Transportation Module

C

MODULE

Transportation
Models

PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
PowerPoint slides by Jeff Heyl
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc.

MC - 1

Learning Objectives
When you complete this chapter you should be able to:
1. Develop an initial solution to a transportation models with the northwestcorner and intuitive lowest-cost methods
2. Balance a transportation problem

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MC - 2

Transportation Modeling
▶ An interactive procedure that finds the least costly means of moving products from a series of sources to a series of destinations ▶ Can be used to help resolve distribution and location decisions © 2014 Pearson Education, Inc.

MC - 3

Transportation Modeling
▶ A special class of linear programming
▶ Need to know
1. The origin points and the capacity or supply per period at each
2. The destination points and the demand per period at each
3. The cost of shipping one unit from each origin to each destination

© 2014 Pearson Education, Inc.

MC - 4

Transportation Problem
TABLE C.1

Transportation Costs per Bathtub for Arizona Plumbing
TO

FROM

ALBUQUERQUE

BOSTON

CLEVELAND

Des Moines

$5

$4

$3

Evansville

$8

$4

$3

Fort Lauderdale

$9

$7

$5

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MC - 5

Transportation Problem
Des Moines
(100 units capacity) Albuquerque
(300 units required) Figure C.1
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Cleveland
(200 units required) Boston
(200 units required) Evansville
(300 units capacity) Fort Lauderdale
(300 units capacity) MC - 6

Transportation Matrix
Figure C.2
To
From

Albuquerque

$5

Des Moines

Evansville

Fort Lauderdale
Warehouse
requirement

Boston

$4

$3

$8

$4

$3

$9

$7

$5

300

Cost of shipping 1 unit from Fort
Lauderdale factory to Boston warehouse
© 2014 Pearson Education, Inc.

Cleveland

200

200

Factory capacity 100
300
300

Des Moines
capacity