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Module B: Transportation and Assignment Solution Methods


PROBLEM SUMMARY

34.

Shortage costs

1.

Balanced transportation

35.

Multiperiod scheduling

2.

Balanced transportation

36.

Unbalanced assignment, LP formulation

3.

Short answer, discussion

37.

Assignment

4.

Unbalanced transportation

38.

Assignment

5.

Balanced transportation

39.

Assignment

6.

Unbalanced transportation

40.

Unbalanced assignment, multiple optimal

7.

Unbalanced transportation

41.

Assignment, multiple optimal

8.

Unbalanced transportation

42.

Assignment

9.

Unbalanced transportation, multiple optimal

43.

Unbalanced assignment, multiple optimal

10.

Sensitivity analysis (B9)

44.

Balanced assignment

11.

Unbalanced transportation, multiple optimal

45.

Balanced assignment (B9)

12.

Unbalanced transportation, degenerate

46.

Unbalanced assignment

13.

Unbalanced transportation, degenerate

47.

Unbalanced assignment

14.

Balanced transportation

48.

Unbalanced assignment

15.

Balanced transportation

49.

Unbalanced assignment, prohibited assignment

16.

Sensitivity analysis (B15)

50.

Unbalanced assignment, multiple optimal

17.

Unbalanced transportation, multiple optimal

51.

Assignment

18.

Sensitivity analysis (B17)

52.

Unbalanced assignment (maximization)

19.

Shortage costs (B17)

20.

Unbalanced transportation

21.

Unbalanced transportation, multiple optimal

22.

Balanced transportation

23.

Unbalanced transportation, multiple optimal

24.

Sensitivity analysis (B23)

25.

Unbalanced transportation

26.

Sensitivity analysis (B25)

27.

Sensitivity analysis (B25)

28.

Unbalanced transportation

29.

Unbalanced transportation, degenerate

30.

Unbalanced transportation

31.

Unbalanced transportation, production scheduling


(B30)

32.

Unbalanced transportation

33.

Sensitivity analysis (B32)

PROBLEM SOLUTIONS
1.

318

Using the VAM initial solutions:

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$1290

40

30

80

b.)

Solutions achieved using minimum cost cell method is optimal


322

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331

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19.
From To
From

+7

22

250 17 +10
250
7
15 +18
35 90
15
90
28 +8
21 130
130
40 +33
65 180
180

1
2

520
520
+17

3
+20
Dummy
Demand

520

250

D
30 170

Supply
18

170

18 420
20 +7
25
20
610
16 210
14
16 210
14 340
25 +27
50
25
180

400

380

1550

Optimal, TC = $26,430
Transportation cost = $21,930
Shortage cost
= $ 4,500
$26,430
20.

From To
From

NC-E
NC-SW
15.2
14.3

NC-P
13.9

GA-1
12.8
GA-2

11.3

VA-SW
14.7
10
12.7

SC-1

10.8
1

VA-T
18.7

Dummy
0

9.4

11.3

13.2

15.6

13.1

12.8

14.5

10

19.4

7
18.2

14

17.9

20.5

20.7

22.7

20.2

21.2

21.3

23.5

6
19.3

20.2

15

19.5

FL-2

5
9

Supply
12

18.2

Demand

VA-C
16.5

12.4

FL-1

10.6

NC-W
13.5
2
12.0

10

Total Cost = $823,000

334

7
9

12
7

63

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21.

335

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22.

23.
21.

VAM initial solution:


To

From
North

26

15

35

17

21

27

22

31
10

250
3

340

18

20

29

24

35

15

10

23

110

200

310
210

40

60
0

Dummy
Demand

23

340

West
Central

12

Supply

250

South
East

210
16
290

190
0

200
400

400

400

200
400

1,600

336

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Allocate 40 students to cell (South, C):


To
From

A
12

North

Supply

23

35

17

250

250
26

South

15
300

18

East

27
340

20

150

22

31

160
29

West

21
40

310

24

35

10
210

15

Central

10

23

100
0

Dummy

210
16
290

190
0

200

Demand

400

400

200

400

400

1,600

Supply

Optimal (with multiple optimal solutions)


Total travel time = 20,700 minutes
22.
24.

