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JOHN S. LOUCKS

St. Edward¶s University

© 2003 Thomson81/South-Western /South-

Slide 1

Chapter 7 Transportation, Assignment, and Transshipment Problems

Transportation Problem Network Representation and LP Formulation Transportation Simplex Method Assignment Problem Network Representation and LP Formulation Hungarian Method The Transshipment Problem Network Representation and LP Formulation

© 2003 Thomson81/South-Western /South-

Slide 2

Transportation, Assignment, and Transshipment Problems

A network model is one which can be represented by a set of nodes, a set of arcs, and functions (e.g. costs, supplies, demands, etc.) associated with the arcs and/or nodes. Transportation, assignment, and transshipment problems of this chapter, as well as the shortest route, minimal spanning tree, and maximal flow problems (Chapter 9) and PERT/CPM problems (Chapter 10) are all examples of network problems.

© 2003 Thomson81/South-Western /South-

Slide 3

assignment.Transportation. there are many computer packages (including The Management Scientist) which contain Scientist) separate computer codes for these models which take advantage of their network structure. and transshipment models) can be formulated as linear programs and solved by general purpose linear programming codes. the optimal solution will be in terms of integer values for the decision variables. For each of the three models. Assignment. © 2003 Thomson81/South-Western /South- Slide 4 . and Transshipment Problems Each of the three models of this chapter (transportation. However. if the right-hand side of rightthe linear programming formulations are all integers.

is cij. i. © 2003 Thomson81/South-Western /South- Slide 5 .Transportation Problem The transportation problem seeks to minimize the total shipping costs of transporting goods from m origins (each with a supply si) to n destinations (each with a demand dj). to a destination. The network representation for a transportation problem with two sources and three destinations is given on the next slide. j. when the unit shipping cost from an origin.

Transportation Problem Network Representation 1 c11 s1 1 c13 c21 s2 2 c23 c12 2 c22 3 d3 d2 d1 SOURCES © 2003 Thomson81/South-Western /South- DESTINATIONS Slide 6 .

xij . can be written as: Min 77cijxij 77c ij j s. 7xij < si for each origin i 7xij = dj for each destination j i xij > 0 for all i and j © 2003 Thomson81/South-Western /South- Slide 7 .t.Transportation Problem LP Formulation The LP formulation in terms of the amounts shipped from the origins to the destinations.

Transportation Problem LP Formulation Special Cases The following special-case modifications to the speciallinear programming formulation can be made: Minimum shipping guarantee from i to j: xij > Lij Maximum route capacity from i to j: xij < Lij Unacceptable route: Remove the corresponding decision variable. © 2003 Thomson81/South-Western /South- Slide 8 .

each of which can produce 50 tons per week.10 tons. Westwood -.45 tons. Delivery cost per ton from each plant to each suburban location is shown on the next slide. How should end of week shipments be made to fill the above orders? © 2003 Thomson81/South-Western /South- Slide 9 . and Eastwood -.Example: BBC Building Brick Company (BBC) has orders for 80 tons of bricks at three suburban locations as follows: Northwood -.25 tons. BBC has two plants.

Example: BBC Delivery Cost Per Ton Northwood 24 30 Westwood 30 40 Eastwood 40 42 Plant 1 Plant 2 © 2003 Thomson81/South-Western /South- Slide 10 .

Example: BBC Partial Spreadsheet Showing Problem Data A B C X12 1 D X13 1 E X21 1 1 F X22 1 1 G X23 1 H RHS 50 50 25 45 1 2 Constraint X11 #1 1 3 #2 4 5 #3 1 6 #4 #5 7 8 Obj.Coefficients 24 LHS Coefficients 1 1 30 40 30 1 40 42 10 30 © 2003 Thomson81/South-Western /South- Slide 11 .

Example: BBC Partial Spreadsheet Showing Optimal Solution A E X21 20 2490 F X22 0 G X23 10 B C D 10 X11 X12 X13 5 45 0 11 Dec. 16 30 P2. <= <= = = = RHS 50 50 25 45 10 © 2003 Thomson81/South-Western /South- Slide 12 .Cap.Cap.Dem. W.Dem. 17 25 N.Dem.Var.Values 12 Minimized Total Shipping Cost 13 14 LHS Constraints 15 50 P1. 18 45 19 10 E.

