| 191 | +For more details and visuals, see: |
| 192 | + |
| 193 | +- [Excel Easy: Transportation Problem in Excel][^2] |
| 194 | +- [SCM Globe: How to Solve Transportation Problems Using Excel Solver][^3] |
| 195 | +- [YouTube: Solving LP Transportation Problem | Excel Solver][^1] |
| 196 | + |
| 197 | +--- |
| 198 | + |
| 199 | +## **Summary Table (Markdown)** |
| 200 | + |
| 201 | +| | Cons1 | Cons2 | Cons3 | Supply | |
| 202 | +| :-- | :-- | :-- | :-- | :-- | |
| 203 | +| Sup1 | 100 | 0 | 0 | 100 | |
| 204 | +| Sup2 | 10 | 130 | 0 | 140 | |
| 205 | +| Sup3 | 10 | 0 | 150 | 160 | |
| 206 | +| Demand | 120 | 130 | 150 | | |
| 207 | + |
| 208 | +**Total Cost:** 9820 |
| 209 | + |
| 210 | +--- |
| 211 | + |
| 212 | + |
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