Chapter 6:

Distribution and Network Models

Management Science II
  Balance Transportation Problem
Deals with the distribution of goods from several points of supply (origin or sources) to a
number of points of demand (destination).
Sources Supply Destination Demand

100 D A 300

300 E B 200

300 F C 200 If Demand=Supply,

then it is called
700 700 BALANCE PROBLEM
Steps
1. Set up a balance transportation model.
2. Develop Initial Solution using the NORTHWEST CORNER METHOD.
3. Calculate an improvement index.
4. Select the cell with the improvement index indicating the greatest
decrease in cost.
Stepping stone method is used to find the optimal solution
 Unbalanced Transportation Problems
A situation occurring quite frequently in real−life problems is the case in
which total demand is not equal to total supply. "In the event that total
supply is greater than total demand, a dummy destination (warehouse), with
demand exactly equal to the surplus, is created. If total demand is greater
than total supply, we introduce a dummy source (factory) with a supply
equal to the excess of demand over supply.
 Unbalanced Transportation Problems
Case 1: Demand < Supply

Supply Sources Destination Demand

250 D A 300

300 E B 200

300 F C 200

850 700
 Unbalanced Transportation Problems
Case 1: Demand > Supply

Supply Sources Destination Demand

200 D A 250

175 E B 100

75 F C 150

450 500
 Unbalanced Transportation Problems
Case 2: R+C-1 is not satisfied

Supply Sources Destination Demand

100 D A 100

120 E B 100

80 F C 100

300 300
An assignment problem can be viewed as a transportation problem in which
the capacity from each source (or person to be assigned) is 1 and the
demand at each destination (or job to be done) is 1.
Steps
1. Find the opportunity cost table
(Subtracting the smallest number in each row)
(Subtracting the smallest number in each column)
2. Test the table to see whether an optimal assignment can be made. (Line
is equal to the number of row/column)
3. Revised the opportunity table if not satisfied and follow step 2.
 A network model is one which can be represented
by a set of nodes, a set of arcs, and functions (e.g.
costs, supplies, demands, etc.) associated with the
arcs and/or nodes.
Networks are used to model a wide variety of problems.
1. Minimal Spanning Tree Technique
2. Maximal Flow Technique
3. Shortest-route Technique
The minimal-spanning tree technique involves
connecting all the points of a network together while
minimizing the distance between them.
The minimal-spanning tree technique involves
connecting all the points of a network together while
minimizing the distance between them. It has been
applied, for example, by telephone companies to
connect a number of phones together while minimizing
the total length of telephone cable.
1. Select any node in the network
2. Connect this node to the nearest node that minimizes the total
distance.
3. Considering all of the nodes that are connected, find and connect the
nearest node that is not connected. If there is a tie for the nearest node
that is not connected. If there is a tie for the nearest node, select one
arbitrarily. A tie suggests there may be more than one optimal solution.
4. Repeat the third step until all the nodes are connected.
Let us consider the Lauderdale Construction
Company, which is currently developing a
luxurious housing project in Panama City Beach,
Florida. Melvin Lauderdale, owner and president
of Lauderdale Construction, must determine the
least expensive way to provide water and power
to each house. The network of houses is shown
in Figure 11.1. As seen in Figure 11.1, there are
eight houses on the gulf. The distance between
each house in hundreds of feet is shown on the
network. The distance between houses 1 and 2,
for example, is 300 feet. (The number 3 is
between nodes 1 and 2.) Now, the minimal-
spanning tree technique is used to determine
the minimal distance that can be used to
connect all of the nodes.
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The maximal-flow problem involves determining the
maximum amount of material that can flow from one
point (the source) to another (the sink) in a network.
1. Select any node in the network
2. Connect this node to the nearest node that minimizes the total
distance.
3. Considering all of the nodes that are connected, find and connect the
nearest node that is not connected. If there is a tie for the nearest node
that is not connected. If there is a tie for the nearest node, select one
arbitrarily. A tie suggests there may be more than one optimal solution.
4. Repeat the third step until all the nodes are connected.
Waukesha, a small town in Wisconsin,
is in the process of developing a road
system for the downtown area. Bill
Blackstone, one of the city planners,
would like to determine the maximum
number of cars that can flow through
the town from west to east. The road
network is shown in Figure

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The objective of the shortest-route problem is to find the
shortest distance from one location to another. In a
network, this often involves determining the shortest
route from one node to each of the other nodes.
1. Find the nearest node to the origin (plant). Put the distance in a box by
the node.
2. Find the next-nearest node to the origin (plant), and put the distance in
a box by the node. In some cases, several paths will have to be checked
to find the nearest node.
3. Repeat this process until you have gone through the entire network.
The last distance at the ending node will be the distance of the shortest
route. You should note that the distance placed in the box by each node
is the shortest route to this node. These distances are used as
intermediate results in finding the next-nearest node.
Every day, Ray Design, Inc., must
transport beds, chairs, and other
furniture items from the factory to the
warehouse. This involves going
through several cities. Ray would like
to find the route with the shortest
distance. The road network is shown in
Figure.

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Bechtold Construction is in the process
of installing power lines to a large
housing development. Steve Bechtold
wants to minimize the total length of
wire used, which will minimize his
costs. The housing development is
shown as a network in Figure 11.21.
Each house has been numbered, and
the distances between houses are
given in hundreds of feet. What do you
recommend?
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The road system around the hotel
complex on International Drive (node
1) to Disney World (node 11) in
Orlando, Florida, is shown in the
network of Figure 11.27. The numbers
by the nodes represent the traffic flow
in hundreds of cars per hour. What is
the maximum flow of cars from the
hotel complex to Disney World?

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The network of Figure shows the
highways and cities surrounding
Leadville, Colorado. Leadville Tom, a
bicycle helmet manufacturer, must
transport his helmets to a distributor
based in Dillon, Colorado. To do this,
he must go through several cities. Tom
would like to find the shortest way to
get from Leadville to Dillon. What do
you recommend?

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John Melvin V. Baranda
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