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Distribution and Network Models

The document discusses several network optimization problems including transportation problems, transshipment problems, and assignment problems. Transportation problems seek to minimize shipping costs given supplies, demands, and shipping costs. Transshipment problems allow shipments to pass through intermediate nodes before reaching destinations. Assignment problems minimize costs by assigning each of m workers to m jobs. All can be formulated as linear programs and special cases may require modifications to the LP.

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Elaine Escobanez
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
53 views

Distribution and Network Models

The document discusses several network optimization problems including transportation problems, transshipment problems, and assignment problems. Transportation problems seek to minimize shipping costs given supplies, demands, and shipping costs. Transshipment problems allow shipments to pass through intermediate nodes before reaching destinations. Assignment problems minimize costs by assigning each of m workers to m jobs. All can be formulated as linear programs and special cases may require modifications to the LP.

Uploaded by

Elaine Escobanez
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Distribution and Network Models; Transportation Problem

• The transportation problem seeks to minimize the total


shipping costs of transporting goods from m origins (each
Transportation, Transshipment, and Assignment Problems
with a supply s1) to n destinations (each with a demand d1),
• A network model is one which can be represented by a set when the unit shipping cost from an origin, i, to a
of nodes, a set of arcs, and functions (e.g., costs, supplies, destination, j, is c2.
demands, etc.) associated with the arcs and/or nodes. • The network representation for a transportation problem
• Transportation, transshipment, assignment, shortest-route, with two sources and three destinations is given on the next
and maximal flow problems of this chapter as well as the slide.
PERT/CPM problems (in Chapter 13) are all examples of
Network Representation
network problems.
• Each of the problems of this chapter can be formulated as
linear programs and solved by general purpose linear
programming codes.
• For each of the problems, if the right-hand side of the linear
programming formulations are all integers, the optimal
solution will be in terms of integer values for the decision
variables.
• However, there are many computer packages that contain
separate computer codes for these problems which take
advantage of their network structure.

Supply Chain Models

• A supply chain describes the set of all interconnected


resources involved in producing and distributing a product.
• In general, supply chains are designed to satisfy customer
demand for a product at minimum cost.
• Those that control the supply chain must make decisions
such as where to produce a product, how much should be
produced, and where it should be sent.
Linear Programming Formulation • Total demand exceeds total supply:

Add a dummy origin with supply equal to the

shortage amount. Assign a zero-shipping cost

per unit. The amount “shipped” from the

dummy origin (in the solution) will not actually

be shipped.

• The objective is maximizing profit or revenue:

Solve as a maximization problem.

• Minimum shipping guarantee from i to j:

xij > Lij


• Maximum route capacity from i to j:

xij < Lij


• Unacceptable route:

Remove the corresponding decision variable.

Transportation Problem: Example #1


LP Formulation Special Cases
Acme Block Company has orders for 80 tons of concrete blocks
• Total supply exceeds total demand: at three suburban locations as follows:
No modification of LP formulation is necessary. Northwood -- 25 tons,
Westwood -- 45 tons, Transportation Problem: Example #2

Eastwood -- 10 tons. The Navy has 9,000 pounds of material in Albany, Georgia that it
wishes to ship to three installations: San Diego, Norfolk, and
Acme has two plants, each of which can produce 50 tons per
Pensacola. They require 4,000, 2,500, and 2,500 pounds,
week. Delivery cost per ton from each plant to each suburban
respectively. Government regulations require equal distribution of
location is shown on the next slide.
shipping among the three carriers.
How should end of week shipments be made to fill
The shipping costs per pound for truck, railroad, and airplane transit
the above orders? are shown on the next slide. Formulate and solve a linear program
to determine the shipping arrangements (mode, destination, and
Delivery Cost Per Ton quantity) that will minimize the total shipping cost.

Optimal Solution
Solution Summary

• San Diego will receive 1000 lbs. by truck and 3000 lbs.
by airplane.
• Norfolk will receive 2000 lbs. by truck and 500 lbs. by
railroad.
• Pensacola will receive 2500 lbs. by railroad.
• The total shipping cost will be $142,000.

Transshipment Problem

• Transshipment problems are transportation problems in


which a shipment may move through intermediate nodes
(transshipment nodes) before reaching a particular
destination node.
• Transshipment problems can be converted to larger
transportation problems and solved by a special
transportation program.
• Transshipment problems can also be solved by general
purpose linear programming codes.
• The network representation for a transshipment problem
with two sources, three intermediate nodes, and two
destinations is shown on the next slide.
Transshipment Problem: Example

The Northside and Southside facilities of Zeron Industries supply


three firms (Zrox, Hewes, Rockrite) with customized shelving for its
offices. They both order shelving from the same two
manufacturers, Arnold Manufacturers and Supershelf, Inc.

Currently weekly demands by the users are 50 for


Zrox, 60 for Hewes, and 40 for Rockrite. Both Arnold and Supershelf
can supply at most 75 units to its customers.

LP Formulation Special Cases

• Total supply not equal to total demand


• Maximization objective function
• Route capacities or route minimums
• Unacceptable routes

The LP model modifications required here are

identical to those required for the special cases in

the transportation problem.


Assignment Problem

An assignment problem seeks to minimize the total cost assignment


of m workers to m jobs, given that the cost of worker i performing
job j is cij.
It assumes all workers are assigned and each job is performed.

An assignment problem is a special case of a transportation


problem in which all supplies and all demands are equal to 1; hence
assignment problems may be solved as linear programs.

The network representation of an assignment problem with three


workers and three jobs is shown on the next slide.

LP Formulation Special Cases

• Number of agents exceeds the number of tasks:

Extra agents simply remain unassigned.

• Number of tasks exceeds the number of agents;

Add enough dummy agents to equalize the number of agents and


the number of tasks. The objective function coefficients for these
new variables would be zero.

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