Management Science

7
“Management Science Network
Models”
MS. PEARL NOGRA-FABIA
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Management Science

“Management Science Network Models”

• Be able to analyze the Management

Science Network Models
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Management Science
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Management Science

Network Models
Managerial problems can be described graphically as a network. It is a
set of nodes and arcs that diagrams the relationships between objects
of the real system. Network models can represent e.g. a transportation
system where nodes are the cities and arcs are the connections
between them (roads). The network expression is also suitable for
description of computer systems (Local Area Network, World Wide Web,
etc.), the company organization and production process, piping systems,
or projects. In the following section there will be discussed the basic
terminology and notation for network problems and some applications
will be outlined.
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Management Science

Network Terminology
As we defined above, the
network is a set of nodes and
arcs. The arc is a connector
between a pair of nodes and
can be directed (oriented) or
undirected. A directed arc
indicates which node is
considered as the point of
origin. The orientation of the arc
is marked with the arrowhead.
Figure: Directed and Undirected Graph
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Management Science

If a network contains directed arcs

it is called a directed network.
Otherwise it is called an undirected
network.
A path in a network is a specific
sequence of arcs in which the initial
node of each arc is identical with
the terminal node of the preceding
arc in the sequence. This sequence
must cross the different nodes. In
Figure 3.2 the example of such a Fig. 3.2 Path Between Nodes 1 and 6
path is shown (the sequence across
the nodes 1-2-4-5-6)
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Management Science

Figure 3.2 Circuit

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Management Science

The path in Figure 3.2 is an open path, since it starts and ends in different nodes. If
the path starts and ends in the same node (closed path) it is called a circuit (cycle).
A network is called connected if there is a path connecting every pair of nodes in the
network. The network shown above is connected. If we removed the arcs (1, 2) and
(1, 3), we would no longer have the connected network.
The connected network without any circuit is called a tree. If we denote the total
number of nodes in the network as n it is evident that the tree involving all nodes
must contain exactly (n – 1) arcs. If we add any arc to the tree, the circuit will appear.
A spanning tree is a tree including all the nodes from the original network. The tree
shown in Figure 3.4 is an example of spanning tree. Removing of any arc from the
spanning tree changes the tree into unconnected network.
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Management Science

In real situation the network is

evaluated. The values can be
added to nodes or/and to arcs
and can represent time, distance,
cost, capacity, etc. In the
following section, several
examples of network problems
are described.
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3.2 Basic Network Applications

Before describing the most often applications of network
theory - project management - we mention some simple
situations where the network representation is successfully
used. With respect to the limited space in this textbook, it is
not possible to describe all the methods used for solving
problems and we will concentrate just on some simpler
methods.
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3.2.1 Shortest Path Problem

The problems in this category concern situations where we
have to find the shortest path from an origin to a
destination. Usually, there is no direct connection between
these two points and the path crossing many other points
must be found. A network represents the possible
connections (arcs) between all points (nodes). Distance
between the pair of connected nodes is attributed to each
arc.
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Management Science

Before describing the most

often applications of network
theory - project management
- we mention some simple
situations where the network
representation is successfully
used. With respect to the
limited space in this textbook,
it is not possible to describe
all the methods used for
solving problems and we will
concentrate just on some
simpler methods.
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Management Science

3.2.1 Shortest Path Problem

The problems in this category concern
The problem can be formulated as finding the
situations where we have to find the
shortest paths not only from one origin to one
shortest path from an origin to a
destination, but from each node to all the other
destination. Usually, there is no direct
nodes (Table 3.1). Since the network is
connection between these two points
undirected the matrix of shortest paths is
and the path crossing many other
symmetric (e.g. the length of the path from 1 to
points must be found. A network
6 equals the length of the path from 6 to 1).
represents the possible connections
(arcs) between all points (nodes).
Distance between the pair of
connected nodes is attributed to each
arc.
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To 1 2 3 4 5 6
From
1 0 14 25 26 32 40
2 14 0 10 12 18 26
3 24 10 0 15 0 16
4 26 12 15 0 23 15
5 32 18 28 23 0 30
6 40 26 16 15 30 0
Tab. 3.1 Traveling Salesperson Problem
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3.2.2 Traveling Salesperson Problem (TSP)

Although this problem should be rather discussed in the section about integer
programming, we outline it in this section because of its network
representation.
If the task had been solved as the classical assignment problem many solutions
would have been found, infeasible in case of traveling salesperson problem. One
of those solutions is strongly shaded in Table 3.3. When we graph this solution
(Figure 3.7), we can see two sub-tours 1-2-3-1 and 4-5-6-4. Whereas it is feasible
solution of assignment problem, it is infeasible in traveling salesperson problem.
Therefore in formulation of the model, it is necessary to add constraints that
prevent building sub-tours.
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Example 3.2 A salesperson has

to visit a specified group of cities
and come back to the origin
(home city). This tour should be
as short as possible in terms of
the total distance. In Figure 3.6
such a tour (circuit) is displayed
(it crosses the nodes 1, 2, 5, 4, 6,
3, 1). The optimal total distance

Fig. 3.6 Traveling Salesperson Problem

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If we tabulate the direct

distances between nodes, we
To 1 2 3 4 5 6
can illustrate the similarity to
the assignment problem, in From
which the goal is to mark 6 cells 1 ---- 14 25 --- -- ---
respecting the following rule: 2 14 --- 10 12 18 ---
exactly one cell in each row and 3 25 10 --- 15 --- 16
in each column is marked. Table 4 ---- 12 15 --- 23 15
3.2 shows the optimal solution
5 ---- 18 --- 23 --- 30
of TSP (dashes are used for
unidentified connections).
6 ---- ---- 16 15 30 ----
Tab. 3.3 Assignment Problem
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Fig. 3.7 Infeasible Sub-Tours in TSP3.2.3

Minimal Spanning Tree In some situations,
instead of finding the shortest path or the
shortest tour, the goal is to assure a
connection between all nodes in the
network. Assuming n nodes in the network,
a spanning tree is such sub-network that
contains exactly (n-1) arcs and no circuits. In
case we have the evaluated network (e.g.
by distances), the minimal spanning tree is
a spanning tree with the minimal sum of
values.
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In some situations, instead of finding the shortest path or the shortest tour, the
goal is to assure a connection between all nodes in the network. Assuming n
nodes in the network, a spanning tree is such sub-network that contains exactly
(n-1) arcs and no circuits. In case we have the evaluated network (e.g. by
distances), the minimal spanning tree is a spanning tree with the minimal sum of
values.
Example 3.3 We illustrate one of the possible algorithms on this elementary
example. Suppose that the managerial problem is to connect 9 locations of an
exhibition area with the source of electricity power. The objective is to minimize
the cost of all the extensions. The direct distances (in meters) between locations
can be found in Figure 3.8. The node 1 is the source of power. The price per 1
meter of a cable is 10 CZK.
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Fig. 3.8 Electricity Power Distribution in the

Exhibition Area
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Solution 1. In the first step we find two arcs with minimal distances.
These are the arcs (8, 10) and (3, 5) with direct distances 35 and 40
meters (Figure 3.9).
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MT 7.1.1
“ESSAY”

Pen & Paper

none
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Management Science

MT 7.1.1

Direction: Answer the following in essay form:

1. What importance of network model in business
operation?
2. How do you think its application can help in terms
of logistic operations?
3. Find a particular situation that it can be apply?
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Organization and Management

MT 7.1.1

For Flexible Distance Learning:

• Screenshot of hand written answer on bondpaper and uploaded at Edmodo
Apps
For Modular Distance Learning:
• Handwritten bondpaper and submitted at AISAT Campus

• Five days after the discussion.

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Management Science
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Organization and Management

Q1.1.1-1

For Flexible Distance Learning:

• Screenshot of hand written answer on bondpaper and uploaded at Edmodo
Apps
For Modular Distance Learning:
• Handwritten bondpaper and submitted at AISAT Campus

• Five days after the discussion.

• September 30, 2020