Exam Review - Module 4

*When Total Supply > Total Demand, use “<” in the supply constraints instead of “=”. When Total Supply
< Total Demand, use “<” in the demand constraints instead of “=”

Route Capacities or Routine Minimum

● Constraints need to be added
○ Maximum route capacity, Lij:
■ Xij < Lij
○ Minimum Route capacity, Mij:
■ Xij > Mij

Unacceptable Routes
● Make the variables that correspond to unacceptable routes equal zero (Xij = 0 if the route from i
to j is not possible)

Example Transportation: Wheat is harvested in the Midwest and stored in grain elevators in three
different cities – Kansas City, Omaha, and Des Moines. These grain elevators supply three flour mills,
located in Chicago, St. Louis, and Cincinnati. Grain is shipped to the mills in railroad cars, each car
capable of holding one ton of wheat. The cost of shipping one ton of wheat from each grain elevator to
each mill, the demand of wheat per month for each mill, and the number of tons that each grain elevator
is able to supply to the mills on a monthly basis are shown in the parameters table:

Determine how many tons of wheat to transport from each gran elevator to each millon a monthly basis in
order to minimize the total cost of transportation.

Let Xij rep the amount of tons of wheat transported from grain elevator i (where i = 1,2,3), to mill j (where j =
A,B,C)

Min Z = $6X1A + 8X1B + 10X1C + 7X2A + 11X2B + 11X2X + 4X2A + 5X3B + 12X3C

Subjected to:
X1A + X1B + X1C = 150
X2A + X2B + X2C = 175
X3A + 32B + X3C = 275
X1A + X2A + X3A = 200
X1B + X2B + X3B = 100
X1C + X2C + X3C = 300
Xij > 0
Example Transportation: A manufacturer produces two products, A and B, and is trying to work out his
production schedule for the next two months. He currently has on hand 1,000 units of A and 800 units of
B and estimates sales over the period as shown in the following table:

If the production facilities were devoted entirely to producing product A, they could turn out a maximum of
4,000 units/month on regular shift operation and up to 1,000 units/month additional on overtime operation.
Similarly, if only product B was produced, regular shift capacity would be 6,000 units/month with 2,000
units/months additional available from overtime operation.
The production facilities can be devoted to any proportions of products A and B - e.g., 1,000 units of A (=
1/4 capacity) plus 4,500 units of B (= 3/4 capacity) would just use the total regular shift capacity for a
month.
Overtime production of product A costs $5/unit more than regular shift production, while for product B the
added cost is $3/unit. Management would like to end the two- month period with at least an inventory of
500 units of product A and 1,500 units of product B. It costs $3 to store one unit of Product A for a month
and $2 to store one unit of product B for a month.

Let Xij be the number of units of product i to produce during regular shift in period j
Let Yij be the number of product i to produce during overtime shift in period j
Let Iij be the number of units of product i in inventory at the end of period j
Where i = A, B and j = 1, 2

Max Z = 10XA1 + 10XA2 + 6XB1 + 6XB2 + 15YA1 + 15YA2 + 9YB1 + 9YB2 + 3IA1 + 3IA2 + 2IB1 + 2IB2

Subject to:

Demand Constraints:
1,000 + XA1 + YA1 - IA1 = 2,000 (month 1, product A)
800 + XB1 + YB1 - IB1 = 3,000 (month 1, product B)
IA1 + XA2 + YA2 - IA2 = 3,000 (month 2, product A)
IB1 + XB2 + YB2 - IB2 = 4,000 (month 2, product B)

Month 2 Ending Inventory:

IA2 > 500
IB2 > 1,500

Production Contraints:
XA1 / 4,000 + XB1 / 6,000 < 1
XA2 / 4,000 + XB2 / 6,000 < 1
YA1 / 1,000 + YB1 / 2,000 < 1
YA2 / 2,000 + YB2 / 2,000 < 1

Non-Negativity Constraints:
Xij, Yij, Iij, > 0 for all i = A, B and j = 1, 2