350 Northwood 20 600 Eastwood 10 420 Total Cost = $2.Example: BBC Optimal Solution From Plant 1 Plant 1 Plant 2 Plant 2 To Amount Cost Northwood 5 120 Westwood 45 1.490 © 2003 Thomson81/South-Western /South- Slide 13 .

Example: BBC Partial Sensitivity Report (first half) Adjustable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $C$12 X11 5 0 24 4 4 $D$12 X12 45 0 30 4 1E+30 $E$12 X13 0 4 40 1E+30 4 $F$12 X21 20 0 30 4 4 $G$12 X22 0 4 40 1E+30 4 $H$12 X23 10.000 0.000 42 4 1E+30 © 2003 Thomson81/South-Western /South- Slide 14 .

Side Increase Decrease 30.Dem P1.0 25 20 20 45.0 42.0 0.H.0 -6.Cap N.0 45 5 20 10.0 50 1E+30 20 25.Dem E.0 50 20 5 © 2003 Thomson81/South-Western /South- Slide 15 .Example: BBC Partial Sensitivity Report (second half) Constraints Cell $E$17 $E$18 $E$19 $E$20 $E$16 Name P2.Dem W.0 30.0 10 20 10 50.Cap Final Shadow Constraint Allowable Allowable Value Price R.0 36.

(If total supply is less than total demand.) When solving a transportation problem by its special purpose algorithm.Transportation Simplex Method The transportation simplex method requires that the sum of the supplies at the origins equal the sum of the demands at the destinations. +M © 2003 Thomson81/South-Western /South- Slide 16 . If the total supply is greater than the total demand. and shipping costs from all origins are zero. a dummy origin is added. a dummy destination is added with demand equal to the excess supply. unacceptable shipping routes are given a cost of +M (a large number).

Transportation Simplex Method A transportation tableau is given below. and the unit shipping costs are given in an upper right hand box in the cell. D1 S1 S2 Demand 25 15 30 D2 30 40 D3 20 35 Supply 50 30 45 10 © 2003 Thomson81/South-Western /South- Slide 17 . Each cell represents a shipping route (which is an arc on the network and a decision variable in the LP formulation).

Transportation Simplex Method The transportation problem is solved in two phases: phases: Phase I -. © 2003 Thomson81/South-Western /South- Slide 18 . Phase II: The Stepping Stone Method .may be used to move from the initial feasible solution to the optimal one.Obtaining an initial feasible solution Phase II -.Moving toward optimality Phase I: The Minimum-Cost Procedure can be used Minimumto establish an initial basic feasible solution without doing numerous iterations of the simplex method.using the MODI Method for evaluating the reduced costs .

© 2003 Thomson81/South-Western /South- Slide 19 . (If both are simultaneously reduced to 0.) GO TO STEP 1. Step 2: Decrease the row and column availabilities by this amount and remove from consideration all other cells in the row or column with zero availability/demand. assign an allocation of 0 to any other unoccupied cell in the row or column before deleting both.Minimum-Cost Method MinimumStep 1: Select the cell with the least cost.Transportation Simplex Method Phase I . Assign to this cell the minimum of its remaining row supply or remaining column demand.

© 2003 Thomson81/South-Western /South- Slide 20 . calculate the reduced cost by the MODI method described on an upcoming slide.Transportation Simplex Method Phase II .Stepping Stone Method Step 1: For each unoccupied cell. (For maximization problems select the unoccupied cell with the largest reduced cost. STOP. Select the unoccupied cell with the most negative reduced cost.) If none.

© 2003 Thomson81/South-Western /South- Slide 21 .Transportation Simplex Method Phase II . Determine the minimum allocation where a subtraction is to be made along this path.Stepping Stone Method (continued) Step 2: For this unoccupied cell generate a stepping stone path by forming a closed loop with this cell and occupied cells by drawing connecting alternating horizontal and vertical lines between them.

