Transportation Problem in Scm

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    Transportation ProblemIn Supply Chain

    ManagementPresented by

    Priyaja Nayak

    Rubismita Biswal

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    OutlineOTransportation ModelingOMethods O Transportation

    OObtain the Initial !easibleSolution usingONorthwest " Corner RuleOIntuiti#e $east Cost Method %

    Minimi&ation MethodO'ogel(s )ppro*imation Method

    OObtain !easible Solution orOptimality usingOModi+ed ,istribution Method

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    -.)T IS TR)NSPORT)TION

    PROB$/M0A Transportation Problem

    (TP) consists of determining

    how to route products in asituation where there areseveral supply locations andalso several destinations in

    order that the total cost oftransportation is minimized

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    Transportation ModelingO -hat is Transportation Model0-hat is Transportation Model0

    ) Transportation Model 1TP2 3onsists o) Transportation Model 1TP2 3onsists o

    determining how to route produ3ts in a situationdetermining how to route produ3ts in a situation

    where there are se#eral destinations in order thatwhere there are se#eral destinations in order that

    the total 3ost o Transportation is minimi&edthe total 3ost o Transportation is minimi&ed

    O Can be used to help resol#e distribution andCan be used to help resol#e distribution and

    lo3ation de3isionslo3ation de3isions

    O Need to know4Need to know4

    OThe origin points and the 3apa3ity or supply perThe origin points and the 3apa3ity or supply per

    period at ea3hperiod at ea3hOThe destination points and the demand per periodThe destination points and the demand per period

    at ea3hat ea3h

    OThe 3ost o shipping one unit rom ea3h origin toThe 3ost o shipping one unit rom ea3h origin toea3h destinationea3h destination

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    Transportation Problem 1TP2

    A

    B

    C

    D

    E

    F

    SUPPLY DEMAND

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    Transportation Problem

    FromFrom

    ToTo

    AndheriAndheri BandraBandra ChandivaliChandivali

    DadarDadar 55 44 33

    ElphinstonElphinston 88 44 33

    FortFort 99 77 55

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    TransportationMatri*

    !rom

    To )ndheri

    Bandra Chandi#ali

    ,adar

    /lphinston

    !ort

    !a3tory3apa3it

    y

    -arehousere5uirement

    677

    677

    677 877 877

    977

    :77

    ;

    ;

    >

    9; 97 9:

    6 = 97

    97

    987

    67 ;7

    67 ;7K

    K

    >

    9;

    6

    > 9;

    97 9:

    = 97

    987 /

    >7

    67

    ;7

    STON/ S/Q@)R/JRIM R/Q@IR/M/NT

    mKn"9J;

    ,/?/N/R)C OCC@)R

    'alue o O is e5ual to the minimum othe e*isting allo3ation among the signed

    3ells on the loop

    $OOP CONSTR@CT

    987

    >7

    >7

    ,j 9;7 >7 ;78>7

    S

    i

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    OPTIM@M SO$@TIONT)B$/

    > > 9;

    9; 97 9:

    6 = 97

    OPTIM@M COST

    !9 -9 >L987 J=G7

    !9 -8 >L/ J

    !8 -8 97L>7 J>77

    !6 -9 6L67J =7

    !6 -6 97L;7 J;77

    86;7

    98

    7

    67

    /

    >7

    ;7

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    Thank ouUU