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The P&T Company Distribution Problem (Section 6.1) Characteristics of Transportation Problems (Section 6.2) Variants of Transportation Problems: Better Products (Section 6.3) Variants of Transportation Problems: Nifty (Section 6.3) Applications of Transportation Problems: Metro Water (Section 6.4) Applications of Transportation Problems: Northern Airplane (Section 6.4) Applications of Transportation Problems: Middletown (Section 6.4) Applications of Transportation Problems: Energetic (Section 6.4) A Case Study: Texago Corp. Site Selection Problem (Section 6.5) Characteristics of Assignment Problems: Sellmore (Section 6.6) Variants of Assignment Problems: Job Shop (Section 6.7) Variants of Assignment Problems: Better Products (Section 6.7) Variants of Assignment Problems: Revised Middletown (Section 6.7) Transportation & Assignment Problems (UW Lecture) 6.26.5 6.66.14 6.156.17 6.186.20 6.216.22 6.236.25 6.266.28 6.296.31 6.326.46 6.476.51 6.52-6.54 6.55 6.56 6.576.75
These slides are based upon a lecture to second-year MBA students at the University of Washington that discusses transportation and assignment problems (as taught by one of the authors).
CANNERY 2 Eugene
Shipping Data
Cannery
Bellingham Eugene Albert Lea
Output
75 truckloads 125 truckloads 100 truckloads
Warehouse
Sacramento Salt Lake City Rapid City
Allocation
80 truckloads 65 truckloads 70 truckloads
Total
300 truckloads
Albuquerque
Total
85 truckloads
300 truckloads
Warehouse From
\ To
Sacramento
Rapid City
Albuquerque
Cannery Bellingham 75 0 0 0
Eugene
Albert Lea
5
0
65
0
55
15
0
85
Warehouse From
\ To
Sacramento
Rapid City
Albuquerque
Eugene
Albert Lea
352
995
416
682
690
388
791
685
Total shipping cost = 75($464) + 5($352) + 65($416) + 55($690) + 15($388) + 85($685) = $165,595
General Model
Units of a commodity
Sources Destinations
Any problem (whether involving transportation or not) fits the model for a transportation problem if 1. It can be described completely in terms of a table like Table 6.5 that identifies all the sources, destinations, supplies, demands, and unit costs, and 2. satisfies both the requirements assumption and the cost assumption.
Unit Cost Destination (Warehouse): Source (Cannery) Bellingham Eugene Albert Lea Demand $464 352 995 80 $513 416 682 65 $654 690 388 70 $867 791 685 85 75 125 100 Sacramento Salt Lake City Rapid City Albuquerque Supply
Spreadsheet Formulation
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
E F Destination (Warehouse) Salt Lake City Rapid City $513 $654 $416 $690 $682 $388
Shipment Quantity (Truckloads) Source Bellingham (Cannery) Eugene Albert Lea Total Received Demand
Sacramento 0 80 0 80 = 80
Albuquerque 55 0 30 85 = 85
= = =
Network Representation
Supplies De mands Destina tions Sourc es
464
(Bellingham) 75 S1
D1
80 (Sa cr amento)
352
(E ugene) 125 S2
416 791
995
(Alber t Lea) 100 S3
388
D4 85 (Albuquerque)
As long as all its supplies and demands have integer values, any transportation problem with feasible solutions is guaranteed to have an optimal solution with integer values for all its decision variables. Therefore, it is not necessary to add constraints to the model that restrict these variables to only have integer values.
Goal: find best distribution plan, which plants to keep open, etc.
Closed many plants and distribution centers, and optimized their product sourcing and distribution location.
For more details, see 1997 Jan-Feb Interfaces article, Blending OR/MS, Judgement, and GIS: Restructuring P&Gs Supply Chain, downloadable at www.mhhe.com/hillier2e/articles
Unit Cost Destination (Product): Source(Plant) 1 2 3 Demand $41 40 37 20 $27 29 30 30 $28 27 30 $24 23 21 40 75 75 45 1 2 3 4 Supply
Spreadsheet Formulation
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Unit Cost Plant 1 Plant 2 Plant 3 C Product 1 $41 $40 $37 D Product 2 $27 $29 $30 E Product 3 $28 $27 F Product 4 $24 $23 $21 G H I
Product 1 0 0 20 20 = 20
Product 2 30 0 0 30 = 30
Product 3 30 0 0 30 = 30
Product 4 0 15 25 40 = 40
Produced At Plant 60 15 45
Question: How many units should Nifty sell to each customer and how many units should they ship from each plant to each customer?
