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Introduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment, and Assignment Problems 1 Transportation, Transshipment, and Assignment Problems

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Page 1: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Introduction to Management Science

(8th Edition, Bernard W. Taylor III)

Chapter 10

Chapter 10 - Transportation, Transshipment, and Assignment Problems 1

Transportation, Transshipment, andAssignment Problems

Page 2: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Chapter Topics

The Transportation Model

Computer Solution of a Transportation Problem

The Assignment ModelThe Assignment Model

Computer Solution of the Assignment Model

Chapter 10 - Transportation, Transshipment, and Assignment Problems 2

Page 3: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Overview

Part of a larger class of linear programming problems known as network flow models.

Possess special mathematical features that enabled Possess special mathematical features that enabled development of very efficient, unique solution methods.

Methods are variations of traditional simplex procedure.

Detailed description of methods is contained in CD-ROM Module B, Transportation and Assignment Solution Methods.

Chapter 10 - Transportation, Transshipment, and Assignment Problems 3

Text focuses on model formulation and solution with Excel and QM for windows.

Page 4: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

The Transportation ModelCharacteristics

A product is transported from a number of sources to a number of destinations at the minimum possible cost.

Each source is able to supply a fixed number of units of the Each source is able to supply a fixed number of units of the product, and each destination has a fixed demand for the product.

The linear programming model has constraints for supply at each source and demand at each destination.

All constraints are equalities in a balanced transportation

Chapter 10 - Transportation, Transshipment, and Assignment Problems 4

All constraints are equalities in a balanced transportation model where supply equals demand.

Constraints contain inequalities in unbalanced models where supply does not equal demand.

Page 5: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleProblem Definition and Data

Problem: How many tons of wheat to transport from each grain elevator to each mill on a monthly basis in order to minimize the total cost of transportation?

Grain Elevator Supply Mill Demand

1. Kansas City 150 A. Chicago 200

2. Omaha 175 B. St. Louis 100

3. Des Moines 275 C. Cincinnati 300

Total 600 tons Total 600 tons

minimize the total cost of transportation?

Data:

Chapter 10 - Transportation, Transshipment, and Assignment Problems 5

Transport Cost from Grain Elevator to Mill ($/ton)

Grain Elevator A. Chicago B. St. Louis C. Cincinnati1. Kansas City2. Omaha3. Des Moines

$ 674

$ 811 5

$10 11 12

Page 6: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Minimize Z = $6x1A + 8x1B + 10x1C + 7x2A + 11x2B + 11x2C + 4x3A + 5x3B + 12x3C

subject to:

Transportation Model ExampleModel Formulation (1 of 2)

subject to:x1A + x1B + x1C = 150x2A + x2B + x2C = 175x3A + x3B + x3C = 275x1A + x2A + x3A = 200x1B + x2B + x3B = 100x1C + x2C + x3C = 300

Grain elevator supply

Mill demand

Chapter 10 - Transportation, Transshipment, and Assignment Problems 6

x1C + x2C + x3C = 300xij 0

xij = tons of wheat from each grain elevator, i, i = 1, 2, 3, to each mill j, j = A,B,C

Page 7: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleModel Formulation (2 of 2)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 7

Figure 10.1Network of Transportation Routes for Wheat Shipments

Page 8: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with Excel (1 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 8

Exhibit 10.1

Page 9: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with Excel (2 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 9

Exhibit 10.2

Page 10: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with Excel (3 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 10

Exhibit 10.3

Page 11: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with Excel QM (1 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 11

Exhibit 10.4

Page 12: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with Excel QM (2 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 12

Exhibit 10.5

Page 13: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with Excel QM (3 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 13

Exhibit 10.6

Page 14: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with QM for Windows (1 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 14

Exhibit 10.7

Page 15: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with QM for Windows (2 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 15

Exhibit 10.8

Page 16: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transportation Model ExampleComputer Solution with QM for Windows (3 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 16

Exhibit 10.9

Page 17: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Extension of the transportation model.

Intermediate transshipment points are added between the sources and destinations.

The Transshipment ModelCharacteristics

sources and destinations.

Items may be transported from:

Sources through transshipment points to destinations

One source to another

One transshipment point to another

Chapter 10 - Transportation, Transshipment, and Assignment Problems 17

One destination to another

Directly from sources to to destinations

Some combination of these

Page 18: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Extension of the transportation model in which intermediate transshipment points are added between sources and destinations.

Transshipment Model ExampleProblem Definition and Data (1 of 2)

destinations.

