KGISL INSTITUTE OF TECHNOLOGY

Saravanampatti, Coimbatore – 641035

CMG353- OPERATION AND SUPPLY CHAIN

ANALYTICS

ASSIGNMENT

TITLE : TRANSPORTATION NETWORK MODELS

Submitted by:
NAME : PRAVEEN CHIDAMBARAM V
ROLL NO : 21ECB13
 TRANSPORTATION NETWORK MODELS

Minimal Spanning Tree

The Minimal Spanning Tree (MST) is a fundamental concept in graph theory
used to design efficient transportation and communication networks. The
objective of the MST is to connect all nodes (such as warehouses, production
plants, or cities) in a network with the minimal possible total edge weight
(distance, cost, or time). An MST ensures that there is no cycle in the network,
and it achieves connectivity using the shortest possible total length. Algorithms
such as Kruskal’s and Prim’s are commonly used to determine the MST.
For instance, in supply chain management, a company may need to design a
transportation route to connect several warehouses at the lowest cost. By treating
each warehouse as a node and the transportation cost as an edge weight, the MST
can identify the most cost-efficient way to connect all warehouses. For example,
a logistics company with warehouses spread across a region may apply Kruskal's
algorithm to minimize the total fuel and maintenance costs. By implementing
MST, organizations ensure effective cost-saving measures while maintaining
connectivity, especially in cases of transportation networks like gas pipelines or
road construction projects.
Shortest Path Algorithms
The Shortest Path Algorithm identifies the minimum-cost route between two
points in a network, considering factors such as distance, time, and cost. Dijkstra's
and Bellman-Ford algorithms are widely used for solving shortest path problems.
Dijkstra's algorithm works for non-negative edge weights, while the Bellman-
Ford algorithm accommodates networks with negative edge weights.
In transportation, the shortest path is critical for route optimization to reduce
delivery time, fuel costs, and overall logistics expenses. For example, a courier
company like FedEx might use Dijkstra's algorithm to determine the quickest
route between distribution hubs. Similarly, GPS navigation systems (e.g., Google
Maps) use shortest path algorithms to suggest optimal driving routes. By
minimizing the distance or cost between source and destination, companies can
improve efficiency and customer satisfaction while reducing operational
expenses.
A real-world scenario could involve a truck driver delivering goods between
cities. If City A, City B, and City C are connected through roads with different
distances, the shortest path algorithm identifies the fastest or cheapest route,
considering traffic, fuel consumption, and tolls. This ensures smooth operations
in supply chain management and logistics.
Maximal Flow Problems
The Maximal Flow Problem focuses on finding the maximum amount of flow
that can be sent from a source node to a destination node in a network without
exceeding the capacity constraints of each edge. The Ford-Fulkerson algorithm is
commonly applied to solve this problem.
In supply chain and logistics, the maximal flow problem is used to optimize the
flow of goods, raw materials, or information through transportation networks. For
example, consider a manufacturing company transporting goods through a
network of roads, pipelines, or railways. Each path in the network has a capacity
limit, such as the maximum number of trucks that can travel on a road or the
pipeline's fluid capacity. By applying the maximal flow algorithm, the company
can determine the best way to transport the highest quantity of goods without
exceeding the network's capacity constraints.
A practical example involves a water distribution system where pipelines connect
multiple cities. The goal is to deliver the maximum amount of water to a city
while considering the capacities of each pipeline. Another example in logistics
involves optimizing cargo shipments through ports and distribution centers,
ensuring that maximum freight is transferred within time and capacity limits. This
technique improves the utilization of transportation infrastructure, reducing
delays and costs.
Transportation Problems
The Transportation Problem is a classic optimization model used to determine
the optimal distribution of goods from multiple sources (e.g., factories or
warehouses) to multiple destinations (e.g., retailers or customers) to minimize
total transportation costs. The problem is typically formulated using a linear
programming approach and solved using the North-West Corner Rule, Vogel’s
Approximation Method, or MODI method.
For example, consider a manufacturing company with factories in three cities
