Network Optimization

Some Key Terms

• Network: A set of points and a set of
lines connecting certain pairs of
points.

• The points are called NODES and the

lines are called ARCS.

• Flow: Arcs have flow of some type

through them.
 Examples
Nodes Arcs Flow
Pumping Stations Pipes Fluids
Airports Air lanes Aircraft
Switching points Wires, channels Messages
Work centers Material handling routes Jobs
Intersections Roads Vehicles
 Some Key Terms
• Directed Arc: If flow
through an arc is allowed
in one direction.
• Undirected Arc: If flow
through an arc is allowed
in either direction.
 Some Key Terms
• Directed Network: A network
that has only directed arcs.
• Undirected Network: A
network that has all its arcs
undirected.
 Some Key Terms
• Directed Path: A directed path from node ‘i’ to
node ‘j’ is a sequence of connecting arcs
whose direction is towards node ‘j’ so that
flow from node ‘i’ to node ‘j’ is feasible.

• Undirected Path: A undirected path from node

‘i’ to node ‘j’ is a sequence of connecting arcs
whose direction can be either toward or away
from node ‘j’.
 Some Key Terms
• Cycle: A path that begins and ends at the same
node.
• Connected: Two nodes are connected if the
network contains at least one undirected path
between them.
• Connected Network: A network where every
pair of nodes is connected.
• Path: A path between two nodes is a sequence
of distinct arcs connecting these nodes.
 Some Key Terms
• Tree:
 Some Key Terms
• Tree:
 Consider a connected network with ‘n’ nodes where all
arcs have been deleted.
 A TREE can be grown by adding one arc at a time from
original network in a certain way.
 The first arc may go anywhere to connect some pair of
nodes.
 Therefore, each new arc should be between a node that
already is connected to other nodes and a new node not
previously connected to any other nodes.
 Some Key Terms
• Tree:
 Adding an arc in this way avoids creating a cycle and ensures that the
number of connected nodes is 1 greater than number of arcs.
 Each new arc creates a larger tree, which is a connected network that
contains no undirected cycles.
 Once the (n – 1)st arc has been added, the process stops because the
resulting tree spans (connects) all ‘n’ nodes.
 This is called spanning tree.
Spanning Tree
 Some Key Terms
• Spanning Tree: Connected network for all nodes that
contains no undirected cycles. Every spanning tree
has exactly n – 1 arcs since this is the minimum
number of arcs needed to have a connected network
and maximum number possible without having
undirected cycles.
 Is it a Spanning Tree ???
A
T

O B D

c E
 Is it a Spanning Tree ???
A
T

O B D

c E
 Is it a Spanning Tree ???
A
T

O B D

c E
 Minimum Spanning Tree Problem
• In the Seervada Park telephone lines must be installed under the
roads to establish telephone communication among all stations.
• Because the installation is both expensive and disruptive to natural
environment, lines will be installed under just enough roads to
provide some connection between every pair of stations.
• The question is where the lines should be laid to accomplish this
with a minimum total number of miles of line installed.
Minimum Spanning Tree Problem
A
2
7
5
T
2
5 B 4
O D 7
3 1
1
4
4 E
c
Minimum Spanning Tree Problem
A
2
7
5
T
2
5 B 4
O D 7
3 1
1
4
4 E
c
 Some Applications of Minimum Spanning Tree Problem
• Design of telecommunication networks.
• Design of transportation network.
• Design of network of high-voltage electric power transmission
lines.
• Design network of wiring on electrical equipment to minimize total
length of wire.
• Design of a network of pipelines to connect a number of locations.
 Three Network Optimization Problems
Minimum-Cost flow problem
• Minimize cost of shipping goods through a distribution network

Maximum Flow problem

• Maximize flow of goods through a distribution network

Shortest Path problem

• Find the shortest route between two locations
 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 at a minimum
total cost?
 The Distribution Network
80 units F1 W1 60 units
produced needed

