Week 3 – “What-if” Analysis for Linear Programming

and Intro to Network Optimization Problems

Plan for today(Rest of chapter 5 and start Chapter 6)

 Table of Contents
Chapter 5 (What-If Analysis for Linear Programming)

Continuing the Wyndor Case Study (Section 5.2)5.2

Changes in One Objective Function Coefficient (Section 5.3) 5.3–5.10
Simultaneous Changes in Objective Function Coefficients (Section 5.4) 5.11–5.18
Single Changes in a Constraint (Section 5.5) 5.19–5.24
Simultaneous Changes in the Constraints (Section 5.6) 5.25–5.28

© 2014 by McGraw-Hill Education.  This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.  This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.  
 Last Time

• The important of “What-if” Analysis to Managers and from the Perspective of Systems Engineer

• Understanding the challenges of Modeling the Real World and how “What-If” Analysis can help

• Systematic Application of “What-If” Analysis – Revisiting Wyndor

• Trial & Error - Changing Parameters on Spreadsheets and seeing the effect

• Parameter Analysis Report with RSPE – The Effect of Changes in One Objective Function Coefficient
 The Parameter Analysis Report

• From the above report on RSPE it is clear that between $700 and $800 Unit Profit per Door there is switch in the Optimal number of Doors and Windows

Produced to maximize profit

• What is the allowable range Unit Profit Per Door such that the Optimal Solution remains 2 Doors and 6 Windows?

• We can easily find this answer using Solver.

5-4
Running Wyndor with Solver

Sensitvity

Report

is built in
Using the Sensitivity Report to Find the Allowable Range
Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$12 Units Produced Doors 2 0 300 450 300
$D$12 Units Produced Windows 6 0 500 1E+30 300

• Current value of 300

 
• Allowable increase in450 So ≤ 300 + 450

• Allowable decrease in 300 So ≥ 300 – 300 = 0

• Allowable r0 ≤ ≤ 750

______________________________________________________________________

• Current value of 00

• Allowable increase inUnlimited So Has No Upper Limit

• Allowable decrease in 300 So ≥ 500 – 300 = 200

• Allowable r ≥ 200

5-6
 Graphical Insight into the Allowable Range
W
Production rate
for windows

(2, 6) is optimal for 0 < PD < 750

6 Line B PD = 0 (Profit = 0 D + 500 W)

4 Line C
PD = 300 (Profit = 300 D + 500 W)
Feasible
region
2
PD = 750 (Profit = 750 D + 500 W)

Line A
0 2 4 6 D
Production rate for doors

The two dashed lines that pass through the solid constraint boundary lines are the objective function lines when PD (the unit profit for

doors) is at an endpoint of its allowable range, 0 ≤ PD ≤ 750.

5-7
Interactive Graphical Linear Programming Tool
Solving …
 Solved – No Surprise
What Happens if we Press the “Sensitivity Button”?

@ (2,6)
Sensitivity Analysis
Optimum Shift – Rotating the Objective
What happens if the estimates of the unit profits of both
Wyndor’s new products are inaccurate?

The profit per door has been revised from $300 to $450. The profit per window has been revised from $500 to

$400.  No change occurs in the optimal solution.

The profit per door has been revised from $300 to $600. The profit per window has been revised from $500 to 5-13
Creating a Two-Way Parameter Analysis Report – Part 1

5-14
Creating a Two-Way Parameter Analysis Report – Part 2
Creating a Two-Way Parameter Analysis Report – Part 3

NOTE: Don’t forget to select

The parameters you want to

Analyze and choose the desired

VERY IMPORTANT:
subdivisions
Choose Parameter Variation Option
 Output Report

My Version – Actual Output - $C$4 is Unit Profit per Door while $D$4 is Unit Profit per Window

Textbook Version Nicely Formatted with Range Names

Screenshot from Text

Results Selection: Total Profit

as previously shown (Could be something

Else)

Note: Checkbox

5-18
What if we look at Units Produced instead of Profit?

Optimal Number of Doors to Produce

Optimal Number of Windows to Produce

 The 100 Percent Rule

The 100 Percent Rule for Simultaneous Changes in Objective Function

Coefficients: If simultaneous changes are made in the coefficients of the objective
function, calculate for each change the percentage of the allowable change
(increase or decrease) for that coefficient to remain within its allowable range. If
the sum of the percentage changes does not exceed 100 percent, the original
optimal solution definitely will still be optimal. (If the sum does exceed 100
percent, then we cannot be sure.)

