Preview

Transportation Model

Good Essays
Open Document
Open Document
1300 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Transportation Model
Operations Research
Modeling Toolset
Network Problems
Linear programming has a wide variety of applications
Network problems
Special types of linear programs
Particular structure involving networks
Ultimately, a network problem can be represented as a linear programming model
However the resulting A matrix is very sparse, and involves only zeroes and ones
This structure of the A matrix led to the development of specialized algorithms to solve network problems
Types of Network Problems
Shortest Path
Special case: Project Management with PERT/CPM
Minimum Spanning Tree
Maximum Flow/Minimum Cut
Minimum Cost Flow
Special case: Transportation and Assignment Problems
Set Covering/Partitioning
Traveling Salesperson
Facility Location and many more
The Transportation Problem
The Transportation Problem
The problem of finding the minimum-cost distribution of a given commodity from a group of supply centers (sources) i=1,…,m to a group of receiving centers (destinations) j=1,…,n
Each source has a certain supply (si)
Each destination has a certain demand (dj)
The cost of shipping from a source to a destination is directly proportional to the number of units shipped
Simple Network Representation
Example: P&T Co.
Produces canned peas at three canneries
Bellingham, WA, Eugene, OR, and Albert Lea, MN
Ships by truck to four warehouses
Sacramento, CA, Salt Lake City, UT, Rapid City, SD, and Albuquerque, NM
Estimates of shipping costs, production capacities and demands for the upcoming season is given
The management needs to make a plan on the least costly shipments to meet demand
Example: P&T Co. Map
Example: P&T Co. Data
Example: P&T Co.
Network representation
Example: P&T Co.
Linear programming formulation
Let xij denote…

Minimize

subject to
General LP Formulation for Transportation Problems
Feasible Solutions
A transportation problem will have feasible solutions if and only if

How to deal with cases when the equation

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Intro to Transportation

    • 374 Words
    • 2 Pages

    Responsibility: NB Power contracted services with Irving Equipment and BOL stated FOB Destination. Damage or loss to the cargo up to the point of delivery to buyer is responsibility of the shipper.…

    • 374 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    To further reduce the inventory cost and improve the expected downtime. A proposed strategy is formulated based on the following table1.…

    • 295 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Case 36

    • 637 Words
    • 3 Pages

    There is a total capacity (rail carloads) of 14 that is available to serve a total demand (rail carloads sold) of 15. With this mentioned, there is an unbalanced capacity and demand. To solve for the proper shipping route, we will have to include a dummy variable equal to 1, which is the difference between capacity and demand. This means one customer will receive a shortage of 1 rail car of grain. In addition, we need to meet certain requirements (constrains) that limit the capacity from origin (outbound) as well as (inbound) constraints at destinations. Not to mention, we also have two processing centers (hubs) constraints.…

    • 637 Words
    • 3 Pages
    Good Essays
  • Better Essays

    ●”Optimal” means a high level of customer service and inventory turns, but with low inventory investment…

    • 3206 Words
    • 13 Pages
    Better Essays
  • Satisfactory Essays

    Attention: Mr. Donald Douglass and Mr. Ronald Abrahams, as well as all stockholders for U Driver Transport. After much research and evaluating of information pertaining to the country of Australia, I believe that Australia will be an impeccable candidate for the next location for Global Expansion for U Drive Transport. There are six factors of the external environment that Australia possessed that made this decision possible. These six factors are: Social factors, Demographic…

    • 849 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    week 3 db smitheford

    • 1165 Words
    • 4 Pages

    The management team at Smithford Pharmaceutical has decided now is the time to reduce their inventory cost. But in order to reduce inventory a plan needs to be implemented. Inventory reduction cannot be done in a bubble. There are various variables that will need to be considered when executing this task.…

    • 1165 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Bus 630 Week 2

    • 391 Words
    • 2 Pages

    Auerbach Enterprises is an air conditioning company who manufactures air conditioners for automobiles and trucks. Their business provides these products across North America. In evaluating the type of costing method Auerbach Enterprises would benefit from the most, they fall into job order costing system due to the variety of auto and truck air conditioning units they manufacture. Their manufacturing of the units varies as they specialize in unique and individual orders in order to meet the demands of their customers. Their products which have portions of their order which can be assembled in mass still require individualization to fit the distinct trucks or automobiles. In evaluating the cost of the product and analyzing profitability it is important to apply the job order costing system. Each item must be categorized as the direct and indirect labor and manufacturing costs will vary with each output. “Determining the accurate cost of a product is necessary for finding optimal pricing for that product and, more importantly, whether that product can be profitable.” (Tatikonda, 1988). Tatikonda goes on to discuss that accurate inventory is vital to the survival of any organization. Accurate inventory is required in order for management to make the best business decision recommendations to the owners and CEO’s of the organization.…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    1) This transportation model problem consists of 18 decision variables, representing the number of barrels of wastes product transported from each of the 6 plants to each of the 3 waste disposal sites:…

    • 1325 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Brs Mdm3 Tif Ch05

    • 1872 Words
    • 12 Pages

    2) Which of the following models determines the path through the network that connects all the points?…

    • 1872 Words
    • 12 Pages
    Good Essays
  • Good Essays

    2. The transportation problem described above can be solved mathematically using a computer package. The solution to the problem using excel solver are given in the following table.…

    • 1284 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Silver E, Pyke D, Peterson R., 1998. Inventory Management and Production Planning and Scheduling, third edition. John Wiley & Sons, New York.…

    • 11337 Words
    • 46 Pages
    Powerful Essays
  • Satisfactory Essays

    The objective function of the manager is to minimize the total transportation cost for all shipments. Therefore, the objective function is the sum of the individual shipping costs…

    • 2044 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    References: Dean, T. (2009). Network+ Guide to Networks . In D. Tamara, Network+ Guide to Networks (p.…

    • 815 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Exam: Costs

    • 1899 Words
    • 12 Pages

    hours (DLH), material handling (MH), and number of shipments (NS) as cost drivers. Data on…

    • 1899 Words
    • 12 Pages
    Satisfactory Essays
  • Powerful Essays

    capacity in the long-term, schedule in such a way as to minimize operation costs, keep inventory…

    • 6643 Words
    • 42 Pages
    Powerful Essays