DC

70 units F2 W2 90 units
produced needed
The Distribution Network
 Decision Variables
• X1 = no. of units shipping through from F1 to W1
• X2 = no. of units shipping through from F1 to DC
• x3 = no. of units shipping through from DC to W1
• X4 = no. of units shipping through from F2 to W2
• X5 = no. of units shipping through from F2 to DC
• X6 = no. of units shipping through from DC to W2
 Objective function
700X1+300X2+200X3+1000X4+500X5+400X6
 Constraints
• X2<=50; X5<=50; X3<=50; X6<=50
• X1+X2 = 80
• X4+X5 = 70
• X1+X3 = -60
• X4+X6 = -90
• (X2+X5)-(X3+X6) = 0
 Solution
[80] [- 60]
(30)
F1 W1
(50) (30)
[0]

DC
(30) (50)
(40)
F2 W2
[70] [- 90]
 Terminology for Minimum-Cost Flow Problems

• The model for any minimum-cost flow problem is represented by a

network with flow passing through it.
• The circles in the network are called nodes.
• Each node where the net amount of flow generated (outflow minus
inflow) is a fixed positive number is a supply node.
• Each node where the net amount of flow generated is a fixed negative
number is a demand node.
 Terminology for Minimum-Cost Flow Problems

• 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.
• The arrows in the network are called arcs.
• The maximum amount of flow allowed through an arc is referred to as
the capacity of that arc.
 Three Network Optimization Problems
Minimum-Cost flow problem
• Minimize cost of shipping goods through a distribution network

Maximum Flow problem

• Maximize flow of goods through a distribution network

Shortest Path problem

• Find the shortest route between two locations
 Maximum Flow Problem
• BMZ Company is European manufacturer of luxury automobiles. Its exports to
United States are particularly important.

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

keep 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
main factory in Stuttgart, Germany to distribution center in Los Angeles over
the next month.
 Additional Information
• The limiting factor on how much can be shipped is the
limited capacity of the company’s distribution
network.

How many units should be sent through each shipping lane

to maximize the total units flowing from Stuttgart to Los
Angeles?
 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.]
 Assumptions of Maximum Flow Problems
• All flow through the network originates at one node,
called source, and terminates at one other node,
called sink.
• All the remaining nodes are transshipment nodes
(intermediate transfer points).
 Assumptions of Maximum Flow Problems
• 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.
 Assumptions of Maximum Flow Problems
• 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: either the amount leaving the source or the
amount entering the sink.
 SHORTEST PATH PROBLEM
• Littletown is a small town in rural area.
• Its fire department serves relatively large geographical
area that includes many farming communities.
• Since there are numerous roads throughout the area,
many possible routes may be available for traveling to
any given farming community.
 Which route from the fire station to a
certain farming community minimizes the
total number of miles?
 8

A F 4

1 D 3 6
3 4 6
Fire 6 Farming
B 3 G Community
Station
5 5
E 2
2
4
4 C 7 H 7
 Assumptions of a Shortest Path Problem
1. You need to choose a path through the network that
starts at a certain node (origin), and ends at another
node (destination).
2. Lines connecting certain pairs of nodes commonly are
links (which allow travel in either direction), although
arcs (which only permit travel in one direction) also are
allowed.
 Assumptions of a Shortest Path Problem
• Associated with each link (or arc) is a nonnegative
number called its length.
• Objective is to find the shortest path (the path with
the minimum total length) from the origin to the
destination.
 Maximum Flow with
Multiple Supply and Demand Points

• BMZ has a second, smaller factory in Berlin,

Distribution center in Seattle, and two additional
ports in Hamburg (HA) and Boston (BN).
 Maximum Flow with
Multiple Supply and Demand Points

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?
 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
 Some Applications of Maximum Flow Problems
1. Maximize flow through company’s supply network from
its vendors to its processing facilities.
2. Maximize flow of oil through a system of pipelines.
3. Maximize flow of water through a system of aqueducts.
4. Maximize flow of vehicles through a transportation
network.