) GO TO STEP 1.Stepping Stone Method (continued) Step 3: Add this allocation to all cells where additions are to be made. (Note: An occupied cell on the stepping stone path now becomes 0 (unoccupied). If more than one cell becomes 0.Transportation Simplex Method Phase II . and subtract this allocation to all cells where subtractions are to be made along the stepping stone path. make only one unoccupied. make the others occupied with 0's. © 2003 Thomson81/South-Western /South- Slide 22 .

Step 1: Set u1 = 0. © 2003 Thomson81/South-Western /South- Slide 23 . with each row and vj with each column.ui .j).Transportation Simplex Method MODI Method (for obtaining reduced costs) Associate a number. Step 3: For unoccupied cells (i.vj. the reduced cost = (i cij . Step 2: Calculate the remaining ui's and vj's by solving the relationship cij = ui + vj for occupied cells. ui.

Northwood Westwood Plant 1 Plant 2 Demand 24 30 Eastwood 40 Dummy 0 Supply 50 50 30 40 42 0 25 45 10 20 © 2003 Thomson81/South-Western /South- Slide 24 . a dummy destination is created with demand of 20 and 0 unit costs.Example: BBC Initial Transportation Tableau Since total supply = 100 and total demand = 80.

Example: BBC Phase I: Minimum-Cost Procedure MinimumIteration 1: Tie for least cost (0). © 2003 Thomson81/South-Western /South- Slide 25 . arbitrarily select x14. Allocate 20. Reduce s1 by 25 to 5 and eliminate the Northwood column. Allocate 25. Reduce s1 by 20 to 30 and delete the Dummy column. Iteration 2: Of the remaining cells the least cost is 24 for x11.

make the final allocations of 40 and 10 to x22 and x23. Reduce the Westwood column to 40 and eliminate the Plant 1 row. © 2003 Thomson81/South-Western /South- Slide 26 . respectively. Iteration 4: Since there is only one row with two cells left. Allocate 5.Example: BBC Phase I: Minimum-Cost Procedure (continued) MinimumIteration 3: Of the remaining cells the least cost is 30 for x12.

v2 = 30. Since ui + v2 = ci2 for occupied cells in column 2. © 2003 Thomson81/South-Western /South- Slide 27 . 3. Set u1 = 0 2. Since u1 + vj = c1j for occupied cells in row 1. then u2 + 30 = 40. then v1 = 24. 4.Example: BBC Phase II ² Iteration 1 MODI Method 1. Since u2 + vj = c2j for occupied cells in row 2. v4 = 0. hence u2 = 10. then 10 + v3 = 42. hence v3 = 32.

4) Reduced Cost 40 .32 = 8 30 .3) (2.ui + vj.10 .24 -10 = -4 0 . Unoccupied Cell (1.1) (2.0 .Example: BBC Phase II ² Iteration 1 MODI Method (continued) Calculate the reduced costs (circled numbers on the next slide) by cij .0 = -10 © 2003 Thomson81/South-Western /South- Slide 28 .

Example: BBC Phase II ² Iteration 1 MODI Method (continued) Northwood Westwood Eastwood Dummy ui 0 10 Plant 1 Plant 2 25 -4 24 24 30 5 40 30 30 40 +8 10 32 40 42 20 -10 0 0 0 vj © 2003 Thomson81/South-Western /South- Slide 29 .

(1. The allocations in the subtraction cells are 20 and 40. (1.2).4) is (2.2). © 2003 Thomson81/South-Western /South- Slide 30 . The minimum is 20. respectively. Thus for the next tableau: x24 = 0 + 20 = 20 (0 is its current allocation) x14 = 20 .4).4). and hence reallocate 20 along this path.Example: BBC Phase II ² Iteration 1 Stepping Stone Method The stepping stone path for cell (2.20 = 0 (blank for the next tableau) x12 = 5 + 20 = 25 x22 = 40 . (2.20 = 20 The other occupied cells remain the same.

2. 3. Set u1 = 0. v2 = 30.Example: BBC Phase II . 4. and. 10 + v4 = 0 or v4 = -10. Since u2 + vj = c2j for occupied cells in row 2. or u2 = 10. Since u1 + vj = cij for occupied cells in row 1. Since ui + v2 = ci2 for occupied cells in column 2. then u2 + 30 = 40.Iteration 2 MODI Method The reduced costs are found by calculating the ui's and vj's for this tableau. © 2003 Thomson81/South-Western /South- Slide 31 . then 10 + v3 = 42 or v3 = 32. 1. then v1 = 24.

