What is Unbalanced Transportation Problem ?

One of the important topics I could never understand in logistics was ‘What are the unbalanced transportation problem’ but luckily as my brother was associated with the movers industry, helped me  explain the topic. An Unbalanced transportation problem is defined as a situation in which supply and demand are not equal. I'd like to share what I learned in detail with an unbalanced transportation problem example here in this answer. 

What are the Unbalanced Transportation Problem?

In simple words, when the amount delivered is either more or less than the requirement, it comes under an unbalanced transportation problem.  A dummy row or a dummy column is added to this type of problem, depending on the necessity to make it a balanced problem. The problem can then be addressed in the same way as the balanced problem.

This could be better understood with the help of an example of an unbalanced transportation problem: Let’s assume the total production of goods from 4 factories is 1000 units and total requirements of 4 warehouses is 1,100 units. Here, the demand is high, and the supply is low.   

Unbalanced transportation problems are common in real-world scenarios. Understanding how the optimal solution responds to changes in the cost for dummy elements can help organisations: Identify critical cost points, strategically allocate resources, make informed decisions, and manage risk.

I hope now you have easily understood what are the unbalanced transportation problem.

Read More :

Hi Yash, To answer your query, “What do you mean by unbalanced transportation problem?”Unbalanced transportation problems are common in real-world logistics and supply chain scenarios. 

What is Meant by Unbalanced Transportation Problem?

An unbalanced problem in transportation is one where demand and supply are not equal. Depending on the situation, a dummy row or dummy column is introduced to this kind of problem to ensure that it is balanced.

For instance:

• Factory A: 100 units

• Factory B: 150 units

• Total Supply: 250 units

• Store X: 120 units

• Store Y: 180 units

• Total Demand: 300 units

This is an imbalanced transportation problem when the entire supply (250 units) is less than the total demand (300 units). To balance it:

• Create a dummy factory with a supply of 50 units (300 - 250 = 50).

• Assign a transportation cost of zero from the dummy factory to each store.

This way, the problem can be formulated and solved using standard transportation problem methods like the transportation algorithm or linear programming, ensuring all supply and demand constraints are met.

Read More:

When I was growing up, I was very confused about the term ‘unbalanced transportation problem’. It baffled me constantly until a dear friend told me the reason behind the unbalanced transportation problem and its meaning. I will share with you how to solve this problem as well. Take a look below to know everything I learned.

When the total number of units available at the supply origins or the sender’s location  is not equal to the total number of items available at the demand destinations or the receiver’s location, it is deemed as an unbalanced  transportation problem.

If the total production at a  factory is 10 units and total requirements at the warehouses is 8 units. There is a disproportionate difference in the value of demand and supply. In the long run this leads to massive financial loss for the supplier. This is an example of an unbalanced transportation problem.

The problem arises because of the difference in values in the availability at the origins and the total requirements at the destinations.

To fix the unbalanced transportation problem, dummy supplier sources and dummy destinations can be introduced.

I hope you now know what is unbalanced transportation problem.