Lecture Suggestions – Supplement to Chapter 8
Example 1: Transportation Method
1. Select the Example 1 worksheet, note that the following data has been entered:
a. The name of each source (1, 2, 3)
b. The capacity of each source (100, 200, 150)
Note that total supply and demand are computed.
2. Delete the current solution by selecting cells D19:K26 and pressing delete.
3. Manually find a solution. Note that even though cells D19:K26 are not shaded you may manually
enter values in these cells. Also note that as you enter values in D19:K26, the satisfied demand is
4. Manually improve this solution. For example, you could save 7 per unit by shifting the 10
units out of G20 and into G19. To make the solution feasible, you must balance this shift by shifting
5. Use Solver to find the optimal solution. Use Solver in Data Ribbon (see notes) – this results in
the optimal solution with a cost of 2300. Actually there are two alternate optimal solutions, shifting 80
units between D19, D21, G21, andG19.
6. You may also demonstrate that unbalanced problems with supply exceeding demand may be
solved (e.g. enter 200 in L5 and Solve). But unbalanced problems with demand exceeding
c. The name of each destination (A, B, C, D)
d. The demand at each destination (80, 90, 120, 160)
e. The cost of shipping from each source to each destination (4, 7, 7, etc.)