VAM initial solution:


To

From
North

A
12

35

17
250

26

15

21

27

300
18

East

340
20

22

31

310
29

West

Demand

23

250

South

Central

24

310
35

10
210

15

10

23

210
16

100

10

40

140

290

350

350

350

350

1,400

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Allocate 40 students to cell (South, C):


To
From

A
12

North

B
23

Supply

D
35

17

250

250
26

South

15
300

East

18

21

27

40
20

340
22

31

310
29

West

24

310
35

10
210

Central
Demand

15

10

100

50

350

350

23
350

210
16

140

290

350

1,400

Allocate 100 students to cell (East, A):


To
From
North

A
12

35

17
250

26

15
200

18

21

27

140
20

100

340
22

31

210
29

West

24

310
35

10
210

15

Central
Demand

23

Supply

250

South
East

10

23

150
350

350

350

210
16

140

290

350

1,400

Optimal. Total travel time = 21,200 minutes.


The overall travel time increased by 500 minutes,
which divided by all 1,400 students is only an increase
of .357 minutes per student. This does not seem to be
a significantly large increase.

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The initial solution is determined using VAM, as


follows.
To

From

1
9

2
8

11

12

8
10

10

Dummy
8

26
6

27
6

40
7

0
20

5
12

E
Demand

10
15

25

15

30

10

20
0
40

35
8

25

Supply

18

13

18

6
27

7
35

0
1

45

21

171

Optimal, Total Profit = $1,528 with multiple optimal


solutions at (B,2), (E,4) and (B, Dummy)
Alternate, allocate 13 cases to (B,2)
To
From

1
9

10

11

10

5
12

6
7

Dummy
8

26
6

27
6

40
7

0
20

5
12

10
2

17

25

15

30

10

20
0

35
8

25

Supply

18

13

Demand

18

6
27

339

40
7

35

0
1

45

21

171

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Alternate, allocate 17 cases to (E,4)


To
From

1
9

2
8

11

12

25
10

10

26
6

27
6

40
7

5
12

E
Demand

10

25

25

15

10

20
0

35
8

40
7

17
30

Supply

20

26.
24.

Dummy

13

18

27

35

0
1

45

21

171

If Easy Time purchased all the baby food


demanded at each store from the distributor
total profit would be $1,246, which is less than
buying it from the other locations as
determined in problem 25. This profit is
computed by multiplying the profit at each
store by the demand. In order to determine if
some of the demand should be met by the
distributor a new source (F) must be added to
the transportation tableau from problem 25.
This source represents the distributor and has
an available supply of 150 cases, the total
demand from all the stores. The tableau and
optimal solution is shown as follows.
To

From

1
9

2
8

4
11

8
10

10

12

Dummy
8

26
6

27
8

18
8
6

0
13

40
0

20
4

10
35

12

25

10

Demand

25

40
0

5
8

15

20

15
9

22
30

Supply

9
18

7
27

Optimal, Total profit = $1,545 with multiple


optimal solutions

340

8
35

128
171

45
0

150
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This new solution results in a greater profit than the


solution in problem 25 ($1,545 > $1,528). Thus, some
of the demand (specifically at store 3) should be met
from the distributors.
27.
25.

Solve the model as a linear programming


model to obtain the shadow prices. Among the
5 purchase locations, the store at Albany has
the highest shadow price of $3. The sensitivity
range for supply at Albany is 25 q1 43.
Thus, as much as 17 additional cases can be
purchased from Albany which would increase
profit by $51 for a total of $1,579.

28.

29.
27.

VAM initial solution (degenerate):


To

From

A
36

28

32

E
43

27

Dummy
29

29

40

34

35

7
38

0
10

41

29

3
41

35
0

25
9

28

27

8
36

8
40

8
34

38

0
9

30

43

38

40

3
9

0
31

31
5

42

Supply

10

Demand

40

12

10

341

0
3

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Allocate 0 to cell (4,dummy):

To
From

A
36

B
40

D
32

E
43

2
28

27

Dummy
29

5
29

40

7
38

10
34

35

10
41

29

3
41

31

25
9

35

27

36

28

40

34

38

8
0
9

30

43

38

40

Demand

0
0

0
31

0
8

5
42

Supply

12

10

0
3

48

Allocate 3 units to cell (3,dummy):


To
From

A
36

28

32

43

27

Dummy
29

29

40

34

35

7
38

0
10

41

29

0
41

31
5

42

35

27

25

28

36

0
0

34

38

8
0
9

30

43

38

40

6
9

0
31

40

0
3

8
9

Supply

10

Demand

40
2

6
12

10

342

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Allocate 0 to cell (2,B):


