{© What assumption made in the problem is needed for the Marriage Theorem to hold? Group B 7_Any transportation problem ean be formulated as an assignment problem. To illustrat the idea, determine an ‘ssigement problem that could be used fo find the optimal solution to the transportation problem in Table 56. (Hint: ‘You witl need five supply and five demand points). B The Chicago board of education is taking bids on the sity four school bus routes, Four companies ave made the bids in Table 57, Suppose each bidder can be assigned only one route. Use the assignment method to minimize Chieago' cost of running the four bus routes. TABLE 56 3 iT 2 2 3 1 4 TABLE 57 i jue Ae ae 1 2 a t fay eee $4,000 $5,000 = a ee $3,000 $200 = = $4000 35.000 — Or 1b Suppose that each company can be assigned two Toutes. Use the assignment method 10 minimize Chicago's cost of runaing the four bus routes. Hint Two supply points will bo needed for each compazy’) 8 Show that stop 3 of the Hungarian method is equivalent to performing the fllowing operations: (1) Add F to each cost that les ina covered row: (2) Subtract from each cost ‘hat lies in an uncovered column, 10 Suppose cy isthe smallest cost in row / and column j of sn assignment problem. Must x = 1 in any optimal asignmen?™ f 7.6 Transshipment Problems A transportation problem allows only shipments that go directly from a supply point fo a demand point. In many situations, shipments are allowed between supply points or be- ‘ween demand points. Sometimes there may also be points (called sransshipment points) through which goods can be transshipped on their journey from @ supply point to a de- ‘mand point. Shipping problems with any or all of ese characteristics are transshipment problems. Fortunately, the optimal solution to a transshipment problem can be found by solving a transportation problem. ‘In what follows, we define a supply point tobe a point tht can send goods to another Point but cannot reveive goods from eny other point. Similarly, « demand point is «point that can receive goods from other points but cannot send goods to any other point. A transshipment point is a point that can both recive goods from other points snd send {goods to other poins, The following example illustrates these definitions (*—" indicates that @ shipment is impossible) ‘Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The ‘Memphis factory can produce as many as 150 widgets per day, and the Denver factory ccan produce as many 8s 200 widgets per day. Widgets are shipped by sir to customers in Los Angeles and Boston. The customers in each city require 130 widgets per day. Because of the deregulation of airfares, Widgetoo believes that it may be cheaper to first fly some igets to New York or Chicago and then fly therm to their final destinations. The costs of fying a widget are shown in Table 58. Widgetco wants to minimize the total cost of shipping the required widgets to customers ccesin 7 Tarot, span, ad Tassie Pris | |{and coh nay op | ply point wa | points or be- 4 ment points) voint 10 a de- ransshipment | be found by 4s to another vintisa point > ther point. A | ints and send "indicates ‘customers in | day, Because first fly some 1s, The cost total cost of Fioure 9 ATTanssipment TABLE 58 Shiny itr stipes we) From imme eww Cone tA Memphis ° = aera Denver - ° ieee ia eae eee NY. - = ° 6 6 oT Chicago - ~ 6 o 4 6 LA. i oa aeeee a Boston In his problem, Memphis and Denver are supply points, with supplies of 150 and 200 ‘widgets per day, respectively, New York and Chicago are transshipment points, Los An ales end Boston are demand pots, each witha demand of 130 widgets per day. raph ical representation of posible shipmens is given in Figure 9 ‘We now descite how the optimal solution toa transshipment problem can be fomnd by solving transportation problem. Given transshipment problem, we ces «balanced transporation problem by the following procedure (asstme tha fotal supply exceeds to- tal demand): 7 Stop 1 TF necessery, add dummy demand point (witha supply of 0 and a demand equal to the problem’ excess supply) to balance the problem. Shipments tothe éommy and from 4 point to itself will, ofcourse, have a zero shipping cost. Lets = total avaiable supaly ‘Step 2 Construct a transportation tableau as follows: A row in the tableau will be needed for each supply point and transshipment point, and a column will be needed for each de- ‘mand point and transshipment point. Each supply point will have a supply equal to its original