(sources) and retailers in four cities (destinations). Each factory has a certain
production capacity, and each retailer has a demand requirement. The
transportation problem determines the most cost-efficient way to transport goods
from factories to retailers while meeting production and demand constraints. This
approach ensures that goods are transported at the lowest possible cost without
overloading any source or under-supplying any destination.
Real-world applications include the allocation of resources in logistics and
distribution systems. For instance, a food supply chain might involve delivering
perishable products like fruits and vegetables from farms to urban grocery stores
while minimizing transportation costs and travel times. Optimizing such
problems ensures an effective and sustainable supply chain network.
Set Covering and Set Partitioning Problems
The Set Covering Problem (SCP) and Set Partitioning Problem (SPP) are
combinatorial optimization problems frequently applied in transportation and
logistics. The SCP aims to find the minimum number of sets that can cover all
elements in a given universe, while the SPP involves partitioning elements into
disjoint subsets.
In logistics, the SCP is widely used for fleet management, where a transportation
company seeks to allocate its vehicles efficiently to cover all delivery routes. For
instance, a courier service must assign delivery trucks to serve multiple regions
while minimizing vehicle usage and fuel costs. This ensures that all areas are
covered with minimal resources.
The SPP is used when delivery routes or resources must be partitioned into
distinct groups. For example, airline scheduling involves partitioning flight crews
into separate groups to cover specific flight routes without overlap. Similarly,
transportation companies use SPP to allocate trucks to deliveries in a way that
avoids duplication and optimizes resource utilization. These methods ensure
operational efficiency, cost savings, and timely deliveries.
Travelling Salesman Problem (TSP)
The Travelling Salesman Problem (TSP) is a well-known combinatorial
optimization problem that involves finding the shortest possible route for a
salesman to visit a set of cities and return to the starting point. The goal is to
minimize travel distance or cost while ensuring that each city is visited exactly
once. Heuristic methods like Genetic Algorithms and optimization techniques
like dynamic programming are commonly used to solve the TSP.
The TSP has direct applications in supply chain management, such as route
planning for delivery trucks, sales representatives, and maintenance crews. For
example, a delivery truck must visit 10 cities and return to the warehouse, and the
company wants to minimize fuel costs and travel time. Solving the TSP identifies
the optimal sequence of cities to visit, ensuring efficiency and cost savings.
Practical applications include last-mile delivery optimization for companies like
Amazon and UPS, where goods must be delivered to multiple customer locations
with minimal distance traveled. By optimizing delivery routes, companies can
improve productivity, reduce fuel consumption, and enhance customer
satisfaction.
Scheduling Algorithms
Scheduling Algorithms are essential tools for optimizing resource allocation,
task completion, and time management in transportation networks. These
algorithms aim to determine the most efficient order of operations to minimize
costs, delays, and idle times. Scheduling algorithms include First-Come-First-
Served (FCFS), Shortest Job First (SJF), and priority-based scheduling.
In logistics and supply chain management, scheduling algorithms are used to
manage the movement of vehicles, allocate warehouse space, and optimize
production lines. For example, in a shipping terminal, trucks arriving to pick up
goods can be scheduled using FCFS, where the first truck to arrive is served first.
Alternatively, priority-based scheduling ensures that urgent deliveries are
prioritized over standard ones.
Manufacturing companies also use scheduling algorithms to plan production
processes and minimize delays. For instance, a car manufacturing plant might use
SJF to complete small production tasks quickly before starting larger, time-
consuming tasks. Similarly, airline companies use scheduling algorithms to
allocate flight slots, ensuring smooth airport operations and minimizing delays.
Overall, scheduling algorithms improve efficiency, reduce costs, and enhance
operational performance in transportation networks. By effectively managing
resources and tasks, companies can meet delivery deadlines, optimize
production, and maintain a competitive edge in supply chain management.