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,. | Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 11S OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 11 SUPPLEMENT Transportation and Transshipment Models Supplement 11-1 Lecture Outline Transportation Model Trans-Shipment Model Supplement 11-2 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 Transportation Method Example Supplement 11-4 Transportation Method Supplement 11-5 Problem Formulation with Excel 1. Click on “Data” 2. Solver =C5+D5+E5 =E5+E6+E7 Total cost formula for all potato shipments in cell C10 Supplement 11-6 Solver Parameters Total cost Click to “solve” Decision variables representing shipment routes Constraints specifying that supply at the distribution centers equals demand at the plants Click on “Options” to activate “Assume Linear Models” Supplement 11-7 Solution Supplement 11-8 Modified Problem Solution High cost prohibits Column “H” added route C5 for excess supply Supplement 11-9 Modified Problem Settings Constraint changed to ≤ to reflect supply > demand Supplement 11-10 OM Tools Supplement 11-11 Trans-Shipment Model Supplement 11-12 Trans-Shipment Model Solution =SUM(B6:B7) =SUM(B6:D6) =SUM(C13:E13) =SUM(C13:C15) = B8-F13, the amount shipped =C8-F14 into KC equals the amount shipped out Supplement 11-13 Trans-Shipment Settings Transshipment constraints Supplement 11-14 COPYRIGHT .