32 = 8 0 .0 .24 = -4 © 2003 Thomson81/South-Western /South- Slide 32 .1) Reduced Cost 40 .Example: BBC Phase II .4) (2.Iteration 2 MODI Method (continued) Calculate the reduced costs (circled numbers on the next slide) by cij .(-10) = 10 30 .ui + vj.0 .10 .3) (1. Unoccupied Cell (1.

Example: BBC Phase II .Iteration 2 MODI Method (continued) Northwood Westwood Eastwood Dummy ui 0 10 Plant 1 Plant 2 25 -4 24 24 30 25 20 30 30 40 +8 10 36 40 42 +10 20 -6 0 0 vj © 2003 Thomson81/South-Western /South- Slide 33 .

The stepping stone path for this cell is (2.(1.2). The allocations in the subtraction cells are 25 and 20 respectively.Example: BBC Phase II .1).(1.2). the new solution is obtained by reallocating 20 on the stepping stone path.Iteration 2 Stepping Stone Method The most negative reduced cost is = -4 determined by x21. © 2003 Thomson81/South-Western /South- Slide 34 .(2.1). Thus.

Iteration 2 Stepping Stone Method (continued) Thus. for the next tableau: x21 = 0 + 20 = 20 (0 is its current allocation) x11 = 25 . © 2003 Thomson81/South-Western /South- Slide 35 .20 = 0 (blank for the next tableau) The other occupied cells remain the same.Example: BBC Phase II .20 = 5 x12 = 25 + 20 = 45 x22 = 20 .

1. Since u1 + vj = c1j for occupied cells in row 1.Iteration 3 MODI Method The reduced costs are found by calculating the ui's and vj's for this tableau. 3. Set u1 = 0 2. then u2 + 24 = 30 or u2 = 6. Since ui + v1 = ci1 for occupied cells in column 2. Since u2 + vj = c2j for occupied cells in row 2. 4. then v1 = 24 and v2 = 30. and 6 + v4 = 0 or v4 = -6.Example: BBC Phase II . © 2003 Thomson81/South-Western /South- Slide 36 . then 6 + v3 = 42 or v3 = 36.

36 = 4 0 .30 = 4 © 2003 Thomson81/South-Western /South- Slide 37 .(-6) = 6 40 .3) (1.Iteration 3 MODI Method (continued) Calculate the reduced costs (circled numbers on the next slide) by cij . Unoccupied Cell (1.0 .4) (2.2) Reduced Cost 40 .ui + vj.0 .Example: BBC Phase II .6 .

Example: BBC Phase II . Northwood Westwood Eastwood Dummy ui 0 6 Plant 1 Plant 2 5 20 24 24 30 45 +4 30 30 40 +4 10 36 40 42 +6 20 -6 0 0 vj © 2003 Thomson81/South-Western /South- Slide 38 .Iteration 3 MODI Method (continued) Since all the reduced costs are non-negative. this is nonthe optimal tableau.

350 Northwood 20 600 Eastwood 10 420 Total Cost = $2.Example: BBC Optimal Solution From Plant 1 Plant 1 Plant 2 Plant 2 To Amount Cost Northwood 5 120 Westwood 45 1.490 © 2003 Thomson81/South-Western /South- Slide 39 .

Assignment Problem An assignment problem seeks to minimize the total cost assignment of m workers to m jobs. © 2003 Thomson81/South-Western /South- Slide 40 . The network representation of an assignment problem with three workers and three jobs is shown on the next slide. It assumes all workers are assigned and each job is performed. given that the cost of worker i performing job j is cij. An assignment problem is a special case of a transportation problem in which all supplies and all demands are equal to 1. hence assignment problems may be solved as linear programs.

Assignment Problem Network Representation 1 AGENTS c11 c12 c13 c21 c22 1 TASKS 2 2 c23 c31 3 c32 3 c33 © 2003 Thomson81/South-Western /South- Slide 41 .

t. Slide 42 © 2003 Thomson81/South-Western /South- . j i 7xij = 1 for each agent i for each task j 7xij = 1 xij = 0 or 1 for all i and j Note: A modification to the right-hand side of the rightfirst constraint set can be made if a worker is permitted to work more than 1 job.Assignment Problem LP Formulation Min 77cijxij 77c ij s.