To
From

B
36

40

D
32

2
28

27
0

29
5

29

35

40

38

41

41

29

31

42

35

25
9

28

27

36

0
0

34

38

31

40

0
3

0
10

30

43

38

40

Demand

Supply

10

34

Dummy

43

12

10

48

April

May

June

Optimal; total transport time = 1,275 hours


30.
28. Initial Transportation tableau (cost = $100s)
with VAM initial solution
To
From
Jan

Jan
12

12.15

12.30

12.45

11.4

11.55

12.75

11.7

11.85

12.0

10.83

10.98

11.13

11.28

10.29

10.44

10.59

9.78

9.93

9.29

30
260

March

Dummy

12.6

180

Feb

90

300

40

300

300
210

May

90

300

280

June

20
M

300

300
180

260

340

Supply

300

April

Demand

March

Feb

210

400

Optimal solution; total cost = $180,645

343

320

300
90

1,800

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Optimal transportation tableau (costs = $100s).


Multiple optimal solutions exist.
To

Jan

From
Rj
January
Oj
RF

February

Feb

12
300
14.4
110
M
M

OF
RM
OM
RA
April
OA
RM
May
OM

April

May

June

12.45

12.6

12.75

14.55

14.70

14.85

15.0

15.15

11.4
300
13.68
20
M

11.55

11.7

11.85

12.0

13.98

14.13

14.28

10.98
120
13.15

11.13

11.28

13.3

13.45

10.29
300
12.35
200
M

10.44

10.59

12.5

12.65

9.78
300
11.74
130
M

9.93

11.89

90

410

200
300

60

320

500

200
300
200
300
200

Oj
Demand

Supply

300

Rj
June

Dummy

12.3

13.83
120
10.83
180
13.0
200
M

March

Mar

12.15

620

430

300
70

200
0

9.29
300
11.15
80

120

200

380

340

3,000

300
0

Total cost = $301, 004


32. Cost = $1000s
From To
From

Denver

St. Paul
3.7

Louisville

Akron

Topeka

4.6

4.9

5.5

5.1

4.4

3.3

4.1

1.9

Supply
0

5.9

5.2

3.7

2.9

2.6

4.2

2.7

5.4

3.9

6.1

5.1

3.8

2.5

4.1

6.6

4.8

3.5

4.5

Sac.

13

3.4
Bak.

Dummy
4.3

18

San.

15

10

Mont.

12

12

Jack.

15

Ocala
Demand

10

20

3.6

15
20

15

15

15

20

15
90

Total cost, Z = $278,000


It is cheaper for National Foods to continue to operate its own trucking firm.
33.

Increasing the supply at Sacramento, Jacksonville and Ocala to 25 tons would have little effect, reducing the overall monthly shipping cost to $276,000, which is still higher than the $245,000 the company is currently spending
with its own trucks.
Alternatively, increasing the supply at San Antonio and Montgomery to 25 tons per month reduces the monthly
shipping cost to $242,500 which is less than the companys cost with their own trucks.

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34.
From To
From

Hong Kong
300

L.A.
490
Savannah

Singapore
210
150
520

Supply
340

300

450
610

400

200
360

Galveston
Order
Shortages
Orders

Taipei

600

320

500

350

350

800

920

1100

200
600

500

200
1600

500

Z = $723,500
Penalty costs = 200 x $800 = $160,000
35.

Period of Use

2
0

Beginning Inventory

Capacity
6

300

300
20

Regular

Period of Production
3
2
4

8,700

22

24

26

27

29

31

300

9,000

25
Overtime

1000

1,000

27

29

31

33

20

22

24

Subcontract

3,000

Regular

10,000

M
Overtime

10,000
25

700

27

29

29

31

800

27

Subcontract

1,500

200
M

Regular

3,000
20

22

25

27

12,000

Overtime

12,000

2,000
M

Subcontract

2,000
27

1,000
M

Regular

3,000
20

12,000

Overtime

12,000
25

2,000
M

Subcontract
Demand

29
2,000

9,000

12,000

Total cost; Z = $1,198,500; multiple optimal solutions exist


345

M
16,000

2,000
27

3,000
19,000

3,000

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37.

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38.

39.

40.

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42.

41.

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44. a) It actually can be solved by either method


transportation or assignment. However, if the
assignment method is used there will be 9 destinations, with each city repeated 3 times.
b) The solution with the transportation method.
From To
From
Athens
165
1
75
2
1
180
3
220
4
410
5
150
6
1
170
7
105
8
1
240
9

43.

