POM for Windows

Objectives
Background on Software
Features of Software Present (2) Real-Life Problems
Transportation Lot-Sizing

Demonstrate Softwares Capabilities Have FUN While Learning!!!

Introduction to POM
Background
Modules Handy features

Real-Life Problem #1:

TRANSPORTATION

Definition:
A transportation problem involves transporting items from sources with fixed supply to destinations with fixed demand at lowest cost.

Heres the problem

COMPANY wants to find the most cost effective way to transport their product from the suppliers to the retailers, based on a shipping rate of Enter thea transportation costs, supplies and demands in the sha $0.03/mi. and supply/demand based Then go to TOOLS, SOLVER, SOLVE on the menu bar at the top on the chart. If SOLVER is not a menu option in the Tools menu then go to T
INS. Data COSTS marinette oshkosh madison milwaukee Supply Green Bay 159 168 396 345 75 eau claire 717 552 534 738 60 stevens point 495 213 531 327 25 rhinelander 342 495 600 801 38 Demand 90 32 30 46 198 \ 198

A few TERMS
Source
Destination Objective (min. or max.)

Vogels Approximation method

The PROCESS:
Step 1: Create Data Set
(#) Source (#) Destination Objective (min. or max.)

Step 2: Populate the Table

Rows = Sources Columns = Destinations

Step 3: Solve
Click on the SOLVE button

What does this give us??

Explain Results
Transportation Shipments Shipping Costs Shipments List

Conclusions
By following the results of the DSS software, the COMPANY can MINIMIZE its total transportation expenses.
Profits will soar!!

Real-Life Problem #2:

LOT-SIZING

Definition:
Given a set of demands in future periods, the goal is to place orders which meet these demands and minimize the sum of the costs of holding goods from period to period plus the (setup) costs of placing the orders.

Heres the problem

COMPANY wants to optimize its lot-size

A few TERMS
Period Demand Holding Cost Setup Cost Stock-Out Cost Initial Inventory Lead Time Methods
Wagner-Whitin(WW) Lot-for-Lot EOQ POQ Part-PeriodBalancing User-defined

The PROCESS:
Step 1: Create Data Set
(#) Period

Step 2: Populate the Table

1st Row = Demand 2nd Row = Values Select Method

Step 3: Solve
Click on the SOLVE button

What does this give us??

Explain Results
Lot-Sizing Results

Conclusions
By optimizing our lot-size, we can eliminate backed-up inventory, therefore, saving the COMPANY money!

Overall Conclusion
Useful Competative Advantage