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To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 10-1 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458 Chapter 10 Chapter 10 Transportatio Transportatio n and n and Assignment Assignment Models Models

RHSChap10

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Page 1: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-1 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Chapter 10Chapter 10

Transportation and Transportation and Assignment ModelsAssignment Models

Page 2: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-2 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Learning ObjectivesLearning Objectives

Students will be able to

• Structure special LP problems using the transportation and assignment models.

• Use the N.W. corner, VAM, MODI, and stepping-stone method.

• Solve facility location and other application problems with transportation methods.

• Solve assignment problems with the Hungarian (matrix reduction) method

Page 3: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-3 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Chapter OutlineChapter Outline

10.1 Introduction

10.2 Setting Up a Transportation Problem

10.2 Developing an Initial

Solution:Northwest Corner Rule

10.4 Stepping-Stone Method: Finding a

Least-Cost Solution

10.5 MODI Method

10.6 Vogel’s Approximation Method

10.7 Unbalanced Transportation Problems

Page 4: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-4 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Chapter Outline - Chapter Outline - continuedcontinued

10.8 Degeneracy in Transportation Problems

10.9 More Than One Optimal Solution

10.10 Maximization Transportation Problems

10.11 Unacceptable or Prohibited Routes

10.12 Facility Location Analysis

10.13 Approach of the Assignment Model

10.14 Unbalanced Assignment Models

10.15 Maximization Assignment Problems

Page 5: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-5 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Specialized ProblemsSpecialized Problems

• Transportation Problem• Distribution of items from several

sources to several destinations. Supply capacities and destination requirements known.

• Assignment Problem• One-to-one assignment of people

to jobs, etc.

Specialized algorithms save time!

Page 6: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-6 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Importance of Special Importance of Special Purpose AlgorithmsPurpose Algorithms

• Fewer, less complicated,

computations than with simplex

• Less computer memory required

• Produce integer solutions

Page 7: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-7 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Transportation Transportation ProblemProblem

Des Moines(100 units)

capacity

Cleveland(200 units)

required

Boston(200 units)

requiredEvansville(300 units)

capacity

Ft. Lauderdale(300 units)

capacity

Albuquerque(300 units)

required

Page 8: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-8 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Transportation CostsTransportation Costs

From(Sources)

To(Destinations)

AlbuquerqueBoston

Cleveland

Des Moines

Evansville

Fort Lauderdale

$5

$8

$9

$4

$4

$7

$3

$3

$5

Page 9: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-9 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Unit Shipping Cost:1Unit, Unit Shipping Cost:1Unit, Factory to WarehouseFactory to Warehouse

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A) Boston

(B)

Cleveland(C) Factory

Capacity

5 4 3

57

48

9

3

Page 10: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-10 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Total Demand and Total Total Demand and Total SupplySupply

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A) Boston

(B)

Cleveland(C) Factory

Capacity

300 200 200 700

300

300

100

Page 11: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-11 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Transportation Table For Transportation Table For Executive Furniture Corp.Executive Furniture Corp.

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A) Boston

(B)

Cleveland(C) Factory

Capacity

300 200 200 700

300

300

1005 4 3

3

57

48

9

Page 12: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-12 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Initial Solution Using the Initial Solution Using the Northwest Corner RuleNorthwest Corner Rule

• Start in the upper left-hand cell and allocate units to shipping routes as follows:• Exhaust the supply (factory

capacity) of each row before moving down to the next row.

• Exhaust the demand (warehouse) requirements of each column before moving to the next column to the right.

• Check that all supply and demand requirements are met.

Page 13: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-13 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Initial SolutionInitial SolutionNorth West Corner RuleNorth West Corner Rule

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A) Boston

(B)

Cleveland(C) Factory

Capacity

300 200 200 700

300

300

1005 4 3

3

57

48

9

100

200 100

100 200

Page 14: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-14 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

The Stepping-Stone The Stepping-Stone MethodMethod

• 1. Select any unused square to evaluate.• 2. Begin at this square. Trace a closed

path back to the original square via squares that are currently being used (only horizontal or vertical moves allowed).

• 3. Place + in unused square; alternate - and + on each corner square of the closed path.

• 4. Calculate improvement index: add together the unit cost figures found in each square containing a +; subtract the unit cost figure in each square containing a -.

• 5. Repeat steps 1 - 4 for each unused square.

Page 15: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-15 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Stepping-Stone Method - Stepping-Stone Method - The Des Moines-to-The Des Moines-to-

Cleveland RouteCleveland Route

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A) Boston

(B)

Cleveland(C) Factory

Capacity

300 200 200 700

300

300

1005 4 3

3

57

48

9

200

100

100

100 200

-- ++

--

++

++

--

Start

Page 16: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-16 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Stepping-Stone MethodStepping-Stone MethodAn Improved SolutionAn Improved Solution

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A) Boston

(B)

Cleveland(C) Factory

Capacity

300 200 200 700

300

300

1005 4 3

3

57

48

9

100

100

200

200100

Page 17: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-17 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Third and Final SolutionThird and Final Solution

Des Moines(D)

Evansville(E)

Ft Lauderdale(F)

WarehouseReq.

Albuquerque(A)

Boston(B)

Cleveland(C)

FactoryCapacity

300 200 200 700

300

300

1005 4 3

3

57

48

9

100

200

100200

100

Page 18: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-18 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

MODI Method: 5 StepsMODI Method: 5 Steps1. Compute the values for each row and

column: set Ri + Kj = Cij for those squares currently used or occupied.

