3 Requirements for Transportation Model List of origins and each one’s capacityList of destinations and each one’s demandUnit cost of shippingNote: The DVD that accompanies this book contains a module that provides detailed instruction on the transportation model
4 Transportation Model Assumptions Items to be shipped are homogeneousShipping cost per unit is the sameOnly one route between origin and destination
5 The Transportation Problem Figure 8S.1D(demand)S(supply)
6 A Transportation Table Table 8S.1Warehouse4711001238200101651504508090120160ABCD2FactoryFactory 1can supply 100units per periodTotal supplycapacity perperiodTotal demandper periodDemandWarehouse B can use 90
7 Special Problems Unequal supply and demand Dummy: Imaginary number added equal to the difference between supply and demand when these are unequalDegeneracy: The condition of too few completed cells to allow all necessary paths to be constructed
8 Summary of Procedure Make certain that supply and demand are equal Develop an initial solution using intuitive, low-cost approachCheck that completed cells = R+C-1Evaluate each empty cellRepeat until all cells are zero or positive
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