5-20
 Illustration of the 100 Percent Rule – 3 Scenarios
•  
Percent of Allowable Increase = )% =

Percent of Allowable Decrease = )% =

__________
SUM

______________________________________________________

Percent of Allowable Increase =)% =

Percent of Allowable Decrease = )% =

__________
SUM
____________________________________________________________________________

Percent of Allowable Increase = )% =

Percent of Allowable Decrease =)% =

__________
SUM
Graphical Interpretation of the 100% Rule
 Wrap up thoughts on Objective Function Changes
• Three approaches discussed:
– Spreadsheet trial and error
– One way & Two way Parameter Analysis Reports (RSPE & Solver)
– 100 Percent Rule

• When to Employ the 100 Percent Rule

– The 100 Percent Rule can be used to determine just how large the changes in the
Objective function coefficients need to be before the original optimal solution may
no longer be optimal
– When the model has a large number of decision variables the spreadsheet approach
may become impractical. The Parameter Analysis report can only be used to
systematically check possible changes in at most two coefficients at a time.
However, the 100 percent rule immediately indicates how much each coefficient
can safely be changed without invalidating the current optimal solution.
– After completing a study, if conditions change in the future the 100 percent rule can
be used to determine whether or not the original optimal solution is valid thereby
avoiding in some cases the need to reconstruct or revise the spreadsheet model
(Saves time and money)
What would happen if a change is made in the number of hours of production time
per week being made available in on of the plants?
• This is a question of how a change in a single constraint affects the optimal solution
• We can explore this by changing values on the spreadsheets:

Increase

Available

Hours from

12 to 13
The hours available in plant 2 have been increased from 12 to 13. The total profit increases by $150 per week.

Increase

Available

Hours from

13 to 18

The hours available in plant 2 have been further increased from 13 to 18. The total profit increases by $750 per week

Increase

Available

Hours from

18 to 20

The hours available in plant 2 have been further increased from 18 to 20. The total profit does not increase any further.(the increase does not help –
 Changing Constraints
• Issue: The Right Hand Sides of the Functional Constraints may represent
managerial policy decisions rather than hard constraints/quantities that are
outside the control of management. Management may want a means of
analyzing the effect of altering these policy decisions

• However, how can we tell the limits of these changes and what effect they will
have on the optimal solution?

• What if the number of available hours for Plant 2 varied between 4 and 20?
– What would happen with total profit?
– How would this affect the number of Doors and Windows Produced?
– What is the incremental profit for each additional available hour added?
 Parameter Analysis Set-up – Hours Available Plant 2

The “Missing Manual” –> Choose

What the Textbook your values

Parameter Analysis Report for Hours Available in Plant 2

My Version:

Note Last Column

is added with

A formula!

Textbook

Slide Version:

With Range Names

5-27
 Making Sense of This
• Issue: The Right Hand Sides of the Functional Constraints may represent managerial policy decisions rather than hard

constraints/quantities that are outside the control of management. Management may want a means of analyzing the effect of altering

these policy decisions

• However, how can we tell the limits of these changes and what effect they will have on the optimal solution and objective?

• Beginning with the original Wyndor Parameters, if Plant 2 starts with 12 Hours Available, each additional hour allocated yields an

additional $150 in profit (up to 18 hours after which additional profit is $0)

• If hours are taken away from Plant 2, each hour lost causes a loss of $150 profit (down to 6 hours available)

• This “rate of change” in the profit for increases and decreases in the RHS of a constraint is known as the Shadow Price
 Using the Sensitivity Report
Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$12 Units Produced Doors 2 0 300 450 300
$D$12 Units Produced Windows 6 0 500 1E+30 300

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$7 Plant 1 Used 2 0 4 1E+30 2
$E$8 Plant 2 Used 12 150 12 6 6
$E$9 Plant 3 Used 18 100 18 6 6

Now we can make sense

of these values. From 12

available hours for Plant 2

we can increase or decrease

profit by $150 either increase of 6

Plant 1 constraint: 4 – 2 ≤ RHS1 ≤ 4 + ∞, so 2 ≤ RHS1 (no upper limit)
steps or a decrease of 6 steps
Plant 2 constraint: 12 – 6 ≤ RHS2 ≤ 12 + 6, so 6 ≤ RHS2 ≤ 18

