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Transportation and Transshipment Models

Chapter 11 Supplement

Russell and Taylor

Operations and Supply Chain Management, 8th Edition

Lecture Outline

Transportation Model – Slide 3

Transshipment Model – Slide 12

Supplement 11-2

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Transportation Model

A model formulated for a class of problems with the following characteristics

items are transported from a number of sources to a number of destinations at minimum cost

each source supplies a fixed number of units

each destination has a fixed demand for units

Solution Methods

stepping-stone

modified distribution

Excel’s Solver

Supplement 11-3

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Supplement 11-4

Transportation Method Example

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Supplement 11-5

Transportation Method

Problem Formulation with Excel

Supplement 11-6

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Solver Parameters

Supplement 11-7

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Solution

Supplement 11-8

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Modified Problem Solution

Supplement 11-9

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Modified Problem Settings

Supplement 11-10

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

OM Tools

Supplement 11-11

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Transshipment Model

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Supplement 11-12

Transshipment Model Solution

Supplement 11-13

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

=SUM(B6:B7)

=SUM(B6:D6)

=SUM(C13:C15)

=SUM(C13:E13)

=C8-F14

= B8-F13, the amount shipped into KC equals the amount shipped out

13

Transshipment Settings

Supplement 11-14

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Supplement 11-15

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Copyright 2014 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.