C–1OperationsManagementOperationsManagementModuleC–TransportationModelsModuleC–TransportationModelsPowerPointpresentationtoaccompanyPowerPointpresentationtoaccompanyHeizer/RenderHeizer/RenderPrinciplesofOperationsManagement,6ePrinciplesofOperationsManagement,6eOperationsManagement,8eOperationsManagement,8eC–2OutlineOutlineTransportationModelingTransportationModelingDevelopingAnInitialSolutionDevelopingAnInitialSolutionTheNorthwestTheNorthwest--CornerRuleCornerRuleTheIntuitiveLowestTheIntuitiveLowest--CostMethodCostMethodTheSteppingTheStepping--StoneMethodStoneMethodSpecialIssuesInModelingSpecialIssuesInModelingDemandNotEqualtoSupplyDemandNotEqualtoSupplyDegeneracyDegeneracyC–3LearningObjectivesLearningObjectivesWhenyoucompletethismodule,youWhenyoucompletethismodule,youshouldbeableto:shouldbeableto:IdentifyorDefine:IdentifyorDefine:TransportationmodelingTransportationmodelingFacilitylocationanalysisFacilitylocationanalysisC–4LearningObjectivesLearningObjectivesNorthwestNorthwest--cornerrulecornerruleSteppingStepping--stonemethodstonemethodWhenyoucompletethismodule,youWhenyoucompletethismodule,youshouldbeableto:shouldbeableto:ExplainorBeAbletoUse:ExplainorBeAbletoUse:C–5TransportationModelingTransportationModelingAninteractiveprocedurethatAninteractiveprocedurethatfindstheleastcostlymeansoffindstheleastcostlymeansofmovingproductsfromaseriesmovingproductsfromaseriesofsourcestoaseriesofofsourcestoaseriesofdestinationsdestinationsCanbeusedtohelpresolveCanbeusedtohelpresolvedistributionandlocationdistributionandlocationdecisionsdecisionsC–6TransportationModelingTransportationModelingAspecialclassoflinearAspecialclassoflinearprogrammingprogrammingNeedtoknowNeedtoknow1.1.TheoriginpointsandthecapacityTheoriginpointsandthecapacityorsupplyperperiodateachorsupplyperperiodateach2.2.ThedestinationpointsandtheThedestinationpointsandthedemandperperiodateachdemandperperiodateach3.3.ThecostofshippingoneunitfromThecostofshippingoneunitfromeachorigintoeachdestinationeachorigintoeachdestinationC–7TransportationProblemTransportationProblem$5$5$7$7$9$9FortLauderdaleFortLauderdale$3$3$4$4$8$8EvansvilleEvansville$3$3$4$4$5$5DesMoinesDesMoinesClevelandClevelandBostonBostonAlbuquerqueAlbuquerqueFromFromToToTableC.1TableC.1C–8TransportationProblemTransportationProblemAlbuquerque(300unitsrequired)DesMoines(100unitscapacity)Evansville(300unitscapacity)FortLauderdale(300unitscapacity)Cleveland(200unitsrequired)Boston(200unitsrequired)FigureC.1FigureC.1C–9TransportationMatrixTransportationMatrixFromToAlbuquerqueBostonClevelandDesMoinesEvansvilleFortLauderdaleFactorycapacityWarehouserequirement300300300200200100700$5$5$4$4$3$3$9$8$7Costofshipping1unitfromFortCostofshipping1unitfromFortLauderdalefactorytoBostonwarehouseLauderdalefactorytoBostonwarehouseDesMoinesDesMoinescapacitycapacityconstraintconstraintCellCellrepresentingrepresentingapossibleapossiblesourcesource--toto--destinationdestinationshippingshippingassignmentassignment(Evansville(EvansvilletoCleveland)toCleveland)TotaldemandTotaldemandandtotalsupplyandtotalsupplyClevelandClevelandwarehousedemandwarehousedemandFigureC.2FigureC.2C–10NorthwestNorthwest--CornerRuleCornerRuleStartintheupperleftStartintheupperleft--handcell(orhandcell(ornorthwestcorner)ofthetableandallocatenorthwestcorner)ofthetableandallocateunitstoshippingroutesasfollows:unitstoshippingroutesasfollows:1.1.Exhaustthesupply(factorycapacity)ofeachExhaustthesupply(factorycapacity)ofeachrowbeforemovingdowntothenextrowrowbeforemovingdowntothenextrow2.2.Exhaustthe(warehouse)requirementsofExhaustthe(warehouse)requirementsofeachcolumnbeforemovingtothenexteachcolumnbeforemovingtothenextcolumncolumn3.3.ChecktoensurethatallsuppliesandChecktoensurethatallsuppliesanddemandsaremetdemandsaremetC–11NorthwestNorthwest--CornerRuleCornerRule1.1.AssignAssign100100tubsfromDesMoinestoAlbuquerquetubsfromDesMoinestoAlbuquerque(exhaustingDesMoines(exhaustingDesMoines’’ssupply)ssupply)2.2.AssignAssign200200tubsfromEvansvilletoAlbuquerquetubsfromEvansvilletoAlbuquerque(exhaustingAlbuquerque(exhaustingAlbuquerque’’sdemand)sdemand)3.3.AssignAssign100100tubsfromEvansvilletoBostontubsfromEvansvilletoBoston(exhaustingEvansville(exhaustingEvansville’’ssupply)ssupply)4.4.AssignAssign100100tubsfromFortLauderdaletoBostontubsfromFortLauderdaletoBoston(exhaustingBoston(exhaustingBoston’’sdemand)sdemand)5.5.AssignAssign200200tubsfromFortLauderdaletotubsfromFortLauderdaletoCleveland(exhaustingClevelandCleveland(exhaustingCleveland’’sdemandandsdemandandFortLauderdaleFortLauderdale’’ssupply)ssupply)C–12To(A)Albuquerque(B)Boston(C)Cleveland(D)DesMoines(E)Evansville(F)FortLauderdaleWarehouserequirement300200200Factorycapacity300300100700$5$5$4$4$3$3$9$8$7FromNorthwestNorthwest--CornerRuleCornerRule100100100200200FigureC.3FigureC.3MeansthatthefirmisshippingMeansthatthefirmisshipping100100bathtubsfromFortLauderdaletoBostonbathtubsfromFortLauderdaletoBostonC–13NorthwestNorthwest--CornerRuleCornerRuleComputedShippingCostComputedS