Operational Decision-Making Tools: Transportation and Transshipment ModelsJust how do you make decisions?ProblemsSlide 4Model Classification CriteriaPurposePerspectiveDegree of AbstractionContent and FormDecision EnvironmentMathematical ProgrammingA Model of this classManagement Science ModelsMathematical programming models covered in Ch 11, SupplementTransportation ModelTransportation Method: ExampleSlide 17Slide 18Slide 19Slide 20Slide 21The Underlying NetworkFor problems in which there is an underlying network:CARLTON PHARMACEUTICALSSlide 25Slide 26The Associated Linear Programming ModelSlide 28The complete mathematical programming modelSlide 30Slide 31Slide 32Transshipment ModelSlide 34Slide 35Slide 36Slide 37Slide 38Slide 39Slide 40Slide 41MONTPELIER SKI COMPANY Using a Transportation model for production schedulingSlide 43Slide 44Slide 45Slide 46Slide 47Slide 48Problem 4-25Slide 50Slide 51Slide 52Slide 536.3 The Assignment ProblemBALLSTON ELECTRONICSSlide 56NETWORK REPRESENTATIONSlide 58Slide 596.5 The Shortest Path ProblemSlide 61Slide 62Slide 63Slide 64Slide 65Slide 66Slide 676.6 The Minimal Spanning TreeSlide 69Slide 70Slide 71Slide 72Slide 73Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Beni AsllaniBeni AsllaniUniversity of Tennessee at ChattanoogaUniversity of Tennessee at ChattanoogaOperations Management - 6hh EditionOperations Management - 6hh EditionChapter 11 SupplementChapter 11 SupplementRoberta Russell & Bernard W. Taylor, IIIOperational Decision-Making Tools: Operational Decision-Making Tools: Transportation and Transshipment ModelsTransportation and Transshipment ModelsCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-22Just how do you make Just how do you make decisions?decisions?Emotional directionEmotional directionIntuitionIntuitionAnalytic thinkingAnalytic thinkingAre you an intuit, an analytic, what???Are you an intuit, an analytic, what???How many of you use models to make How many of you use models to make decisions??decisions??42Arise whenever there is a perceived Arise whenever there is a perceived difference between difference between what is desiredwhat is desired and and what iswhat is in actuality. in actuality. Problems serve as motivators for doing Problems serve as motivators for doing somethingsomethingProblems lead to decisionsProblems lead to decisionsProblemsProblemsCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-44Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-55Model Classification CriteriaModel Classification CriteriaPurposePurposePerspectivePerspectiveUse the perspective of the targeted decision-makerUse the perspective of the targeted decision-makerDegree of AbstractionDegree of AbstractionContent and FormContent and FormDecision EnvironmentDecision Environment{This is what you should start any modeling {This is what you should start any modeling facilitation meeting with}facilitation meeting with}Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-66PurposePurposePlanningPlanningForecastingForecastingTrainingTrainingBehavioral researchBehavioral researchCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-77PerspectivePerspectiveDescriptiveDescriptive““Telling it like it is”Telling it like it is”Most simulation models are of this typeMost simulation models are of this typePrescriptivePrescriptive““Telling it like it should be”Telling it like it should be”Most optimization models are of this typeMost optimization models are of this typeCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-88Degree of AbstractionDegree of AbstractionIsomorphicIsomorphicOne-to-oneOne-to-oneHomomorphicHomomorphicOne-to-manyOne-to-manyCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-99Content and FormContent and Formverbal descriptionsverbal descriptionsmathematical constructsmathematical constructssimulationssimulationsmental modelsmental modelsphysical prototypesphysical prototypesCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-1010Decision EnvironmentDecision EnvironmentDecision Making Under CertaintyDecision Making Under CertaintyTOOL: all of mathematical programmingTOOL: all of mathematical programmingDecision Making under Risk and UncertaintyDecision Making under Risk and UncertaintyTOOL: Decision analysis--tables, trees, Bayesian TOOL: Decision analysis--tables, trees, Bayesian revisionrevisionDecision Making Under Change and Decision Making Under Change and ComplexityComplexityTOOL: Structural models, simulation modelsTOOL: Structural models, simulation modelsCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-1111Mathematical ProgrammingMathematical ProgrammingLinear programmingLinear programmingInteger linear programmingInteger linear programmingsome or all of the variables are integer variablessome or all of the variables are integer variablesNetwork programming (produces all integer Network programming (produces all integer solutions)solutions)Nonlinear programmingNonlinear programmingDynamic programmingDynamic programmingGoal programmingGoal programmingThe list goes on and onThe list goes on and onGeometric ProgrammingGeometric ProgrammingCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-1212A Model of this classA Model of this classWhat would we include in it?What would we include in it?Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement 10-1313Management Science ModelsManagement Science ModelsA QUANTITATIVE REPRESENTATION A QUANTITATIVE REPRESENTATION OF A PROCESS THAT CONSISTS OF OF A PROCESS THAT CONSISTS OF THOSE COMPONENTS THAT ARE THOSE COMPONENTS THAT ARE SIGNIFICANT FOR THE SIGNIFICANT FOR THE PURPOSEPURPOSE BEING CONSIDEREDBEING CONSIDEREDCopyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Supplement 10-Supplement