Slides by

John
Loucks
St. Edward’s
University

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Chapter 6, Part B: Distribution and Network Models

 Shortest-Route Problem
 Maximal Flow Problem
 A Production and Inventory Application

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 Shortest-Route Problem

 The shortest-route problem is concerned with

finding the shortest path in a network from one node
(or set of nodes) to another node (or set of nodes).
 If all arcs in the network have nonnegative values
then a labeling algorithm can be used to find the
shortest paths from a particular node to all other
nodes in the network.
 The criterion to be minimized in the shortest-route
problem is not limited to distance even though the
term "shortest" is used in describing the procedure.
Other criteria include time and cost. (Neither time
nor cost are necessarily linearly related to distance.)

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 Shortest-Route Problem

 Linear Programming Formulation

Using the notation:

xij = 1 if the arc from node i to node j

is on the shortest route
0 otherwise

cij = distance, time, or cost associated

with the arc from node i to node j
continued

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 Shortest-Route Problem

 Linear Programming Formulation (continued)

Min ∑ 𝑐 𝑖𝑗 𝑥 𝑖𝑗
 
a≪ arcs
 𝑥 =1
s.t. ∑ 𝑖𝑗 Origin nodes i
a rcs out

∑ 𝑥 −  ∑ 𝑖𝑗 ¿ Transshipment nodes
a rcs out a rcs∈¿ 𝑥 𝑖𝑗= 0¿

∑  ¿ Destination nodes j
a rcs∈¿ 𝑥 𝑖𝑗=1 ¿

xij > 0 for all i and j continued

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 Example: Shortest-Route

Susan Winslow has an important business meeting

in Paducah this evening. She has a number of
alternate routes by which she can travel from the
company headquarters in Lewisburg to Paducah. The
network of alternate routes and their respective travel
time, ticket cost, and transport mode appear on the next
two slides.
If Susan earns a wage of $15 per hour, what route
should she take to minimize the total travel cost?

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 Example: Shortest-Route

 Network Representation

F
2 5
K L
A
B G
C J
3
6
1
D I
H Paducah
Lewisburg E M
4

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 Example: Shortest-Route

Transport Time Ticket

Route Mode (hours) Cost
A Train 4 $ 20
B Plane 1 $115
C Bus 2 $ 10
D Taxi 6 $ 90
E Train 3 1/3 $ 30
F Bus 3 $ 15
G Bus 4 2/3 $ 20
H Taxi 1 $ 15
I Train 2 1/3 $ 15
J Bus 6 1/3 $ 25
K Taxi 3 1/3 $ 50
L Train 1 1/3 $ 10
M Bus 4 2/3 $ 20
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 Example: Shortest-Route

Transport Time Time Ticket Total

Route Mode (hours) Cost Cost Cost
A Train 4 $60 $ 20 $ 80
B Plane 1 $15 $115 $130
C Bus 2 $30 $ 10 $ 40
D Taxi 6 $90 $ 90 $180
E Train 3 1/3 $50 $ 30 $ 80
F Bus 3 $45 $ 15 $ 60
G Bus 4 2/3 $70 $ 20 $ 90
H Taxi 1 $15 $ 15 $ 30
I Train 2 1/3 $35 $ 15 $ 50
J Bus 6 1/3 $95 $ 25 $120
K Taxi 3 1/3 $50 $ 50 $100
L Train 1 1/3 $20 $ 10 $ 30
M Bus 4 2/3 $70 $ 20 $ 90
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 Example: Shortest-Route

 LP Formulation
• Objective Function
Min 80x12 + 40x13 + 80x14 + 130x15 + 180x16 + 60x25
+ 100x26 + 30x34 + 90x35 + 120x36 + 30x43 + 50x45
+ 90x46 + 60x52 + 90x53 + 50x54 + 30x56
• Node Flow-Conservation Constraints
x12 + x13 + x14 + x15 + x16 = 1 (origin)
– x12 + x25 + x26 – x52 = 0 (node 2)
– x13 + x34 + x35 + x36 – x43 – x53 = 0 (node 3)
– x14 – x34 + x43 + x45 + x46 – x54 = 0 (node 4)
– x15 – x25 – x35 – x45 + x52 + x53 + x54 + x56 = 0 (node 5)
x16 + x26 + x36 + x46 + x56 = 1 (destination)
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 Example: Shortest-Route

 Solution Summary

Minimum total cost = $150

x12 = 0 x25 = 0 x34 = 1 x43 = 0 x52 = 0
x13 = 1 x26 = 0 x35 = 0 x45 = 1 x53 = 0
x14 = 0 x36 = 0 x46 = 0 x54 = 0
x15 = 0 x56 = 1
x16 = 0

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 Maximal Flow Problem

 The maximal flow problem is concerned with

determining the maximal volume of flow from one
node (called the source) to another node (called the
sink).
 In the maximal flow problem, each arc has a
maximum arc flow capacity which limits the flow
through the arc.

