Transportation and Transshipment Models Chapter 11 Supplement Russell and Taylor Operations and Supply Chain Management, 8th Edition

Supplement 10-2 Just how do you make decisions? Emotional direction Intuition Analytic thinking Are you an intuit, an analytic, what??? How many of you use models to make decisions??

42 Arise whenever there is a perceived difference between what is desired and what is in actuality. Problems serve as motivators for doing something Problems lead to decisions Problems

Supplement 10-4

Supplement 10-5 Model Classification Criteria Purpose Perspective Use the perspective of the targeted decision-maker Degree of Abstraction Content and Form Decision Environment {This is what you should start any modeling facilitation meeting with}

Supplement 10-6 Purpose Planning Forecasting Training Behavioral research

Supplement 10-7 Perspective Descriptive “Telling it like it is” Most simulation models are of this type Prescriptive “Telling it like it should be” Most optimization models are of this type

Supplement 10-8 Degree of Abstraction Isomorphic One-to-one Homomorphic One-to-many

Copyright 2006 John Wiley & Sons, Inc. Supplement 10-9 Content and Form verbal descriptions mathematical constructs simulations mental models physical prototypes

Copyright 2006 John Wiley & Sons, Inc. Supplement Decision Environment Decision Making Under Certainty TOOL: all of mathematical programming Decision Making under Risk and Uncertainty TOOL: Decision analysis--tables, trees, Bayesian revision Decision Making Under Change and Complexity TOOL: Structural models, simulation models

Copyright 2006 John Wiley & Sons, Inc. Supplement Mathematical Programming Linear programming Integer linear programming some or all of the variables are integer variables Network programming (produces all integer solutions) Nonlinear programming Dynamic programming Goal programming The list goes on and on Geometric Programming

Supplement A Model of this class What would we include in it?

Copyright 2006 John Wiley & Sons, Inc. Supplement Management Science Models A QUANTITATIVE REPRESENTATION OF A PROCESS THAT CONSISTS OF THOSE COMPONENTS THAT ARE SIGNIFICANT FOR THE PURPOSE BEING CONSIDERED

Copyright 2006 John Wiley & Sons, Inc. Supplement Mathematical programming models covered in Ch 11, Supplement Transportation Model Transshipment Model Not included are: Shortest Route Minimal Spanning Tree Maximal flow Assignment problem many others

Lecture Outline Transportation Model – Slide 3Transportation Model Transshipment Model – Slide 12Transshipment Model Supplement © 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 Excel’s Solver Supplement © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Supplement Transportation Method Example

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

Problem Formulation with Excel Supplement © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

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

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

Modified Problem Solution Supplement © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Modified Problem Settings Supplement © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

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

Transshipment Model © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e Supplement 11-25

Transshipment Model Solution Supplement © 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

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

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