Tools › Operations Research › Optimization › Transportation and Assignment › Example

Winston Section 7.6: the Widgetco transshipment problem

ToolTransportation and Assignment
SourceWinston, W. L. (2004). Operations Research: Applications and Algorithms, 4th ed. Brooks/Cole, Belmont, CA. Section 7.6.
LevelUndergraduate

Problem

Widgetco makes widgets in Memphis (150 a day) and Denver (200) for customers in Los Angeles and Boston (130 each), shipping directly or through New York and Chicago. Convert the network to a transportation table with a buffer at the transshipment points and find the minimum-cost shipping plan.

Inputs to Enter

  • Problem select: Transshipment, Widgetco (Winston)
  • Nodes: Memphis source 150, Denver source 200, New York and Chicago transshipment, Los Angeles sink 130, Boston sink 130
  • Arc costs: Memphis → NY 8, Chicago 13, LA 25, Boston 28; Denver → NY 15, Chicago 12, LA 26, Boston 25; NY → Chicago 6, LA 16, Boston 17; Chicago → NY 6, LA 14, Boston 16
Open the Transportation and Assignment tool

Answers

  • Buffer s = 350 (total supply); 4 × 4 table with a dummy column of 90 for the unused supply
  • Optimal cost $6,370: Memphis → New York 130, New York → Los Angeles 130, Denver → Boston 130 direct; Memphis 20 and Denver 70 unused
  • Alternative optimum flagged (Memphis → New York → Boston at 25 ties Denver → Boston at 25)

Notes

Choose the Widgetco entry in the problem select; the node list and arc list load together. The optimum is also confirmed by the Linear Programming tool's simplex.

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