Assignment Problem LP Formulation Special Cases Number of agents exceeds the number of tasks: j 7xij < 1 for each agent i Number of tasks exceeds the number of agents: Add enough dummy agents to equalize the number of agents and the number of tasks. © 2003 Thomson81/South-Western /South- Slide 43 . The objective function coefficients for these new variable would be zero.

An agent is permitted to work a j tasks: 7xij < a for each agent i © 2003 Thomson81/South-Western /South- Slide 44 .Assignment Problem LP Formulation Special Cases (continued) The assignment alternatives are evaluated in terms of revenue or profit: Solve as a maximization problem. An assignment is unacceptable: Remove the corresponding decision variable.

Given below are the distances between the subcontractors and the projects. Subcontractor Westside Federated Goliath Universal Projects A B C 50 36 16 28 30 18 35 32 20 25 25 14 How should the contractors be assigned to minimize total costs? © 2003 Thomson81/South-Western /SouthSlide 45 . On a given day the contractor is faced with three electrical jobs associated with various projects.Example: Hungry Owner A contractor pays his subcontractors a fixed fee plus mileage for work performed.

18 35 Gol. 36 16 28 30 32 A Projects B Subcontractors Fed. 20 25 14 C 25 Univ. West.Example: Hungry Owner Network Representation 50 West. © 2003 Thomson81/South-Western /South- Slide 46 .

t.Example: Hungry Owner Linear Programming Formulation Min s. 50x11+36x12+16x13+28x21+30x22+18x23 50x +36x +16x +28x +30x +18x +35x +32x +20x +25x +25x +14x +35x31+32x32+20x33+25x41+25x42+14x43 x11+x12+x13 < 1 x21+x22+x23 < 1 Agents x31+x32+x33 < 1 x41+x42+x43 < 1 x11+x21+x31+x41 = 1 x12+x22+x32+x42 = 1 Tasks x13+x23+x33+x43 = 1 xij = 0 or 1 for all i and j © 2003 Thomson81/South-Western /South- Slide 47 .

create an opportunity loss matrix subtracting all profits for each job from the maximum profit for that job before beginning the Hungarian method © 2003 Thomson81/South-Western /South- Slide 48 .assign cij = +M +M maximization objective -. Special considerations can include: number of workers does not equal the number of jobs -.Hungarian Method The Hungarian method solves minimization assignment problems with m workers and m jobs.add dummy workers or jobs with 0 assignment costs as needed worker i cannot do job j -.

Hungarian Method

Step 1: For each row, subtract the minimum number in that row from all numbers in that row. Step 2: For each column, subtract the minimum number in that column from all numbers in that column. Step 3: Draw the minimum number of lines to cover all zeroes. If this number = m, STOP -- an assignment can be made. Step 4: Subtract d (the minimum uncovered number) from uncovered numbers. Add d to numbers covered by two lines. Numbers covered by one line remain the same. Then, GO TO STEP 3.

© 2003 Thomson81/South-Western /South-

Slide 49

Hungarian Method

Finding the Minimum Number of Lines and Determining the Optimal Solution Step 1: Find a row or column with only one unlined zero and circle it. (If all rows/columns have two or more unlined zeroes choose an arbitrary zero.) Step 2: If the circle is in a row with one zero, draw a line through its column. If the circle is in a column with one zero, draw a line through its row. One approach, when all rows and columns have two or more zeroes, is to draw a line through one with the most zeroes, breaking ties arbitrarily. Step 3: Repeat step 2 until all circles are lined. If this minimum number of lines equals m, the circles provide the optimal assignment.