Plant 3 constraint: 18 – 6 ≤ RHS3 ≤ 18 + 6, so 12 ≤ RHS3 ≤ 24

5-29
 Some Definitions
• Given an optimal solution and the corresponding value of the objective function for a linear programming model, the Shadow Price for

a functional constraint is the rate at which the value of the objective function can be increased by increasing the RHS of the constraint

by a small amount

• However, the shadow price is valid only within a range of values:

e.g. for Wyndor: 6 ≤ RHS ≤ 18

• The Allowable Range for the RHS of a functional constraint is the range of values for this RHS over which this constraint’s shadow

price remains valid

• Unlike the allowable range for the Objective Function Coefficients, a change that is within the allowable range for the RHS does not

mean that the original solution is still optimal. In fact, any time the Shadow Price is not zero, a change to the RHS leads to a change in

the optimal solution.

• Therefore the Shadow Price indicates how much the value of the Objective Function will change as the Optimal Solution changes.
 Using RSPE to Analyze Plant 3

Try this at home!

Keys:

1 – Test Range for

Plant 3: 4 to 30

2 – Steps for

Major Axis: 27 Allowable

Range

From

18
What would happen if Simultaneous Changes were made in the
constraints?

• Why would we need to this?

– Uncertainty about estimates for a number of the parameters in the functional constraints giving rise to many

questions as to the effect if the true values of the parameters simultaneously deviate significantly from the

estimates

– What is the managerial policy decisions were changed? What would be the effect of this?

• How can we do this systematically?

– Run multiple spreadsheets

– Parameter Analysis Report

– Solver Sensitivity Report

Essentially the same as before!

5-32
 Specifically  What would happen if Simultaneous Changes were made in
the number of hours of production time per week being made available to
Wyndor’s new products in all plants?

One available hour in plant 3 has been shifted to plant 2. The total profit increases by $50 per week.

RHS2: 12  13 Change in total profit = Shadow Price = $150

RHS3: 18  17 Change in total profit = -Shadow Price = -$100

Net increase in total profit = $50

However, it can be tedious or sometimes even impractical to the spreadsheet to

5-33
Investigate a large number of simultaneous changes in the RHSs
Spreadsheet to Generate a Parameter Analysis Report

By inserting a formula into cell G8 that keeps the total number of hours available in plant 2 and 3 equal to 30, it will be

possible to generate a one-way parameter analysis report that shows the effect of shifting more and more of the hours from

plant 3 to plant 2.

5-34
 Parameter Analysis Report

This parameter analysis report shows the effect of shifting more and more of the hours available from plant 3 to plant 2 for the

Wyndor problem.

5-35
 The 100 Percent Rule

The 100 Percent Rule for Simultaneous Changes in Right-Hand Sides: The
shadow prices remain valid for predicting the effect of simultaneously changing
the right-hand sides of some of the functional constraints as long as the changes
are not too large. To check whether the changes are small enough, calculate for
each change the percentage of the allowable change (decrease or increase) for that
right-hand side to remain within its allowable range. If the sum of the percentage
changes does not exceed 100 percent, the shadow prices definitely will still be
valid. (If the sum does exceed 100 percent, then we cannot be sure.)

5-36
 Table of Contents
Chapter 6 (Network Optimization Problems)

Minimum-Cost Flow Problems (Section 6.1) 6.2–6.12

A Case Study: The BMZ Maximum Flow Problem (Section 6.2) 6.13–6.16
Maximum Flow Problems (Section 6.3) 6.17–6.21
Shortest Path Problems: Littletown Fire Department (Section 6.4) 6.22–6.25
Shortest Path Problems: General Characteristics (Section 6.4) 6.26–6.27
Shortest Path Problems: Minimizing Sarah’s Total Cost (Section 6.4) 6.28–6.31
Shortest Path Problems: Minimizing Quick’s Total Time (Section 6.4) 6.32–6.36

© 2014 by McGraw-Hill Education.  This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.  This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.  
 Introduction to Network Optimization Problems
• Three main types:
– Minimum Cost Flow – e.g. minimize the cost of shipping goods through a distribution
network
– Maximum Flow – e.g. maximize the flow of goods through a distribution network
– Shortest Path – e.g. find the shortes route between two locations Special
Cases of
MCF

• Where do these types of problems arise?

