1. The Transportation Model
Chapter 8 Supplement
The Transportation Model

2. Requirements for Transportation Model
List of origins and each one’s capacity
List of destinations and each one’s demand
Unit cost of shipping

3. Transportation Model Assumptions
Items to be shipped are homogeneous
Shipping cost per unit is the same
Only one route between origin and destination

4. The Transportation Problem
Figure 8S-1 D
(demand) S
(supply)

5. A Transportation Table
Table 8S-1
Warehouse 4 7 1
100 12 3 8
200 10 16 5
150
450 80 90
120
160 A B C D 2
Factory
Factory 1
can supply 100
units per period
Total supply
capacity per
period
Total demand
per period
Demand
Warehouse B can use 90

6. Special Problems
Unequal supply and demand
Dummy: Imaginary number added equal to the difference between supply and demand when these are unequal
Degeneracy: The condition of too few completed cells to allow all necessary paths to be constructed

7. Summary of Procedure
Make certain that supply and demand are equal
Develop an initial solution using intuitive, low-cost approach
Check that completed cells = R+C-1
Evaluate each empty cell
Repeat until all cells are zero or positive

8. Excel Template
Figure 8S-2