transportation problem and related topics
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Transportation Problem and Related Topics. Transportation problem : Narrative representation . There are 3 plants, 3 warehouses. Production of Plants 1, 2, and 3 are 100, 150, 200 respectively. Demand of warehouses 1, 2 and 3 are 170, 180, and 100 units respectively. - PowerPoint PPT PresentationTRANSCRIPT
Transportation Problem and Related Topics
2Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
There are 3 plants, 3 warehouses.Production of Plants 1, 2, and 3 are 100, 150, 200 respectively.Demand of warehouses 1, 2 and 3 are 170, 180, and 100 units respectively.Transportation costs for each unit of product is given below
Transportation problem : Narrative representation
Warehouse1 2 3
1 12 11 13Plant 2 14 12 16
3 15 11 12Formulate this problem as an LP to satisfy demand at minimum transportation costs.
3Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Plant 1
Warehouse 1
Plant 2 Plant 3
Warehouse 2 Warehouse 3
Data for the Transportation Model
• Quantity demanded at each destination
• Quantity supplied from each origin• Cost between origin and
destination
4Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
$12$11
$13
$12
Plant 1 Plant 2 Plant 3
Warehouse 1 Warehouse 2 Warehouse 1
$14 $16$12
$11
$15
Supply Locations
Demand Locations
100 150 200
Data for the Transportation Model
5Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Transportation problem I : decision variables
1
2
1
33
100x11
x12
2150
200 100
180
170
x13x21
x31
x22
x32
x23
x33
6Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Transportation problem I : decision variables
x11 = Volume of product sent from P1 to W1x12 = Volume of product sent from P1 to W2x13 = Volume of product sent from P1 to W3x21 = Volume of product sent from P2 to W1x22 = Volume of product sent from P2 to W2x23 = Volume of product sent from P2 to W3x31 = Volume of product sent from P3 to W1x32 = Volume of product sent from P3 to W2x33 = Volume of product sent from P3 to W3Minimize Z = 12 x11 + 11 x12 +13 x13 + 14 x21 + 12 x22 +16 x23 +15 x31 + 11 x32 +12 x33
7Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Transportation problem I : supply and demand constraints: equal only of Total S = Total D
x11 + x12 + x13 = 100x21 + x22 + x23 =150x31 + x32 + x33 = 200x11 + x21 + x31 = 170x12 + x22 + x32 = 180x13 + x23 + x33 = 100
x11, x12, x13, x21, x22, x23, x31, x32, x33 0
8Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Transportation problem I : supply and demand constraints: ≤ for S, ≥ for D always correct
x11 + x12 + x13 ≤ 100x21 + x22 + x23 ≤ 150x31 + x32 + x33 ≤ 200x11 + x21 + x31 ≥ 170x12 + x22 + x32 ≥ 180x13 + x23 + x33 ≥ 100
x11, x12, x13, x21, x22, x23, x31, x32, x33 0
9Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Origins
We have a set of ORIGINsOrigin Definition: A source of material- A set of Manufacturing Plants- A set of Suppliers- A set of Warehouses- A set of Distribution Centers (DC)
In general we refer to them as Origins
m
1
2
i
s1
s2
si
sm
There are m origins i=1,2, ………., m
Each origin i has a supply of si
10Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Destinations
We have a set of DESTINATIONsDestination Definition: A location with a demand for material- A set of Markets- A set of Retailers- A set of Warehouses- A set of Manufacturing plantsIn general we refer to them as Destinations
n
1
2
j
d1
d2
di
dn
There are n destinations j=1,2, ………., n
Each origin j has a supply of dj
11Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
There is only one route between each pair of origin and destinationItems to be shipped are all the samefor each and all units sent from origin i to destination j there is a shipping cost of Cij per unit
Transportation Model Assumptions
12Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Cij : cost of sending one unit of product from origin i to destination j
m
1
2
i
n
1
2
jC1n
C12
C11
C2n
C22
C21
Use Big M (a large number) to eliminate unacceptable routes and allocations.
13Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Xij : Units of product sent from origin i to destination j
m
1
2
i
n
1
2
jx1n
x12
x11
x2n
x22
x21
14Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
The Problem
m
1
2
i
n
1
2
j
The problem is to determine how much material is sent from each origin to each destination, such that all demand is satisfied at the minimum transportation cost
15Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
The Objective Function
m
1
2
i
n
1
2
j
If we send Xij units from origin i to destination j, its cost is Cij Xij
We want to minimize
ijijxCZ
16Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Transportation problem I : decision variables
1
2
1
33
100x11
x12
2150
200 100
180
170
x13x21
x31
x22
x32
x23
x33
17Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Transportation problem I : supply and demand constraints
x11 + x12 + x13 =100 +x21 + x22 + x23 =150 +x31 + x32 + x33 =200x11 + x21 + x31 =170 x12 + x22 + x32 =180 x13 + x23 + x33 = 100
In transportation problem. each variable Xij appears only in two constraints, constraints i and constraint m+j, where m is the number of supply nodes. The coefficients of all the variables in the constraints are 1.
18Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Our Task
Our main task is to formulate the problem.
By problem formulation we mean to prepare a tabular representation for this problem.
Then we can simply pass our formulation ( tabular representation) to EXCEL.
EXCEL will return the optimal solution.
What do we mean by formulation?
19Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Cost Table
Cost TableWarhouse1 Warhouse2 Warhouse3
Plant 1 12 11 13Plant 2 14 12 16Plant 3 15 11 12
`Decision Variable Table
Warhouse1 Warhouse2 Warhouse3Plant 1Plant 2Plant 3
20Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Right Hand Side (RHS)
San Siego Norfolk Pensacola LHS RHSTruck 1000 2000 0 3000 ≤ 3000Railroad 0 500 2500 3000 ≤ 3000Airplane 3000 0 0 3000 ≤ 3000LHS 4000 2500 2500 142000
≥ ≥ ≥RHS 4000 2500 2500
21Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Decision Variable TableWarhouse1 Warhouse2 Warhouse3 RHS
Plant 1 170 180 0 =SUM(B11:D11) 100Plant 2 0 0 0 =SUM(B12:D12) 150Plant 3 0 0 100 =SUM(B13:D13) 200
=SUM(B11:B13) =SUM(C11:C13) =SUM(D11:D13) =SUMPRODUCT(B5:D7,B11:D13)
RHS 170 180 100
Left Hand Side (RHS), and Objective Function
22Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
≤ for Supply, ≥ for Demand unless Some Equality Requirement is Enforced
Decision Variable TableWarhouse1 Warhouse2 Warhouse3 RHS
Plant 1 0 ≤ 100Plant 2 0 ≤ 150Plant 3 0 ≤ 200
0 0 0 0≥ ≥ ≥
RHS 170 180 100
23Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
≤ for Supply, ≥ for Demand unless Some Equality Requirement is Enforced
Decision Variable TableWarhouse1 Warhouse2 Warhouse3 RHS
Plant 1 0 ≤ 100Plant 2 0 ≤ 150Plant 3 0 ≤ 200
0 0 0 0≥ ≥ ≥
RHS 170 180 100
24Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Decision Variable TableWarhouse1 Warhouse2 Warhouse3 RHS
Plant 1 100 0 0 100 ≤ 100Plant 2 70 80 0 150 ≤ 150Plant 3 0 100 100 200 ≤ 200
170 180 100 5440≥ ≥ ≥
RHS 170 180 100
Optimal Solution
Extra Credit. How the colors were generated and what they mea?Using Conditional formatting.Green if the decision variable is >0Red if the constraint is binding LHS = RHS
25Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Example: Narrative Representation
We have 3 factories and 4 warehouses.Production of factories are 100, 200, 150 respectively.Demand of warehouses are 80, 90, 120, 160 respectively.Transportation cost for each unit of material from each origin to each destination is given below.
