Integer linear programming transportation model solution using software

GAMS optimization

Francisco Javier Ospina Forero

Dayanys Daniela Rodríguez Muñoz

Edier José Domínguez Amaya

Andean Area University Foundation

Industrial Engineering

Operational Research 1

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 Introduction

In this applied workshop, the application of theoretical and applied concepts is estimated.
of integer linear programming, where it is expected to meet the objective of applying
indeed the integrated concepts of optimization, transport models, PLE and
the use of specialized software. This workshop is presented based on a
case study, where it is estimated that one assumes the role of an engineer to solve a
transport problem with three inherent variables in the model.

A transportation optimization model is used in GAMS, under the dynamics of the

integer linear programming, we see the importance of analysis and understanding of
objective of the activity focused on the optimization of transportation.

With the growth of international exchanges and the geographical distribution of the
In markets, transportation plays a very important role in the life of the company.
Although there are companies that only consider localization once in their history, there are others
that often have to face this problem, taking into account that
markets, tastes, and preferences are continuously changing
consumers, technologies, etc., therefore location decisions are part of the
strategic process of the company, as it often depends on its future. The
The fundamental objective of localization is the choice of a place where it will be developed.
the operations of the company effectively, this involves carrying out some
important investments, so that if the company has problems in its development
its activity motivated by a bad location will result in serious losses for the company
because you will have to uninstall it and reconsider a new location if you want to continue
its operations.

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 Objectives

Apply linear integer programming modeling for solving problems of

transport using GAMS software.

Provide solutions to the problems raised in the axis by applying the techniques and
programs used during classes.

Understand the importance of the role of industrial engineer for the solution of
transport and operations problems using tools such as the
software gams

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 Transport report 1 and 2

This paper aims to provide an overview of the most well-known methods of

resolution of the transportation problem, introducing the minimum cost method
staggered in a situation of certainty, comparing them with each other, as well as their application in the
field of uncertainty, all of this, through a practical example

Transport 1

Demand
Capacity D1 D2 D3 D4
C1 0 10000 0 0
C2 0 0 8000 3000
C3 6000 0 0 0

Demand
Capacity D1 D2 D3 D4
C1 316 312 10000000 306
C2 10000000 314 308 305
C3 312 315 309 10000000

Transport 2

Demand
Capacity D1 D2 D3 D4
C1 5000 0 2000 3000
C2 1000 10000 0 0
C3 0 0 6000 0

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 Demand
Capacity D1 D2 D3 D4
C1 350 10000000 351 350
C2 352 318 358 354
C3 357 318 349 356

the mathematical importance that allows us to make decisions for

complex transportation problems that require optimization of variables for
transport units of items with the lowest shipping cost, normally these
Methodologies are used when there are multiple source and destination variables with a
reduced storage capacity, this prevents costs from
transportation should be greater and its movement cost should be the most optimal and efficient
reducing transportation costs for large-scale items.

During axis number 4, several types of methodologies were identified to give it

solution to the transportation problem (Transportation Method), among the problem solution,
among the most used to achieve resource optimization. Of the demand and the
capacity

Example

Transport 1

Demand
D1 6000 = 6000
D2 10000 = 10000
D3 8000 = 8000
D4 3000 = 3000

Capacity
C1 10000 ≤ 10000
C2 11000 ≤ 15000
C3 6000 ≤ 6000

Transport 2

Demand
D1 6000 = 6000
D2 10000 = 10000
D3 8000 = 8000
D4 3000 = 3000

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 Capacity
C1 10000 ≤ 10000
C2 11000 ≤ 15000
C3 6000 ≤ 6000

In order to establish the Transportation Method Model, it will be done

through the matrix arrangement presented in the exercise explanation, just adding it the
Initial Solution, using the "Minimum Cost Method" technique, and subsequently
proceed to verify if this solution is optimal or consequently look for a second one
solution that is optimal and if not, continue making iterations,

1. Assumption of requirements: each source has a fixed supply of units that

they must be fully distributed among the destinations.

2. Cost assumption: the cost of distributing units from one origin to a destination
Anything is directly proportional to the number of units distributed.

3. Property of feasible solutions: a transportation problem has solutions

viable if and only if the summation of resources at the origins is equal to the summation
of demands at the destinations.

We can conclude, say that to solve problems specific to the context of the model of
transportation through the application, there are several forms or methods, which will give us
different alternatives, but for that we give you an optimization test in the exercises
we would have to balance the exercise using fictitious origins and fictitious destinations.

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 Conclusion

In the transportation method, it is only a part of the entire distribution system that is
find within the company. It is very difficult to solve or find the best program of
transport interact to service issues and low cost at the same time, that area of
the company requires constant attention and very precise analysis to implement
all the changes generated by the feasible solution of the method

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