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# 8s-1

## The Transportation Model

Operations Management

William J. Stevenson

8th edition

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CHAPTER

8s

## The Transportation Model

McGraw-Hill/Irwin

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## List of destinations and each ones demand

Unit cost of shipping

Note: The DVD that accompanies this book contains a module that provides detailed instruction on the transportation model

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1.
2. 3.

## Items to be shipped are homogeneous

Shipping cost per unit is the same

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## The Transportation Problem

D (demand) S (supply) S (supply)

Figure 8S.1

D (demand)

D (demand)

S (supply)

D (demand)

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## The Transportation Model

A Transportation Table
B
4 7 Warehouse C 7

Table 8S.1
A
Factory 1 12 2 8 3 10 16 5 Total supply 450 capacity per 450 period Total demand per period 3 8 8 200

D
1 100 Factory 1 can supply 100 units per period

150

Demand

80

90

120

160

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## The Transportation Model

Special Problems

Unequal supply and demand Dummy: Imaginary number added equal to the difference between supply and demand when these are unequal Degeneracy: The condition of too few completed cells to allow all necessary paths to be constructed

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## The Transportation Model

Summary of Procedure

Make certain that supply and demand are equal Develop an initial solution using intuitive, low-cost approach Check that completed cells = R+C-1 Evaluate each empty cell Repeat until all cells are zero or positive

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Excel Template
Figure 8S.2

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CHAPTER

8s

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## The Transportation Model

ANALYSES

Transportation Model

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## The Transportation Model

Center of Gravity
Determine the center of gravity for the destinations shown on the following map. Monthly shipments will be the quantities listed in the table. Destination Quantity D1 900 D2 D2 300 D5 D3 700 D4 D1 D4 600 D5 800 D3