Distribution Models:

(Transportation Problem)

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CHAPTER 3: DISTRIBUTION MODELS │ Transportation
Problem
Unbalanced Transportation Model

From To DC1 DC2 DC3 Supply

Boston 5 6 4 300
Toronto 6 3 7 500
Demand 300 300 250 850
800

In real-life situations the problem is usually unbalanced, the total demand

exceeds the total supply, or the total supply exceeds the total demand. Unbalanced
models can be transformed into balanced by introducing a dummy source or
destination.

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CHAPTER 3: DISTRIBUTION MODELS │ Transportation Problem with Dummy
ORIGIN
DESTINATIONS
S
Supply Demand
5
300 BOSTON DC1 300
6
4

To DC1 DC2 DC3 Supply

DC2 300 From
6 Boston 5 6 4 300
TORONT 3
500 Toronto 6 3 7 500
O 7
DC3 250 Dummy 0 0 0 50

0 Demand 300 300 250 850

0
50 DUMMY 0

800 ≤ 850
After 850 = 850
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CHAPTER 3: DISTRIBUTION MODELS │ Transportation Problem with Dummy

1. Define the Decision Variables

xB1 = # of units shipped from Boston to DC1
xB2 = # of units shipped from Boston to DC2 To DC1 DC2 DC3 Supply
From
xB3 = # of units shipped from Boston to DC3
Boston 5 6 4 300
xT1 = # of units shipped from Toronto to DC1
xT2 = # of units shipped from Toronto to DC2 Toronto 6 3 7 500
xT3 = # of units shipped from Toronto to DC3
xij = # of units shipped from Plant I to DCj Dummy 0 0 0 50
Demand 300 300 250 850
wherein,
i = B (Boston) ; T (Toronto); D (Dummy)
j = 1 (DC1); 2 (DC2); 3 (DC3)

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CHAPTER 3: DISTRIBUTION MODELS │ Transportation Problem with
Dummy
2. Objective Function
Minimize z = 5xB1 + 6xB2 + 4xB3 + 6xT1 + 3xT2 + 7xT3 + 0xD1 + 0xD2 + 0xD3

3. The constraints
To DC1 DC2 DC3 Supply
From Subject to
Boston 5 6 4 300 (Boston’s Supply) xB1 + xB2 + xB3 = 300
(Toronto’s Supply) xT1 + xT2 + xT3 = 500
Toronto 6 3 7 500
(Dummy Supply) xD1 + xD2 + xD3 = 50
Dummy 0 0 0 50
(DC1 Demand) xB1 + xT1 ≤ 300
Demand 300 300 250 850
(DC2 Demand) xB2 + xT2 ≤ 300
(DC3 Demand) xB3 + xT3 ≤ 250

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CHAPTER 3: DISTRIBUTION MODELS │ Transportation Problem with
Dummy
4. The non-negativity constraints

xB1 , xB2 , xB3 , xT1 , xT2 , xT3 , xD1 , xD2 , xD3 ≥ 0

or
xij ≥ 0

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CHAPTER 3: DISTRIBUTION MODELS │ Transportation Problem with
Dummy
The Transportation Tableau
T DC1 DC2 DC3 Supply
From
o
Boston 5 6 4 300

Toronto 6 3 7 500

Dummy 0 0 0 50

Demand 300 300 250 850

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