– Logistics/Transportation, communications, smart grid/power distribution, and many types of
Systems Engineering problems
– Project planning, production, distribution, resource management and facilities planning

• We have already encountered some network optimization problems:

– Transportation Problems
– Assignment Problems
– Transportation and Assignment Problems are specific cases of “Minimum Cost Flow”
problems

6-38
 Distribution Unlimited Co. Problem

Example of a Minimum Cost Flow Problem

• The Distribution Unlimited Co. has two factories producing a product that
needs to be shipped to two warehouses
– Factory 1 produces 80 units.
– Factory 2 produces 70 units.
– Warehouse 1 needs 60 units.
– Warehouse 2 needs 90 units.

• There are rail links directly from Factory 1 to Warehouse 1 and Factory 2 to
Warehouse 2.

• Independent truckers are available to ship up to 50 units from each factory to

the distribution center, and then 50 units from the distribution center to each
warehouse.

Question: How many units (truckloads) should be shipped along each

shipping lane?

6-39
The Distribution Network & Data Model Representation

80 units F1 W1 60 units
produced needed

DC

70 units W2 90 units
F2
produced needed

80 units $700/unit 60 units

F1 W1
produced needed
$300/unit $200/unit

[50 units max.] [50 units max.]

DC

[50 units max.] [50 units max.]

$400/unit
$500/unit
70 units $1,000/unit 90 units
F2 W2 6-40
produced needed 6-40
Data Model Distribution Network & Network Model
80 units $700/unit 60 units
F1 W1
produced needed
$300/unit $200/unit

[50 units max.] [50 units max.]

DC

[50 units max.] [50 units max.]

$400/unit
$500/unit
70 units $1,000/unit 90 units
F2 W2
produced needed

[80] [- 60]

$700
F1 W1

$300
$200
[50] [0] [50]

DC

$500 $400

[50] [50]

$1,000
F2 W2
6-41

6-41
[70] [- 90]
 Some Notes on the Network Model

• The number in the square brackets [] next to the location of each facility indicates the net number of

units (outflow minus inflow) generated there. Therefore the number of units terminating at each

warehouse is shown as a negative number.

• The number at the distribution center is 0 since the number of units leaving minus the number of units

arriving must equal 0.

• The number on the top of each arrow show the unit shipping cost along that shipping lane.

• Any number in square brackets underneath an arrow gives the maximum number of units that can be

shipped along that shipping lane. (The absence of a number in square brackets beneath an arrow

implies that there is no limit on the shipping amount there.

 The Optimal Solution & Network Model
[80] [- 60]
(30)
F1 W1
(50) (30)
[0] For the Optimal Solution, the

DC Total Shipping cost is:

(30) (50) 30($700) + 50($300) + 30($500) +
(40)
F2 W2 40($1000) + 30($200) + 50($400) =
[70] [- 90]
$117,000
[80] [- 60]

$700
F1 W1

$300
$200
[50] [0] [50]

DC

$500 $400

[50] [50]

$1,000
F2 W2
6-43

[70] [- 90]
 Terminology for Minimum-Cost Flow Problems

1. The model for any minimum-cost flow problem is represented by a network

with flow passing through it.
2. The circles in the network are called nodes.
3. Each node where the net amount of flow generated (outflow minus inflow) is a
fixed positive number is a supply node.
4. Each node where the net amount of flow generated is a fixed negative number
is a demand node.
5. Any node where the net amount of flow generated is fixed at zero is a
transshipment node. Having the amount of flow out of the node equal the
amount of flow into the node is referred to as conservation of flow.
6. The arrows in the network are called arcs.
7. The maximum amount of flow allowed through an arc is referred to as the
capacity of that arc.

6-44
 Assumptions of a Minimum-Cost Flow Problem

1. At least one of the nodes is a supply node.

2. At least one of the other nodes is a demand node.
3. All the remaining nodes are transshipment nodes.
4. Flow through an arc is only allowed in the direction indicated by the
arrowhead, where the maximum amount of flow is given by the capacity of
that arc. (If flow can occur in both directions, this would be represented by a
pair of arcs pointing in opposite directions.)
5. The network has enough arcs with sufficient capacity to enable all the flow
generated at the supply nodes to reach all the demand nodes.
6. The cost of the flow through each arc is proportional to the amount of that
flow, where the cost per unit flow is known.
7. The objective is to minimize the total cost of sending the available supply
through the network to satisfy the given demand. (An alternative objective is
to maximize the total profit from doing this.)

