**Unformatted text preview: **facilities
The goal is to find optimal flow paths and the amounts to
be shipped on those paths to minimize the cost of
shipments.
shipments.
It is the most basic supply chain problem.
It 3 Example 6.1 Example 6.1
Using greedy heuristic
Using
Warehouses
Factories Amarillo
250 Teaneck
420 Chicago
380 Sioux Falls
280 Sunnyvale 45
1280 990 1440 1520 Dublin 120
1550 1420 1660 1730 Bangkok 95
80 78 47 55 4 Example 6.1
Using linear programming via excel solver
Using Additional Network Types
Transshipment problem: As it is said, the transportation
problem is the basic form of network problems. All nodes
are either supply (source) or demand (sinks) nodes.
are
Transshipment problem is more complicated where one
Transshipment
or more nodes in the network are transshipment points
rather than supply or demand points
rather
Transshipment node can be either a supply or demand
node as well.
node 5 Transshipment Problem
IF Apply the Following Rule at each Node 1. Total Supply > total demand Inflow – outflow ≥ supply or demand 2. Total Supply < total deman Inflow – outflow ≤ supply or demand 3. Total Supply = total demand Inflow – outflow = supply or demand Example 6.2
Example 6 Example 6.2 Delivery Routes
Handling the delivery problem at micro level.
Handling
A popular vehicle scheduling problem from OR,
Traveling Salesman problem, is a good example.
is
The problem looks simple. However, when number of
cities increase it is almost impossible to enumerate all
possible tours.
possible
In most cases optimality is out of question. We will work
on certain heuristics.
on 7 Location & Routing
Assume that there are multiple customers served from a
specific warehouse. Identify the depot as location 0 and
the customers as 1,2,3,…,n.
Cost of trav...

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