supply, and each demand point will have a demand equal to its original demand, Let s = total available supply. Then each transshipment point will have a supply equal to (points original supply) + 5 and a demand equal to (points original demand) + s. This ensures that any transshipment point that is a net supplier will have a net outflow equal to the points original supply, and, similarly, a net demander will have a net inflow equal to the point’s original demand. Although we don’: know how much will be shipped through each transshipment point, we can be sure that the total amount will not exceeds. ‘This explains why we add s to the supply and demand at each transshipment point, By adding the same amounts to the supply and demand, we ensure thatthe net outflow at each transshipment point will be correct, and we also maintain a balanced transportation tableau, 7.6 Tanshipent Pies 401TABLE 59 Peaesenttin of ‘orstpnes bien 1s Bead Tanputalin Foti Figure 10 Optimal Selation ‘tn Widgeteo For the Widgetco example, this procedure yields the transportation tableau and its opti. ‘mal solution given in Table 59. Because s = (total supply) = 150 + 200 = 350 and (total demand) = 130 + 130 = 260, the dummy demand point has a demand of 350 ~ 260 = 90, The other supplies and demands in the transportation tableau are obtained by adding 350 to each transshipment point’ supply and demand, In interpreting the solution to the transportation problem created from a transshipment problem, we simply ignore the shipments to the dummy and from a point to itself. From Table 59, we find that Widgetco should produce 130 widgets at Memphis, ship them to New York, and transship them from New York to Los Angeles, The 130 widgets produced at Denver should be shipped directly to Boston. The net outflow from each city is Memphis: 130+ 20 = 150 Deaver: 130+ 70 200 NY: 220 + 130 ~ 130 ~ 220 = 0 Chicago: 350 ~ 350 LA: 130 Boston: =130 Dummy: =20~ 70 = =90 A negative net outfiow represents an inflow. Observe that each transshipment point (New ‘York and Chicago) has a net outflow of 0; whatever flows into the transshipment point ‘must leave the transshipment point. A graphical representation of the optimal solution to the Widgetco example is given in Figure 10. Suppose that we modify the Widgetco example and allow shipments between Mem- phis and Denver. This would make Memphis and Denver transshipment points and would ‘add columns for Memphis and Denver to the Table 59 tablem. The Memphis row in the ‘ableau would now have a supply of 150 + 350 = 500, and the Denver row would have we hago ir Baten anny Sit 8 B 3 2 @ eee 20 150 5 2 3 a ae 130 0 200 0 é ie 7 0 ae 20 130 350 3 @ ie a 350 ae 350 350 130 130 90. eceven 7 Toye, estar, on rastpmetPtiems0 350 ~ 260 « tained by adding) a transshiproey: 3t to itself. Fro bis, ship them i vidgets produce rch city is ‘ment point (New: asshipment poigt ‘timal solution s between Mem: points and would ‘mphis row in the row would have se CG 10 a 20 250 a0 | ' : ' a supply of 200 + 35% 550. The new Memphis column would have a demand of © + 350 = 350, and the new Denver column would have a demand of 0 + 350 nally, suppose that shipments between demand points L.A. and Boston were allowed. This 350. would make L.A. and Boston transshipment points and add rows for L.A. and Boston. ‘The supply for both the L.A. and Boston rows would be 0 + 350 both the L.A. and Boston columns would now be 130, 350, The demand for 350 = 480, —_—_—— OO Ok w_O Om” oO OGw0Ox. PROBLEMS Group A 4 General Ford produces cars at LA. and Detroit and has 1 warehouse in Atlanta; the company supplies cars to {ugtumers in Houston and Tampa The cost of shipping 2 car Gfiveen points is given in Table 60 ("—" means that & Shipment is not allowed). L.A. can produce as many as $100 cars, and Detroit ean produce as many as 2,900 ear. Huston must receive 2,400 cars, and Tampa must receive 1,300 cars ‘a Formulate a balanced transportation problem thet fan be used to minimize the shipping costs incurred in tneeting demands at Houston and Tampa, bb Modify she answer to part (a) if shipments between LA, and Detot ae not allowed. Modify the answer to pat (a) if shipments between Fouston and Tampe are allowed ata cost of SS. 2 Suneo Oi] produces ol at two wells. Well! ean produce ss many a8 150,000 barzls per day, and well 2 can produce fs many as 200,000 barrels er day It is possible te ship oil ety from the wells to Sunco’s customers in Los Angeles tnd New York. Alternatively, Sunco could