Transport Decisions - TransportationDecisions...

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Transportation Decisions The Transportation Problem 1
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Transportation problem A fixed amount of product must be transported from a group of sources (e.g., plants or factories) to a group of sinks (e.g., warehouses, DCs, retail locations, or end customers) Each source has a quantity to ship and each sink must receive a certain quantity The unit cost of transporting from each source to each sink is known The goal is to find the optimal amounts to be shipped from each source to each sink in order to minimize the total cost of shipments Assumptions 2
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Transportation problem: example Suppose a firm is producing the following quantities of products in its three Texas plants: Suppose that the following quantities have to be shipped Plant Production quantity (in 1,000 units) San Antonio 45 Dallas 120 Arlington 95 DC Demand (in 1,000 units) San Marcos 80 Waco 78 Temple 47 Austin 55 Note: Total production quantity is equal to total demand in this 3
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Transportation problem: example node-link  network Dallas Arlington San Antonio Austin Waco San Marcos Temple 4
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This note was uploaded on 10/16/2011 for the course OM 368 taught by Professor Morrice during the Spring '11 term at University of Texas at Austin.

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Transport Decisions - TransportationDecisions...

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