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Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 11S

Chapter 11 supplement - Transportation and transshipment models. This chapter includes contents: Transportation model, trans-shipment model, solver parameters, modified problem settings, trans-shipment model, trans-shipment model solution,. | Supplement 11-1 Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 11 SUPPLEMENT Transportation and Transshipment Models OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition 1 Lecture Outline Transportation Model Trans-Shipment Model Supplement 11-2 2 Transportation Model A model formulated for a class of problems with the following characteristics items are transported from a number of sources to a number of destinations at minimum cost each source supplies a fixed number of units each destination has a fixed demand for units Solution Methods stepping-stone modified distribution Excel’s Solver Supplement 11-3 3 Transportation Method Example Supplement 11-4 4 Transportation Method Supplement 11-5 5 Problem Formulation with Excel Supplement 11-6 1. Click on “Data” Total cost formula for all potato shipments in cell C10 =E5+E6+E7 =C5+D5+E5 2. Solver 6 Solver Parameters Supplement 11-7 Total cost Decision . | Supplement 11-1 Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 11 SUPPLEMENT Transportation and Transshipment Models OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition 1 Lecture Outline Transportation Model Trans-Shipment Model Supplement 11-2 2 Transportation Model A model formulated for a class of problems with the following characteristics items are transported from a number of sources to a number of destinations at minimum cost each source supplies a fixed number of units each destination has a fixed demand for units Solution Methods stepping-stone modified distribution Excel’s Solver Supplement 11-3 3 Transportation Method Example Supplement 11-4 4 Transportation Method Supplement 11-5 5 Problem Formulation with Excel Supplement 11-6 1. Click on “Data” Total cost formula for all potato shipments in cell C10 =E5+E6+E7 =C5+D5+E5 2. Solver 6 Solver Parameters Supplement 11-7 Total cost Decision variables representing shipment routes Constraints specifying that supply at the distribution centers equals demand at the plants Click to “solve” Click on “Options” to activate “Assume Linear Models” 7 Solution Supplement 11-8 8 Modified Problem Solution Supplement 11-9 High cost prohibits route C5 Column “H” added for excess supply 9 Modified Problem Settings Supplement 11-10 Constraint changed to ≤ to reflect supply > demand 10 OM Tools Supplement 11-11 11 Trans-Shipment Model Supplement 11-12 12 Trans-Shipment Model Solution Supplement 11-13 =SUM(B6:B7) =SUM(B6:D6) =SUM(C13:C15) =SUM(C13:E13) =C8-F14 = B8-F13, the amount shipped into KC equals the amount shipped out 13 Trans-Shipment Settings Supplement 11-14 Transshipment constraints 14 COPYRIGHT Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed