ADM 2302 [Q]

Business Analytics
DGD8: Transportation and Assignment
Problems
Sicen Li
sli302@uottawa.ca
For today…

3.16,15.15,15.19, (15.7)
3.16
Medequip Company
Transportation Problem

3.16 - Summary
The Medequip inc. produces medical equipment at two factories. Three medical centers have placed orders for this
month’s production output. The table below shows what the cost would be for shipping each unit from each factory
to each of these customers. Also shown are the number of units that will be produced at each factory and the
number of units ordered by each customer. A decision needs to be made about the shipping plan for how many units
to ship from each factory to each customer.

(a). Draw the network representation of this transportation problem

(b). Express the model in algebraic form
(c). Formulate a linear programming model for this problem on a spreadsheet and solve is using Solver.
Transportation Problem

3.16 - Network Diagram

 Transportation Problem

Balanced vs. Unbalanced Model

Pg. 17 and Pg. 22 from Prof. Jaber’s slides on Transportation and Assignment Problems
Transportation Problem

3.16 - Algebraic Formulation

Transportation Problem

3.16 - Excel Formulation

15.15
Supplying Widgets
Transportation Problem

15.15 - Summary
The Build-Em-Fast Company has agreed to supply its best customer with three widgets during each of the next three
weeks, even though producing them will require some overtime work. The relevant production data are as follows:

The cost per unit produced with overtime for each week is $100 more than for regular time. The cost of storage is $50
per unit for each week it is stored. There is already an inventory of two widgets on hand currently, but the company
does not want to retain any widgets in inventory after the three weeks. Management wants to know how many units
should be produced in each week to minimize the total cost of meeting the delivery schedule.

(a). Draw the network representation of this transportation problem

(b). Express the model in algebraic form
(c). Formulate a linear programming model for this problem on a spreadsheet and solve is using Solver.
15.15 - Network Diagram
2 widgets Start 0$
5 0$
100
$

300$
2 widgets R1 350$
400
$ W1 3 widgets

400$
2 widgets O1 450$
500$

3 widgets R2
500$
W2 3 widgets
550$

600$
2 widgets O2 650$

W3 3 widgets
400$
1 widget R3

500$

2 widgets O3
Transportation Problem

15.15 - Algebraic Formulation

Let x­ij = the number of widgets produced in regular time in week i shipped in week j
Where i = 1, 2, 3 and j = 1, 2, 3
Let y­ij = the number of widgets produced overtime in week i shipped in week j
Where i = 1, 2, 3 and j = 1, 2, 3
Let z­ij = the number of widgets in storage at the beginning of week 1 shipped in week i
Where i = 1, 2, 3

Min cost = 300x11 + 350x12 + 400x13 + 500x22 + 550x23 + 400x33 + 400y11 + 450y12 + 500y13 + 600y22 + 650y23
+ 500y33 + 0z1 + 50z2 + 100z3

x11 + x12 + x13 =< 2 (max production reg. time week 1) y11 + y12 + y13 =<2 (max production overtime week 1)
x22 + x23 =< 3 (max production reg. time week 2) y22 + y23 =< 2 (max production overtime week 2)
x33 =< 1 (max production reg. time week 3) y33 =< 2 (max production overtime week 3)

x11 + y11 + z1 = 3 (demand for week 1)

z1 + z 2 + z 3 = 2
x12 + x22 + y12 + y22 + z2 = 3 (demand for week 2)
xij >= 0, yij >=0, zi >= 0, for all i, j
x13 + x23 + x33 + y13 + y23 + y33 + z3 = 3 (demand for week 3)
Transportation Problem

15.15 - Excel Formulation

15.19
Assignment Problem
Assignment Problem

15.19 - Summary
Consider the assignment problem having the following cost table:

(a). Draw the network representation of this assignment problem

(b). Express the model in algebraic form
(c). Formulate this problem on a spreadsheet and then use the Excell Solver to obtain an optimal solution
Assignment Problem

15.19 - Network Diagram

Assignees Tasks

8
A 6 1
5
7
6
5
B 3 2
4
7
8
4
C 6 3
6
7
5
6
D 4
Assignment Problem

15.19 - Algebraic Formulation

Let x­ij = 1 if assignee i is assigned to task j, 0 otherwise
Where i = A, B, C, D and j = 1, 2, 3, 4

Min Z = 8xA1 + 6xA2 + 5xA3 + 7xA4 + 6xB1 + 5xB2 + 3xB3 + 4xB4 + 7xC1 + 8xC2 + 4xC3 + 6xC4 + 6xD1 + 7xD2 + 5xD3 + 6xD4

xA1 + xA2 + xA3 + xA4 = 1

xB1 + xB2 + xB3 + xB4 = 1
xC1 + xC2 + xC3 + xC4 = 1
xD1 + xD2 + xD3 + xD4 = 1

xA1 + xB1 + xC1 + xD1 = 1

xA2 + xB2 + xC2 + xD2 = 1
xA3 + xB3 + xC3 + xD3 = 1
xA4 + xB4 + xC4 + xD4 = 1

x­ij >= 0, for all i and j

Assignment Problem

15.19 - Excel Formulation

15.7
Land Allocation (if time permits)
Transportation Problem

15.7 - Summary
Suppose that England, France, and Spain produce all the wheat, barley, and oats in the world. The world demand for
wheat requires 125 million acres of land devoted to wheat production. Similarly, 60 million acres of land are required
for barley and 75 million acres of land are required for oats. The total amount of land available for these purposes in
England, France, and Spain is 70 million acres, 110 million acres, and 80 million acres, respectively. The number of
hours of labor needed in England, France, and Spain, respectively, to produce an acre of wheat is 18, 13, and 16; to
produce an acre of barley is 15, 12, and 12; and to produce an acre of oats is 12, 10, and 16. The labor cost per hour
in England, France, and Spain, respectively, for producing wheat is $9.00, $7.20, and $9.90; for producing barley is
$8.10, $9.00, and $8.40; and for producing oats is $6.90, $7.50, and $6.30. The problem is to allocate land use in each
country so as to meet the world food requirements and minimize the total labor cost.

(a). Draw the network representation of this assignment problem

(b). Express the model in algebraic form
(c). Formulate a linear programming model for this problem on a spreadsheet and solve is using Solver.
Transportation Problem

15.7 - Network Diagram

Transportation Problem

15.7 - Algebraic Formulation

x11 ≥ 0, x12 ≥ 0, x13 ≥ 0, x21 ≥ 0, x22 ≥ 0, x23 ≥ 0, x31 ≥ 0, x32 ≥ 0, x33 ≥ 0

Transportation Problem

15.7 - Excel Formulation

 Thanks
Let me know if you have any questions...