MGT310

Tutorial 3: Transportation
TA/Sylvana Wafik
[email protected]
1- Determine:

 Transportation
 Origin and Destination
 Balanced or Unbalanced (demand and supply)
 Maximizing or Minimizing

2- Formulate Table
3- Solve
4- Report
Answer:
* Transportation, Unbalanced, Maximization

Detroit ST. Louis Chicago Norfolk

Bethlehem 14 9 16 18 150

Birmingham 11 8 7 16 210

Gary 16 12 10 22 320

Demand 130 70 180 240

 SHIP
FROM TO DESTINATION
ORIGIN Detroit ST.L Chicago Norfolk
------ ------ ------ ------ ------

Bethlehem 0 0 150 0

Birmingham 50 70 30 0

Gary 80 0 0 240

• Report:

• The plant in Bethlehem will send 150 tons of steel to Chicago

• The plant in Birmingham will send 50 tons of steel to Detroit, 70
tons of steel to ST.Louis and 30 tons of steel to Chicago
• The plant in Gary will send 80 tons of steel to Detroit and 240
tons of steel to Norfolk
• The total Profit is 10280 $
Problem Three
How Many Computers should each warehouse ship to each university in order to
minimize the total cost?
Answer:

Transportation, Unbalanced, Minimization

Tech A&M State Central Supply

Richmond 22 17 30 18 420

Atlanta 15 35 20 25 610

Washington 28 21 16 14 340

Demand 520 250 400 380

Report:

• The warehouse in Richmond will send 250 microcomputers to A&M and

170 microcomputers to Central University

• The warehouse in Atlanta will send 520 microcomputers to Tech and 90

microcomputers to State University

• The warehouse in Washington will send 130 microcomputers to State

and 210 microcomputers to Central University

• The total costs are 21930 $

• State University ordered 400 microcomputers, we will able to send

them only 220 microcomputers, we should send them an excuse letter.
Problem Four
The company wants to transfer employees to ensure the maximum increase in product
output.
 Transportation, Unbalanced, Maximization

A B C Supply

1 5 8 6 60

2 10 9 12 105

3 7 6 8 70

demand 45 90 35

Report:
• Closing plant 1 will send 60 employees to plant b
• Closing plant 2 will send 40 employees to plant a, 30 employees
to plant b and 35 employees to plant c
• Closing plant 3 will send 5 employees to plant a
• There will be excess of 65 employees that won’t be able to be
transferred to the existing plants.
• The product output will be 1605 units.
How many tons of coal should each mine ship to each plant in
order to minimize the total cost?
•Formulate the case in suitable format.
•Find the optimal solution using the software Management
Scientist, write complete managerial report.
Answer:
* Transportation, Unbalanced, Minimization

Richmond Winston-Salem Durham Supply

Cabin creek 700 10 5 90

surry 12 9 4 50

Oldfort 7 3 11 80

Mccoy 9 5 7 60

Demand 120 100 110

 FROM TO DESTINATION
ORIGIN Rich WS Durham
------ ------ ------ ------

C.C 0 0 90

Surry 30 0 20

Old fort 40 40 0

MC 0 60 0

Report:
• The coalmine in Cabin creek will send 90 tons to Durham
• The coalmine in Surry will send 30 tons to Richmond, 20 tons to Durham
• The coalmine in Old fort will send 40 tons to Richmond, 40 tons to WS
• The coalmine in McCoy will send 60 WS
• The total transportation cost is 1590 $
• Richmond demanded 120 tons while we will be able to send it 70 tons only, we
should send an excuse.
Problem Five
Orient Express is a global distribution company that transports its clients’ products to customers in
Hong Kong, Singapore, and Taipei. All the products Orient Express ships are stored at three
distribution centers—one in Los Angeles, one in Savannah, and one in Galveston. For the coming
month the company has 450 containers of computer components available at the Los Angeles center,
600 containers available at Savannah, and 350 containers available at Galveston. The company has
orders for 600 containers from Hong Kong, 500 containers from Singapore, and 500 containers from
Taipei. The shipping costs per container from each U.S. port to each of the overseas ports are shown in
the following table:

Orient Express, as the overseas broker for its U.S. customers, is responsible for unfulfilled orders, and
it incurs stiff penalty costs from overseas customers if it does not meet an order. The Hong Kong
customers charge a penalty cost of $800 per container for unfulfilled demand, Singapore customers
charge a penalty cost of $920 per container, and Taipei customers charge $1,100 per container.
Demand = 600 + 500 + 500 = 1600
Supply = 450 + 600 + 350 = 1400
Transportation, Minimization, Unbalanced

H.K Singapore Taipei Supply

L.A 300 210 340 450
Savannah 490 520 610 600
Galveston 360 320 500 350
Unfulfilled 800 920 1100 200
Demand 600 500 500

Report:
• The distribution center in L.A will send 150 containers to Singapore and 300
containers to Taipei
• The distribution center in Savannah will send 400 containers to H.K and 200 to
Taipei.
• The distribution center in Galveston will send 350 containers to Singapore.
• Singapore and Taipei will get all their demanded containers while for H.K; there
is unfulfilled demand of 200 containers for Taipei.
• The non-fulfillment cost is 200 * 800 = 160,000
• TOTAL TRANSPORTATION COST IS 723,500 – 160,000 = 563,500 $
The Sav-Us Rental Car Agency has six lots in Nashville, and it wants to have a certain number of cars available at
each lot at the beginning of each day for local rental. The agency would like a model it could quickly solve at the
end of each day that would tell it how to redistribute the cars among the six lots in the minimum total time. The
times required to travel between the six lots are as follows:

The agency would like the following number of cars at each lot at the end of the day. Also shown is the number of
available cars at each lot at the end of a particular day:
• Shipping origin 1 will send 7 cars destination 2 and 30
cars to destination 5.
• Shipping origin 2 will send 20 cars destination 3.
• Shipping origin 3 will send 14 cars destination 4.
• Shipping origin 4 will send 26 cars destination 1.
• Shipping origin 5 will send 4 cars destination 1 and 16
cars to destination 4 and 20 cars to destination 6.
• Shipping origin 6 will send 18 cars destination 2 and 10
cars to destination 4.
• There will be no surplus or shortage.
• The total Transportation time will be 1878 minutes.