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Module C Transportation Models
Module C Transportation Models
MODULE
Models
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. MC - 1
Outline
► Transportation Modeling
► Developing an Initial Solution
► The Stepping-Stone Method
► Special Issues in Modeling
Fort Lauderdale $9 $7 $5
Albuquerque
(300 units
required) Evansville
(300 units
capacity)
Fort Lauderdale
(300 units
capacity)
Figure C.1
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
$9 $7 $5
(F) Fort Lauderdale 100 200 300
Warehouse
requirement 300 200 200 700
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 300
$9 $7 $5
(F) Fort Lauderdale 300
Warehouse
requirement 300 200 200 700
First, $3 is the lowest cost cell so ship 100 units from Des
Moines to Cleveland and cross off the first row as Des
Moines is satisfied
Figure C.4
© 2014 Pearson Education, Inc. MC - 14
Intuitive Lowest-Cost Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 100 300
$9 $7 $5
(F) Fort Lauderdale 300
Warehouse
requirement 300 200 200 700
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
$9 $7 $5
(F) Fort Lauderdale 300
Warehouse
requirement 300 200 200 700
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
$9 $7 $5
(F) Fort Lauderdale 300 300
Warehouse
requirement 300 200 200 700
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
$9 $7 $5
(F) Fort Lauderdale 300 300
Warehouse
requirement 300 200 200 700
This is a feasible $5
solution, $4 $3
(D) Des Moines 100 100
and an improvement over
the previous solution, but$8not $4 $3
(E) Evansville
necessarily the lowest cost 200 100 300
alternative $9 $7 $5
(F) Fort Lauderdale 300 300
Warehouse
requirement 300 200 200 700
99 $5 1 $4
100
– +
+ –
201 $8 99 $4
200 100
Figure C.5
© 2014 Pearson Education, Inc. MC - 22
Stepping-Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity
$5 $4 Start $3
(D) Des Moines 100 100
– +
$8 $4 $3
(E) Evansville 200 100 300
+ –
$9 $7 $5
(F) Fort Lauderdale 100 200 300
+ –
Warehouse
requirement 300 200 200 700
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
Evansville-Cleveland index
$9 = $3$7– $4 + $7
$5 – $5 = +$1
(F) Fort Lauderdale 100 200 300
(Closed path = EC – EB + FB – FC)
Warehouse
requirement 300 200
Fort Lauderdale-Albuquerque200 index
700
= $9 – $7 + $4 – $8 = –$2
(Closed path = FA – FB + EB – EA)
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 200 100 300
– +
$9 $7 $5
(F) Fort Lauderdale 100 200 300
+ –
Warehouse
requirement 1.
300 Add 100
200units on
200route FA
700
2. Subtract 100 from routes FB
3. Add 100 to route EB
4. Subtract 100 from route EA
Figure C.7
© 2014 Pearson Education, Inc. MC - 26
Stepping-Stone Method
To (A) (B) (C) Factory
From Albuquerque Boston Cleveland capacity
$5 $4 $3
(D) Des Moines 100 100
$8 $4 $3
(E) Evansville 100 200 300
$9 $7 $5
(F) Fort Lauderdale 100 200 300
Warehouse
requirement 300 200 200 700
Figure C.8
© 2014 Pearson Education, Inc. MC - 27
Special Issues in Modeling
▶Demand not equal to supply
▶Called an unbalanced problem
▶Common situation in the real world
▶Resolved by introducing dummy
sources or dummy destinations as
necessary with cost coefficients of zero
$5 $4 $3 0
(D) Des Moines 250 250
$8 $4 $3 0
(E) Evansville 50 200 50 300
$9 $7 $5 0
(F) Fort Lauderdale 150 150 300
Warehouse
requirement 300 200 200 150 850
New
Des Moines
capacity
© 2014 Pearson Education, Inc. MC - 29
Special Issues in Modeling
▶Degeneracy
▶To use the stepping-stone methodology,
the number of occupied squares in any
solution must be equal to the number of
rows in the table plus the number of
columns minus 1
▶If a solution does not satisfy this rule it is
called degenerate
$8 $2 $6
Warehouse 1 100 100
$10 $9 $9
Warehouse 2 0 100 20 120
$7 $10 $7
Warehouse 3 80 80
Customer
demand 100 100 100 300