week 4 discussion v4

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American Military University *

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Industrial Engineering

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Jun 13, 2024

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Hello everyone, The transportation model is a decision-making tool that typically operates under certainty, meaning that all parameters and variables are known and can be accurately predicted. However, in real-world scenarios, uncertainties may be related to factors such as demand fluctuations, fuel prices, and unexpected delays. In such cases, decision-making using the transportation model may need to consider risk mitigation strategies and scenario planning to address uncertainties. The transportation method can address production costs in addition to transportation costs by optimizing the overall supply chain network. Selecting cost-effective transportation modes and routes can impact production costs by minimizing the time and resources required for transportation. Companies can reduce transportation costs and improve overall production efficiency by choosing the most efficient transportation options. Implementing a just-in-time delivery strategy can help reduce production costs by ensuring that materials and components are delivered only when needed for production. This approach can help minimize inventory holding costs, improve production efficiency, and reduce waste. An unbalanced transportation problem occurs when the total supply does not equal the total demand in the model, leading to excess or insufficient capacity in the transportation network. The model can be adjusted to balance an unbalanced transportation problem by introducing dummy sources or destinations to make the total supply equal to the total demand. This balancing can be achieved by adjusting the costs associated with the dummy sources or destinations to ensure they do not significantly impact the overall transportation costs. Additionally, the model can be optimized to find the most cost-effective transportation routes and modes to accommodate the unbalanced supply and demand. Good Day Everyone,

Is the transportation model decision-making under certainty or uncertainty? In the transportation model, I believe, the decision making is under certainty, as it seems to deal with inputs, outputs and transportation costs, which all are at fixed rates. How can the transportation method address production costs in addition to transportation costs? I believe that the transportation method addresses production costs in addition to transportation costs in the fact that there are some pretty standard numbers. For instance, if you already know the amount of supply that is available to be shipped and the amount of items in demand per location, it is easier to see how the transportation will impact the price of the goods. If the destination is already identified, it makes it much easier to determine what it will take to get the goods to that particular location. What is meant by an unbalanced transportation problem, and how would you balance it? An unbalanced transportation problem occurs when the availability of the product at the original manufacturer is not equal to the demand of the product at the destination. One way that I would try to balance the unbalanced transportation problem is by testing the optimality. In this scenario, I would most likely use the stepping stone method to calculate the opportunity cost from each empty cell (Sharma, 2008). If this method did not work, I do not know what other process I would take. I think I would start over from the top, and work through each area line by line until the numbers match. References: Sharma, Anand. Operations Research , Global Media, 2008. ProQuest Ebook Central , https://ebookcentral.proquest.com/lib/apus/detail.action?docID=3011166.

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