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

2. Supplement 10-2 Lecture Outline  Transportation Model

3. Supplement 10-3 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 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 source is able to supply a fixed number of units of product each destination has a fixed demand for product each destination has a fixed demand for product  Solution Methods stepping-stone stepping-stone modified distribution modified distribution Excel’s Solver Excel’s Solver

4. Supplement 10-4 Transportation Method: Example

5. Supplement 10-5 Transportation Method: Example

6. Supplement 10-6 How to Solve Using Excel  Input by hand  OM Tools Macro

7. Supplement 10-7 Caution Using Excel’s Solver  MS Excel’s default solver is NOT industrial strength It will not always give you the correct answer It will not always give you the correct answer It can be frustrating It can be frustrating

8. Supplement 10-8 Alternative Solvers  CPLEX by ILOG Considered the best Considered the best  XPRESS MP by Dash Optimization  Frontline (www.solver.com) www.solver.com  XA  Lindo  Lp_solve An open source solver that I personally use and like An open source solver that I personally use and like  COIN-OR (www.coin-or.org)

9. Supplement 10-9 Algebraic Modeling Languages  MPL by Maximal Software  GAMS (www.gams.com) www.gams.com  AIMMS (www.aimms.com)  AMPL (www.ampl.com)  MathProg An open source subset of AMPL An open source subset of AMPL