Week 4 discussion

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Industrial Engineering

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Feb 20, 2024

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Week 4 discussion Hi class and professor!   Is the transportation model decision-making under certainty or uncertainty? The transportation model is used in the physical distribution of goods in order to maximize utility value including financial resources (Sharma, 2008). In the transportation model, the decision making is under certainty because it assumes that all inputs, outputs, and transportation costs are known with certainty due to all variables being fixed. The decision maker in the transportation model knows the demand for each destination, the amount of supply available at each warehouse, transportation costs, and capacity that each route is able to carry. The goal is to decrease costs associated with transportation of goods. How can the transportation method address production costs in addition to transportation costs? The transportation method addresses production costs in addition to transportation costs by knowing the amount of supply available to be shipped and the amount demanded by each location, and some forms of transportation may affect the price of goods. Planning the best routes to deliver the products to decrease delays and shortened distances, consolidating shipments and utilizing all of the space in the delivery trucks, and timely and dependable deliveries to vendors will help in lowering the cost to produce products. Understanding the demand of the product and the location of shipments will be extremely effective in reducing transportation and production costs using the transportation model. What is meant by an unbalanced transportation problem, and how do you balance it? An unbalanced transportation problem is when the availability of the product at the origin is not equal to the demand of the product at the destination. In order to balance an uneven transportation problem, you could add a dummy row or column (A.S, 2017). If the supply exceeds the demand, you will add a dummy origin (which would be an additional column) to balance the excess supply. If the demand exceeds the supply, you will add a dummy supply center (which would be an additional column) in order to meet the extra demand. Have a great week! References A, S. (2017, March 21). Balanced and unbalanced transportation problem: Operations Research . Engineering Notes India. https://www.engineeringenotes.com/project- management-2/operations-research/balanced-and-unbalanced-transportation-problem- operations-research/15633 Sharma, A. (2008). Chapter 8: Transportation Models. In Operations Research (pp. 116-147). essay, Global Media. Retrieved August 30, 2023, from https://ebookcentral.proquest.com/lib/apus/reader.action?docID=3011166&ppg=21 .
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