6-45
 Properties of Minimum-Cost Flow Problems

• The Feasible Solutions Property: Under the previous assumptions, a

minimum-cost flow problem will have feasible solutions if and only if the sum
of the supplies from its supply nodes equals the sum of the demands at its
demand nodes.

• The Integer Solutions Property: As long as all the supplies, demands, and
arc capacities have integer values, any minimum-cost flow problem with
feasible solutions is guaranteed to have an optimal solution with integer values
for all its flow quantities.

6-46
 Spreadsheet Model – Distribution Network Example
From To Ship Capacity Unit Cost Nodes Net Flow Supply/Demand
F1 W1 30 $700 F1 80 = 80
F1 DC 50 <= 50 $300 F2 70 = 70
DC W1 30 <= 50 $200 DC 0 = 0
DC W2 50 <= 50 $400 W1 -60 = -60
F2 DC 30 <= 50 $400 W2 -90 = -90
F2 W2 40 $900

Total Cost $117,000

J
3 Net Flow
4 =SUMIF(From,I4,Ship)-SUMIF(To,I4,Ship)
5 =SUMIF(From,I5,Ship)-SUMIF(To,I5,Ship)
6 =SUMIF(From,I6,Ship)-SUMIF(To,I6,Ship)
7 =SUMIF(From,I7,Ship)-SUMIF(To,I7,Ship)
8 =SUMIF(From,I8,Ship)-SUMIF(To,I8,Ship)

6-47
 The SUMIF Function
• The SUMIF formula can be used to simplify the node flow constraints.

=SUMIF(Range A, x, Range B)

• For each quantity in (Range A) that equals x, SUMIF sums the corresponding entries in (Range B).
• The net outflow (flow out – flow in) from node x is then

=SUMIF(“From labels”, x, “Flow”) – SUMIF(“To labels”, x, “Flow”)

Non-negative option 6-48

 Typical Applications of Minimum-Cost Flow Problems

Kind of Supply Transshipment Demand

Application Nodes Nodes Nodes

Operation of a Intermediate storage

Sources of goods Customers
distribution network facilities

Solid waste Sources of solid

Processing facilities Landfill locations
management waste

Operation of a Intermediate
Vendors Processing facilities
supply network warehouses

Coordinating product Production of a Market for a specific

Plants
mixes at plants specific product product

Cash flow Sources of cash at a Short-term Needs for cash at a

management specific time investment options specific time

6-49
 Special Type of Minimum-Cost Flow Problems

• Transportation Problems – sources and destinations are the supply nodes and
demand nodes.

• Assignment Problems – Assigning resources to tasks, a special type of

Transportation problem where sources are assignees and destinations are tasks.
A resource is a supply node with a supply of “1” and each task is a demand
node with demand of “1”

• Transhipment Problems – A transportation problem where the shipment form

the sources (supply nodes) to the destinations (demand nodes) might also pass
through intermediate transfer points (transshipment nodes) such as distribution
centers. Like the transportation problem, there are no capacity constraints on
the arcs

• Maximum Flow Problems

• Shortest Path Problems

6-50
 The BMZ Maximum Flow Problem

• The BMZ Company is a European manufacturer of luxury automobiles. Its

exports to the United States are particularly important.

• BMZ cars are becoming especially popular in California, so it is particularly

important to keep the Los Angeles center well supplied with replacement parts
for repairing these cars.

• BMZ needs to execute a plan quickly for shipping as much as possible from
the main factory in Stuttgart, Germany to the distribution center in Los
Angeles over the next month.

• The limiting factor on how much can be shipped is the limited capacity of the
company’s distribution network.

Question: How many units should be sent through each shipping lane to
maximize the total units flowing from Stuttgart to Los Angeles?

6-51
 The BMZ Distribution Network

RO Rotterdam
[60 units max.]

[50 units max.]

New York NY {40 units max.] BO ST Stuttgart

[70 units max.]
Bordeaux
[40 units max.]
[80 units max.] [50 units max.]

LA New Orleans LI
Los Angeles Lisbon
[70 units max] NO [30 units max.]

