Slides by

John
Loucks
St. Edwards
University

Modifications by
A. Asef-Vaziri

1
 Chapter 6, Part A
Distribution and Network Models

Transportation Problem
Network Representation
General LP Formulation
Assignment Problem
Network Representation
General LP Formulation
Transshipment Problem
Network Representation
General LP Formulation

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 Transportation, Assignment, and
Transshipment Problems
A network model is one which can be
represented by a set of nodes, a set of arcs,
and functions (e.g. costs, supplies, demands,
etc.) associated with the arcs and/or nodes.
Transportation, assignment, transshipment,
shortest-route, and maximal flow problems of
this chapter as well as the minimal spanning
tree and PERT/CPM problems (in others
chapter) are all examples of network
problems.

3
 Transportation, Assignment, and
Transshipment Problems
Each of the five problems of this chapter can
be formulated as linear programs and solved
by general purpose linear programming
codes.
For each of the five problems, if the right-
hand side of the linear programming
formulations are all integers, the optimal
solution will be in terms of integer values for
the decision variables.
However, there are many computer packages
that contain separate computer codes for
these problems which take advantage of their
network structure.

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 Transportation Problem

The transportation problem seeks to

minimize the total shipping costs of
transporting goods from m origins (each with
a supply si) to n destinations (each with a
demand dj), when the unit shipping cost from
an origin, i, to a destination, j, is cij.
The network representation for a
transportation problem with two sources and
three destinations is given on the next slide.

5
 Transportation Problem

Network Representation

1 d1
c1
s1 1 1
c12
c13
2 d2
c21

s2 2 c22
c23
3 d3

Sources Destinations

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Transportation Problem: Example #1

Acme Block Company has orders for 80 tons

of
concrete blocks at three suburban locations as
follows:
Northwood -- 25 tons, Westwood -- 45 tons, and
Eastwood -- 10 tons. Acme has two plants, each
of
which can produce 50 tons per week. Delivery
cost per
ton from each plant to each suburban location is
shown
on the next slide.
How should end of week shipments be made
to fill 7
7
 Transportation Problem: Example #1

Delivery Cost Per Ton

Northwood Westwood
Eastwood
Plant 1 24 30
40
Plant 2 30 40 42
Decision Variables. the tons of concrete blocks,
xij , to be shipped from source i to destination j.

Northwood Westwood Eastwood

Plant 1 x11 x12
x13
Plant 1 x21 x22 8
 Transportation Problem: Example
#2
Define the Objective Function
Minimize the total shipping cost.
Min: (shipping cost per ton for each origin
to destination) (number of pounds shipped
from each origin to each destination).
Min: 24x11 + 30x12 + 40x13 + 30x21 + 40x22
+ 42x23

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 Transportation Problem: Example
#2
= Constraints
Define the Constraints
Supply constraints:
(1) x11 + x12 + x13 = 50
(2) x21 + x22 + x23 = 50

Demand constraints:
(4) x11 + x21 = 25
(5) x12 + x22 = 45
(6) x13 + x23 = 10
Non-negativity of variables:
xij > 0, i = 1, 2 and j = 1, 2, 3

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 Transportation Problem: Example
#2

and Constraints
Define the Constraints
Supply constraints:
(1) x11 + x12 + x13 50
(2) x21 + x22 + x23 50

Demand constraints:
(4) x11 + x21 25
(5) x12 + x22 45
(6) x13 + x23 10
Non-negativity of variables:
xij > 0, i = 1, 2 and j = 1, 2, 3

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 Transportation Problem: Example #1

Partial Spreadsheet Showing Problem

Data A B C D E F G H

1 L H S C o e f f ic ie n t s

2 C o n s t r a in t X 1 1 X 1 2 X 1 3 X 2 1 X 2 2 X 2 3 R H S

3 # 1 1 1 1 5 0

4 # 2 1 1 1 5 0

5 # 3 1 1 2 5

6 # 4 1 1 4 5

7 # 5 1 1 1 0

8 O b j.C o e f f ic ie n t s 2 4 3 0 4 0 3 0 4 0 4 2 3 0

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Transportation Problem: Example #1

13
 Transportation Problem: Example #1

Optimal Solution

From To Amount Cost

Plant 1 Northwood 5 120
Plant 1 Westwood 45 1,350
Plant 2 Northwood 20 600
Plant 2 Eastwood 10 420
Total Cost = $2,490

14
Transportation Problem: Example #1
Sensitivity Report

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 Transportation Problem: Example
#2
The Navy has 9,000 pounds of material in
Albany,
Georgia that it wishes to ship to three
installations:
San Diego, Norfolk, and Pensacola. They require
4,000,
2,500, and 2,500 pounds, respectively.
Government
regulations require equal distribution of shipping
among the three carriers.
The shipping costs per pound for truck,
railroad,
and airplane transit are shown on the next slide.
Formulate and solve a linear program to 16
Transportation Problem: Example
#2

Destination
Mode San Diego Norfolk
Pensacola
Truck $12 $6
$5
Railroad 20 11
9
Airplane 30 26
28

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 Transportation Problem: Example
#2
Define the Decision Variables
We want to determine the pounds of
material, xij , to be shipped by mode i to
destination j. The following table
summarizes the decision variables:
San Diego Norfolk
Pensacola
Truck x11 x12
x13
Railroad x21 x22
x23
Airplane x31 x32
x33 18
 Transportation Problem: Example
#2
Define the Objective Function
Minimize the total shipping cost.
Min: (shipping cost per pound for each
mode per destination pairing) x (number of
pounds shipped by mode per destination
pairing).
Min: 12x11 + 6x12 + 5x13 + 20x21 + 11x22 +
9x23
+ 30x31 + 26x32 + 28x33

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 Transportation Problem: Example
#2
Define the Constraints
Equal use of transportation modes:
(1) x11 + x12 + x13 = 3000
(2) x21 + x22 + x23 = 3000
(3) x31 + x32 + x33 = 3000
Destination material requirements:
(4) x11 + x21 + x31 = 4000
(5) x12 + x22 + x32 = 2500
(6) x13 + x23 + x33 = 2500
Non-negativity of variables:
xij > 0, i = 1, 2, 3 and j = 1, 2, 3

20
Transportation Problem: Example
#2

21
 Transportation Problem

Linear Programming Formulation

Using the notation:
xij = number of units shipped from
origin i to destination j
cij = cost per unit of shipping from
origin i to destination j
si = supply or capacity in units at origin i
dj = demand in units at destination j
continued

22
 Transportation Problem

Linear Programming Formulation (continued)

m n
Min c x
i 1 j 1
ij ij

x
j 1
ij si i 1,2, ,m Supply
m

x > d
i 1
ij j j 1,2, ,n Demand

xij > 0 for all i and j

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 Transportation Problem

LP Formulation Special Cases

Total supply exceeds total demand:
No modification of LP formulation is necessary.
Total demand exceeds total supply:
Add a dummy origin with supply equal
to the shortage amount. Assign a zero
shipping cost per unit. The amount
shipped from the dummy origin (in
the solution) will not actually be
shipped.

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 Transportation Problem

LP Formulation Special Cases (continued)

The objective is maximizing profit or
revenue:
Solve as a maximization problem.

Minimum shipping guarantee from i to j:

xij > Lij

Maximum route capacity from i to j:

xij < Lij

Unacceptable route:
Remove the corresponding decision
variable. 25
 Assignment Problem

An assignment problem seeks to minimize the

total cost assignment of m workers to m jobs,
given that the cost of worker i performing job j
is cij.
It assumes all workers are assigned and each
job is performed.
An assignment problem is a special case of a
transportation problem in which all supplies
and all demands are equal to 1; hence
assignment problems may be solved as linear
programs.
The network representation of an assignment
problem with three workers and three jobs is
shown on the next slide.