$41 40 37 20
$27 29 30 30
$28 27 30
$24 23 21 40
75 75 45
Question: How many units should Nifty sell to each customer and how many units should they ship from each plant to each customer?
Spreadsheet Formulation
B Unit Profit Plant 1 Plant 2 Plant 3 C Customer 1 $55 $37 $29 D Customer 2 $42 $18 $59 E Customer 3 $46 $32 $51 F Customer 4 $53 $48 $35 G H I
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Shipment Plant 1 Plant 2 Plant 3 Min Purchase Total Shipped Max Purchase
= = =
Calorie River
Needed
190
2
200
5
230
4
1.5
5
(million acre feet)
Question: How much water should Metro take from each river, and how much should they send from each river to each city?
Spreadsheet Formulation
B Unit Cost ($millions) Colombo River Sacron River Calorie River C Berdoo 160 140 190 D Los Devils 130 130 200 E San Go 220 190 230 F Hollyglass 170 150 G H I
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Water Distribution (million acre-feet) Colombo River Sacron River Calorie River Total To City Needed
Berdoo 0 2 0 2 = 2
Los Devils 5 0 0 5 = 5
Maximum Production
Month
1 2 3 4
Scheduled Installations 10 15 25 20
Regular Time 20 30 25 5
Overtime
10 15 10 10
Overtime
1.10 1.12 1.11 1.15
Question: How many engines should be produced in each of the four months so that the total of the production and storage costs will be minimized?
Spreadsheet Formulation
B C D 3 Production Cost Regular 4 ($millions) Time 5 Month 1 1.08 6 Month 2 1.11 7 Month 3 1.10 8 Month 4 1.13 9 10 11 Unit Cost 12 ($millions) 1 13 1 (RT) 1.08 14 1 (OT) 1.10 15 2 (RT) 16 Month 2 (OT) 17 Produced 3 (RT) 18 3 (OT) 19 4 (RT) 20 4 (OT) 21 22 23 24 Units Produced 1 25 1 (RT) 10 26 1 (OT) 0 27 2 (RT) 0 28 Month 2 (OT) 0 29 Produced 3 (RT) 0 30 3 (OT) 0 31 4 (RT) 0 32 4 (OT) 0 33 Installed 10 34 = 35 Scheduled Installations 10 36 E Overtime 1.10 1.12 1.11 1.15 G H Storage Cost ($millions per month) 0.015 F I J
Month Installed 2 3 1.10 1.11 1.12 1.13 1.11 1.13 1.12 1.14 1.10 1.11 -
Month Installed 2 3 5 0 0 0 10 0 0 0 0 25 0 0 0 0 0 0 15 25 = = 15 25
4 5 0 0 0 0 10 5 0 20 = 20
Produced 20 0 10 0 25 10 5 0
Month
Production
Installations
Stored
1 (RT)
2 (RT) 3 (RT)
20
10 25
10
15 25
10
5 5
3 (OT)
4 (RT)
10
5
0
20
10
0
The city has been divided into 9 tracts with approximately equal populations.
Each school has a minimum and maximum number of students that should be assigned.
The school district management has decided that the appropriate objective is to minimize the average distance that students must travel to school.
Question: How many students from each tract should be assigned to each school?
