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    Logistic Solutions Approach PDF

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    vamshi
    Z = 15 + 12 + 19 + 11 + 13 = 70

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    Logistic Solutions Approach PDF

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    vamshi
    51 views35 pages
    Z = 15 + 12 + 19 + 11 + 13 = 70

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    Logistic Solutions Approach.pdf

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    Z = 15 + 12 + 19 + 11 + 13 = 70

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    51 views35 pages

    Logistic Solutions Approach PDF

    Uploaded by

    vamshi
    Z = 15 + 12 + 19 + 11 + 13 = 70

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 35

    Transportation &

    Transshipment &
    Assignment Problems
    EM 640 Distribution Logistics
    In class documents
    Transportation Problem
    • A product is transported from a number of sources
    to a number of destinations at the minimum
    possible cost.
    • Each source is able to supply a fixed number of
    units of the product, and each destination has a
    fixed demand for the product.
    • The linear programming model has constraints for
    supply at each source and demand at each
    destination.
    • All constraints are equalities in a balanced
    transportation model where supply equals demand.
    • Constraints contain inequality
    Transportation Problem
    Network Presentation
    Transportation Problem
    • Hardgrave Machine Company produces computer
    components at its plants in Cincinnati, Kansas City, and
    Pittsburgh.
    • Plants not able to keep up with demand for orders at
    four warehouses in Detroit, Houston, New York, and Los
    Angeles.
    • Firm has decided to build a new plant to expand its
    productive capacity.
    • Two sites being considered:
    o Seattle, Washington and
    o Birmingham, Alabama.
    • Both cities attractive in terms: labor supply, municipal
    services, and ease of factory financing.
    Transportation Problem
    Transportation Problem
    Transportation Cost per unit
    Transportation Problem
    Unit cost = Transportation cost (one unit) + Production
    cost (one unit)
    Transportation Problem
    • Variables with Seattle
    From/To Detroit Houston New York Los Angeles
    Cincinnati x11 x12 x13 x14
    Kansas City x21 x22 x23 x24
    Pitsbourgh x31 x32 x33 x34
    Seattle x41 x42 x43 x44

    • Objective Function Defined


    Minimize Overall Shipping Costs:
    Min 73x11 +103x12 + 88x13 +108x14 + 85x21 +80x22
    + 10023 +90x24 + 88x31 +97x32 + 78x33 +118x34 + 113x41
    +91x42 + 118x43 +80x44
    Transportation Problem
    • Constraints
    x11 + x12 + x13 + x14 =15000
    x21 + x22 + x23 + x24 = 6000
    x31 + x32 + x33 +x34 = 14000
    x41 + x42 + x43 +x44 = 11000
    x11 + x21 + x31 + x41 = 10000
    x12 + x22 + x32 + x42 = 12000
    x13 + x23 + x33 + x43 = 15000
    x14 + x24 + x34 + x44 = 9000
    Non-negativity of Variables: xij > 0, for all i and j.
    Transportation Problem
    This model includes new plant at Seattle
    Transportation Problem
    • Variables with Birmingham
    From/To Detroit Houston New York Los Angeles
    Cincinnati x11 x12 x13 x14
    Kansas City x21 x22 x23 x24
    Pitsbourgh x31 x32 x33 x34
    Birmingham x41 x42 x43 x44

    • Objective Function Defined


    Minimize Overall Shipping Costs:
    Min 73x11 +103x12 + 88x13 +108x14 + 85x21 +80x22
    + 10023 +90x24 + 88x31 +97x32 + 78x33 +118x34 + 113x41
    +91x42 + 118x43 +80x44
    Transportation Problem
    • Constraints
    x11 + x12 + x13 + x14 =15000
    x21 + x22 + x23 + x24 = 6000
    x31 + x32 + x33 +x34 = 14000
    x41 + x42 + x43 +x44 = 11000
    x11 + x21 + x31 + x41 = 10000
    x12 + x22 + x32 + x42 = 12000
    x13 + x23 + x33 + x43 = 15000
    x14 + x24 + x34 + x44 = 9000
    Non-negativity of Variables: xij > 0, for all i and j.
    Transportation Problem
    This model includes new plant at Birmingham
    Transportation Problem
    • Network solution & Business Decision
    10000
    15000 Cincinnati Detroit 10000

    4000
    1000
    6000 Kansas City
    6000 Houston 12000

    14000
    14000 Pittsburgh
    15000
    New York
    2000

    Seattle 9000
    11000 Los
    $3,704,000 9000
    Angeles

    Birmingham
    $3,741,000
    Transshipment Problem
    Characteristics
    • Extension of the transportation model.
    • Intermediate transshipment points are added
    between the sources and destinations.
    • Items may be transported from:
    o Sources through transshipment points to destinations
    o One source to another
    o One transshipment point to another
    o One destination to another
    o Directly from sources to destinations
    o Some combination of these
    Transshipment Problem
    Transshipment Problem
    #1
    • 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.