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 Maximal Flow Problem

 A capacitated transshipment model can be developed

for the maximal flow problem.
 We will add an arc from the sink node back to the
source node to represent the total flow through the
network.
 There is no capacity on the newly added sink-to-
source arc.
 We want to maximize the flow over the sink-to-source
arc.

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 Maximal Flow Problem

 LP Formulation
(as Capacitated Transshipment Problem)
• There is a variable for every arc.
• There is a constraint for every node; the flow out
must equal the flow in.
• There is a constraint for every arc (except the
added sink-to-source arc); arc capacity cannot be
exceeded.
• The objective is to maximize the flow over the
added, sink-to-source arc.

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 Maximal Flow Problem

 LP Formulation
(as Capacitated Transshipment Problem)

Max xk1 (k is sink node, 1 is source node)

s.t. xij - xji = 0 (conservation of flow)
i j

xij < cij (cij is capacity of ij arc)

xij > 0, for all i and j (non-negativity)

(xij represents the flow from node i to node j)

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 Example: Maximal Flow

National Express operates a fleet of cargo planes and

is in the package delivery business. NatEx is interested
in knowing what is the maximum it could transport in
one day indirectly from San Diego to Tampa (via Denver,
St. Louis, Dallas, Houston and/or Atlanta) if its direct
flight was out of service.
NatEx's indirect routes from San Diego to Tampa,
along with their respective estimated excess shipping
capacities (measured in hundreds of cubic feet per day),
are shown on the next slide.
Is there sufficient excess capacity to indirectly ship
5000 cubic feet of packages in one day?

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 Example: Maximal Flow

 Network Representation
3
Denver 2 5 St. Louis
3
4 2 3 2
3 4
San 4 3
Diego 1 4 7 Tampa
3 1
3 5 1 5 Dallas
Houston 3 6 Atlanta
6

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 Example: Maximal Flow

 Modified Network Representation

3
2 5
3
4 2 3 2
Source 3 4 Sink
4 3
1 4 7
3 1
Added
3 5 1 5 arc
3 6
6

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 Example: Maximal Flow

 LP Formulation
• 18 variables (for 17 original arcs and 1 added arc)
• 24 constraints
• 7 node flow-conservation constraints
• 17 arc capacity constraints (for original arcs)

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 Example: Maximal Flow

 LP Formulation
• Objective Function
Max x71
• Node Flow-Conservation Constraints
x12 + x13 + x14 – x71 = 0 (node 1)
– x12 + x24 + x25 – x42 – x52 = 0 (node 2)
– x13 + x34 + x36 – x43 = 0 (and so on)
– x14 – x24 – x34 + x42 + x43 + x45 + x46 + x47 – x54 – x64 = 0
– x25 – x45 + x52 + x54 + x57 = 0
– x36 – x46 + x64 + x67 = 0
– x47 – x57 – x67 + x71 = 0
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 Example: Maximal Flow

 LP Formulation (continued)
• Arc Capacity Constraints
x12 < 4 x13 < 3 x14 < 4
x24 < 2 x25 < 3
x34 < 3 x36 < 6
x42 < 3 x43 < 5 x45 < 3 x46 < 1 x47 < 3
x52 < 3 x54 < 4 x57 < 2
x64 < 1 x67 < 5

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 Example: Maximal Flow

 Alternative Optimal Solution #1

Objective Function Value = 10.000
Variable Value Variable Value
x12 3.000 x45 0.000
x13 3.000 x46 0.000
x14 4.000 x47 3.000
x24 1.000 x52 0.000
x25 2.000 x54 0.000
x34 0.000 x57 2.000
x36 5.000 x64 0.000
x42 0.000 x67 5.000
x43 2.000 x71 10.000

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 Example: Maximal Flow

 Alternative Optimal Solution #1

2
2 5
3 1 2
Source Sink
4 3
1 4 7

3 2 5
10 3 6
5

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 Example: Maximal Flow

 Alternative Optimal Solution #2

Objective Function Value = 0.000
Variable Value Variable Value
x12 3.000 x45 0.000
x13 3.000 x46 1.000
x14 4.000 x47 3.000
x24 1.000 x52 0.000
x25 2.000 x54 0.000
x34 0.000 x57 2.000
x36 4.000 x64 0.000
x42 0.000 x67 5.000
x43 1.000 x71 10.000

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 Example: Maximal Flow

 Alternative Optimal Solution #2

2
2 5
3 1 2
Source Sink
4 3
1 4 7
1
3 1 5
10 3 6
4

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 A Production & Inventory Application

 Transportation and transshipment models can be

developed for applications that have nothing to do
with the physical movement of goods from origins to
destinations.
 For example, a transshipment model can be used to
solve a production and inventory problem.

