S P CHHEDA & CO.

8s-1 The Transportation Model

William J. Stevenson

Operations Management

8th edition

S P CHHEDA & CO.

8s-2 The Transportation Model

S P CHHEDA & CO.

8s-3 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 shippingNote: The DVD that accompanies this bookcontains a module that provides detailedinstruction on the transportation model

S P CHHEDA & CO.

8s-4 The Transportation Model

Transportation Model Assumptions

1. Items to be shipped are homogeneous

2. Shipping cost per unit is the same

3. Only one route between origin and destination

S P CHHEDA & CO.

8s-5 The Transportation Model

The Transportation Problem

D(demand)

D(demand)

D(demand)

D(demand)

S(supply)

S(supply)

S(supply)

Figure 8S.1

S P CHHEDA & CO.

8s-6 The Transportation Model

A Transportation TableWarehouse

4 7 7 1100

12 3 8 8200

8 10 16 5150

450

45080 90 120 160

A B C D

1

2

3

Factory Factory 1can supply 100units per period

Total supplycapacity perperiod

Total demandper period

Demand

Warehouse B can use 90 units per period

Table 8S.1

S P CHHEDA & CO.

8s-7 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

S P CHHEDA & CO.

8s-8 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

S P CHHEDA & CO.

8s-9 The Transportation Model

Excel TemplateExcel TemplateFigure 8S.2