Destination1 2 3 4
1 4 7 7 1Origin 2 12 3 8 8
3 8 10 16 5
Formulate this problem as a transportation problem
26Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Excel : Data
27Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
11 repairmen and 10 tasks. The time (in minutes) to complete each job by each repairman is given below.
Assign each task to one repairman in order to minimize to total repair time by all the repairmen.In the assignment problem, all RHSs are 1. That is the only difference with the transportation problem,.
The Assignment Problem : Example
Cost Table TaskTime of task j if done by repairman i1 2 3 4 5 6 7 8 9 10
1 40 40 45 30 45 35 50 20 45 302 30 50 30 30 35 30 55 30 55 403 50 20 30 55 30 40 55 25 30 204 35 40 35 55 35 20 45 55 45 455 45 35 50 30 35 20 55 35 40 20
Repairman 6 30 35 50 35 45 35 50 30 55 407 50 55 35 40 45 25 55 35 45 358 20 40 40 25 45 55 35 30 40 409 20 20 45 50 20 50 50 30 25 50
10 20 40 40 35 20 40 40 30 50 3511 45 50 55 30 50 35 55 50 45 40
28Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
The Assignment Problem : Example
Decision Variables Task1 2 3 4 5 6 7 8 9 10
1 0 0 0 0 0 0 0 1 0 0 1 ≤ 12 0 0 1 0 0 0 0 0 0 0 1 ≤ 13 0 1 0 0 0 0 0 0 0 0 1 ≤ 14 0 0 0 0 0 1 0 0 0 0 1 ≤ 1
Repairman 5 0 0 0 0 0 0 0 0 0 1 1 ≤ 16 1 0 0 0 0 0 0 0 0 0 1 ≤ 17 0 0 0 0 0 0 0 0 0 0 0 ≤ 18 0 0 0 0 0 0 1 0 0 0 1 ≤ 19 0 0 0 0 0 0 0 0 1 0 1 ≤ 1
10 0 0 0 0 1 0 0 0 0 0 1 ≤ 111 0 0 0 1 0 0 0 0 0 0 1 ≤ 1
1 1 1 1 1 1 1 1 1 1 250≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥1 1 1 1 1 1 1 1 1 1
29Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Texaco Corp. Site Selection Problem: Sec. 5.5 Hillier and Hillier Texaco produces most of its oil in its own fields and import
the rest from middle east.
Texaco has several oil fields, several refineries, and several distribution centers.
Texaco is planning to add a new refinery. There are several candidate locations for this new refinery.
There are 3 important factors1. Distance from row material locations (Transportation
cost).2. Distance from distribution locations (Transportation
cost). .3. Production cost
30Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Plants to Existing and Future WarehousesThree manufacturing PlantsThree WarehouseCapacity, and Distribution costs are given below
Warehouse 1 Warehouse 2 Warehouse 3Plant CapacityPlant 1 2 4 5 80Plant 2 4 5 2 60Plant 3 5 7 3 100Plant 4 2 2 5 120Warehouse Capacity 100 60 80Capacity of the warehouses are nor enogh. Three candidate locations for one additional warehouse.Capacity, and Distribution costs are given below
Candidate 1 Candidate 2 Candidate 3Plant 1 3 1 3Plant 2 1 3 4Plant 3 4 5 6Plant 4 4 3 4Candidate Capacity 120 120 120
31Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Warehouses to Distribution CentersFour distribution centersThe distance from warehouse to distribution center given below
