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Operations Management: Sustainability and Supply Chain Management, Twelfth Edition
book

Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

by Jay Heizer, Barry Render, Chuck Munson
February 2016
Intermediate to advanced content levelIntermediate to advanced
480 pages
219h 58m
English
Pearson
Content preview from Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Special Issues in Modeling

Demand Not Equal to Supply

A common situation in real-world problems is the case in which total demand is not equal to total supply. We can easily handle these so-called unbalanced problems with the solution procedures that we have just discussed by introducing dummy sources or dummy destinations. If total supply is greater than total demand, we make demand exactly equal the surplus by creating a dummy destination. Conversely, if total demand is greater than total supply, we introduce a dummy source (factory) with a supply equal to the excess of demand. Because these units will not in fact be shipped, we assign cost coefficients of zero to each square on the dummy location. In each case, then, the cost is zero.

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Publisher Resources

ISBN: 9780134422404