International Journal of Engineering and Technical Research (IJETR)

ISSN: 2321-0869 (O) 2454-4698 (P) Volume-9, Issue-12, December 2019

Solving A Transportation Problem Actual Problem

Using Excel Solver
Hilal A. Abdelwali, Swilem M. Swilem, Rafik El Shiaty, Mokhtar M. Murad

Abstract— The research work introduces a step by step algorithm for solving a class of them. The studied class can be
tutorial to solve transportation problems by using an M.S. Excel solved using the decomposition technique of linear
solver add-on. This research is carried out based on the actual programming. That was done by utilizing the special nature of
data of a transportation company. The studied transportation the transportation problem. The method of finding the
network includes ten sources and nineteen destinations. It was
no-dominated extreme points in the criteria space. Ellaimony
required to minimize the total ton-kilometers. The real data, the
solution algorithm, the Excel solver tutorial, as well as the
et al [7] solved a class of bi-criteria multistage transportation
optimal solution, are included. problems using dynamic programming techniques. Their
algorithm is based on a dynamic programming technique with
Index Terms— Transportation Problem, Excel Solver, its capabilities to generate inherent parametric study during
Transportation Problem Case Study, Minimizing the solution. The technique is used to solve the bicriteria
Transportation Costs transportation problems. A method to find the non-dominated
extreme points in the objective space is already developed.
I. INTRODUCTION The dynamic programming technique is used to find the
With a company that owns more several sources to distribute shortest route for transportation networks and methods for
its products to several destinations, the transportation solving bicriteria linear programming. More other researches
problem plays a significant role in such companies. related to transportation problem are prepared for fuzzy
Transportation problem aims at finding the optimal transportation problem, interactive multi-objective
distribution of goods from several sources to several transportation problem, and transshipment. Abdelati, M.H.
destinations. The objective of the optimal distribution is to [8] developed an interactive fuzzy multi-objective
minimize both transportation cost, distance, and time. transportation problem approach. He applied his strategy to
The transportation problem was founded by Gaspard Monge minimize both transportation time and fuel consumption
(1871) [1]. Then Tolstoi, A.N. started to study the through the non-productive kilometers between garages and
transportation problem in the 1920s. F.L. Hitchcock (1941) the starting stations of Cairo Public Transportation Authority
[2] worked on the buses. He could reduce the studied objectives by 23% to 25%
distribution of products from several sources to numerous of the actual distribution.
localities. Koopman [3] worked on the optimum utilization of
transportation systems and used a model of transportation, in II. TRANSPORTATION PROBLEM MATHEMATICAL
activity analysis of production and allocation. It is known as FORMULATION
Hitchcook Koopman transportation problem. The mathematical model of the classical transportation
Enormous advanced researches were prepared in problem is presented in most operations research and
transportation problem models. Kaur, L. et al [4] introduced a management science references such as Hillier, F. [9], Taha,
new approach to solving the multi-objective transportation H.A. [10], Lee, S.M. [11], Winston, W.L. [12], and more
problem. It is a simple approach to obtain the best other references. The following equation represents the
compromise solution of linear multi-objective transportation classical balanced transportation problem model. Balanced
problems directly. Afwat, M. et al [5] present a new method to transportation problem exists when the total availabilities of
solve multi-objective transportation problems called product sources equal the total requirements of destinations.
approach. They use fuzzy programming to convert the
objectives which have different units to membership value
then aggregate them by product. This approach is an easy and
fast method to find solutions close to the optimum solution.
Al-Rajhi et al [6] prepared a decomposition algorithm for Subject To:
solving a class of bi-criteria multistage transportation
problems. They presented the mathematical formulation of
different bi-criteria multistage transportation problem and an

Hilal A. Abdelwali, Assistant professor, Automotive and Marine

Engineering Technology Department, CTS, PAAET, Kuwait.
Swilem M. Swilem, Assistant professor, Automotive and Marine Where:
Engineering Technology Department, CTS, PAAET, Kuwait. Z: is the total transportation cost, time or ton-kilometers.
Rafik El Shiaty, Lecturer, Power and Refrigiration Engineering Cij: are the unit costs of transportation. It could be money,
Technology Department, CTS, PAAET, Kuwait
Mokhtar M. Murad, Assistant professor, Automotive and Marine time or distance.
Engineering Technology Department, CTS, PAAET, Kuwait

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 Solving A Transportation Problem Actual Problem Using Excel Solver