transport ol to ‘he pris of Mobile and Galveston and then ship it by tanker to New York or Los Angeles. Los Angeles requires 160,000 ‘ares pe day, and New York requires 140,000 barrels per «ay The costs of shipping 1,000 barrels between two points fae shown in Table 61, Formulate a transshipment mode] (end equivalent transportation model) that could be used 10 minimize the transport costs in meeting the ofl demands oF Loe Angele and New York, 3 In Problem 2, assume that before being shipped to Los Angeles or New York, all ol prodooed atthe wells must be ‘ened at ether Galveston or Mobile. To refine 1,000 barrels fol costs $12 at Mobile and $10 at Galveston. Assuming ‘bat both Mobile and Galveston bave infinite refinery capacity, TABLE 69 eo fo Ck Daa nts Reto Tes La 0 140 (100s Deroit 145 8TH Aiia 108-15 o 1B Howton 8910912 o = Tempe 210 Ta 0 rape 61 3H rota ln war 0 Bs ae mia ooo eas lee tee pet eee wee DD Sf ft LA - - _ _ 15 * Ne Dashes ade prensa ae ot owe. ormlte@ transshipment and balanced transportation model to minimize the daily cost of transporting and refining the oll requirements of Los Angeles and New York. 4 Rework Problem 3 under the assumption that Galveston has a refinery eapacity of 150,000 barrels pe day and Mobile [nas one of 180,000 barrels pr day. (Hn: Modify the method used to determine the supply and demand at each transshipment point to incorporate the refinery capacity restitions, bt make sure to keep the problem balanced ) 5 General Ford has two plans, two warehouses, and three customers. The locations of these areas follows: Plants: Detroit and Atlanta ‘Warehouses: Denver and New York ‘Customers: Los Angeles, Chicago, and Philadelphia Cars are produced st plsnts, then shipped to warehouses, snd finally shipped to customers. Dettoit ean produce 150 cars per week anu Adanta ean produce 100 cars per week. Los Angeles requires 80 cars per wesk; Chicago, 70; and Philadelphia, 60. It costs $10,000 to preduce a car at each plant, and the cost of shipping a ear between two cities is fiven in Table 62. Determine how to meet General Ford’s ‘weekly demands et minimum cost Group B A company must moet the following demands for cash al the beginning ofeach of the nest six months: month 1, "Based om Srinivasan (1974, 6 Karson FotisTABLE 62 2®) Fon Tew a Dewoit 1253 637 Atlanta 1398841 wo Fon ics Baples —Ghcage Pies Denver 1059996) 1691 New York 2786 802 100 ‘$200; month 2, $100; month 3, $50; month 4, $80; month 5, S161; month 6, $140, At the beginning of tnonth I, the ‘company has $150 in each and $200 worth of bond 1, $100 ‘worth of bond 2, and $400 worth of bond 3. The company ‘wil have to sell some bonds to meet demands, but a penalty ‘ill be charged for any bonds sold before the end of month ‘6. The penalties for selling $1 worth of each bond are az shown in Table 63 2 Assuming that all bills must be paid on time, fore ‘ulate p balanced transportation problem that can be TABLE 63 Tit 0 a et 1 $021 $019 $017 $013 $009 sons 2 $050 $050 $050 $033 $0 $9 3 $1.00 $1.00 $1.00 $100 $1.00 80 ‘used to minimize the cost of mesting the eash demands for the next six month 4b Assume that payment of bills can be made after they are due, but a penalty of 5¢ per month is assessed for cach dollar of cash demands that is postponed for one ‘month. Assuming all bills must be paid by the end of ‘mouth 6, develop a transshipment model that can be ‘used fo minimize the cost of paying the nex six months! bills, (int: Transshipment points are needed, in the form C1 = cash available a beginning of month ¢ afer bonds for month have been sold, but before month t demand is met Shipments ins Cr occu for bon gales and Ct ~ I. Shipments out of Cr oceur to @e + T and demands for months 1,2,....£) SUMMARY Notation problem may be written as min 5D eu mm x20 @ se Des, Cham aan Gr L2...n) rumber of supply points uumber of demand points sumer of units shipped from supply point i to demand point j ‘ost of shipping ! unit from supply point i to demand point j 5 = supply at supply point ¢ femand at demand point j ay = coefficient of xy in row 0 of a given tableau ‘ag = column for xy in transportation constraints ‘A transportation problem is balanced if total supply equals total demand. To use the ‘methods of this chapter to solve a transportation problem, the problem must fist be bal- anced by use of a dummy supply or a dummy demand point. A balanced transportation, (Supply constraints) (Demand constraints) Deeg Fm 12, ceo) 404 ceveven 7 Tauri, inset nt Tans Ptiens