DC1 DC2 DC3 DC4Warehouse 1 5 2 6 8 100Warehouse 2 6 4 3 5 60Warehouse 3 7 8 4 3 80Candidate 1 8 6 3 2 120Candidate 2 5 4 3 6 120Candidate 3 4 3 1 5 120
100 80 80 100Operations cost at each plant is given belowOperations Cost 620 570 530Which candidate warehouse leads to the minimal system costs
32Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Plants To Candidate Warehouse 1Warehouse 1 Warehouse 2 Warehouse 3 Candidate 1
Plant 1 2 4 5 3Plant 2 4 5 2 1Plant 3 5 7 3 4Plant 4 2 2 5 4
Warehouse 1 Warehouse 2 Warehouse 3 Candidate 1 SupplyPlant 1 40 0 0 40 80 ≤ 80Plant 2 0 0 0 60 60 ≤ 60Plant 3 0 0 80 20 100 ≤ 100Plant 4 60 60 0 0 120 ≤ 120
100 60 80 120 820≥ ≥ ≥ ≥
Capacity 100 60 80 120
33Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Plants To Candidate Warehouse 2Warehouse 1 Warehouse 2 Warehouse 3 Candidate 2
Plant 1 2 4 5 1Plant 2 4 5 2 3Plant 3 5 7 3 5Plant 4 2 2 5 3
Warehouse 1 Warehouse 2 Warehouse 3 Candidate 2 SupplyPlant 1 20 0 0 60 80 ≤ 80Plant 2 0 0 0 60 60 ≤ 60Plant 3 20 0 80 0 100 ≤ 100Plant 4 60 60 0 0 120 ≤ 120
100 60 80 120 860≥ ≥ ≥ ≥
Capacity 100 60 80 120
34Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Plants To Candidate Warehouse 3Warehouse 1 Warehouse 2 Warehouse 3 Candidate 3
Plant 1 2 4 5 3Plant 2 4 5 2 4Plant 3 5 7 3 6Plant 4 2 2 5 4
Warehouse 1 Warehouse 2 Warehouse 3 Candidate 3 SupplyPlant 1 20 0 0 60 80 ≤ 80Plant 2 0 0 0 60 60 ≤ 60Plant 3 20 0 80 0 100 ≤ 100Plant 4 60 60 0 0 120 ≤ 120
100 60 80 120 1040≥ ≥ ≥ ≥
Capacity 100 60 80 120
35Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Existing Warehouses and Candidate 1 to DCs
DC1 DC2 DC3 DC4Warehouse 1 5 2 6 8Warehouse 2 6 4 3 5Warehouse 3 7 8 4 3Candidate 1 8 6 3 2
DC1 DC2 DC3 DC4 SupplyWarehouse 1 20 80 0 0 100 ≤ 100Warehouse 2 60 0 0 0 60 ≤ 60Warehouse 3 20 0 0 60 80 ≤ 80Candidate 1 0 0 80 40 120 ≤ 120
100 80 80 100 1260≥ ≥ ≥ ≥
Demand 100 80 80 100
36Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Existing Warehouses and Candidate 2 to DCs
DC1 DC2 DC3 DC4Warehouse 1 5 2 6 8Warehouse 2 6 4 3 5Warehouse 3 7 8 4 3Candidate 2 5 4 3 6
DC1 DC2 DC3 DC4 SupplyWarehouse 1 20 80 0 0 100 ≤ 100Warehouse 2 0 0 40 20 60 ≤ 60Warehouse 3 0 0 0 80 80 ≤ 80Candidate 2 80 0 40 0 120 ≤ 120
100 80 80 100 1240≥ ≥ ≥ ≥
Demand 100 80 80 100
37Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
From Existing Warehouses and Candidate 3 to DCs
DC1 DC2 DC3 DC4Warehouse 1 5 2 6 8Warehouse 2 6 4 3 5Warehouse 3 7 8 4 3Candidate 3 4 3 1 5
DC1 DC2 DC3 DC4 SupplyWarehouse 1 20 80 0 0 100 ≤ 100Warehouse 2 0 0 40 20 60 ≤ 60Warehouse 3 0 0 0 80 80 ≤ 80Candidate 3 80 0 40 0 120 ≤ 120
100 80 80 100 1080≥ ≥ ≥ ≥
Demand 100 80 80 100
38Ardavan Asef-Vaziri June-2013Transportation Problem and Related Topics
Total System Costs
Candidate 1 Candidate 2 Candidate 3From Plant to Warehouse costs 820 860 1040
From Warehouse to DC costs 1260 1240 1080Productin Costs 620 570 530
Total 2700 2670 2650