Demand

Columbia Nashville
90
130
1
210
320

Supply
1
1

170

140
1

80

60

1
140

80
1

170

1
190
1

110

150

125

160

1
1
200

155
1

1
3

Total mileage, Z = 985; multiple optimal solutions exist.

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This changes the solution and increases the total


mileage. The new assignments are:
Officials 3, 6 and 7 Athens
Officials 1, 2 and 8 Columbia
Officials 4, 5 and 9 Nashville
Total mileage, Z = 1,220

46.

Solution Summary:
Als Parents Brunch
Bon Apett Post-game Party
Bon Apett Lettermens Dinner
Divine Booster Club Luncheon
Epicurean Contributors Dinner
University Alumni Brunch
Total Cost (Z) = $103,600

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48.
40.

47.

A
B
C
D
E
F

A
B
C
D
E
F

D1

D2

0
.07
.15
.04
.12
.19

.20
.13
.08
0
.10
.23

0
.22
.06
.18
.26
.03

.01
.10
.04
.16
0
.13

0
0
0
0
0
0

0
0
0
0
0
0

D1

D2

0
.04
.12
.04
.12
.06

.20
.10
.05
0
.10
.20

0
.19
.03
.18
.26
0

.01
.07
.01
.16
0
.10

.03
0
0
.03
.03
0

.03
0
0
.03
.03
0

Annie 1. Backstroke
Beth dummy
Carla dummy
Debbie 2. Breaststroke
Erin 4. Freestyle
Fay 3. Butterfly
Total time = 10.61 minutes

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49.
41. Subract all sales values from highest sales, $630.
Home
Furnishings China
1
2
3
4
5
6

290
70
360
270
180
350

470
260
M
410
440
310

Appliance

Jewelry

D1

D2

20
110
280
0
60
140

340
180
210
480
320
270

0
0
0
0
0
0

0
0
0
0
0
0

Appliance

Jewelry

D1

D2

20
110
280
0
60
140

160
0
50
300
140
90

0
0
0
0
0
0

0
0
0
0
0
0

Appliance

Jewelry

D1

D2

0
110
260
0
40
120

140
0
30
300
120
70

0
20
0
20
0
0

0
20
0
20
0
0

Appliance

Jewelry

D1

D2

0
110
230
0
10
90

140
0
0
300
90
40

30
50
0
50
0
0

30
50
0
50
0
0

Appliance

Jewelry

D1

D2

0
140
260
0
40
120

110
0
0
270
90
40

0
50
0
20
0
0

0
50
0
20
0
0

Opportunity cost table:


Home
Furnishings China
1
2
3
4
5
6

220
0
290
200
110
280

210
0
M
150
180
50

Home
Furnishings China
1
2
3
4
5
6

200
0
270
200
90
260

190
0
M
150
160
30

Home
Furnishings China
1
2
3
4
5
6

200
0
240
200
60
230

190
0
M
150
130
0

Home
Furnishings China
1
2
3
4
5
6

170
0
240
170
60
230

160
0
M
120
130
30

352

Employee 1 dummy
Employee 2 Home Furnishing
Employee 3 Jewelry
Employee 4 Appliances
Employee 5 dummy
Employee 6 China

0
560
420
630
0
320
$1,930 total sales

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Page 353

50.

353

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Page 354

51.

Multiple optimal solutions:


1-B
4
2-A
4
3-F
8
4-D
5
5-C
6
6-E
9
36 nights
52.

1-B
2-C
3-F
4-D
5-A
6-E

4
5
8
5
5
9
36 nights

First subtract all the %s from 100, and make 2 Florida columns:
GA

FL

FL

VA

PA

NY

NJ

38

44

44

35

29

45

37

35

30

30

37

19

25

28

54

47

47

38

45

36

50

42

34

34

30

33

29

51

23

27

27

31

20

20

26

32

27

27

28

20

22

43

28

40

40

26

28

38

39

Opportunity cost table:


GA

FL

FL

VA

PA

NY

NJ

10

10

16

14

18

16

6
0

11

16

11

10

17

12

GA

FL

FL

VA

PA

NY

NJ

16

12

14

11

16

11

10

15

14

354

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Page 355

GA

FL

FL

VA

PA

NY

NJ

15

11

15

14

10

11

17

10

10

16

14

ANJ
BPA
CNY
DFL
EGA
FFL
GVA
Z=498
498
Average success rate =  = 71.1%
7

355

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