    Additional data is shown on the next slide.


    Transshipment Problem
    #1
    • Because of long standing contracts based on past
    orders, unit costs from the manufacturers to the
    suppliers are:
    Zeron N Zeron S

    Arnold 5 8
    Supershelf 7 4

    • The costs to install the shelving at the various


    locations are:
    Zrox Hewes Rockrite

    Zeron N 1 5 8
    Zeron S 3 4 4
    Transshipment Problem
    #1
    • Network Presentation
    Transshipment Problem
    #1
    Linear Programming Formulation
    • Decision Variables Defined
    Variables
    Zeron N Zeron S Zrox Hewes Rockrite
    Arnold x13 x14 Zeron N x35 x36 x37
    Supershelf x23 x24 Zeron S x45 x46 x47

    • Objective Function Defined


    Minimize Overall Shipping Costs:
    Min 5x13 + 8x14 + 7x23 + 4x24 + 1x35 + 5x36 + 8x37 + 3x45 + 4x46 + 4x47
    Transshipment Problem
    #1
    • Constraints

    Amount Out of Arnold: x13 + x14 < 75


    Amount Out of Supershelf: x23 + x24 < 75
    Amount Through Zeron N: x13 + x23 - x35 - x36 - x37 = 0
    New
    Amount Through Zeron S: x14 + x24 - x45 - x46 - x47 = 0
    Amount Into Zrox: x35 + x45 > 50
    Amount Into Hewes: x36 + x46 > 60
    Amount Into Rockrite: x37 + x47 > 40

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


    Transshipment Problem
    #1
    Transshipment Problem
    #1
    Transshipment Problem
    #1
    Assignment Problem
    Special type of LP, in fact a special type of
    Transportation problem.

    Assignment problem - a balanced transportation


    problem where all supplies and demands are equal to
    one.

    Assignees (workers, processors, machines, vehicles,


    plants, time slots) are being assigned to tasks (jobs,
    classrooms, people).
    Assignment Problem
    #1
    • A manager has prepared a table that shows the cost of
    performing each of five jobs by each of five employees.
    • Job I will cost $15 if done by Al. $20 if it is done by Bill,
    and so on.
    • The manager has stated that his goal is to develop a set
    of job assignments that will minimize the total cost of
    getting all five jobs done. It is further required that the
    jobs be performed simultaneously, thus requiring one job
    being assigned to each employee.
    • In this example, with a 5X5 table, there are 5! = 120
    different possibilities; but with, say, a 7X7 table, there are
    7! = 5,040 possibilities.
    Assignment Problem
    #1
    • Cost of Each Assignment by each employee
    Assignment Problem
    #1
    • Variables
    Assignment Problem
    #1
    Minimize Z = 15x11 + 20x12 + 18x13 + 24x14 + 19x15 +
    12x21 + 17x22 + 16x23 + 15x24 + 14x25 +
    14x31 + 15x32 + 19x33 + 17x34 + 18x35 +
    11x41 + 14x42 + 12x43 + 13x44 + 15x45 +
    13x51 + 16x52 + 17x53 + 18x54 + 16x55

    subject to:
    x11 + x12 + x13 + x14 + x15 = 1 (job 1 will be assign to one employee)
    x21 + x22 + x23 + x24 + x25 = 1 (job 2 will be assign to one employee)
    x31 + x32 + x33 + x34 + x35 = 1 (job 3 will be assign to one employee)
    x41 + x42 + x43 + x44 + x45 = 1 (job 4 will be assign to one employee)
    x51 + x52 + x53 + x54 + x55 = 1 (job 5 will be assign to one employee)
    x11 + x21 + x31 + x41 + x51 = 1 (Al will be assigned to one job)
    x12 + x22 + x32 + x42 + x52 = 1 (Bill will be assigned to one job)
    x13 + x23 + x33 + x43 + x53 = 1 (Cindy will be assigned to one job)
    x14 + x24 + x34 + x44 + x54 = 1 (David will be assigned to one job)
    x15 + x25 + x35 + x45 + x55 = 1 (Earle will be assigned to one job)

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


    Assignment Problem
    #1
    Assignment Problem
    #1
    Assignment Problem
    #1
    Assignment Problem
    #1
    • Assignment network solution for employees

    Al Job 1

    Bill
    Job 2

    1
    Cindy 1
    Job 3

    1
    David
    Job 4

    1
    Earle
    Job 5
    Summary
    Three models were presented:
    1. Transportation model deals with distribution of
    goods from several supplier to a number of
    demand points.
    2. Transshipment model includes points that permit
    goods to flow both in and out of them.
    3. Assignment model deals with determining the most
    efficient assignment of issues such as people to
    projects.

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