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Chap 8s The Transportation Model

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0% found this document useful (0 votes)
87 views

Chap 8s The Transportation Model

BA187

Uploaded by

rogean gullem
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 8

8s-1 The Transportation Model

Chapter 8 Supplement

The
Transportation Model

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-2 The Transportation Model

Requirements for Transportation Model

• List of origins and each one’s capacity


• List of destinations and each one’s
demand
• Unit cost of shipping

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-3 The Transportation Model

Transportation Model Assumptions

• Items to be shipped are homogeneous


• Shipping cost per unit is the same
• Only one route between origin and
destination

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-4 The Transportation Model

The Transportation Problem


Figure 8S-1
D
(demand)

S
(supply)
S
D (supply)
(demand)
D
(demand)

S
(supply) D
(demand)

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-5 The Transportation Model

A Transportation Table
Table 8S-1
Warehouse
A B C D
Factory 4 7 7 1 Factory 1
1 100 can
supply
12 3 8 8 100
200 units per
2
period
8 10 16 5
3 150
Total
supply
450 capacity
Demand 80 90 120 160 per
450 period
Warehouse B can use 90 Total demand
units per period per period
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-6 The Transportation Model

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

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-7 The Transportation Model

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

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
8s-8 The Transportation Model

Excel Template
Figure 8S-2

Operations Management, Seventh Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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