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The Transportation Model

Operations Management

William J. Stevenson

8th edition

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The Transportation Model

CHAPTER

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The Transportation Model

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

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The Transportation Model

Requirements for Transportation Model

List of origins and each ones capacity List of destinations and each ones demand Unit cost of shipping

Note: The DVD that accompanies this book contains a module that provides detailed instruction on the transportation model

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The Transportation Model

Transportation Model Assumptions

1. 2. 3.

Items to be shipped are homogeneous Shipping cost per unit is the same Only one route between origin and destination

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The Transportation Model

The Transportation Problem

Figure 8S.1
D (demand) S (supply) S (supply)

D (demand)

D (demand)

S (supply)

D (demand)

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The Transportation Model

A Transportation Table
B 4 7 Warehouse C 7 D 1 100 12 3 8 8 200 8 10 16 5 Total supply 450 capacity per 450 period Total demand per period 150 Factory 1 can supply 100 units per period

Table 8S.1
A Factory 1

Demand

80

90

120

160

Warehouse B can use 90 units per period

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The Transportation Model

Special Problems

Unequal supply and demand Dummy: Imaginary number added equal to the difference between supply and demand when these are unequal Degeneracy: The condition of too few completed cells to allow all necessary paths to be constructed

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The Transportation Model

Summary of Procedure

Make certain that supply and demand are equal Develop an initial solution using intuitive, low-cost approach Check that completed cells = R+C-1 Evaluate each empty cell Repeat until all cells are zero or positive

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The Transportation Model

Excel Template
Figure 8S.2

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The Transportation Model

CHAPTER

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Additional PowerPoint slides contributed by Geoff Willis, University of Central Oklahoma.

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The Transportation Model

ANALYSES

Transportation Model

minimizes transportation costs using LP

Center of gravity & simple median models

minimizes transportation costs using geometry

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The Transportation Model

Center of Gravity
Determine the center of gravity for the destinations shown on the following map. Monthly shipments will be the quantities listed in the table. Destination Quantity D1 900 D2 D2 300 D5 D3 700 D4 D1 D4 600 D3 D5 800