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3.3 CREATING AND SOLVING A PROBLEMTo solve the Foster Generators transportation problem, we begin by selecting the Transportation module and choosing New from the File menu; the Origins and Destinations dialog box will then appear. Figure 3.1 shows this dialog box after entering 3 for the number of origins and 4 for the number of destinations. After selecting OK, we obtain the Transportation Tableau data input screen shown in Figure 3.2. Transportation cost per unit data from Table 3.1 are entered into the corresponding cells of the Transportation Tableau. For exam¬ple, Figure 3.2 shows a cost of $3 per unit for the origin 1 (Cleveland) to destina¬tion 1 (Boston) cell, $2 per unit for origin 1 (Cleveland) to destination 2 (Chi¬cago), and so on. After the cost per unit data are entered, the origin sup¬plies are entered in the right-hand column of the tableau and destination demands are entered in the bottom row of the tableau. When the data input process is complete, choosing Solve from the Solution menu provides a Select Optimization Criteria dialog box where the user may specify whether a maxi¬mization objective or minimization objective is desired. Selecting minimiza¬tion for the Foster Generators and clicking OK provides the optimal transportation solution as shown in Figure 3.3. Recalling the following origin and destination numbers, Origins Destinations 1. Cleveland 1. Boston 2. Bedford 2. Chicago 3. York 3. St. Louis 4. Lexingtonthe minimum cost solution calls for shipping 3500 units from Cleveland to Boston, 1500 units from Cleveland to Chicago, 2500 units from Bedford to Chicago, 2000 units from Bedford to St. Louis, 1500 units from Bedford to Lex¬ington, and 2500 units from York to Boston. The total transportation cost of this solution is shown to be $39,500.Figure 3.1 Origins and Destinations Dialog BoxFigure 3.2 Transportation Tableau Data Input ScreenFigure 3.3 Solution Screen for the Foster Generators Problem3.4 OTHER CONSIDERATIONSWhen supply is not equal to demand, the Transportation module recognizes the condition automatically. If supply is greater than demand, the solution will indicate which origins have excess supply. If demand exceeds supply, the pro¬gram will find the best solution for the existing supply; the destinations having unsatisfied demand are then displayed.If there are origin–destination combinations that are unacceptable, you must still enter a cost or revenue for each unacceptable combination. To ensure that these unacceptable transportation routes are not included in the optimal solution, enter a very large cost (e.g., 999999) or a very small revenue (e.g., –999999) where appropriate.The Transportation module provides the capability to add or delete ori¬gins and to add or delete destinations to an existing transportation problem. Use the Edit menu to select the desired Add/Delete Origins or Destinations. The Transportation Tableau will be displayed so that the cost per unit and the supply or demand data may be entered.
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