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UEF - Supply Chain Management - Unit 10 EN

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UEF - Supply Chain Management - Unit 10 EN

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hmy633178
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SUPPLY CHAIN MANAGEMENT

Unit 10: Technical Tools in Supply Chain Design

[This Nation, 2018]

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 1
Contents

Introduction to Optimization

Vehicle Routing and Scheduling

Travelling Salesman Problem (TSP)

Nearest-Neighbor Algorithm (NNA)

Cheapest-Link Algorithm (CLA)

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 2
Introduction to Optimization

Optimisation: Solving Scheduling or routing objectives of


problems in which one different types of
seeks to minimise or
maximise an objective Service type Objective
function by systematically Minimize student-minutes on
choosing the values of the School bus
the bus
decision variables from
within an allowed set. Minimize the distance travelled
to pick up and/or to deliver
Logistics
parcels following optimum
Many problems in practice
routes
consist of the search for
the ‘best’ solution of a set
Emergency
of variables to achieve
(ambulance, Minimize response time
some goals: Optimization
police, fire)
problems.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 3
Contents

Introduction to Optimization

Vehicle Routing and Scheduling

Travelling Salesman Problem (TSP)

Nearest-Neighbor Algorithm (NNA)

Cheapest-Link Algorithm (CLA)

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 4
Vehicle Routing and Scheduling (1)

Consider a milk van delivering milk to 4 distribution centers (DC) every


day morning as shown below:
DC a
2
3 DC b

DEPOT 1

4 DC c
5

DC d
UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 5
Vehicle Routing and Scheduling (2)

Nodes: 1 2 3 4 5

Arcs:
Tour:
1 => 2 => 3 => 4 => 5 => 1 Total distance
1 => 5 => 4 => 3 => 2 => 1 traveled is 53 miles
Feasibility: Minimum-cost solution or any other criterion like time or
distance traveled is subject to the tour being feasible.
1. A tour must include all nodes.
2. A node must be visited only once.
3. A tour must begin and end at a depot.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 6
Geographical Information System (GIS)

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 7
Contents

Introduction to Optimization

Vehicle Routing and Scheduling

Travelling Salesman Problem (TSP)

Nearest-Neighbor Algorithm (NNA)

Cheapest-Link Algorithm (CLA)

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 8
Travelling Salesman Problem (1)

Travelling Salesman Problem (TSP):


Given n cities, find the shortest route
that visits all the cities once, and starts
and ends at the same city.

The simplest case, a classic combinatorial optimisation problem.


▪ Nodes have no precedence relationship.
▪ Travel costs between two nodes are the same regardless of the
direction traveled.
▪ No delivery time restrictions.
▪ Vehicle capacity is not considered.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 9
Travelling Salesman Problem (2)

Given n cities, total possible routes:


½ x (n-1)!
The number of routes grow exponentially with
growth in the size of the problem: combinatorial
explosion.
Do for all the cities:
1. Select a city as current city.
2. Find out the shortest edge connecting the
An optimal TSP tour current city and an unvisited city.
through Germany’s 15
3. Set the new city as current city.
largest cities. It is the
shortest among 4. Mark the previous current city as visited.
43,589,145,600 possible 5. If all the cities are visited, then terminate.
tours visiting each city
exactly once. 6. Go to the Step 2.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 10
Contents

Introduction to Optimization

Vehicle Routing and Scheduling

Travelling Salesman Problem (TSP)

Nearest-Neighbor Algorithm (NNA)

Cheapest-Link Algorithm (CLA)

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 11
Nearest-Neighbor Algorithm

A traveling salesman’s territory consists of the five cities shown on the following
kilometer chart. The salesman must organize a round trip that starts and ends
at Bac Ninh and will pass through each of the other 4 cities exactly once. Using
NNA to find out the shortest route which goes through 5 cities,

Bac Ninh Hai Duong Hanoi Bac Giang Vinh Phuc


Bac Ninh * 46 40 23 90
Hai Duong 46 * 73 75 142
Hanoi 40 73 * 60 62
Bac Giang 23 75 60 * 94
Vinh Phuc 90 142 62 94 *

Solutions:
Bac Ninh => Bac Giang => Hanoi => Vinh Phuc => Hai Duong => Bac Ninh
23 + 60 + 62 + 142 + 46 = 333 km

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 12
Contents

Introduction to Optimization

Vehicle Routing and Scheduling

Travelling Salesman Problem (TSP)

Nearest-Neighbor Algorithm (NNA)

Cheapest-Link Algorithm (CLA)

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 13
Cheapest-Link Algorithm

A traveling salesman’s territory consists of the five cities shown on the following
kilometer chart. The salesman must organize a round trip that starts and ends
at Bac Ninh and will pass through each of the other 4 cities exactly once. Using
CLA to find out the shortest route which goes through 5 cities,

Bac Ninh Hai Duong Hanoi Bac Giang Vinh Phuc


Bac Ninh * 46 40 23 90
Hai Duong 46 * 73 75 142
Hanoi 40 73 * 60 62
Bac Giang 23 75 60 * 94
Vinh Phuc 90 142 62 94 *

Solutions:
Bac Ninh => Bac Giang => Hai Duong => Vinh Phuc => Hanoi => Bac Ninh
23 + 40 + 62 + 75 + 142 = 342 km
UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 14
Exercise 1

Using NNA and CLA to find


out the shortest route which
goes through 5 points, then
see which result is optimal.
Do for all 5 points, then
choose the starting point
(which also is the ending
point) which establish the
shortest route.
The point is to see how the
NNA compare to the CLA.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 15
Exercise 2

Using NNA and CLA to find


out the shortest route which
goes through 5 points, then
see which result is optimal.
Do for all 5 points, then
choose the starting point
(which also is the ending
point) which establish the
shortest route.
The point is to see how the
NNA compare to the CLA.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 16
Exercise 3

Using NNA and CLA to find


out the shortest route which
goes through 5 points, then
see which result is optimal.
Do for all 5 points, then
choose the starting point
(which also is the ending
point) which establish the
shortest route.
The point is to see how the
NNA compare to the CLA.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 17
Exercise 4

Using NNA and CLA to find


out the shortest route which
goes through 5 points, then
see which result is optimal.
Do for all 5 points, then
choose the starting point
(which also is the ending
point) which establish the
shortest route.
The point is to see how the
NNA compare to the CLA.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 18
Exercise 5

Using NNA and CLA to find


out the shortest route which
goes through 5 points, then
see which result is optimal.
Do for all 5 points, then
choose the starting point
(which also is the ending
point) which establish the
shortest route.
The point is to see how the
NNA compare to the CLA.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 19
Homework

Choose 5 large cities which greatly attract


travelers in Vietnam, research the distances
between those pairs of cities.
Assuming that you travel through these 5
cities by road freight.
Using NNA and CLA to find out the shortest
route which travels through 5 cities
Do for all 5 cities points, then choose the
starting city (which also is the ending city)
which establish the shortest route.
Compare the results of both methods.

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 20
SUPPLY CHAIN MANAGEMENT
Unit 10: Technical Tools in Supply Chain Design

[ThisNation.com, 2018]

UEF | Supply Chain Management | Unit 10: Technical Tools in Supply Chain Design | Tran Hoang Nam | 21

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