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Facilities the goal is to find optimal flow paths and

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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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