BU275 Chapter Notes - Chapter 6: Distribution Center, Flow Network, Network Model
Document Summary
Bu275 chapter 6: transportation, transshipment, and assignment problems. Transportation, transshipment, and assignment problems are special types of lp model formulations that are part of a larger class of lp problems called network flow problems. Network model: one which can be represented by a set of nodes, set of arcs, and functions (e. g. costs, supplies, demands, etc. ) associated with the arcs and/or nodes. If rhs of lp constraints are all integers, optimal solution will also be integer. Seeks to minimize total shipping costs of transporting goods. From m origins (each with a supply si) to n destinations (each with a demand of di) The unit shipping cost from an origin, i, to a destination, j, is cij. Balanced transportation model: supply = demand; all constraints are equalities. Unbalanced transportation model: supply > demand or demand > supply. If one of the routes are prohibited, variable representing that route must not have a value in the optimal solution.