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 Example: Production & Inventory Application

Fodak must schedule its production of camera film

for the first four months of the year. Film demand (in
000s of rolls) in January, February, March and April is
expected to be 300, 500, 650 and 400, respectively.
Fodak's production capacity is 500 thousand rolls of
film per month.
The film business is highly competitive, so Fodak
cannot afford to lose sales or keep its customers
waiting. Meeting month i's demand with month i+1's
production is unacceptable.

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 Example: Production & Inventory Application

 Film produced in month i can be used to meet

demand in month i or can be held in inventory to meet
demand in month i+1 or month i+2 (but not later due
to the film's limited shelf life). There is no film in
inventory at the start of January.
 The film's production and delivery cost per
thousand rolls will be $500 in January and February.
This cost will increase to $600 in March and April due
to a new labor contract. Any film put in inventory
requires additional transport costing $100 per
thousand rolls. It costs $50 per thousand rolls to hold
film in inventory from one month to the next.

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 Example: Production & Inventory Application

 Network Representation
500 JANUARY 500 JANUARY
PRODUCTION 1 8 DEMAND 300
MONTH1
ENDINGINVENTORY
600
5
50
FEBRUARY 500 FEBRUARY
500 2 9
PRODUCTION DEMAND 500
MONTH2
100
ENDINGINVENTORY
600
6
50

500 MARCH 600 10 MARCH

PRODUCTION 3 DEMAND 650
MONTH3
ENDINGINVENTORY 100
700
7
50
500 APRIL 600 APRIL
PRODUCTION 4 11 DEMAND 400

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 Example: Production & Inventory Application

 Linear Programming Formulation

Define the decision variables:

xij = amount of film “moving” between node i and

node j

Define objective:

Minimize total production, transportation, and

inventory holding cost.
Min 600x15 + 500x18 + 600x26 + 500x29 + 700x37
+ 600x310 + 600x411 + 50x59 + 100x510
+ 50x610 + 100x611 + 50x711

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 Example: Production & Inventory Application

 Linear Programming Formulation (continued)

Define the constraints:

Amount (1000s of rolls) of film produced in January:

x15 + x18 < 500
Amount (1000s of rolls) of film produced in February:
x26 + x29 < 500
Amount (1000s of rolls) of film produced in March:
x37 + x310 < 500
Amount (1000s of rolls) of film produced in April:
x411 < 500

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 Example: Production & Inventory Application

 Linear Programming Formulation (continued)

Define the constraints:
Amount (1000s of rolls) of film in/out of January inventory:
x15 - x59 - x510 = 0
Amount (1000s of rolls) of film in/out of February inventory:
x26 - x610 - x611 = 0
Amount (1000s of rolls) of film in/out of March inventory:
x37 - x711 = 0

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 Example: Production & Inventory Application

 Linear Programming Formulation (continued)

Define the constraints:

Amount (1000s of rolls) of film satisfying January demand:

x18 = 300
Amount (1000s of rolls) of film satisfying February demand:
x29 + x59 = 500
Amount (1000s of rolls) of film satisfying March demand:
x310 + x510 + x610 = 650
Amount (1000s of rolls) of film satisfying April demand:
x411 + x611 + x711 = 400

Non-negativity of variables: xij > 0, for all i and j.

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 Example: Production & Inventory Application

 Computer Output
Objective Function Value = 1045000.000
Variable Value Reduced Cost
x15 150.000 0.000
x18 300.000 0.000
x26 0.000 100.000
x29 500.000 0.000
x37 0.000 250.000
x310 500.000 0.000
x411 400.000 0.000
x59 0.000 0.000
x510 150.000 0.000
x610 0.000 0.000
x611 0.000 150.000
x711 0.000 0.000
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 Example: Production & Inventory Application

 Optimal Solution

From To Amount
January Production January Demand 300
January Production January Inventory 150
February Production February Demand 500
March ProductionMarch Demand 500
January Inventory March Demand 150
April Production April Demand 400

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 End of Chapter 6, Part B

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