6-52
 A Network Model for BMZ

RO

[60]

NY [50]

[80]
[40]

LA BO ST
[70]

[50]
[70]

NO
[40]

[30]

LI

6-53
 Spreadsheet Model for BMZ

B C D E F G H I J K
3 From To Ship Capacity Nodes Net Flow Supply/Demand
4 Stuttgart Rotterdam 50 <= 50 Stuttgart 150
5 Stuttgart Bordeaux 70 <= 70 Rotterdam 0 = 0
6 Stuttgart Lisbon 30 <= 40 Bordeaux 0 = 0
7 Rotterdam New York 50 <= 60 Lisbon 0 = 0
8 Bordeaux New York 30 <= 40 New York 0 = 0
9 Bordeaux New Orleans 40 <= 50 New Orleans 0 = 0
10 Lisbon New Orleans 30 <= 30 Los Angeles -150
11 New York Los Angeles 80 <= 80
12 New Orleans Los Angeles 70 <= 70
13
14 Maximum Flow 150

6-54
 Main Points on BMZ Model Set-up

1. Main Difference is the Change in Objective

2. No longer minimizing the total cost of the flow through the network

3. Path costs are deleted (versus Distribution Example we looked at)

4. Solver Parameters box specifies that the objective cell is to be maximized

6-55
Model Set-up Details - BMZ
 Assumptions of Maximum Flow Problems

1. All flow through the network originates at one node, called the source, and
terminates at one other node, called the sink. (The source and sink in the BMZ
problem are the factory and the distribution center, respectively.)

2. All the remaining nodes are transshipment nodes.

3. Flow through an arc is only allowed in the direction indicated by the

arrowhead, where the maximum amount of flow is given by the capacity of
that arc. At the source, all arcs point away from the node. At the sink, all arcs
point into the node.

4. The objective is to maximize the total amount of flow from the source to the
sink. This amount is measured in either of two equivalent ways, namely, either
the amount leaving the source or the amount entering the sink.

6-57
 BMZ with Multiple Supply and Demand Points

• BMZ has a second, smaller factory in Berlin.

• The distribution center in Seattle has the capability of supplying parts to the
customers of the distribution center in Los Angeles when shortages occur at
the latter center.

Question: How many units should be sent through each shipping lane to
maximize the total units flowing from Stuttgart and Berlin to Los Angeles
and Seattle?

6-58
Network Model for The Expanded BMZ Problem

HA

[40]
BN [60]
[30]
[20]

SE RO BE
[20]
[40]
[60]
NY [50]
[10]

[40]
[80]
LA BO ST
[70]

[50]
[70]
NO
[40]
[30]

LI

6-59
 Spreadsheet Model

B C D E F G H I J K
3 From To Ship Capacity Nodes Net Flow Supply/Demand
4 Stuttgart Rotterdam 40 <= 50 Stuttgart 140
5 Stuttgart Bordeaux 70 <= 70 Berlin 80
6 Stuttgart Lisbon 30 <= 40 Hamburg 0 = 0
7 Berlin Rotterdam 20 <= 20 Rotterdam 0 = 0
8 Berlin Hamburg 60 <= 60 Bordeaux 0 = 0
9 Rotterdam New York 60 <= 60 Lisbon 0 = 0
10 Bordeaux New York 30 <= 40 Boston 0 = 0
11 Bordeaux New Orleans 40 <= 50 New York 0 = 0
12 Lisbon New Orleans 30 <= 30 New Orleans 0 = 0
13 Hamburg New York 30 <= 30 Los Angeles -160
14 Hamburg Boston 30 <= 40 Seattle -60
15 New Orleans Los Angeles 70 <= 70
16 New York Los Angeles 80 <= 80
17 New York Seattle 40 <= 40
18 Boston Los Angeles 10 <= 10
19 Boston Seattle 20 <= 20
20
21 Maximum Flow 220

6-60
 Some Applications of Maximum Flow Problems

1. Maximize the flow through a distribution network, as for BMZ.

2. Maximize the flow through a company’s supply network from its vendors to
its processing facilities.

3. Maximize the flow of oil through a system of pipelines.

4. Maximize the flow of water through a system of aqueducts.

5. Maximize the flow of vehicles through a transportation network.

6-61
 Homework #3 – Due 9/29/2015

5.3, 5.5 (a,b,c,d), 6.2, 6.3