Professional Documents
Culture Documents
Transportation and
Assignment Models
To accompany
Quantitative Analysis for Management, Eleventh Edition, Global Edition
by Render, Stair, and Hanna
Power Point slides created by Brian Peterson
Factories Warehouses
Supply (Sources) (Destinations) Demand
$5
100 Units Des Moines Albuquerque 300 Units
$4
$3
$8
300 Units Evansville $4 Boston 200 Units
$3
$9
$7
300 Units Fort Lauderdale Cleveland 200 Units
$5
Figure 9.1
Program 9.1
i = 1, 2,…, m.
j = 1, 2, …, n.
Figure 9.2
Program 9.2
Distribution Centers
Frosty Machines manufactures snow blowers in Toronto and
Detroit.
These are shipped to regional distribution centers in Chicago
and Buffalo.
From there they are shipped to supply houses in New York,
Philadelphia, and St Louis.
Shipping costs vary by location and destination.
Snow blowers cannot be shipped directly from the factories to
the supply houses.
Copyright © 2012 Pearson Education 9-20
Network Representation of
Transshipment Example
Figure 9.3
Copyright © 2012 Pearson Education 9-21
Transshipment Applications
Frosty Machines Transshipment Data
TO
NEW YORK
FROM CHICAGO BUFFALO CITY PHILADELPHIA ST LOUIS SUPPLY
Toronto $4 $7 — — — 800
Detroit $5 $7 — — — 700
Chicago — — $6 $4 $5 —
Buffalo — — $2 $3 $4 —
Demand — — 450 350 300
Table 9.1
Program 9.3
DES MOINES $5 $4 $3
100
FACTORY
EVANSVILLE $8 $4 $3
300
FACTORY
FORT LAUDERDALE $9 $7 $5
300
FACTORY
WAREHOUSE
300 200 200 700
REQUIREMENTS
Cell representing a
Total supply source-to-destination
Table 9.2 Cost of shipping 1 unit from Cleveland (Evansville to Cleveland)
and demand
Fort Lauderdale factory to warehouse shipping assignment
Boston warehouse demand that could be made
Copyright © 2012 Pearson Education 9-28
Developing an Initial Solution:
Northwest Corner Rule
Once we have arranged the data in a table, we
must establish an initial feasible solution.
One systematic approach is known as the
northwest corner rule.
Start in the upper left-hand cell and allocate units
to shipping routes as follows:
1. Exhaust the supply (factory capacity) of each row before
moving down to the next row.
2. Exhaust the demand (warehouse) requirements of each
column before moving to the right to the next column.
3. Check that all supply and demand requirements are met.
This problem takes five steps to make the initial
shipping assignments.
DES MOINES $5 $4 $3
100 100
(D)
EVANSVILLE $8 $4 $3
300
(E)
FORT LAUDERDALE $9 $7 $5
300
(F)
WAREHOUSE
300 200 200 700
REQUIREMENTS
DES MOINES $5 $4 $3
100 100
(D)
EVANSVILLE $8 $4 $3
200 300
(E)
FORT LAUDERDALE $9 $7 $5
300
(F)
WAREHOUSE
300 200 200 700
REQUIREMENTS
DES MOINES $5 $4 $3
100 100
(D)
EVANSVILLE $8 $4 $3
200 100 300
(E)
FORT LAUDERDALE $9 $7 $5
300
(F)
WAREHOUSE
300 200 200 700
REQUIREMENTS
DES MOINES $5 $4 $3
100 100
(D)
EVANSVILLE $8 $4 $3
200 100 300
(E)
FORT LAUDERDALE $9 $7 $5
100 300
(F)
WAREHOUSE
300 200 200 700
REQUIREMENTS
DES MOINES $5 $4 $3
100 100
(D)
EVANSVILLE $8 $4 $3
200 100 300
(E)
FORT LAUDERDALE $9 $7 $5
100 200 300
(F)
WAREHOUSE
300 200 200 700
REQUIREMENTS
ROUTE
UNITS PER UNIT TOTAL
FROM TO
SHIPPED x COST ($) = COST ($)
D A 100 5 500
E A 200 8 1,600
E B 100 4 400
F B 100 7 700
F C 200 5 1,000
4,200
Steps 1 and 2.
2 Beginning with Des Moines–Boston
route we trace a closed path using only currently
occupied squares, alternately placing plus and
minus signs in the corners of the path.
