Quantitative Analysis for Management Chapter 10 Transportation and Assignment Models

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10-1

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Chapter Outline
10.1 Introduction

10.2 Setting Up a Transportation Problem

10.2 Developing an Initial Solution:Northwest Corner Rule 10.4 Stepping-Stone Method: Finding a Least-Cost Solution 10.5 MODI Method
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Chapter Outline - continued

10.6 Vogels Approximation Method: Another Way to Find an Initial Solution 10.7 Unbalanced Transportation Problems

10.8 Degeneracy in Transportation Problems 10.9 More Than One Optimal Solution
10.10 Facility Location Analysis
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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Learning Objectives
Students will be able to
Structure special linear programming problems using the transportation and assignment models. Use the northwest corner method and Vogels approximation method to find initial solutions to transportation problems. Apply the stepping-stone and MODI methods to find optimal solutions to transportation problems.
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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Learning Objectives - continued

Solve the facility location problem and other application problems with the transportation model. Solve assignment problems with the Hungarian (matrix reduction) method.

To accompany Quantitative Analysis for Management, 7e by Render/ Stair

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Specialized Problems
Transportation Problem
Distribution of items from several sources to several destinations. Supply capacities and destination requirements known.

Assignment Problem
One to one assignment of people to jobs, etc.

Specialized algorithms save time!

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Transportation Problem
Des Moines (100 units) capacity Albuquerque (300 units) required Cleveland (200 units) required

Evansville (300 units) capacity

Boston (200 units) required

Ft. Lauderdale (300 units) capacity

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Transportation Costs
From (Sources) Des Moines Evansville Fort Lauderdale To (Destinations) Albuquerque Boston Cleveland $5 $8 $9 $4 $4 $7 $3 $3 $5

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Unit Shipping Cost:1Unit, Factory to Warehouse

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req.
To accompany Quantitative Analysis for Management, 7e by Render/ Stair

Boston (B) 4

Cleveland (C) 3

Factory Capacity

8
9

4
7

3
5

10-9

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Total Demand and Total Supply

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 200
10-10

Boston (B)

Cleveland (C)

Factory Capacity 100 300 300

200

700

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Transportation Table For Executive Furniture Corp.

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 5 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity 100 300 300 700

200
10-11

200

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Initial Solution Using the Northwest Corner Rule

Start in the upper left-hand cell and allocate units to shipping routes as follows:
Exhaust the supply (factory capacity) of each row before moving down to the next row. Exhaust the demand (warehouse) requirements of each column before moving to the next column to the right. Check that all supply and demand requirements are met.
To accompany Quantitative Analysis for Management, 7e by Render/ Stair

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Initial Solution North West Corner Rule

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 5 100 8 9 Boston (B) 4 4 7 Cleveland (C) 3 3 5 Factory Capacity 100 300 300 700

200

100 100 200

10-13

200 200

To accompany Quantitative Analysis for Management, 7e by Render/ Stair

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

The Stepping-Stone Method

1. Select any unused square to evaluate. 2. Begin at this square. Trace a closed path back to the original square via squares that are currently being used (only horizontal or vertical moves allowed). 3. Place + in unused square; alternate - and + on each corner square of the closed path. 4. Calculate improvement index: add together the unit cost figures found in each square containing a +; subtract the unit cost figure in each square containing a -. 5. Repeat steps 1 - 4 for each unused square.
To accompany Quantitative Analysis for Management, 7e by Render/ Stair

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Stepping-Stone Method - The Des Moines-to-Cleveland Route

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 Boston (B) 4 4 Cleveland (C) Start 3 3 5 Factory Capacity 100 100 5 8

200

100
100 200 7 200

300
300 700

200

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Stepping-Stone Method An Improved Solution

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 100 5 8 Boston (B) 4 4 Cleveland (C) 3 3 5 Factory Capacity 100

100 100
300 9

200
7 200 200

300
300 700

200
10-16

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Third and Final Solution

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 100 5 8 Boston (B) 4 4 Cleveland (C) 3 3 100 7 100 200 5 Factory Capacity 100

200 200
300 9

300
300 700

200
10-17

To accompany Quantitative Analysis for Management, 7e by Render/ Stair

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

MODI Method: 5 Steps

1. Compute the values for each row and column: set Ri + Kj = Cij for those squares currently used or occupied. 2. After writing all equations, set R1 = 0. 3. Solve the system of equations for Ri and Kj values. 4. Compute the improvement index for each unused square by the formula improvement index:
Cij - Ri - Kj

