Management Science: by Asst. Prof. Sami Fethi

1
Department of Business Administration

SPRING 2007-08
Management Science
by
Asst. Prof. Sami Fethi
2007 Pearson Education
2007/08, Sami Fethi, EMU, All Right Reserved. Operations Research
Ch 6: Transportation and Assignment
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Chapter Topics
The Transportation Model

Solution of a Transportation Problem

The Assignment Model

Solution of an Assignment Problem
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Overview
Part of a larger class of linear programming problems
known as network flow models.
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.
Text focuses on model formulation and solution with Excel
and QM for windows.
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Characteristics
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
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
model where supply equals demand.
Constraints contain inequalities in unbalanced models
where supply does not equal demand.
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Characteristics

Transportation modelling is an iterative procedure for solving
problems that involve minimizing the cost of shipping products
from a series of sources to a series of destinations.

Origin Points (or sources) can be factories, warehouses, car
rental agencies like AVIS or any other points from which goods
are shipped.

Destinations are any points that receive goods.

Transportation models are useful when considering alternative
facility locations. The choice of a new location depends on
which will yield the minimum cost for the entire system
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The Transportation
Model Characteristics

To use the transportation model we need to know the following:

The origin points and the capacity or supply per period at each
The destination points and the demand per period at each
The cost of shipping one unit from each origin to each
destination
The transportation problem can be regarded as a generalization of the
assignment problem. In an assignment problem we have a number of origins
each processing one item, and the same number of destinations each
requiring one item and are asked to empty the origins and fill the
destinations in such a way the Total Effectiveness is optimized. In a
transportation problem we have m origins, with origin i processing ai
items and n destinations (possibly different number from m) with
destination j requiring bj items, and with
ai = bj.
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We are given the m.n costs associated with shipping one
item from any origin to any destination, and are asked to
empty the origins and fill the destinations in such a way that
the total cost is minimized.

The assignment problem is seen to be a special case of
transportation problem in which m = n, all the ai and bj are
unity.

The iterative routine to be presented as the mode of the
solution of the transportation problem involves a succession
of feasible solutions of gradually diminishing cost;
eventually the minimum achievable cost is reached, and the
corresponding feasible solution is optimal.
The Transportation Model Characteristics

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Transportation Model Example1
(1)

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Transportation Model Example
(2 )
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(3)

11
(4)
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(5)
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(6)
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Transportation Model Example 2
(1)
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(2)
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(3)
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(4)
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Special form of linear programming model similar to the
transportation model.

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.
Characteristics
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Characteristics

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Assignment Model Example 1
(1)
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Assignment Model Example
(2)
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(1)
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(1)

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(1)

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(2)
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(3)
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(4)
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(1)

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(2)
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(1) (minimize)

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(2) (minimize)

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(3) (minimize)

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(4) (minimize)

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End of chapter

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