In a closed path,
path only squares currently used for
shipping can be used in turning corners.
Only one closed route is possible for each square
we wish to test.
TO FACTORY
ALBUQUERQUE BOSTON CLEVELAND
FROM CAPACITY
$5 $4 $3
DES MOINES 100 100
$8 $4 $3
EVANSVILLE 200 100 300
$9 $7 $5
FORT LAUDERDALE 100 200 300
WAREHOUSE
300 200 200 700
REQUIREMENTS Table 9.3
Copyright © 2012 Pearson Education 9-43
Five Steps to Test Unused Squares
with the Stepping-Stone Method
Evaluating the unused Des Warehouse A Warehouse B
TO FACTORY
ALBUQUERQUE BOSTON CLEVELAND
FROM CAPACITY
$5 $4 $3
DES MOINES 100 100
$8 $4 $3
EVANSVILLE 200 100 300
$9 $7 $5
FORT LAUDERDALE 100 200 300
WAREHOUSE
300 200 200 700
REQUIREMENTS Table 9.4
Copyright © 2012 Pearson Education 9-44
Five Steps to Test Unused Squares
with the Stepping-Stone Method
Evaluating the unused Des Warehouse A Warehouse B
TO FACTORY
ALBUQUERQUE BOSTON CLEVELAND
FROM Result
CAPACITY of Proposed
$5 $4 $3 Shift in Allocation
DES MOINES 100 100
= 1 x $4
$8 $4 $3 – 1 x $5
EVANSVILLE 200 100 300 + 1 x $8
$9 $7 $5
– 1 x $4 = +$3
FORT LAUDERDALE 100 200 300
WAREHOUSE
300 200 200 700
REQUIREMENTS Table 9.4
Copyright © 2012 Pearson Education 9-45
Five Steps to Test Unused Squares
with the Stepping-Stone Method
Step 4.
4 Now compute an improvement index (Iij) for
the Des Moines–Boston route.
Add the costs in the squares with plus signs and
subtract the costs in the squares with minus signs:
Des Moines–
Boston index = IDB = +$4 – $5 + $5 – $4 = + $3
WAREHOUSE
+ –
300 200 200 700
REQUIREMENTS
Table 9.5
Des Moines–Cleveland
improvement index = IDC = + $3 – $5 + $8 – $4 + $7 – $5 = + $4
$8 $4 $3
E 200 100 300
– +
$9 $7 $5
F 100 200 300
WAREHOUSE
+ –
300 200 200 700
REQUIREMENTS
Table 9.6
TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100
$8 $4 $3
E 100 200 300
$9 $7 $5
F 100 200 300
WAREHOUSE
300 200 200 700
REQUIREMENTS
Table 9.7
D to B = IDB = + $4 – $5 + $8 – $4 = + $3
(closed path: + DB – DA + EA – EB)
D to C = IDC = + $3 – $5 + $9 – $5 = + $2
(closed path: + DC – DA + FA – FC)
E to C = IEC = + $3 – $8 + $9 – $5 = – $1
(closed path: + EC – EA + FA – FC)
F to B = IFB = + $7 – $4 + $8 – $9 = + $2
(closed path: + FB – EB + EA – FA)
Copyright © 2012 Pearson Education 9-54
Obtaining an Improved Solution
Path to Evaluate the E-C Route
TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100
$8 $4 $3
E 100 200 Start 300
– +
$9 $7 $5
F 100 200 300
WAREHOUSE
+ –
300 200 200 700
REQUIREMENTS
Table 9.8
ROUTE
DESKS PER UNIT TOTAL
FROM TO
SHIPPED x COST ($) = COST ($)
D A 100 5 500
E B 200 4 800
E C 100 3 300
F A 200 9 1,800
F C 100 5 500
3,900
TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100
$8 $4 $3
E 200 100 300