Data:

Grain ElevatorFarm 3. Kansas City 4. Omaha 5. Des Moines1. Nebraska2. Colorado

$1615

1014

1217

Chapter 10 - Transportation, Transshipment, and Assignment Problems 18

Page 19: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transshipment Model ExampleProblem Definition and Data (2 of 2)

Phase 1Phase 2

Chapter 10 - Transportation, Transshipment, and Assignment Problems 19

Figure 10.2Network of Transshipment Routes

Page 20: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Minimize Z = $16x13 + 10x14 + 12x15 + 15x23 + 14x24 + 17x25

+ 6x36 + 8x37 + 10x38 + 7x46 + 11x47 + 11x48

+ 4x + 5x + x

Transshipment Model ExampleModel Formulation

+ 4x56 + 5x57 + x58

subject to: x13 + x14 + x15 = 300x23+ x24 + x25 = 300x36 + x37 + x38 = 200x46+ x47 + x48 = 100x + x + x = 300

Chapter 10 - Transportation, Transshipment, and Assignment Problems 20

x56 + x57 + x58 = 300x13 + x23 - x36 - x37 - x38 = 0x14 + x24 - x46 - x47 - x48 = 0x15 + x25 - x56 - x57 - x58 = 0xij 0

Only those xij’s are definedwhich exist in the network.

Page 21: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transshipment Model ExampleComputer Solution with Excel (1 of 2)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 21

Exhibit 10.10

Page 22: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Transshipment Model ExampleComputer Solution with Excel (2 of 2)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 22

Exhibit 10.11

Page 23: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Special form of linear programming model similar to the transportation model.

Supply at each source and demand at each destination

The Assignment ModelCharacteristics

Supply at each source and demand at each destination limited to one unit.

In a balanced model supply equals demand.

In an unbalanced model supply does not equal demand.

Chapter 10 - Transportation, Transshipment, and Assignment Problems 23

Page 24: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleProblem Definition and Data

Problem: Assign four teams of officials to four games in a way that will minimize total distance traveled by the officials. Supply is always one team of officials, demand is officials. Supply is always one team of officials, demand is for only one team of officials at each game.

Data:Binary!

Chapter 10 - Transportation, Transshipment, and Assignment Problems 24

Table 6.1

Page 25: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Minimize Z = 210xAR + 90xAA + 180xAD + 160xAC + 100xBR + 70xBA + 130xBD + 200xBC + 175xCR + 105xCA +

140x + 170x + 80x + 65x + 105x +

Assignment Model ExampleModel Formulation

140xCD + 170xCC + 80xDR + 65xDA + 105xDD + 120xDC

subject to: xAR + xAA + xAD + xAC = 1 xij 0xBR + xBA + xBD + xBC = 1xCR + xCA + xCD + xCC = 1x + x + x + x = 1

Each team goes to one game only

Chapter 10 - Transportation, Transshipment, and Assignment Problems 25

xDR + xDA + xDD + xDC = 1xAR + xBR + xCR + xDR = 1xAA + xBA + xCA + xDA = 1xAD + xBD + xCD + xDD = 1xAC + xBC + xCC + xDC = 1

Each game gets one team only

Page 26: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleComputer Solution with Excel (1 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 26

Exhibit 10.12

Page 27: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleComputer Solution with Excel (2 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 27

Exhibit 10.13

Page 28: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleComputer Solution with Excel (3 of 3)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 28

Exhibit 10.14

Page 29: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleComputer Solution with Excel QM

Chapter 10 - Transportation, Transshipment, and Assignment Problems 29

Exhibit 10.15

Page 30: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleComputer Solution with QM for Windows (1 of 2)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 30

Exhibit 10.16

Page 31: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Assignment Model ExampleComputer Solution with QM for Windows (2 of 2)

Chapter 10 - Transportation, Transshipment, and Assignment Problems 31

Exhibit 10.17

Page 32: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Determine linear programming model formulation and solve using Excel:

Example Problem SolutionTransportation Problem Statement

Construction sitePlant A B C Supply (tons)

123

$ 8 15

3

$ 5 10 9

$ 6 12 10

120 80 80

Demand (tons) 150 70 100

Chapter 10 - Transportation, Transshipment, and Assignment Problems 32

Demand (tons) 150 70 100

Page 33: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Minimize Z = $8x1A + 5x1B + 6x1C + 15x2A + 10x2B + 12x2C + 3x3A + 9x3B + 10x3C

subject to:

Example Problem SolutionModel Formulation

subject to:x1A + x1B + x1C = 120 x2A + x2B + x2C = 80x3A + x3B + x3C = 80x1A + x2A + x3A 150 x1B + x2B + x3B 70x + x + x 100

Plant supply

Construction site demand

Chapter 10 - Transportation, Transshipment, and Assignment Problems 33

x1C + x2C + x3C 100 xij 0

Page 34: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Example Problem SolutionComputer Solution with Excel

Chapter 10 - Transportation, Transshipment, and Assignment Problems 34

Page 35: Transportation, Transshipment, and Assignment Problems · PDF fileIntroduction to Management Science (8th Edition, Bernard W. Taylor III) Chapter 10 Chapter 10 - Transportation, Transshipment,

Chapter 10 - Transportation, Transshipment, and Assignment Problems 35