Distribution Manager Supply Chain Man. (SCM), “Logistics” Transport Plans (Production Plans) Facility Location f.ex. warehouses Network Models:

Minimal Spanning Shortest Route, Longest (CPM) Maximal Flow Vehicle Routing Problem

Transport Transport Model: m plants send to n markets,

distances, demand and supply known Transport.xls chapter 5 in W&A Interpreting “Reduced Costs” Production Plan with Transport Model

Set Covering Minimum distance to service Fire Stations, Ambulances Taxi Locations? Kilroy-dæmið Example: LocatingHubs.xls in ch 6

in W&A: Airline Company, “hub” system

Facility Location Positioning w.r.t. Distances etc Multi Criteria: GP, AHP method Gravity Method (GIS) Addition to the Transport Model See LocatingServiceCenters.xls

and FixedCostTransportation.xls in ch 6 in W&A

Facility Location & MPL MPL from Maximal Software Applications in Iceland:

Milk Processing Industry (slides on web)

Locating ESSO Oil Depots Garbage Processing (slides on web) Ambulance Locations in Reykjavik

(MSc Thesis Margrét Marís Leifsdóttir)

Network Models Minimal Spanning Shortest Route Longest Route, Project Plans (CPM) Maximal Flow Minimal Cost Vehicle Routing

Network Basics Nodes & arcs Directed arcs Paths, cycles Tree, spanning tree Flow, arc capacity Sources, sinks Transshipment nodes (netto = 0)

Network Example

2 7 2 5

5 41

4 1 3 7

4

O

A

B

C

D

E

T

Minimal Spanning Telecomm cables, computer

networks Road System (light traffic) Electrical Lines Pipelines

Shortest Route Distribution of goods See ShortestPath.xls in ch 5 in

W&A MachineReplacement See Equipment Replacement in ch

5 in W&A Ex 55 page 276 in W&A

Max Flow “Maximal Flow” Production System Logistics Finding the Bottlenecks Road Systems (heavy traffic) Telephone System Traffic Hot Water Pipelines

Minimal Cost “Min Cost Net Flow” Distribution System (plants,

warehouses, markets) Cash Flow See Redbrand.xls in ch 5 in W&A

VRP VRP, “Vehicle Routing Problem” Cargo Capacity Time Windows Savings Method (Clarke & Wright) See VRP example Shortrec, AGR hf

TSP TSP, “Travelling Salesman

Problem” Finding the shortest ringroute Stop once each place Job sequencing, min setup times MPL solution