26
 Assignment Problem

Network Representation

c11
1 1
c12
c13
Agents Tasks
c21
c22
2 2
c23
c31
c32
3 c33 3

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 Assignment Problem: Example

An electrical contractor pays his

subcontractors a fixed fee plus mileage for work
performed. On a given day the contractor is
faced with three electrical jobs associated with
various projects. Given below are the distances
between the subcontractors and the projects.
Projects
Subcontractor A B C
Westside 50 36 16
Federated 28 30 18
Goliath 35 32 20
Universal 25 25 14
How should the contractors be assigned so that
total
mileage is minimized? 28
 Assignment Problem: Example

Network Representation
50
West. A
36
Subcontractors 16 Projects
28
Fed. 30 B
18
35 32

Gol. C
20
25 25
Univ.
14

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 Assignment Problem: Example

Linear Programming Formulation

Min 50x11+36x12+16x13+28x21+30x22+18x23
+35x31+32x32+20x33+25x41+25x42+14x43
s.t. x11+x12+x13 < 1
x21+x22+x23 < 1 Agents
x31+x32+x33 < 1
x41+x42+x43 < 1
x11+x21+x31+x41 = 1
Tasks
x12+x22+x32+x42 = 1
x13+x23+x33+x43 = 1
xij = 0 or 1 for all i and j

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 Assignment Problem: Example

Linear Programming Formulation

Min 50x11+36x12+16x13+28x21+30x22+18x23
+35x31+32x32+20x33+25x41+25x42+14x43
s.t. x11+x12+x13 < 1
x21+x22+x23 < 1 Agents
x31+x32+x33 < 1
x41+x42+x43 < 1
x11+x21+x31+x41 1
Tasks
x12+x22+x32+x42 1
x13+x23+x33+x43 1
xij = 0 or 1 for all i and j

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Transportation Problem: Example
#2

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 Assignment Problem: Example

The optimal assignment is:

Subcontractor Project Distance

Westside C 16
Federated A 28
Goliath (unassigned)
Universal B 25
Total Distance = 69 miles

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 Assignment Problem

Linear Programming Formulation

Using the notation:

xij = 1 if agent i is assigned

to task j
0 otherwise

cij = cost of assigning agent i to

continued
task j

34
 Assignment Problem

Linear Programming Formulation

(continued)m n
Min cij xij
i 1 j 1
n

x
j 1
ij 1 i 1,2, ,m Agents
m

x
i 1
ij 1 j 1,2, ,n Tasks

xij > 0 for all i and j

35
 Assignment Problem

LP Formulation Special Cases

Number of agents exceeds the number of
tasks:
Extra agents simply remain unassigned.

Number
agents:
of tasks exceeds the number of

Add enough dummy agents to equalize

the
number of agents and the number of
tasks.
The objective function coefficients for
these
new variable would be zero.

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 Assignment Problem

LP Formulation Special Cases (continued)

The assignment alternatives are evaluated in
terms of revenue or profit:

Solve as a maximization problem.

An assignment is unacceptable:
Remove the corresponding decision
variable.
An agent is permitted to work t tasks:
n

x t i 1,2, ,m Agents
j 1
ij

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 Transshipment Problem

Transshipment problems are transportation

problems in which a shipment may move
through intermediate nodes (transshipment
nodes)before reaching a particular destination
node.
Transshipment problems can be converted to
larger transportation problems and solved by a
special transportation program.
Transshipment problems can also be solved by
general purpose linear programming codes.
The network representation for a transshipment
problem with two sources, three intermediate
nodes, and two destinations is shown on the
next slide.

38
 Transshipment Problem

Network Representation

c36
3
c13
s1 1 c37 6 d1
c14
c15 c46
Supply 4 c47 Deman
c23 d
c24 c56
s2 2 7 d2
c25
5 c57
Sources Destinations
Intermediate Nodes

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 Transshipment Problem

Linear Programming Formulation

Using the notation:

xij = number of units shipped from node i to
node j
cij = cost per unit of shipping from node i
to node j
si = supply at origin node i continued
dj = demand at destination node j

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 Transshipment Problem

Linear Programming Formulation

(continued)
Min cij xij
all arcs

s.t.
arcs out
xij x
arcs in
ij si Origin nodes i

arcs out
xij x
arcs in
ij 0 Transhipment nodes

x
arcs in
ij
arcs out
xij dj Destination nodes j

xij > 0 for all i and j

continued

41
 Transshipment Problem

LP Formulation Special Cases

Total supply not equal to total demand
Maximization objective function
Route capacities or route minimums
Unacceptable routes
The LP model modifications required here are
identical to those required for the special
cases in
the transportation problem.

