Slides by
JOHN LOUCKS
St. Edwards University
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Slide 1
Chapter 6, Part A Distribution and Network Models
Transportation Problem Network Representation General LP Formulation Assignment Problem Network Representation General LP Formulation Transshipment Problem Network Representation General LP Formulation
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Slide 2
Transportation, Assignment, and Transshipment Problems
A network model is one which can be represented by a set of nodes, a set of arcs, and functions (e.g. costs, supplies, demands, etc.) associated with the arcs and/or nodes. Transportation, assignment, transshipment problems of this chapter as well as shortest-route, and maximal flow , minimal spanning tree and PERT/CPM problems (in others chapter) are all examples of network problems.
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Slide 3
Transportation, Assignment, and Transshipment Problems
Each of the three models of this chapter can be formulated as linear programs and solved by general purpose linear programming codes. For each of the three models, if the right-hand side of the linear programming formulations are all integers, the optimal solution will be in terms of integer values for the decision variables. However, there are many computer packages (including The Management Scientist) that contain separate computer codes for these models which take advantage of their network structure.
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Slide 4
Transportation Problem
The transportation problem seeks to minimize the total shipping costs of transporting goods from m origins (each with a supply si) to n destinations (each with a demand dj), when the unit shipping cost from an origin, i, to a destination, j, is cij. The network representation for a transportation problem with two sources and three destinations is given on the next slide.
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Slide 5
Transportation Problem
Network Representation 1 s1 1 d1
c11
c13 c21
c12 2 c22 3 d3 d2
s2
c23
Sources
Destinations
Slide 6
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Transportation Problem
Linear Programming Formulation Using the notation: xij = number of units shipped from origin i to destination j cij = cost per unit of shipping from origin i to destination j si = supply or capacity in units at origin i dj = demand in units at destination j continued
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Slide 7
Transportation Problem
Linear Programming Formulation (continued)
Min
c x
x
j 1
m
i 1 j 1 n
ij ij
ij
si
dj
i 1, 2,
j 1, 2,
,m
,n
Supply
Demand
x
i 1
ij
xij > 0 for all i and j
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Slide 8
Transportation Problem
LP Formulation Special Cases The objective is maximizing profit or revenue: Solve as a maximization problem.
Minimum shipping guarantee from i to j:
xij > Lij
Maximum route capacity from i to j:
xij < Lij
Unacceptable route:
Remove the corresponding decision variable.
2008 Thomson South-Western. All Rights Reserved Slide 9
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Slide 10
Transportation Problem: Example #1
Acme Block Company has orders for 80 tons of concrete blocks at three suburban locations as follows: Northwood -- 25 tons, Westwood -- 45 tons, and Eastwood -- 10 tons. Acme has two plants, each of which can produce 50 tons per week. Delivery cost per ton from each plant to each suburban location is shown on the next slide. How should end of week shipments be made to fill the above orders?
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Transportation Problem: Example #1
Delivery Cost Per Ton
Northwood 24 30 Westwood 30 40 Eastwood 40 42
Plant 1 Plant 2
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Slide 12
Transportation Problem: Example #1
Partial Spreadsheet Showing Problem Data
A 1 2 3 4
C onstra int # 1 # 2 1 1 1 2 4 3 0 4 0 3 0 4 0 X1 1 1 X2 1 1
D
X3 1 1
E
X1 2 1 1
F
X2 2 1 1
G
X3 2 1
H
RS H 5 0 5 0 2 5 4 5
LH C S oeffic ients
5 # 3 6 # 4 7 # 5 8 O oefficients bj.C
1 4 2
1 0 3 0
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Slide 13
Transportation Problem: Example #1
Partial Spreadsheet Showing Optimal Solution
A E X21 20 2490 F X22 0 G X23 10
B C D 10 X11 X12 X13 11 [Link] 5 45 0 12 Minimized Total Shipping Cost 13 14 Constraints LHS 15 Plant 1 Capacity 50 16 Plant 2 Capacity 30 17 Northwood Demand 25 18 Westwood Demand 45 19 Eastwood Demand 10
<= <= = = =
RHS 50 50 25 45 10
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Slide 14
Transportation Problem: Example #1
Optimal Solution
From Plant 1 Plant 1 Plant 2 Plant 2 To Amount Cost Northwood 5 120 Westwood 45 1,350 Northwood 20 600 Eastwood 10 420 Total Cost = $2,490
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Slide 15
Transportation Problem: Example #1
Partial Sensitivity Report (first half)
Adjustable Cells Final Reduced Objective Allowable Cell Name Value Cost Coefficient Increase $C$12 X11 5 0 24 4 $D$12 X12 45 0 30 4 $E$12 X13 0 4 40 1E+30 $F$12 X21 20 0 30 4 $G$12 X22 0 4 40 1E+30 $H$12 X23 10.000 0.000 42 4
Allowable Decrease 4 1E+30 4 4 4 1E+30
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Slide 16
Transportation Problem: Example #1
Partial Sensitivity Report (second half)
Constraints Cell $E$17 $E$18 $E$19 $E$20 $E$16 Name [Link] [Link] [Link] [Link] [Link] Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 30.0 0.0 50 1E+30 20 25.0 30.0 25 20 20 45.0 36.0 45 5 20 10.0 42.0 10 20 10 50.0 -6.0 50 20 5
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Slide 17
Transportation Problem: Example #2
The Navy has 9,000 pounds of material in Albany, Georgia that it wishes to ship to three installations: San Diego, Norfolk, and Pensacola. They require 4,000, 2,500, and 2,500 pounds, respectively. Government regulations require equal distribution of shipping among the three carriers.
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Slide 18
Transportation Problem: Example #2
The shipping costs per pound for truck, railroad, and airplane transit are shown on the next slide. Formulate and solve a linear program to determine the shipping arrangements (mode, destination, and quantity) that will minimize the total shipping cost.
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Slide 19
Transportation Problem: Example #2
Mode Truck Railroad Airplane
Destination San Diego Norfolk Pensacola $12 20 30 $6 11 26 $5 9 28
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Slide 20
Transportation Problem: Example #2
Define the Decision Variables We want to determine the pounds of material, xij , to be shipped by mode i to destination j. The following table summarizes the decision variables: Truck Railroad Airplane San Diego Norfolk Pensacola x11 x12 x13 x21 x22 x23 x31 x32 x33
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Slide 21
Transportation Problem: Example #2
Define the Objective Function
Minimize the total shipping cost. Min: (shipping cost per pound for each mode per destination pairing) x (number of pounds shipped by mode per destination pairing). Min: 12x11 + 6x12 + 5x13 + 20x21 + 11x22 + 9x23 + 30x31 + 26x32 + 28x33
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Slide 22
Transportation Problem: Example #2
Define the Constraints Equal use of transportation modes: (1) x11 + x12 + x13 = 3000 (2) x21 + x22 + x23 = 3000 (3) x31 + x32 + x33 = 3000 Destination material requirements: (4) x11 + x21 + x31 = 4000 (5) x12 + x22 + x32 = 2500 (6) x13 + x23 + x33 = 2500 Non-negativity of variables: xij > 0, i = 1,2,3 and j = 1,2,3
Slide 23
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Transportation Problem: Example #2
The Management Scientist Output OBJECTIVE FUNCTION VALUE = 142000.000 Variable Value Reduced Cost x11 1000.000 0.000 x12 2000.000 0.000 x13 0.000 1.000 x21 0.000 3.000 x22 500.000 0.000 x23 2500.000 0.000 x31 3000.000 0.000 x32 0.000 2.000 x33 0.000 6.000
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Slide 24
Transportation Problem: Example #2
Solution Summary San Diego will receive 1000 lbs. by truck and 3000 lbs. by airplane. Norfolk will receive 2000 lbs. by truck and 500 lbs. by railroad. Pensacola will receive 2500 lbs. by railroad. The total shipping cost will be $142,000.
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Slide 25
Assignment Problem
An assignment problem seeks to minimize the total cost assignment of m workers to m jobs, given that the cost of worker i performing job j is cij. It assumes all workers are assigned and each job is performed. An assignment problem is a special case of a transportation problem in which all supplies and all demands are equal to 1; hence assignment problems may be solved as linear programs. The network representation of an assignment problem with three workers and three jobs is shown on the next slide.