3
4 5 6 7 8 9 Minimum enrollment Maximum enrollment
0.5
1.2 0.9 1.1 2.7 1.8 1.5 1,200 1,800
1.8
0.3 0.7 1.6 0.7 1.2 1.7 1,100 1,700
1.1
2.0 1.0 0.6 1.5 0.8 0.7 1,000 1,500
450
400 500 450 450 400 500
Spreadsheet Formulation
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 B Distance (Miles) Tract 1 Tract 2 Tract 3 Tract 4 Tract 5 Tract 6 Tract 7 Tract 8 Tract 9 C School 1 2.2 1.4 0.5 1.2 0.9 1.1 2.7 1.8 1.5 D School 2 1.9 1.3 1.8 0.3 0.7 1.6 0.7 1.2 1.7 E School 3 2.5 1.7 1.1 2 1 0.6 1.5 0.8 0.7 F G H
Number of Students Tract 1 Tract 2 Tract 3 Tract 4 Tract 5 Tract 6 Tract 7 Tract 8 Tract 9 Min Enrollment Total At School Max Enrollment
School 2 500 0 0 400 150 0 450 0 0 1,500 <= 1,500 <= 1,700
Total From Tract 500 400 450 400 500 450 450 400 500
= = = = = = = = =
Total In Tract 500 400 450 400 500 450 450 400 500
Question: How should Energetic meet the energy needs for the new building?
Unit Cost Energy Need: Source of Energy Electricity Natural gas Solar heater $400 $500 600 300 $600 500 400 Electricity Water Heating Space Heating
Spreadsheet Formulation
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 C D Electricity 400 E Energy Need Water Heating 500 600 300 F Space Heating 600 500 400 G H I
Unit Cost ($/day) Source Electricity of Natural Gas Energy Solar Heater
Daily Energy Use Source Electricity of Natural Gas Energy Solar Heater Total Supplied Demand
Electricity 20 0 0 20 = 20
Space Heating 0 10 20 30 = 30
Total Used 20 10 30
<=
Refineries
Distribution Centers
1. Pittsburgh, Pennsylvania 2. Atlanta, Georgia 3. Kansas City, Missouri 4. San Francisco, California
Potential Site
Main Advantages
1. Near California oil fields. 2. Ready access from Alaska oil fields. 3. Fairly near San Francisco distribution center.
1. Near Texas oil fields. 2. Ready access from Middle East imports. 3. Near corporate headquarters. 1. Low operating costs. 2. Centrally located for distribution centers. 3. Ready access to crude oil via the Mississippi River.
Refinery
New Orleans Charleston Seattle New site Total
Oil Fields
Texas California Alaska Total
Cost per Unit Shipped to Refinery or Potential Refinery (Millions of Dollars per Million Barrels) New Orleans Source Texas California Alaska Middle East 2 5 5 2 4 5 7 3 5 3 3 5 3 1 4 4 1 3 5 3 1 4 7 4 Charleston Seattle Los Angeles Galveston St. Louis
Pittsburgh
Refinery New Orleans 6.5
Atlanta
Kansas City
San Francisco
5.5
Charleston
Seattle Potential Refinery Los Angeles Galveston
7
7
5
8
4
4
7
3
8 5
6 4
3 3
2 6
St. Louis
Number of units needed
4
100
3
80
1
80
5
100
Site
St. Louis
530
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D New Orleans 2 5 5 2
Unit Cost ($millions) Texas Oil California Fields Alaska Middle East
G New Site
Shipment Quantity (millions of barrels) Texas Oil California Fields Alaska Middle East Total Received Demand
Total Shipped 0 0 0 0
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D New Orleans 2 5 5 2
Unit Cost ($millions) Texas Oil California Fields Alaska Middle East
G Los Angeles 3 1 4 4
Shipment Quantity (millions of barrels) Texas Oil California Fields Alaska Middle East Total Received Demand
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D New Orleans 2 5 5 2
Unit Cost ($millions) Texas Oil California Fields Alaska Middle East
G Galveston 1 3 5 3
Shipment Quantity (millions of barrels) Texas Oil California Fields Alaska Middle East Total Received Demand
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D New Orleans 2 5 5 2
Unit Cost ($millions) Texas Oil California Fields Alaska Middle East
G St. Louis 1 4 7 4
