Transportation Problem #1 (Balanced Transportation Model)

J=1
Demand Centers
A
i=1 Mfg 1 6
i=2 Mfg 2 11
Demand 75

Excel Model
Decision Variables (Shipping Schedule Plan)
Demand Centers
A
Mfg 1 0
Mfg 2 0
Shipped (from I to j) Shipped 0
Sign Sign >=
Requirement (Demand) Demand 75

Objective Function (Minimize Z) 0

=SUMPRODUCT(C6:E7,C14:E15)

Transportation Model # 2 (Unbalanced Transportation Model)

Customer 1
Plant 1 18
Plant 2 14
Plant 3 15
Demand 250
Excel Model
Decision variables
Shipping Schedule
Plan
Customer 1
Plant 1 0
Plant 2 250
Plant 3 0
Shipped 250
Sign =
Demand 250

Objective function (Minimize Z)

 J=2 J=3
Demand Centers Supply
B C
13 16 110
8 10 90
65 60
Balanced Transportation Model
Total Supply 200
Total Demand 200
Demand Centers LHS Sign RHS
B C Shipped from Mfg to DC Supply
0 0 0 <= 110
0 0 0 <= 90
0 0
>= >=
65 60

Customer 2 Customer 3 Customer 4 Supply

16 10 14 600
13 15 18 700
12 12 16 500
380 500 550
 Unbalanced Transportaion Model

Total Supply 1800

Total Demand 1680

Customer 2 Customer 3 Customer 4 Shipped Sign
0 500 100 600 <=
330 0 0 580 <=
50 0 450 500 <=

380 500 550

= = =
380 500 550

21990
=SUMPRODUCT(C42:F44,C33:F35)
 Sign of Constraints
Less or equal Constraint or equality constraint
Greater or equal Constraint or equality constraint
Type of Constraint

Less or equal constraint

Equal constraint
Supply
600
700
500
 Transshipment Network
TO A Network M
From WH1 WH2 Supply
Plant 1 6 5 600
Plant 2 4 7 500
Plant 3 8 5 700

TO
From DC1 DC2 DC3
WH1 6 7 9
WH2 3 6 12
Demand 350 600 800

Total supple 1800 <=

Total demand 1750 =

OFV 15866.666667

From WH1 WH2 Supplyed sign Supply

Plant 1 0 433.33 433.33 <= 600
Plant 2 300 0 300.00 <= 500
Plant 3 0 0 0.00 <= 700
shipped inflow 733.33 1166.67

TO
From DC1 DC2 DC3 Shipped outflow
WH1 0 0 733.3333 733.33
WH2 500 600 66.66667 1166.67
sign = = =
shipped 500 600 800
Demand 500 600 800

OFV 18900

From WH1 WH2 Supplyed sign Supply

Plant 1 600 0 600 = 600
Plant 2 300 0 300 = 500
Plant 3 0 0 0= 700
shipped inflow 900 900
 TO
From DC1 DC2 DC3 Shipped outflow
WH1 400 0 500 900
WH2 0 600 300 900
sign = = =
shipped 400 600 800
Demand 400 600 800

Question 1 : For
Total supple 1800 =
4 Total demand 1900 <= Question 2: Det
are satisfied.
OFV 53333.333333 Question 3 : Sup

Question 4 : Su
From WH1 WH2 Supplyed sign Supply
Plant 1 600 0 600 = 600 Question 3: Wha
Plant 2 0 500 500 = 500 schedule ?
Plant 3 400 300 700 = 700 Question 4 : Su
shipped inflow 1000 800 schedule?

Question 5 : Su
TO schedule?
From DC1 DC2 DC3 Shipped outflow
Question 6 : Sup
WH1 400 600 0 1000
WH2 0 0 800 800
sign <= <= <=
shipped 400 600 800
Demand 500 600 800
A Network Model
Question 1 : Formulate Mathematical Network Transshipment Model

Question 2: Determine the shipping schedule that minimizes total transportaion costs while supply and demand
are satisfied.

Question 3 : Suppose demand at DC1 increases to 400 units ; what would kappen to shipping schedule?

Question 4 : Suppose that demand at DC1 increases to 500 units ; what would happen to shipping schedule?

Question 3: What if node 2 cannot ship more than 200 units to node 4 , what would happen to the shipping
schedule ?

Question 4 : Suppose Plant 2 cannot ship more than 300 units to Warehouse 1, what would happen to shipping
schedule?

Question 5 : Suppose that Plant 3 can ship at least 100 units to Warehouse 1 ; what would happen to shipping
schedule?

Question 6 : Suppose Warehouse 2 cannot ship to DC 2 ; what would happen to shipping schedule.
nd demand

e?

edule?

hipping

to shipping

o shipping
Cars must be shippe
Jacksonville to other
The shipping costs, a
demands are shown
ars must be shipped from ports in Newak and
acksonville to other locations at minimum cost.
he shipping costs, available cars (supplies), and
emands are shown above on the network.
TRANSPORTATION PROBLEM: A NETWORK MODEL AND LINEAR PROGRAMM
Let us illustrate by considering a transportaion problem faced byFoster Generators
This problem involves the transportation of a product from three plants to four distribution
centers. Foster Generators has plants in Cleveland,Ohio,Bedford, Indiana, and York, Pennsylvania.
Production capacities over the next three months planning period for one particular type of generator as follows :

Origin Plant 3 Months Production Capacities (units)

1 Cleveland 5000
2 Bedford 6000
3 York 2500

The firm distributes its generators through four regional distribution centers located
in Boston, St.Louis, and Lexington; the 3-month forecast of demand for the distribution
centers as follows:
Destination Distribution 3 Month
Center Demand Forecast
(Units)
1 Boston 6000
2 Chicago 4000
3 St.Louis 2000
4 Lexington 1500

Management would like to determine how much of its production should be shipped from
each plant to each distribution center.

Q1 Draw a Network Representation of the Foster Generators Transportaion Problem .

Q2 How many distribution routes Foster can use ?
Q4 Formulate a Mathematical Linear Programming Model
Q3 Determine the Shipping Schedule that minimizes the total transportation cost using Excel Solver .
NEAR PROGRAMMING FORMULATION

erator as follows :
 Kansas City Omaha Des Moines Production

Nebraska 16 10 12 400 TD
Colorado 15 14 17 350 TP
Plants
Distribution Centers Chicago St.Louis Cincinnati
Kansas City 6 8 10
Omaha 7 11 11
Des Moines 4 5 12
Demand 300 200 300

Kansas City Omaha Des Moines Produced sign Production

Nebraska 400 0 0 400 = 400

Colorado 0 50 300 350 = 350
Shipped (Inflow) 400 50 300

Plants OF
Distribution Centers Chicago St.Louis Cincinnati Shipped (Outflow)
Kansas City 250 150 0 400
Omaha 0 50 0 50
Des Moines 0 0 300 300
shipped 250 200 300
sign <= <= <=
Demand 300 200 300

We have producion facilities in Nebraska and Colorado

Let's say you are growing potatoes or Corn in two States Nebraska and Colorado
and sending that to distribution centers in Kasa City;Omaha;De Moines
and then they are doing cleaning ; clean potao or Corn and then they send the Corn or potato
to the manufacturing plants in Chicago, St.Louis and Cincinnati to make chips.
The Distribution Centers is in the Middle.
 800 <=
750 =

Production

19050