Xij: are the amounts in tons that should be transported from Solver in Microsoft Word 2010 for use in solving linear
source (i) to destination (j). programming problems. He applied excel solver to solve a
ai: are the sources availabilities in tons. transportation problem example. Vats, B.N. et al. [14]
bj: are the destinations requirements in tons. discussed and compared different models for solving
m: the total number of sources. transportation problems for finding an optimal method. All
n: the total number of destinations. models have been compared with the Excel Solver technique
for finding the best possible method. Ipsilandis, P.G. [15]
For balanced transportation problem, the total amounts of examined an efficient approach in solving combinatorial
sources availabilities equals the total amounts of destinations programming problems with the use of spreadsheets. A
requirements. . practical application, which demonstrates the procedure,
concerns the development of a spreadsheet-based DSS for the
III. EXCEL SOLVER FOR TRANSPORTATION Multi-Item Procurement Problem with Fixed Vendor Cost.
PROBLEM The DSS has been build using exclusively standard
spreadsheet features and can solve real problems of
To solve transportation problems usually requires three steps.
substantial size. The benefits and limitations of this approach
These steps are as follows. First, finding the initial basic
are also discussed. Çerkini, B. et al. [16] applied an excel
feasible solution. Then the test of optimality. Next, moving
solver to find minimal transportation cost. The problem is
towards optimality. These steps can be applied to solve small
prepared as a linear programming model to minimize the total
examples of transportation problems. With examples of a
production and transportation cost. They added more
large number of sources and destinations, the three steps need
constraints to the transportation problem based on their study
considerable effort and time to solve such problems. When
work.
considering real-world applications of transportation
problems for real transportation companies, it will be
IV. CASE STUDY COLLECTED DATA
complicated, close to impossible, to solve more significant
problems. Excel solver can solve such big transportation The data of a company located in Upper Egypt is studied in
problems easily and very fast with less effort. this research. They want to distribute their products which
Excel solver is an add-on that exists in M.S. Excel. The solver exist in 10 different cities to 19 other cities. The collected data
is prepared in different versions with different limitations by includes all distances from all sources to all destinations in
Frontline Systems Inc. By Using Excel solver, we can easily kilometers, the sources availabilities in tons, and the
find an optimal (maximum or minimum) solution for the destinations requirements in tons. All data are prepared using
objective function of an optimization model subject to its M.S. Excel, as in the screenshot in Figure (1). In this Figure,
constraints on the values of other formula cells on a cells C278 to U287 represent the distances between sources
worksheet. and destinations in kilometers. Cells V278 to V287 represents
Many researchers start to use excel solver to find the optimal the availabilities of all ten sources in tons. Cells C288 to U288
solutions for their optimization problems. Vincent, E.O. [13] represents the requirements of all destinations in tons.
outlined the steps which are required for installing Excel

Figure (1): Screenshot of the data collected table for the studied transportation problem.

V. SOLUTION ALGORITHM 1. Prepare two tables in Microsoft Excel, as in Figure (2)

Solving a transportation problem using an Excel solver can be below. The upper one is the “Data Table,” which contains the
done quickly using the following solution algorithm. unit costs from all sources to all destinations. The lower one is

14 www.erpublication.org
 International Journal of Engineering and Technical Research (IJETR)
ISSN: 2321-0869 (O) 2454-4698 (P) Volume-9, Issue-12, December 2019
the “Results Table.” It is empty to be filled by an excel solver. at the data table exists at cells from (C278) to (U287), while
The results table will contain the optimal solution for the the results table exists at cells from (C293) to (U302).
transportation problem. In the screenshot below, the unit costs

Figure (2): Screenshot of the prepared tables for Excel solver.

while the right one-column table exists from cell (Y293) to
2. Prepare two one-row tables, as shown in Table (1). The cell (Y302)
upper of them should be filled by the Excel solver by
calculating the summation of distributed products at each Table (1): All formulas that needed for the one-row,
one-column tables and the objective function cell.
destination. The lower of them should contain all destinations
Cell Formula
requirements. This way, the Excel solver will compare the
C304 0
summation at the upper to the fixed values at the lower
D304 0
one-row Table. In the screenshot below, the upper one-row
One-row table for . .
Table exists at cells (C304) to cell (U304), while the lower
destinations . .
one-row Table exists at cells (C306) to (U306).
. .
U304 0
3. The same upper procedures are carried out for sources. So,
W293 0
on the right side of the results table in step (5.1), prepare two
W294 0
one-column Tables. The left of them should be filled by the
One-column table for . .
Excel solver by calculating the summation of distributed
sources . .
products at each source. The right table should be fixed,
. .
which includes all sources' availabilities. This way, the Excel
W302 0
solver will compare the summation at the left one-column
table to the set values at the right one. In the screenshot below, Objective function cell Y309 0
the left one-column table exists at cell (W293) to cell (W302),

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 Solving A Transportation Problem Actual Problem Using Excel Solver

4. Prepare just one cell to calculate the total transportation

cost, or total ton-kilometers according to your problem
objective function. This cell could exist anywhere in your
spreadsheet. But we preferred to put it in the intersection of
the fixed row in step (2) and the fixed column at step (3). i.e.,
cell (Y306).

5. In each cell of the non-fixed one-row Table that was

created in step (2), i.e., table with cells (C307 to U307) in the
screenshot below, ask M.S. Excel to calculate the summation
of all amounts that were distributed by Excel solver for each
destination. We do this by adding formulas at each cell of this
non-fixed one-row Table. All formulas of these cells are
illustrated in Table (1).

