Ch 15 Problem 151151 Linear Programming To Solve The Network

Ch 15 Problem 151151 Linear Programming To Solve The Network Flows P

To solve the given network flow problem using linear programming, we will analyze the transportation problem involving warehouses, customers, costs, capacities, and demands. The objective is to minimize the total shipping costs while satisfying the capacity constraints at warehouses and the demand requirements of customers.

The problem involves two warehouses W1 and W2 with capacities of 50,000 units each and three customers C1, C2, and C3 with demands of 50,000, 50,000, and 100,000 units respectively, totaling 200,000 units. Shipping costs per unit from warehouses to customers are specified, and the goal is to determine the optimal shipment quantities that minimize total costs.

Understanding the Transportation Problem

Transportation problems represent a special case of linear programming where the goal is to determine the most cost-effective way to distribute goods from multiple sources to multiple destinations while respecting supply and demand constraints. The decision variables in this problem are the quantities shipped from each warehouse to each customer:

• W1 to C1, C2, C3
• W2 to C1, C2, C3

The objective function aims to minimize total shipping costs, calculated as the sum of the product of unit costs and shipped quantities across all routes. The constraints include warehouse capacities and customer demands.

Mathematical Formulation

Decision Variables

• x_ij: number of units shipped from warehouse i to customer j

Parameters

• c_ij: shipping cost per unit from warehouse i to customer j
• s_i: capacity of warehouse i
• d_j: demand of customer j

Objective Function

Minimize Z = 0 x₁₁ + 5 x₁₂ + 0 x₁₃ + 4 x₂₁ + 2 x₂₂ + 0 x₂₃

Constraints

• Supply constraints:
  • x₁₁ + x₁₂ + x₁₃ ≤ 50,000 (W1 capacity)
  • x₂₁ + x₂₂ + x₂₃ ≤ 50,000 (W2 capacity)
• Demand constraints:
  • x₁₁ + x₂₁ = 50,000 (C1 demand)
  • x₁₂ + x₂₂ = 50,000 (C2 demand)
  • x₁₃ + x₂₃ = 100,000 (C3 demand)
• Non-negativity constraints:
  • x_ij ≥ 0 for all i,j

Using these formulations, the problem can be efficiently solved using linear programming techniques, either analytically or by utilizing software tools such as Microsoft Excel Solver, which simplifies the process of finding the optimal shipment plan that minimizes total costs.

Solving Using Microsoft Excel

Microsoft Excel's Solver tool offers an accessible way to find the optimal transportation plan. By inputting the cost matrix, capacities, and demands, the solver can be configured to minimize total shipping costs while meeting all constraints. This practical approach allows managers and analysts to quickly evaluate different scenarios and make informed decisions.

Analysis of Results and Implications

The optimal solution derived from linear programming indicates which warehouse should supply which customer, and the quantity shipped on each route, to cost-effectively meet demand constraints. This not only minimizes transportation expenses but can also help identify capacity bottlenecks or opportunities for cost savings.

Furthermore, understanding the structure of the transportation problem contributes to the strategic planning of inventory, distribution, and logistics, especially when considering expanding capacities or renegotiating shipping costs.

Conclusion

Applying linear programming to transportation problems is a vital technique for optimizing distribution networks. With its capacity constraints, demand requirements, and cost considerations, the problem can be formulated systematically and solved efficiently using tools like Excel Solver. Such models aid decision-making and enhance supply chain efficiency in real-world operations, providing significant cost reductions and improved resource utilization.

References

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• Taha, H. A. (2017). Operations Research: An Introduction. Pearson Education.
• Francis, R. L., & Cook, W. D. (2000). The Transportation Model. In Introduction to Operations Research (pp. 351-378). McGraw-Hill.
• Rardin, R. L. (1998). Optimization in Operations Research. Prentice Hall.
• Gass, S. I. (2003). Linear Programming: Methods and Applications. Dover Publications.
• Actual, B. (2010). Logistics and Distribution Management. Kogan Page.
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• Ng, V. (2004). Transportation modeling using Excel Solver. Applied Mathematics and Computation, 152(2-3), 747-763.