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Stevenson and Ozgur First Edition Introduction to Management Science with Spreadsheets McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies,

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Presentation on theme: "Stevenson and Ozgur First Edition Introduction to Management Science with Spreadsheets McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies,"— Presentation transcript:

1 Stevenson and Ozgur First Edition Introduction to Management Science with Spreadsheets McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 Supplement Transportation and Assignment Solution Procedures

2 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–2 Learning Objectives 1.Use the transportation method to solve problems manually. 2.Deal with special cases in solving transportation problems. 3.Use the assignment (Hungarian) method to solve problems manually. 4.Deal with special cases in solving assignment problems. After completing this chapter, you should be able to:

3 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–3 Table 6S–1Transportation Table for Harley’s Sand and Gravel

4 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–4 Figure 6S–1Overview of the Transportation Method

5 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–5 Finding an Initial Feasible Solution: The Northwest-Corner Method The Northwest-Corner Method –is a systematic approach for developing an initial feasible solution. –is simple to use and easy to understand. –does not take transportation costs into account. –gets its name because the starting point for the allocation process is the upper-left-hand (northwest) corner of the transportation table.

6 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–6 Table 6S–2 Initial Feasible Solution for Harley Using Northwest-Corner Method

7 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–7 Finding an Initial Feasible Solution: The Intuitive Approach 1.Identify the cell that has the lowest unit cost. 2.Cross out the cells in the row or column that has been exhausted (or both, if both have been exhausted), and adjust the remaining row or column total accordingly. 3.Identify the cell with the lowest cost from the remaining cells. 4.Repeat steps 2 and 3 until all supply and demand have been allocated.

8 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–8 Table 6S–3a Find the Cell That Has the Lowest Unit Cost Table 6S–3b Allocate 150 Units to Cell B–2

9 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–9 Table 6S–4 200 Units Are Assigned to Cell C–3 and 50 Units Are Assigned to cell A–1 Table 6S–5 Completion of the Initial Feasible Solution for the Harley Problem Using the Intuitive Approach

10 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–10 Table 6S–6Vogel’s Approximation Initial Allocation Tableau with Penalty Costs

11 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–11 Table 6S–7Initial Feasible Solution Obtained Using the Northwest-Corner Method Table 6S–8 Evaluation Path for Cell B–1

12 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–12 Table 6S–9Evaluation Path for Cell C–1 Table 6S–10 Evaluation Paths for Cells A–3 and C–2

13 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–13 Table 6S–11Initial Feasible Solution Obtained Using the Northwest-Corner Method Evaluation Using the MODI Method The MODI (MOdified DIstribution) method of evaluating a transportation solution for optimality involves the use of index numbers that are established for the rows and columns. These are based on the unit costs of the occupied cells. The index numbers can be used to obtain the cell evaluations for empty cells without the use of stepping-stone paths.

14 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–14 Table 6S–12Index Numbers for Initial Northwest-Corner Solution to the Harley Problem Rules for Tracing Stepping-Stone Paths 1.All unoccupied cells must be evaluated. Evaluate cells one at a time. 2.Except for the cell being evaluated, only add or subtract in occupied cells. (It is permissible to skip over occupied cells to find an occupied cell from which the path can continue.) 3.A path will consist of only horizontal and vertical moves, starting and ending with the empty cell that is being evaluated. 4.Alternate + and - signs, beginning with a + sign in the cell being evaluated.

15 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–15 Table 6S–13Cell Evaluations for Northwest-Corner Solution for the Harley Problem Table 6S–14 Stepping-Stone Path for Cell A–3

16 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–16 Table 6S–15Distribution Plan after Reallocation of 50 Units Table 6S–16Index Numbers and Cell Evaluations

17 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–17 Summary of the Transportation Method 1.Obtain an initial feasible solution. Use either the northwest-corner method, the intuitive method, or the Vogel’s approximation method. Generally, the intuitive method and Vogel’s approximation are the preferred approaches. 2.Evaluate the solution to determine if it is optimal. Use either the stepping-stone method or MODI. The solution is not optimal if any unoccupied cell has a negative cell evaluation. 3.If the solution is not optimal, select the cell that has the most negative cell evaluation. Obtain an improved solution using the stepping-stone method. 4.Repeat steps 2 and 3 until no cell evaluations (reduced costs) are negative. Once you have identified the optimal solution, compute its total cost.

18 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–18 Special Issues 1.Determining if there are alternate optimal solutions. 2.Recognizing and handling degeneracy (too few occupied cells to permit evaluation of a solution). 3.Avoiding unacceptable or prohibited route assignments. 4.Dealing with problems in which supply and demand are not equal. 5.Solving maximization problems.

19 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–19 Table 6S–17a Index Numbers and Cell Evaluations Table 6S–17bAlternate Optimal Solution

20 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–20 Table 6S–18 Harley Alternate Solution Modified for Degeneracy Table 6S–19Solution to Harley Problem with a Prohibited Route

21 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–21 Table 6S–20 A Dummy Origin Is Added to Make Up 80 Units Table 6S–21Solution Using the Dummy Origin

22 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–22 Table 6S–21Solution Using the Dummy Origin Table 6S–22Solution Using the Dummy Origin

23 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–23 Table 6S–23Row Reduction The Hungarian Method provides a simple heuristic that can be used to find the optimal set of assignments. It is easy to use, even for fairly large problems. It is based on minimization of opportunity costs that would result from potential pairings. These are additional costs that would be incurred if the lowest-cost assignment is not made, in terms of either jobs (i.e., rows) or employees (i.e., columns).

24 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–24 The Hungarian Method Provides a simple heuristic that can be used to find the optimal set of assignments. Is easy to use, even for fairly large problems. Is based on minimization of opportunity costs that would result from potential pairings. –These additional costs would be incurred if the lowest- cost assignment is not made, in terms of either jobs (i.e., rows) or employees (i.e., columns).

25 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–25 Requirements for Use of the Hungarian Method Situations in which the Hungarian method can be used are characterized by the following: 1.There needs to be a one-for-one matching of two sets of items. 2.The goal is to minimize costs (or to maximize profits) or a similar objective (e.g., time, distance, etc.). 3.The costs or profits (etc.) are known or can be closely estimated.

26 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–26 Special Situations –Certain situations can arise in which the model deviates slightly from that previously described. Among those situations are the following: –The number of rows does not equal the number of columns. –The problem involves maximization rather than minimization. –Certain matches are undesirable or not allowed. –Multiple optimal solutions exist.

27 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–27 Table 6S–24Column Reduction of Opportunity (Row Reduction) Costs

28 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–28 Table 6S–25Determine the Minimum Number of Lines Needed to Cover the Zeros Table 6S–26Further Revision of the Cost Table

29 Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 6S–29 Table 6S–27Optimal Assignments


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