1. Operational Decision-Making Tools: Transportation Model
Chapter 10 Supplement
Operational Decision-Making Tools: Transportation Model
Operations Management - 5th Edition
Roberta Russell & Bernard W. Taylor, III

2. Transportation Model
A transportation model is formulated for a class of problems with the following characteristics
a product is transported from a number of sources to a number of destinations at the minimum possible cost
each source is able to supply a fixed number of units of product
each destination has a fixed demand for product
Solution Methods
stepping-stone
modified distribution
Excel’s Solver

3. Transportation Method: Example

4. Transportation Method: Example

5. How to Solve Using Excel
Input by hand
OM Tools Macro

6. Other Twists (that you WILL be tested on!)
Our example was a “balanced” one – supply equaled demand
What if we have more demand than supply?
What if we have more supply than demand?
What if a shipping route is prohibited?

7. Caution Using Excel’s Solver
MS Excel’s default solver is NOT industrial strength
It will not always give you the correct answer
It can be frustrating

8. Alternative Solvers CPLEX by ILOG XPRESS MP by Dash Optimization
Considered the best
XPRESS MP by Dash Optimization
Frontline ( XA
Lindo
Lp_solve
An open source solver that I personally use and like
COIN-OR (

9. Algebraic Modeling Languages
MPL by Maximal Software
GAMS (
AIMMS (
AMPL (
MathProg
An open source subset of AMPL