42
Transshipment Problem: Example

The Northside and Southside facilities of

Zeron Industries supply three firms (Zrox,
Hewes, Rockrite) with customized shelving for
its offices. They both order shelving from the
same two manufacturers, Arnold
Manufacturers and Supershelf, Inc.
Currently weekly demands by the users are
50 for Zrox, 60 for Hewes, and 40 for Rockrite.
Both Arnold and Supershelf can supply at most
75 units to its customers.
Additional data is shown on the next slide.

43
 Transshipment Problem: Example

Because of long standing contracts based

on past orders, unit costs from the
manufacturers to the suppliers are:
Zeron N Zeron S
Arnold 5 8
Supershelf 7 4
The costs to install the shelving at the
various locations are:
Zrox Hewes Rockrite
Zeron N 1 5 8
Zeron S 3 4 4

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 Transshipment Problem: Example

Network Representation
ZROX

Zrox 50
5 1
ARNOLD Zeron
75 Arnold N 5
8 8
Hewes
HEWES 60

7 3
Super Zeron
WASH 4
75 Shelf S
BURN
4 4 Rock-
Rite 40

45
 Transshipment Problem: Example

Linear Programming Formulation

Decision Variables Defined
xij = amount shipped from manufacturer i to
supplier j
xjk = amount shipped from supplier j to
customer k
where i = 1 (Arnold), 2 (Supershelf)
j = 3 (Zeron N), 4 (Zeron S)
k = 5 (Zrox), 6 (Hewes), 7 (Rockrite)
Objective Function Defined
Minimize Overall Shipping Costs:
Min 5x13 + 8x14 + 7x23 + 4x24 + 1x35 + 5x36
+ 8x37
46
 Transshipment Problem: Example

Constraints Defined
Amount Out of Arnold: x13 + x14 < 75
Amount Out of Supershelf: x23 + x24 < 75
Amount Through Zeron N: x13 + x23 - x35 - x36 -
x37 = 0
Amount Through Zeron S: x14 + x24 - x45 - x46 -
x47 = 0
Amount Into Zrox: x35 + x45 = 50
Amount Into Hewes: x36 + x46 = 60
Amount Into Rockrite: x37 + x47 = 40

Non-negativity of Variables: xij > 0, for all i and j.

47
Transshipment Problem: Example

48
 Transshipment Problem: Example

Solution
ZROX
Zrox 50
50
75 1
ARNOLD
5 Zeron
75 Arnold N 5 25
8 8
Hewes
HEWES 60
35
7 3 4
Super Zeron
WASH 40
75 Shelf S
4 75
BURN
4 Rock-
Rite 40

49
Transshipment Problem: Example

50
 Transshipment Problem: Example

Computer Output (continued)

Constraint Slack/Surplus Dual

Values
1 0.000
0.000
2 0.000
2.000
3 0.000
-5.000
4 0.000
-6.000
5 0.000
-6.000
6 0.000
-10.000 51
 Transshipment Problem: Example

Computer Output (continued)

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper
Limit
X13 3.000 5.000 7.000
X14 6.000 8.000
No Limit
X23 3.000 7.000
No Limit
X24 No Limit 4.000
6.000
X35 No Limit 1.000
4.000
X36 3.000 5.000
7.000
X37 5.000 8.000
No Limit 52
 Transshipment Problem: Example

Computer Output (continued)

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper
Limit
1 75.000 75.000 No
Limit
2 75.000 75.000
100.000
3 -75.000 0.000
0.000
4 -25.000 0.000
0.000
5 0.000 50.000
50.000
53
Transshipment Transformed into
Transportation Problem

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End of Chapter 6, Part A

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