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Modeling and Simulation 9

9.1 Introduction:

In this section we will explore three special linear programming

1) The transportation problem.
2) The assignment problem.
3) The transshipment problem.

9.2 Objectives:

By the end of this laboratory session:

 Student able Structure LP problems for the

transportation, transshipment, and assignment models.
 Student able Use the northwest corner and stepping-
stone methods.
 Student able Solve facility location and other application
problems with transportation models.

9.3 Content:
The Hardrock Concrete Company has plants in three locations and is currently
working on three major construction projects, each located at a different site. The
shipping cost per truck load of concrete, daily plant capacities, and daily project
requirements are provided in the table below.
(a) Formulate an initial feasible solution to Hard- rock’s transportation problem
using the north-west corner rule. Then evaluate each unused shipping route by
computing all improvement indices. Is this solution optimal? Why?
(b) Is there more than one optimal solution to this problem? Why?
14-Hardrock Concrete’s owner has decided to increase the capacity at his smallest
plant (see Problem 9-13). Instead of producing 30 loads of concrete per day at
plant 3, that plant’s capacity is doubled to 60 loads. Find the new optimal solution
using the northwest corner rule and stepping-stone method. How has changing the
third plant’s capacity altered the optimal shipping assignment? Discuss the
concepts of degeneracy and multiple optimal solutions with regard to this problem.
o Degeneracy occurs when the number of occupied squares or routes in a
transportation table solution is less than the number of rows plus the
number of columns minus 1.

o Such a situation may arise in the initial solution or in any subsequent


o Degeneracy requires a special procedure to correct the problem since

there are not enough occupied squares to trace a closed path for each
unused route

 It is possible for a transportation problem to have multiple optimal

 This happens when one or more of the improvement indices is zero in
the optimal solution.
o This means that it is possible to design alternative shipping
routes with the same total shipping cost.
o The alternate optimal solution can be found by shipping the
most to this unused square using a stepping-stone path.
 In the real world, alternate optimal solutions provide management
with greater flexibility in selecting and using resources. and it would be
impossible to apply the stepping-stone method.

17-The Krampf Lines Railway Company specializes in coal handling. On Friday,

April 13, Krampf had empty cars at the following towns in the quantities indicated:

By Monday, April 16, the following towns will need coal cars as follows:
Using a railway city-to-city distance chart, the dispatcher constructs a mileage
table for the preceding towns. The result is shown in the table below. Minimizing
total miles over which cars are moved to new locations, compute the best shipment
of coal cars.

21- Finnish Furniture manufactures tables in facilities located in three cities Reno,
Denver, and Pitts-burgh. The tables are then shipped to three retail stores located in
Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution
schedule that will meet the demands at the lowest possible cost. The shipping cost
per unit from each of the sources to each of the destinations is shown in the
following table:

The available supplies are 120 units from Reno, 200 from Denver, and 160 from
Pittsburgh. Phoenix has a demand of 140 units, Cleveland has a demand of 160
units, and Chicago has a demand of 180 units.
How many units should be shipped from each manufacturing facility to each of the
retail stores if cost is to be minimized? What is the total cost?