$9 $7 $5
F 200 100 300
WAREHOUSE
300 200 200 700
REQUIREMENTS
Table 9.9
D to B = IDB = + $4 – $5 + $9 – $5 + $3 – $4 = + $2
(closed path: + DB – DA + FA – FC + EC – EB)
D to C = IDC = + $3 – $5 + $9 – $5 = + $2
(closed path: + DC – DA + FA – FC)
E to A = IEA = + $8 – $9 + $5 – $3 = + $1
(closed path: + EA – FA + FC – EC)
F to B = IFB = + $7 – $5 + $3 – $4 = + $1
(closed path: + FB – FC + EC – EB)
$8 $4 $3 0
E 50 200 50 300
$9 $7 $5 0
F 150 150 300
WAREHOUSE
300 200 200 150 850
REQUIREMENTS
$10 $5 $8
PLANT X 175
$12 $7 $6
PLANT Y 75
Totals
WAREHOUSE 450
DEMAND
250 100 150 do not
500
balance
Table 9.11
$10 $5 $8
PLANT X 50 100 25 175
$12 $7 $6
PLANT Y 75 75
0 0 0
PLANT Y 50 50
WAREHOUSE
250 100 150 500
DEMAND
$10 $9 $9
WAREHOUSE 2 0 100 20 120
$7 $10 $7
WAREHOUSE 3 80 80
CUSTOMER
100 100 100 300
DEMAND
$15 $10 $7
FACTORY B 50 80 130
$3 $9 $10
FACTORY C 30 50 80
WAREHOUSE
150 80 50 280
REQUIREMENT
Table 9.14
$15 $7
FACTORY B 50
– +
$3 $10
FACTORY C 30 50
+ –
Table 9.15
Seattle $53
Table 9.16 Birmingham $49
TO LOS
FROM DETROIT DALLAS NEW YORK ANGELES
CINCINNATI $25 $55 $40 $60
SALT LAKE 35 30 50 40
PITTSBURGH 36 45 26 66
SEATTLE 60 38 65 27
BIRMINGHAM 35 30 41 50
Table 9.17
85 80 100 90
SALT LAKE 1,000 5,000 6,000
88 97 78 118
PITTSBURGH 14,000 14,000
84 79 90 99
BIRMINGHAM 11,000 11,000
WAREHOUSE
10,000 12,000 15,000 9,000 46,000
REQUIREMENT
Table 9.18
85 80 100 90
SALT LAKE 6,000 6,000
88 97 78 118
PITTSBURGH 14,000 14,000
113 91 118 80
SEATTLE 2,000 9,000 11,000
WAREHOUSE
10,000 12,000 15,000 9,000 46,000
REQUIREMENT
Table 9.19
Program 9.4
PROJECT
PERSON 1 2 3
Brown 8 10 11
Cooper 9 12 7
Table 9.20
PRODUCT ASSIGNMENT
LABOR TOTAL
1 2 3
COSTS ($) COSTS ($)
Adams Brown Cooper 11 + 10 + 7 28
Adams Cooper Brown 11 + 12 + 11 34
Brown Adams Cooper 8 + 14 + 7 29
Brown Cooper Adams 8 + 12 + 6 26
Cooper Adams Brown 9 + 14 + 11 34
Cooper Brown Adams 9 + 10 + 6 25
Table 9.21
Figure 9.4
Brown 8 10 11 Brown 0 2 3
Cooper 9 12 7 Cooper 2 5 0
Tables 9.22-9.23
Adams $5 $6 $0
Brown 0 0 3
Cooper 2 3 0
Table 9.24
Adams $5 $6 $0
Cooper 2 3 0
PROJECT
PERSON 1 2 3
Adams $3 $4 $0
Brown 0 0 5
Cooper 0 1 0
Table 9.26
Adams $3 $4 $0
Cooper 0 1 0
Table 9.27
Covering line 1 Covering line 3
Adams to project 3 6
Brown to project 2 10
Cooper to project 1 9
Total cost 25
1 2 3 1 2 3 1 2 3
Table 9.28
Program 9.5
PROJECT
PERSON 1 2 3 DUMMY
Adams $11 $14 $6 $0
Brown 8 10 11 0
Cooper 9 12 7 0
Table 9.29
Davis 10 13 8 0
Table 9.30
Table 9.31
SECTOR
SHIP A B C D
1 40 0 10 5
2 20 50 0 5
3 20 0 10 20
4 15 0 5 10
Table 9.32
SECTOR
SHIP A B C D
1 25 0 10 0
2 5 50 0 0
3 5 0 10 15
4 0 0 5 5
Table 9.33
ASSIGNMENT EFFICIENCY
Ship 1 to sector D 55
Ship 2 to sector C 80
Ship 4 to sector A 65