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Slide 26
Assignment Problem
Network Representation
1
c11
Agents
2
c13
c21 c23
c12
Tasks c22
2
c31
3
c32
c33
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Slide 27
Assignment Problem
Linear Programming Formulation Using the notation:
xij =
1 if agent i is assigned to task j 0 otherwise
cij = cost of assigning agent i to task j continued
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Slide 28
Assignment Problem
Linear Programming Formulation (continued)
Min
c x
x
j 1
m
i 1 j 1 n
ij ij
ij
1
1
i 1, 2,
j 1, 2,
,m
,n
Agents
Tasks
x
i 1
ij
xij > 0 for all i and j
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Slide 29
Assignment Problem
LP Formulation Special Cases Number of agents exceeds the number of tasks:
Extra agents simply remain unassigned.
Number of tasks exceeds the number of agents:
Add enough dummy agents to equalize the number of agents and the number of tasks. The objective function coefficients for these new variable would be zero.
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Slide 30
Assignment Problem
LP Formulation Special Cases (continued) The assignment alternatives are evaluated in terms of revenue or profit:
Solve as a maximization problem.
An assignment is unacceptable:
Remove the corresponding decision variable.
An agent is permitted to work t
tasks:
x
j 1
ij
i 1, 2,
,m
Agents
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Slide 31
Assignment Problem: Example
An electrical contractor pays his subcontractors a fixed fee plus mileage for work performed. On a given day the contractor is faced with three electrical jobs associated with various projects. Given below are the distances between the subcontractors and the projects. Subcontractor Westside Federated Goliath Universal Projects A B C 50 36 16 28 30 18 35 32 20 25 25 14 to minimize
Slide 32
How should the contractors be assigned total mileage costs?
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Assignment Problem: Example
Network Representation
West.
50 36 16 28 30 32
Subcontractors
Fed.
Projects
B
18 35
Gol.
20 25
14
25
Univ.
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Slide 33
Assignment Problem: Example
Linear Programming Formulation
Min 50x11+36x12+16x13+28x21+30x22+18x23 +35x31+32x32+20x33+25x41+25x42+14x43 x11+x12+x13 < 1 x21+x22+x23 < 1 Agents x31+x32+x33 < 1 x41+x42+x43 < 1 x11+x21+x31+x41 = 1 x12+x22+x32+x42 = 1 Tasks x13+x23+x33+x43 = 1 xij = 0 or 1 for all i and j
Slide 34
s.t.
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Assignment Problem: Example
The optimal assignment is: Subcontractor Project Distance Westside C 16 Federated A 28 Goliath (unassigned) Universal B 25 Total Distance = 69 miles
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Slide 35
Transshipment Problem
Transshipment problems are transportation problems in which a shipment may move through intermediate nodes (transshipment nodes)before reaching a particular destination node. Transshipment problems can be converted to larger transportation problems and solved by a special transportation program. Transshipment problems can also be solved by general purpose linear programming codes. The network representation for a transshipment problem with two sources, three intermediate nodes, and two destinations is shown on the next slide.
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Slide 36
Transshipment Problem
Network Representation
s1 Supply s2
c13
1
c36 c37
6
c15 c23
2
c14
d1 Demand
c46 c47 4 c56
5 7
c25
c24
d2
Sources
c57
Destinations
Intermediate Nodes
2008 Thomson South-Western. All Rights Reserved Slide 37
Transshipment Problem
Linear Programming Formulation Using the notation: xij = number of units shipped from node i to node j cij = cost per unit of shipping from node i to node j si = supply at origin node i dj = demand at destination node j
continued
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Slide 38
Transshipment Problem
Linear Programming Formulation (continued)
Min
all arcs
cx
ij ij ij
s.t.
arcs out
xij xij
ij
arcs in
x x
ij
si 0
Origin nodes i Transhipment nodes
arcs out
ij
arcs in
arcs in
arcs out
xij d j Destination nodes j
xij > 0 for all i and j
continued
2008 Thomson South-Western. All Rights Reserved Slide 39
Transshipment Problem
LP Formulation Special Cases Total supply not equal to total demand Maximization objective function Route capacities or route minimums Unacceptable routes The LP model modifications required here are identical to those required for the special cases in the transportation problem.
