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9.1 Introduction:

models:

1) The transportation problem.

2) The assignment problem.

3) The transshipment problem.

9.2 Objectives:

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.

Solution

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.

solution.

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

unused route

solutions.

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.

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.

Solution:

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?

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