5. Select the largest negative index and proceed to solve the problem as you did using the stepping-stone method.
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Vogels Approximation
1. For each row/column of table, find difference between two lowest costs. (Opportunity cost) 1. Find greatest opportunity cost. 1. Assign as many units as possible to lowest cost square in row/column with greatest opportunity cost. 1. Eliminate row or column which has been completely satisfied. 1. Begin again, omitting eliminated rows/columns.
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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Vogels Approximation
Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 5 8 9 Boston (B) 4 4 200 7 5 Cleveland (C) 3 3 Factory Capacity 100 1

300 4
300 2 700

200 3
10-20

200 2

1
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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Vogels Approximation
Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 5 8 100 9 7 Boston (B) 4 4 200 5 Cleveland (C) 3 3 Factory Capacity 100 1

300 4
300 2 700

200 3
10-21

200

1
To accompany Quantitative Analysis for Management, 7e by Render/ Stair

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Vogels Approximation
Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 100 5 8 100 9 7 Boston (B) 4 4 200 5 Cleveland (C) 3 3 Factory Capacity 100 1

300
300 2 700

200 3
10-22

200

4
To accompany Quantitative Analysis for Management, 7e by Render/ Stair

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Vogels Approximation
Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 200 300 100 5 8 100 9 100 200
10-23

Boston (B) 4 4

Cleveland (C) 3 3 200 7 5

Factory Capacity 100

300
300 700

200

To accompany Quantitative Analysis for Management, 7e by Render/ Stair

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Special Problems in Transportation Method

Unbalanced Problem
Demand Less than Supply Demand Greater than Supply

Degeneracy More Than One Optimal Solution

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Unbalanced Problem Demand Less than Supply

Customer 1 Customer 2 Factory 1 Factory 2 Factory 3 Customer Requirements 8 15 3 5 10 9 Dummy 16 7 10 Factory Capacity 170

130
80 380

150

80
10-25

150

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Unbalanced Problem Supply Less than Demand

Customer 1 Customer 2 Factory 1 Factory 2 Dummy Customer Requirements 8 15 3 5 10 9 Customer 3 16 7 10 Factory Capacity 170

130
80 380

150

80
10-26

150

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Degeneracy
Customer 1 Customer 2 Factory 1 Factory 2 Factory 3 Customer Requirements 5 8 4 4 Customer 3 3 3 Factory Capacity 100

100

100
9 7

20
80 100 5

120
80 300

100

100
10-27

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Degeneracy - Coming Up!

Customer 1 Customer 2 Factory 1 Factory 2 Factory 3 Customer Requirements 8 15 5 10 Customer 3 16 7 10 Factory Capacity 70

70

50
3 30 150

80
9 50 50

130
80 280

80
10-28

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Stepping-Stone Method - The Des Moines-to-Cleveland Route

Albuquerque (A) Des Moines (D) Evansville (E) Ft Lauderdale (F) Warehouse Req. 300 Boston (B) 4 4 Cleveland (C) Start 3 3 5 Factory Capacity 100 100 5 8

200

100
100 200 7 200

300
300 700

200

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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

The Assignment Method

1. subtract the smallest number in each row from every number in that row subtract the smallest number in each column from every number in that column 2. draw the minimum number of vertical and horizontal straight lines necessary to cover zeros in the table if the number of lines equals the number of rows or columns, then one can make an optimal assignment (step 4)
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2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

The Assignment Method continued

3. if the number of lines does not equal the number of rows or columns
subtract the smallest number not covered by a line from every other uncovered number add the same number to any number lying at the intersection of any two lines return to step 2

4. make optimal assignments at locations of zeros within the table

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PG 10.13b

2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Hungarian Method
Person Adams Brown Cooper

Initial Table Project 1 2 11 14

8 9 10 12

3 6 11 7

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Hungarian Method
Row Reduction Person Project 1 2 Adams 5 8
Brown Cooper
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3 0 3 0

0 2
10-33

2 5

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Hungarian Method
Column Reduction Person Project 1 2 Adams 5 6
Brown Cooper
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3 0 3 0

0 2
10-34

0 3

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Hungarian Method
Person Adams Brown Cooper
To accompany Quantitative Analysis for Management, 7e by Render/ Stair

1 5 0 2

Testing Project 2 6
0 3
10-35

Covering Line 2

3 0 3 0
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Covering Line 1

Hungarian Method
Revised Opportunity Cost Table
Person Adams Brown

1 3
0

Project 2 4 0

3 0
5

Cooper
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1
10-36

0
2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Hungarian Method
Person Adams Brown
Covering Line 1 Project

Testing 2 4
0

Covering Line 3

1 3
0

3 0
5
Covering Line 2

Cooper
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1
10-37

0
2000 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Hungarian Method
Assignments
Person 1 Adams Brown Cooper
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Project 2

3 6

10 9
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