Shipment Quantity (millions of barrels) Texas Oil California Fields Alaska Middle East Total Received Demand
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D Pittsburgh 6.5 7 7
Unit Cost ($millions) New Orleans Refineries Charleston Seattle New Site
G San Francisco 8 7 3
Shipment Quantity (millions of barrels) New Orleans Refineries Charleston Seattle New Site Total Received Demand
Pittsburgh 0 0 0 0 0 = 100
Total Shipped 0 0 0 0
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D Pittsburgh 6.5 7 7 8
Unit Cost ($millions) New Orleans Refineries Charleston Seattle Los Angeles
G San Francisco 8 7 3 2
Shipment Quantity (millions of barrels) New Orleans Refineries Charleston Seattle Los Angeles Total Received Demand
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D Pittsburgh 6.5 7 7 5
G San Francisco 8 7 3 6
Shipment Quantity (millions of barrels) New Orleans Refineries Charleston Seattle Galveston Total Received Demand
= = = =
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D Pittsburgh 6.5 7 7 4
Unit Cost ($millions) New Orleans Refineries Charleston Seattle St. Louis
G San Francisco 8 7 3 5
Shipment Quantity (millions of barrels) New Orleans Refineries Charleston Seattle St. Louis Total Received Demand
= = = =
St. Louis
960 million
1.43 billion
530 million
2.92 billion
Required Time per Task (Hours) Temporary Employee Ann Ian Joan Sean Word Processing 35 47 39 32 Graphics 41 45 56 51 Packets 27 32 36 25 Registrations 40 51 43 46 Hourly Wage $14 12 13 15
Spreadsheet Formulation
B 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Required Time (Hours) Assignee Ann Ian Joan Sean C D Word Processing 35 47 39 32 E Task Graphics 41 45 56 51 Packets 27 32 36 25 Registrations 40 51 43 46 Hourly Wage $14 $12 $13 $15 F G H I J
Task Cost Assignee Ann Ian Joan Sean Word Processing $490 $564 $507 $480 Graphics $574 $540 $728 $765 Packets $378 $384 $468 $375 Registrations $560 $612 $559 $690
Task Assignment Assignee Ann Ian Joan Sean Total Assigned Demand Word Processing 0 0 0 1 1 = 1 Graphics 0 1 0 0 1 = 1 Packets 1 0 0 0 1 = 1 Registrations 0 0 1 0 1 = 1 Total Assignments 1 1 1 1 Supply 1 1 1 1 Total Cost $1,957
= = = =
To fit the model for an assignment problem, the following assumptions need to be satisfied:
1. 2. 3. 4. 5. The number of assignees and the number of tasks are the same. Each assignee is to be assigned to exactly one task. Each task is to be performed by exactly one assignee. There is a cost associated with each combination of an assignee performing a task. The objective is to determine how all the assignments should be made to minimize the total cost.
T1
(Word pr oc essing)
560
564
(I an) A2
T2
(Gr aphics)
507
(Joan) A3
480
(Sean) A4
690
T4
(Registrations)
Some of these locations are more desirable for particular machines because of their proximity to work centers that will have a heavy work flow to these machines.
Location:
Machine 1
$13
$16
$12
$14
$15
2
3
15
4
13
10
20
6
16
7
Spreadsheet Formulation
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
C Location 1 13 15 4
D Location 2 16 7
E Location 3 12 13 10
F Location 4 14 20 6
G Location 5 15 16 7
Location 1 0 0 1 1 <= 1
Location 2 0 0 0 0 <= 1
Location 3 0 1 0 1 <= 1
Location 4 1 0 0 1 <= 1
Location 5 0 0 0 0 <= 1
Total Assignments 1 1 1
= = =
Product 1 0 1 0 1 = 1
Product 2 1 0 0 1 = 1
Product 3 1 0 0 1 = 1
Product 4 0 0 1 1 = 1
Total Assignments 2 1 1
<= <= =
Assignment Tract 1 Tract 2 Tract 3 Tract 4 Tract 5 Tract 6 Tract 7 Tract 8 Tract 9 Total Assigned Demand
School 1 0 1 1 0 1 0 0 0 0 3 = 3
School 2 1 0 0 1 0 0 1 0 0 3 = 3
School 3 0 0 0 0 0 1 0 1 1 3 = 3
Total Assignments 1 1 1 1 1 1 1 1 1
= = = = = = = = =