Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 11S

Chapter 11 supplement - Transportation and transshipment models. This chapter includes contents: Transportation model, trans-shipment model, solver parameters, modified problem settings, trans-shipment model, trans-shipment model solution,...

OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Robert S Russell, Bernard W Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 11 SUPPLEMENT Transportation and Transshipment Models Supplement 11-1 Lecture Outline —Transportation Model —Trans-Shipment Model Supplement 11-2 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 —stepping-stone —modified distribution —Excel’s Solver Supplement 11-3 Transportation Method Example Supplement 11-4 Transportation Method Supplement 11-5 Problem Formulation with Excel Click on “Data” Solver =C5+D5+E5 =E5+E6+E7 Total cost formula for all potato shipments in cell C10 Supplement 11-6 Solver Parameters Total cost Click to “solve” Decision variables representing shipment routes Constraints specifying that supply at the distribution centers equals demand at the plants Click on “Options” to activate “Assume Linear Models” Supplement 11-7 Solution Supplement 11-8 Modified Problem Solution High cost prohibits route C5 Column “H” added for excess supply Supplement 11-9 Modified Problem Settings Constraint changed to ≤ to reflect supply > demand Supplement 11-10 OM Tools Supplement 11-11 Trans-Shipment Model Supplement 11-12 Trans-Shipment Model Solution =SUM(B6:B7) =SUM(B6:D6) =SUM(C13:E13) =SUM(C13:C15) =C8-F14 = B8-F13, the amount shipped into KC equals the amount shipped out Supplement 11-13 Trans-Shipment Settings Transshipment constraints Supplement 11-14 COPYRIGHT COPYRIGHT Copyright © 2014 John Wiley & Sons Canada, Ltd All rights reserved Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd The purchaser may make back-up copies for his or her own use only and not for distribution or resale The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein  ... reflect supply > demand Supplement 1 1-1 0 OM Tools Supplement 1 1-1 1 Trans-Shipment Model Supplement 1 1-1 2 Trans-Shipment Model Solution =SUM(B6:B7) =SUM(B6:D6) =SUM(C13:E13) =SUM(C13:C15) =C8-F14... =SUM(C13:C15) =C8-F14 = B8-F13, the amount shipped into KC equals the amount shipped out Supplement 1 1-1 3 Trans-Shipment Settings Transshipment constraints Supplement 1 1-1 4 COPYRIGHT COPYRIGHT... back-up copies for his or her own use only and not for distribution or resale The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these