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

2. 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??

3. 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

4. Supplement 10-4

5. 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}

6. Supplement 10-6 Purpose Planning Forecasting Training Behavioral research

7. 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

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

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

10. Copyright 2006 John Wiley & Sons, Inc. Supplement 10-10 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

11. Copyright 2006 John Wiley & Sons, Inc. Supplement 10-11 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

12. Supplement 10-12 A Model of this class What would we include in it?

13. Copyright 2006 John Wiley & Sons, Inc. Supplement 10-13 Management Science Models A QUANTITATIVE REPRESENTATION OF A PROCESS THAT CONSISTS OF THOSE COMPONENTS THAT ARE SIGNIFICANT FOR THE PURPOSE BEING CONSIDERED

14. Copyright 2006 John Wiley & Sons, Inc. Supplement 10-14 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

15. Lecture Outline Transportation Model – Slide 3Transportation Model Transshipment Model – Slide 12Transshipment Model Supplement 11-15 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

16. 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 11-16 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

17. Supplement 11-17 Transportation Method Example

18. © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e Supplement 11-18 Transportation Method

19. Problem Formulation with Excel Supplement 11-19 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

20. Solver Parameters Supplement 11-20 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

21. Solution Supplement 11-21 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

22. Modified Problem Solution Supplement 11-22 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

23. Modified Problem Settings Supplement 11-23 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

24. OM Tools Supplement 11-24 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

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

26. Transshipment Model Solution Supplement 11-26 © 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

27. Transshipment Settings Supplement 11-27 © 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

28. Supplement 11-28 © 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.