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The Transportation Model
Operations Management
William J. Stevenson
8th edition
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The Transportation Model
CHAPTER
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The Transportation Model
McGraw-Hill/Irwin
Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
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Requirements for Transportation Model
The Transportation Model
List of origins and each ones capacity
List of destinations and each ones demand
Unit cost of shipping
Note: The DVD that accompanies this book contains a module that provides detailed instruction on the transportation model
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Transportation Model Assumptions
1.
2. 3.
The Transportation Model
Items to be shipped are homogeneous
Shipping cost per unit is the same
Only one route between origin and destination
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The Transportation Model
The Transportation Problem
D (demand) S (supply) S (supply)
Figure 8S.1
D (demand)
D (demand)
S (supply)
D (demand)
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The Transportation Model
A Transportation Table
B
4 7 Warehouse C 7
Table 8S.1
A
Factory 1 12 2 8 3 10 16 5 Total supply 450 capacity per 450 period Total demand per period 3 8 8 200
D
1 100 Factory 1 can supply 100 units per period
150
Demand
80
90
120
160
Warehouse B can use 90 units per period
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The Transportation Model
Special Problems
Unequal supply and demand Dummy: Imaginary number added equal to the difference between supply and demand when these are unequal Degeneracy: The condition of too few completed cells to allow all necessary paths to be constructed
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The Transportation Model
Summary of Procedure
Make certain that supply and demand are equal Develop an initial solution using intuitive, low-cost approach Check that completed cells = R+C-1 Evaluate each empty cell Repeat until all cells are zero or positive
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The Transportation Model
Excel Template
Figure 8S.2
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The Transportation Model
CHAPTER
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Additional PowerPoint slides contributed by Geoff Willis, University of Central Oklahoma.
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The Transportation Model
ANALYSES
Transportation Model
minimizes transportation costs using LP
Center of gravity & simple median models
minimizes transportation costs using geometry
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The Transportation Model
Center of Gravity
Determine the center of gravity for the destinations shown on the following map. Monthly shipments will be the quantities listed in the table. Destination Quantity D1 900 D2 D2 300 D5 D3 700 D4 D1 D4 600 D5 800 D3