6. In each cell of the non-fixed one-column Table that was

created in step (3), i.e., table with cells (W293 to W302) in the
screenshot below, ask M.S. Excel to calculate the summation
of all amounts that were distributed by Excel solver for each
source. We do this by adding formulas at each cell of this Figure (4): M.S. Excel Solver Pop Up Windows
non-fixed one-column Table. Again, all formulas of these
cells are illustrated in Table (1). 10. On the set objective field, we write the cell
location, which we calculate the total transportation cost. It is
7. In the objective function cell, i.e., cell (Y306), calculate the cell (Y306) in our case study in this paper.
total cost or total ton-kilometers by multiplying all unit costs 11. To minimize or maximize according to your
in the data table by all amounts that were distributed by excel problem objective function. In our case study, we choose Min.
solver in the results table. The formula of this cell is illustrated 12. By changing variable costs: These should be the
in Table (1).
cell where the values of Xij should exist. These are cells from
(C293) to (U302) in this case study.
8. Make sure that the Excel solver is activated in your M.S.
Excel. The “Solver” icon exists under the “Data” menu in 13. Subject to constraints. Here we should have four
M.S. Excel. If the solver icon is not there on your Excel, you sets of constraints according to our case study. Note that the
can activate it under: File => Option => Add-Ins => Solver cell numbers may differ according to your data in the excel
Add-in => OK, as shown in screenshot in Figure (3) sheet.
(a) A set of constraints to tell excel solver that we
need the decision variables to be integers. In our case study,
this set is:
C293:U302 = Integer.
(b) A set of constraints to tell excel solver that we
need the decision variables to be greater than or equal zero. In
our case study, this set is: C293:U302 ≥ 0.
(c) A set of constraints to tell excel solver that the
total amounts that are shipped from any source must equal the
availability of this source. In our case study, this set is:
W293:W302 = Y293:Y302.
(d) A set of constraints to tell excel solver that the
total amounts that are shipped to any destination must equal
the requirements of this destination. In our case study, this set
is: C304:U304 = C306:U306.

Figure (3): Screenshot for activating M.S. Excel solver 14. Choose Simplex LP.

9. Now start the Excel solver. Under the “Data” menu, at the 15. Click Solve button.
most right, the “Solver” icon should exist. By clicking the
solver icon, the solver parameters pop up window appears. 16. The problem solution, as well as the total
There are some parameters here that need to be adjusted as in transportation cost, will appear in their appropriate prepared
the following steps more details in Figure (4). cells.

16 www.erpublication.org
 International Journal of Engineering and Technical Research (IJETR)
ISSN: 2321-0869 (O) 2454-4698 (P) Volume-9, Issue-12, December 2019
VI. CASE STUDY RESULTS [13] Vincent, E.O., "Solving Linear Programming Problems and
Transportation Problems using Excel Solver", International Journal of
Table (2) below summarizes the solution of the case study. It Scientific & Engineering Research, Volume 7, Issue 9, September-2016,
was found that the total ton-kilometers equals 684,334 for the ISSN 2229-5518.
[14] Vats, B.N., Singh, A.K., "Solving Transportation Problem using Excel
studied month. The total ton-kilometers of the actual Solver for an Optimal Solution", MIT International Journal of
distribution in the same month was 932,572. The optimal Mechanical Engineering, Vol. 6, No. 1, January 2016, pp. 18-20, ISSN
2230-7680.
distribution could reduce the total ton-kilometers by a [15] Ipsilandis, P.G., "Spreadsheet modelling for solving combinatorial
percentage of 26.62% of the actual ton-kilometers. problems: The vendor selection problem", Proceedings of EuSpRIG,
2008 Conference, "In Pursuit of Spreadsheet Excellence", ISBN:
978-905617-69-2.
Table (2): Optimal Distribution of Products. [16] Çerkini, B., Bajrami, R., Kosova, R., Shehu, V., "Transportation cost
Xi,j Amount Xi,j Amount Xi,j Amount Xi,j Amount optimization", 5th International Conference - "Compliance of the
X1,1 552 X1,2 911 X2,1 689 X2,16 151 Standards in South-Eastern European Countries with the Harmonized
X3,1 151 X3,3 822 X34 635 X3,5 531 Standards of European Union", 15-16 June, 2015 Peja, Republic Of
X4,5 357 X4,6 572 X5,17 2049 X5,18 1387 Kosovo.
X6,7 1128 X6,8 99 X6,18 472 X7,8 818
X7,1 572 X8,11 663 X8,12 540 X8,13 386
9 239 X9,14 1214 X9,15 1063 X9,16 175
X9,1 1284 X10,1 1346 X10,1 155 X10,1 151
1 0 1 9
X10,
9

VII. CONCLUSION
M.S. Excel solver add-on is one of the best tools to solve
transportation problem case studies. A step by step tutorial for
solving a transportation problem by using excel solver is
included. The optimal solution that was generated could
reduce the total ton-kilometers for a particular month by a
percentage of 26.62% of the actual ton-kilometers.

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