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Table C.1
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
$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 $8 $4 $3
necessarily the lowest 200
(E) Evansville
not 100 300
cost alternative $9 $7 $5
(F) Fort Lauderdale 300 300
Warehouse
requirement 300 200 200 700
$5 $4 $3
(D) Des Moines 100
- +
100 Des Moines-
(E) Evansville 200
$8
100
$4 $3
300 Boston index
+ -
(F) Fort Lauderdale
$9
100
$7
200
$5
300 = $4 - $5 + $8 - $4
Warehouse
requirement 300 200 200 700 = +$3
99 $5 1 $4
100
- +
201
+ $8 99
- $4
200 100
Figure C.5
© 2011 Pearson Education C - 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 Evansville-Cleveland
200 100 index 300
= $3 - $4$9+ $7 - $5
$7 = +$1 $5
(F) Fort Lauderdale 100 200 300
(Closed path = EC - EB + FB - FC)
Warehouse
requirement
Fort300
Lauderdale-Albuquerque
200 200 index
700
= $9 - $7 + $4 - $8 = -$1
(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 300 200 200 700
1. Add 100 units on route FA
2. Subtract 100 from routes FB
3. Add 100 to route EB
Figure C.7 4. Subtract 100 from route EA
© 2011 Pearson Education C - 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
© 2011 Pearson Education C - 27
Special Issues in Modeling
$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
Figure C.9 Des Moines
capacity
© 2011 Pearson Education C - 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