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8s-1The Transportation Model William J. Stevenson Operations Management 8 th edition

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8s-2The Transportation Model CHAPTER 8s The Transportation Model McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

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8s-3The 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 Note: The DVD that accompanies this book contains a module that provides detailed instruction on the transportation model

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8s-4The 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

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8s-5The Transportation Model The Transportation Problem D (demand) D (demand) D (demand) D (demand) S (supply) S (supply) S (supply) Figure 8S.1

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8s-6The Transportation Model A Transportation Table Warehouse 47 7 1 100 12 3 8 8 200 8 1016 5 150 450 8090120160 ABCD 1 2 3 Factory Factory 1 can supply 100 units per period Total supply capacity per period Total demand per period Demand Warehouse B can use 90 units per period Table 8S.1

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8s-7The 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

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8s-8The 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

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8s-9The Transportation Model Excel Template Figure 8S.2

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8s-10The Transportation Model Additional PowerPoint slides contributed by Geoff Willis, University of Central Oklahoma. CHAPTER 8s

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8s-11The Transportation Model ANALYSES Transportation Model minimizes transportation costs using LP Center of gravity & simple median models minimizes transportation costs using geometry

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8s-12The Transportation Model Determine the center of gravity for the destinations shown on the following map. Monthly shipments will be the quantities listed in the table. DestinationQuantity D1 900 D2 300 D3 700 D4 600 D5 800 D1 D2 D3 D4 D5 Center of Gravity

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