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Slide 40
Transshipment Problem: Example
The Northside and Southside facilities of Zeron Industries supply three firms (Zrox, Hewes, Rockrite) with customized shelving for its offices. They both order shelving from the same two manufacturers, Arnold Manufacturers and Supershelf, Inc. Currently weekly demands by the users are 50 for Zrox, 60 for Hewes, and 40 for Rockrite. Both Arnold and Supershelf can supply at most 75 units to its customers. Additional data is shown on the next slide.
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Slide 41
Transshipment Problem: Example
Because of long standing contracts based on past orders, unit costs from the manufacturers to the suppliers are:
Zeron N Arnold 5 Supershelf 7 Zeron S 8 4
The costs to install the shelving at the various locations are: Zeron N Zeron S Zrox 1 3 Hewes Rockrite 5 8 4 4
Slide 42
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Transshipment Problem: Example
Network Representation
ZROX
Zrox
50
75
ARNOLD Arnold
5 8
Zeron N
1 8
5
Hewes HEWES
60
7
75
Super Shelf
3
Zeron WASH BURN S
4 4
RockRite
40
Slide 43
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Transshipment Problem: Example
Linear Programming Formulation Decision Variables Defined xij = amount shipped from manufacturer i to supplier j xjk = amount shipped from supplier j to customer k where i = 1 (Arnold), 2 (Supershelf) j = 3 (Zeron N), 4 (Zeron S) k = 5 (Zrox), 6 (Hewes), 7 (Rockrite) Objective Function Defined Minimize Overall Shipping Costs: Min 5x13 + 8x14 + 7x23 + 4x24 + 1x35 + 5x36 + 8x37 + 3x45 + 4x46 + 4x47
Slide 44
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Transshipment Problem: Example
Constraints Defined Amount Out of Arnold: Amount Out of Supershelf: Amount Through Zeron N: Amount Through Zeron S: Amount Into Zrox: Amount Into Hewes: Amount Into Rockrite:
x13 + x14 < 75 x23 + x24 < 75 x13 + x23 - x35 - x36 - x37 = 0 x14 + x24 - x45 - x46 - x47 = 0 x35 + x45 = 50 x36 + x46 = 60 x37 + x47 = 40
Non-negativity of Variables: xij > 0, for all i and j.
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Slide 45
Transshipment Problem: Example
The Management Scientist Solution
Objective Function Value = Variable
X13 X14 X23 X24 X35 X36 X37 X45 X46 X47
1150.000 Reduced Costs
0.000 2.000 4.000 0.000 0.000 0.000 3.000 3.000 0.000 0.000
Slide 46
Value
75.000 0.000 0.000 75.000 50.000 25.000 0.000 0.000 35.000 40.000
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Transshipment Problem: Example
Solution
ZROX
Zrox
50
75
ARNOLD Arnold
5 8 7
75
Zeron N
1 8
5
Hewes HEWES
60
3 4
Zeron WASH BURN S
75
Super Shelf
RockRite
40
Slide 47
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Transshipment Problem: Example
The Management Scientist Solution (continued)
Constraint 1 2 3 4 5 6 7 Slack/Surplus 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Dual Prices 0.000 2.000 -5.000 -6.000 -6.000 -10.000 -10.000
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Slide 48
Transshipment Problem: Example
The Management Scientist Solution (continued)
OBJECTIVE COEFFICIENT RANGES Variable Lower Limit Current Value Upper Limit
X13 X14 X23 X24 X35 X36 X37 X45 X46 X47 3.000 6.000 3.000 No Limit No Limit 3.000 5.000 0.000 2.000 No Limit 5.000 8.000 7.000 4.000 1.000 5.000 8.000 3.000 4.000 4.000 7.000 No Limit No Limit 6.000 4.000 7.000 No Limit No Limit 6.000 7.000
Slide 49
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Transshipment Problem: Example
The Management Scientist Solution (continued)
RIGHT HAND SIDE RANGES Constraint 1 2 3 4 5 6 7 Lower Limit 75.000 75.000 -75.000 -25.000 0.000 35.000 15.000 Current Value Upper Limit 75.000 No Limit 75.000 100.000 0.000 0.000 0.000 0.000 50.000 50.000 60.000 60.000 40.000 40.000
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Slide 50
End of Chapter 6, Part A
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Slide 51