Transportation Network Optimization
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Transportation Network Optimization
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Instructions: The objective is to allocate plant output to distribution centers so as to minimize transportation costs. This spreadsheet uses the OpenSolver Add-on. The Green cells denote user input, yellow are decision variable determined by the solver, and the red cell is the problem objective. Problem data is from J. Bischopp, 1999.
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Unit Costs of Transportation (\$/ton)
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PlantThis first table presents all of the problem data. Any change to problem data should be in this table.

Solution of the optimization model uses the OpenSolver add-in for Google Sheets. Check the Add-ons menu to verify that OpenSolver has been installed. If it hasn't been installed, open 'Get addons ...' and search for OpenSolver available from OperSolver.org.
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Distribution Center
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London1002.5125
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Berlin2.5100175
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Maastricht1.62225
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Amsterdam1.41250
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Utrecht0.81225
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The Hague1.40.8200
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Capacity (tons)550700
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Shipment Plan (tons)
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PlantThis second table presents a shipment plant. The central component of the table are decision variables for a linear optimization. The row and column totals are determined by formula.
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Distribution Center
ArnhemGouda
Shipments (tons)
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London0125125
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Berlin1750175
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Maastricht2250225
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Amsterdam0250250
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Utrecht15075225
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The Hague0200200
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Shipments (tons)550650
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Shipping Costs
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PlantThis third table presents a table of costs. The central component of the table are the product of decision variables from table 2 with unit costs from table one. The objective is to minimize total costs shown in the lower right corner.
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Distribution Center
ArnhemGoudaCosts (\$)
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London0.00312.50312.50
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Berlin437.500.00437.50
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Maastricht360.000.00360.00
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Amsterdam0.00250.00250.00
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Utrecht120.0075.00195.00
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The Hague0.00160.00160.00
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Costs (\$)917.50797.501,715.00
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