2. After writing all equations, set R1 = 0.

3. Solve the system of equations for Ri

and Kj values.4. Compute the improvement index for

each unused square by the formula improvement index:

Cij - Ri - Kj 5. Select the largest negative index and

proceed to solve the problem as you did using the stepping-stone method.

Page 19: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-19 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Vogel’s ApproximationVogel’s Approximation1. For each row/column of table,

find difference between two lowest costs. (Opportunity cost)

2. Find greatest opportunity cost.

3. Assign as many units as possible to lowest cost square in row/column with greatest opportunity cost.

4. Eliminate row or column which has been completely satisfied.

4. Begin again, omitting eliminated rows/columns.

Page 20: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-20 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Special Problems in Special Problems in Transportation MethodTransportation Method

• Unbalanced Problem• Demand Less than Supply• Demand Greater than Supply

• Degeneracy

• More Than One Optimal Solution

Page 21: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-21 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Unbalanced ProblemUnbalanced ProblemDemand Less than SupplyDemand Less than Supply

Factory 1

Factory 2

Factory 3

Customer Requirements

Customer 1 Customer

2

DummyFactory

Capacity

150 80 150 380

80

130

1708 5 0

0

09

1015

3

Page 22: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-22 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Unbalanced ProblemUnbalanced ProblemSupply Less than DemandSupply Less than Demand

Factory 1

Factory 2

Dummy

Customer Requirements

Customer 1

Customer 2

Customer 3

FactoryCapacity

150 80 150 380

80

130

1708 5 16

7

00

1015

0

Page 23: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-23 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

DegeneracyDegeneracy

Factory 1

Factory 2

Factory 3

Customer Requirements

Customer 1

Customer 2

Customer 3

FactoryCapacity

100 100 100 300

80

120

1005 4 3

3

57

48

9

100

100

80

20

Page 24: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-24 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Degeneracy - Coming Up!Degeneracy - Coming Up!

Factory 1

Factory 2

Factory 3

Customer Requirements

Customer 1

Customer 2

Customer 3

FactoryCapacity

150 80 50 280

80

130

708 5

7

9

16

10

1015

3

70

80

50

50

30

Page 25: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-25 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Stepping-Stone Method - Stepping-Stone Method - The Des Moines-to-The Des Moines-to-

Cleveland RouteCleveland Route

Des Moines(D)

Evansville(E)

Fort Lauderdale

(F)

WarehouseReq.

Albuquerque(A)

Boston(B)

Cleveland(C)

FactoryCapacity

300 200 200 700

300

300

1005 4 3

3

57

48

9

Start

200

100

100

100 200

-- ++

--

++

++

--

Page 26: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-26 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

The Assignment ProblemThe Assignment Problem

Project

Person 1 2 3

Adams $11 $14 $6

Brown $8 $10 $11

Cooper $9 $12 $7

Page 27: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-27 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

The Assignment The Assignment MethodMethod

1. subtract the smallest number in each row from every number in that row

• subtract the smallest number in each column from every number in that column

2. draw the minimum number of vertical and horizontal straight lines necessary to cover zeros in the table

• if the number of lines equals the number of rows or columns, then one can make an optimal assignment (step 4)

Page 28: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-28 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

The Assignment The Assignment Method - continuedMethod - continued

3. if the number of lines does not equal the number of rows or columns

• subtract the smallest number not covered by a line from every other uncovered number

• add the same number to any number lying at the intersection of any two lines

• return to step 2

4. make optimal assignments at locations of zeros within the table

PG 10.13b

Page 29: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-29 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian Method

Initial Table

Person Project

1 2 3

Adams 11 14 6

Brown 8 10 11

Cooper 9 12 7

Page 30: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-30 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian Method

Row Reduction

Person Project

1 2 3

Adams

Brown

Cooper

5 8 0

0 2 3

2 5 0

Page 31: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-31 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian Method

Column Reduction

Person Project

1 2 3

Adams 5 6 0

Brown 0 0 3

Cooper 2 3 0

Page 32: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-32 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian Method

Person Project

1 2 3

Adams

Brown

Cooper

5 6 0

0 0 3

2 3 0

TestingCovering

Line 2

Covering Line 1

Page 33: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-33 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian Method

Person Project

1 2 3

Adams 3 4 0

Brown 0 0 5

Cooper 0 1 0

Revised Opportunity Cost Table

Page 34: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-34 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian Method

Person Project

1 2 3

Adams3 4 0

Brown0 0 5

Cooper0 1 0

TestingCovering

Line 1

Covering Line 2

Covering Line 3

Page 35: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-35 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Hungarian MethodHungarian MethodAssignments

Person Project

1 2 3

Adams 6

Brown 10

Cooper 9

Page 36: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-36 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Maximization Assignment Maximization Assignment ProblemProblem

Project

1 2 3 Dummy

Adams $11 $14 $6 $0

Brown $8 $10 $11 $0

Cooper $9 $12 $7 $0

Davis $10 $13 $8 $0

Page 37: RHSChap10

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

10-37 © 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Maximization Assignment Maximization Assignment ProblemProblem

Project

1 2 3 Dummy

Adams $32 $0 $8 $14

Brown $6 $4 $3 $14

Cooper $5 $2 $77 $14

Davis $4 $1 $6 $14