© 2003 Thomson81/South-Western /SouthSlide 50

Example: Hungry Owner

Initial Tableau Setup Since the Hungarian algorithm requires that there be the same number of rows as columns, add a Dummy column so that the first tableau is: A 50 28 35 25 B 36 30 32 25 C Dummy 16 0 18 0 20 0 14 0

Westside Federated Goliath Universal

© 2003 Thomson81/South-Western /South-

Slide 51

Example: Hungry Owner Step 1: Subtract minimum number in each row from all numbers in that row. for Dummy it is 0. For A it is 25. for C it is 14. for B it is 25. Since each row has a zero. This yields: A 25 3 10 0 B 11 5 7 0 C Dummy 2 0 4 0 6 0 0 0 Westside Federated Goliath Universal © 2003 Thomson81/South-Western /South- Slide 52 . Step 2: Subtract the minimum number in each column from all numbers in the column. we would simply generate the same matrix above.

draw a line through the column. draw a line through the row. use the following algorithm. A 25 3 10 0 B 11 5 7 0 C Dummy 2 0 4 0 6 0 0 0 Westside Federated Goliath Universal © 2003 Thomson81/South-Western /South- Slide 53 . Although one can "eyeball" this minimum.Example: Hungry Owner Step 3: Draw the minimum number of lines to cover all zeroes. If a remaining column has only one zero in it. If a "remaining" row has only one zero.

Subtract 2 from uncovered numbers. add 2 to all numbers covered by two lines.Example: Hungry Owner Step 4: The minimum uncovered number is 2. This gives: A 23 1 8 0 B 9 3 5 0 C Dummy 0 0 2 0 4 0 0 2 Westside Federated Goliath Universal © 2003 Thomson81/South-Western /South- Slide 54 .

Example: Hungry Owner Step 3: Draw the minimum number of lines to cover all zeroes. A 23 1 8 0 B 9 3 5 0 C Dummy 0 0 2 0 4 0 0 2 Westside Federated Goliath Universal © 2003 Thomson81/South-Western /South- Slide 55 .

Subtract 1 from uncovered numbers. This gives: A 23 0 7 0 B 9 2 4 0 C Dummy 0 1 1 0 3 0 0 3 Westside Federated Goliath Universal © 2003 Thomson81/South-Western /South- Slide 56 . Add 1 to numbers covered by two lines.Example: Hungry Owner Step 4: The minimum uncovered number is 1.

Thus. The optimal assignment is: Subcontractor Project Distance Westside C 16 Federated A 28 Goliath (unassigned) Universal B 25 Total Distance = 69 miles © 2003 Thomson81/South-Western /South- Slide 57 . there is a minimum-cost assignment of 0's minimumwith this tableau.Example: Hungry Owner Step 3: The minimum number of lines to cover all 0's is four.

and two destinations is shown on the next slide. Transshipment problems can be converted to larger transportation problems and solved by a special transportation program. Transshipment problems can also be solved by general purpose linear programming codes. © 2003 Thomson81/South-Western /South- Slide 58 . The network representation for a transshipment problem with two sources.Transshipment Problem Transshipment problems are transportation problems in which a shipment may move through intermediate nodes (transshipment nodes)before reaching a particular destination node. three intermediate nodes.

Transshipment Problem Network Representation 3 c36 c37 c46 6 c13 s1 Supply 1 c14 c15 4 d1 Demand c47 c56 c23 s2 2 c24 c25 5 7 d2 c57 DESTINATIONS SOURCES INTERMEDIATE NODES © 2003 Thomson81/South-Western /South- Slide 59 .

Transshipment Problem Linear Programming Formulation xij represents the shipment from node i to node j Min 77cijxij 77c ij s. 7xij < si j for each origin i 7xik .t.7xkj = 0 for each intermediate i j node k 7xij = dj i xij > 0 for each destination j for all i and j © 2003 Thomson81/South-Western /South- Slide 60 .

They both order shelving from the same two manufacturers. and 40 for Rockwright. Rockwright) with customized shelving for its offices. Both Arnold and Supershelf can supply at most 75 units to its customers. Inc. © 2003 Thomson81/South-Western /South- Slide 61 . Hewes. 60 for Hewes. Additional data is shown on the next slide.Example: Transshipping Thomas Industries and Washburn Corporation supply three firms (Zrox. Arnold Manufacturers and Supershelf. Currently weekly demands by the users are 50 for Zrox.

unit costs from the manufacturers to the suppliers are: Thomas Arnold 5 Supershelf 7 Washburn 8 4 The costs to install the shelving at the various locations are: Zrox Thomas 1 Washburn 3 © 2003 Thomson81/South-Western /South- Hewes 5 4 Rockwright 8 4 Slide 62 .Example: Transshipping Because of long standing contracts based on past orders.

Example: Transshipping Network Representation ZROX Zrox 50 75 ARNOLD Arnold 5 Thomas 1 5 8 Hewes HEWES 8 60 7 75 Super Shelf 3 WashWash WASH BURN Burn 4 4 RockRockWright 4 40 © 2003 Thomson81/South-Western /South- Slide 63 .

2 (Supershelf) j = 3 (Thomas). 7 (Rockwright) Objective Function Defined Minimize Overall Shipping Costs: Min 5x13 + 8x14 + 7x23 + 4x24 + 1x35 + 5x36 + 8x37 5x 8x 7x 4x 1x 5x 8x + 3x45 + 4x46 + 4x47 3x 4x 4x © 2003 Thomson81/South-Western /SouthSlide 64 . 4 (Washburn) k = 5 (Zrox). 6 (Hewes).Example: Transshipping Linear Programming Formulation Decision Variables Defined xij = amount shipped from manufacturer i to supplier j xjk = amount shipped from supplier j to customer k where i = 1 (Arnold).

x45 . © 2003 Thomson81/South-Western /South- Slide 65 .x46 .x47 = 0 x35 + x45 = 50 x36 + x46 = 60 x37 + x47 = 40 NonNon-negativity of Variables: xij > 0. for all i and j.Example: Transshipping Constraints Defined Amount Out of Arnold: Amount Out of Supershelf: Amount Through Thomas: Amount Through Washburn: Amount Into Zrox: Amount Into Hewes: Amount Into Rockwright: x13 + x14 < 75 x23 + x24 < 75 x13 + x23 .x36 .x37 = 0 x14 + x24 .x35 .

000 2.000 0.000 35.000 0.000 25.000 3.Example: Transshipping Optimal Solution (from The Management Scientist ) Objective Function Value = Variable X13 X14 X23 X24 X35 X36 X37 X45 X46 X47 © 2003 Thomson81/South-Western /South- 1150.000 .000 50.000 0.000 0.000 0.000 0.000 Reduced Costs 0.000 40.000 3.000 0.000 0.000 4.000 Slide 66 Value 75.000 0.000 75.

Example: Transshipping Optimal Solution ZROX Zrox 50 75 Arnold ARNOLD 5 8 75 Thomas 1 5 8 Hewes HEWES 60 7 75 Super Shelf 3 4 WashWash WASH BURN Burn 4 4 RockRockWright 40 © 2003 Thomson81/South-Western /South- Slide 67 .

000 0.000 0.000 -6.000 -10.000 0.000 © 2003 Thomson81/South-Western /South- Slide 68 .000 -10.Example: Transshipping Optimal Solution (continued) Constraint 1 2 3 4 5 6 7 Slack/Surplus 0.000 0.000 -6.000 Dual Prices 0.000 0.000 -5.000 2.000 0.

Example: Transshipping Optimal Solution (continued) OBJECTIVE COEFFICIENT RANGES Variable Lower Limit Current Value Upper Limit X13 X14 X23 X24 X35 X36 X37 X45 X46 X47 3.000 7.000 3.000 No Limit No Limit 3.000 1.000 Slide 69 © 2003 Thomson81/South-Western /South- .000 7.000 No Limit 5.000 4.000 7.000 3.000 5.000 8.000 7.000 2.000 4.000 5.000 0.000 4.000 No Limit No Limit 6.000 No Limit No Limit 6.000 6.000 8.000 4.

000 40.000 15.000 © 2003 Thomson81/South-Western /South- Slide 70 .000 75.000 0.000 60.000 40.000 -75.000 35.000 50.000 50.000 60.000 No Limit 75.000 0.000 -25.000 0.000 0.000 100.Example: Transshipping Optimal Solution (continued) RIGHT HAND SIDE RANGES Constraint 1 2 3 4 5 6 7 Lower Limit Current Value Upper Limit 75.000 0.000 75.

The End of Chapter 7 © 2003 Thomson81/South-Western /South- Slide 71 .

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