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The document discusses various network models used for logistics, including shipping goods at minimum cost and finding the shortest path in a network. It covers equipment replacement models that help determine optimal times for replacing assets, as well as project scheduling models that aid in efficient project management. The importance of both software and manual methods in creating effective schedules is emphasized.

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10 views5 pages

Class 4

The document discusses various network models used for logistics, including shipping goods at minimum cost and finding the shortest path in a network. It covers equipment replacement models that help determine optimal times for replacing assets, as well as project scheduling models that aid in efficient project management. The importance of both software and manual methods in creating effective schedules is emphasized.

Uploaded by

singhadi348
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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LOGISTIC MODELS, NONE-

LOGISTICS NETWORK MODELS


The objective of many real-world network models is to ship goods from one set of
locations to another set of locations at minimum cost, subject to various
constraints. There are many variations of these models. The simplest models
include a single product that must be shipped via one mode of transportation in a
particular period of time. More complex models and much larger ones can
include multiple products, multiple modes of transportation, and/or multiple
time periods.
Basically, the general logistics problem is similar to the transportation problem
Except for two possible differences. First, arc capacities are often imposed on
some or all of the arcs. These become simple upper bound constraints in the
model. Second and more significant, inflows and outflows can be associated with
any node. Nodes are generally categorized as origins, destinations, and
transshipment points. An origin is a location that starts with a certain supply (or
possibly a capacity for supplying). A destination is the opposite; it requires a
certain amount to end up there. A transshipment point is a location where
goods simply pass through.
SHORTEST PATH MODELS
In many applications, the objective is to find the shortest path between two
points in a network. Sometimes this problem occurs in a geographical context
where, for example, the objective is to find the shortest path on interstate
freeways from Seattle to Miami. There are also problems that do not look like
shortest path problems but can be modeled in the same way. We look at one
possibility where the objective is to find an optimal schedule for replacing
equipment.
The typical shortest path problem is a special case of the network flow problem
from the previous section. To see why this is the case, suppose that you want
to find the shortest path between node 1 and node N in a network. To find this
shortest path, you create a network flow model where the “supply” for node 1
is 1, and the “demand” for node N is 1. All other nodes are transshipment
nodes. If an arc joins two nodes in the network, the “ shipping cost” is equal to
the length of the arc. The “flow” through each arc in the network (in the
optimal solution) is either 1 or 0, depending on whether the shortest path
includes that arc. No arc capacities are required in the model. The value of the
objective is then equal to the sum of the distances of the arcs along the chosen
path.
Equipment Replacement Models
Although shortest path problems often involve traveling through a network,
this is not always the case. For example, when should you trade your car in
for a new car? As a car gets older, the maintenance cost per year increases,
and it might become worthwhile to buy a new car. If your goal is to minimize
the average annual cost of owning a car (ignoring the time value of money),
then it is possible to set up a shortest path representation of this problem.
Actually, the method we discuss can be used in any situation where
equipment replacement is an issue. Of course, many people trade in a car
because they like the feel of a new car. This aspect is not modeled in the
problem; only the financial aspects are included.
PROJECT SCHEDULING MODEL
Those in project management need to use a variety of tools to
assist them in seeing the main task through to the end. Among these tools is
the schedule model. This tool is helpful in creating the overall schedule for
the project. By knowing the timing of activities and tasks, management is
better able to make more efficient use of their time and that of their
employees.
The schedule model proves to be most effective when used with
software programs designed to analyze the schedule network. This analysis is
then used by the software to create the finalized schedule which those in
project management will then convey to their employees. The job of those in
management is to be able to create schedules to facilitate the completion of
the project.
Those in project management do not have to use a
software program with the schedule model tool in order to craft a finalized
schedule. There are a variety of manual methods which can be used as well.
These are more time consuming, but their results are just as reliable as those
from a computer software program. Whether a manual or electronic program
is used, the schedule model is a critical part in generating the final project
schedule.

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