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Operational Decision-Making Tools: Transportation Model

Chapter 10 Supplement. Operational Decision-Making Tools: Transportation Model. Operations Management - 5 th Edition. Roberta Russell & Bernard W. Taylor, III. Transportation Model. A transportation model is formulated for a class of problems with the following characteristics

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Operational Decision-Making Tools: Transportation Model

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  1. Chapter 10 Supplement Operational Decision-Making Tools: Transportation Model Operations Management - 5th Edition Roberta Russell & Bernard W. Taylor, III

  2. Transportation Model • A transportation model is formulated for a class of problems with the following characteristics • a product is transported from a number of sources to a number of destinations at the minimum possible cost • each source is able to supply a fixed number of units of product • each destination has a fixed demand for product • Solution Methods • stepping-stone • modified distribution • Excel’s Solver

  3. Transportation Method: Example

  4. Transportation Method: Example

  5. How to Solve Using Excel • Input by hand • OM Tools Macro

  6. Other Twists (that you WILL be tested on!) • Our example was a “balanced” one – supply equaled demand • What if we have more demand than supply? • What if we have more supply than demand? • What if a shipping route is prohibited?

  7. Caution Using Excel’s Solver • MS Excel’s default solver is NOT industrial strength • It will not always give you the correct answer • It can be frustrating

  8. Alternative Solvers • CPLEX by ILOG • Considered the best • XPRESS MP by Dash Optimization • Frontline (www.solver.com) • XA • Lindo • Lp_solve • An open source solver that I personally use and like • COIN-OR (www.coin-or.org)

  9. Algebraic Modeling Languages • MPL by Maximal Software • GAMS (www.gams.com) • AIMMS (www.aimms.com) • AMPL (www.ampl.com) • MathProg • An open source subset of AMPL

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