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362   CHAPTER 8 NETWORK MODELS




                      Summary

                      In this chapter we have introduced network models and shown how they can help with managerial
                      decision making.

                      l Network models are concerned with the flow of an item through paths or routes.
                      l We introduced three types of network model: the shortest-route, the minimal spanning tree and the
                         maximal flow.
                      l All three types of model have their own specialist solution algorithm which prove useful when the
                         models become large and complex.





                      WORKED EXAMPLE


                          he transportation manager in the regional health  The first iteration then looks at three routes:
                      T service in Saudi Arabia is reviewing how she
                                                                           CSD–A        50 minutes
                      manages the transportation of emergency medical
                                                                           CSD–B        60 minutes
                      supplies to small community health clinics in differ-
                                                                           CSD–C        70 minutes
                      ent parts of the region. There are a total of six clinics
                      that occasionally need emergency medical supplies  The CSD–A routes has the shortest time so becomes
                      and it is essential that the supplies arrive in the  permanent in the network. For the next iteration we
                      shortest possible time. The manager is trying to plan  now consider the routes from all permanent nodes:
                      ahead and identify in advance the best routes to use
                                                                           CSD–B        60 minutes
                      to supply each clinic. The road network is shown in
                                                                           CSD–C        70 minutes
                      the figure. The numbers on the arcs represent typical
                                                                           A–D         110 minutes
                      travel time in minutes. In addition, the Highways
                                                                           A–B          80 minutes
                      Department is planning to open a new road next
                      year between Clinic C and Clinic E with a travel time  The CSD–B route has the shortest time so becomes
                      of 15 minutes.                              permanent. Again, we consider the routes from all
                         What advice can we give the manager?     permanent nodes:
                                                                           CSD–C        70 minutes
                      Solution
                                                                           B–C          80 minutes
                      We have a shortest route problem where we are        A–D         110 minutes
                      seeking the shortest route between the central sup-  B–D          80 minutes
                      ply depot (CSD) and each clinic.                     B–E          90 minutes

                                                     Clinic A      60
                                            50                               Clinic D
                                                          30                             40
                                                                         20
                                              60
                                  Central
                                  supply             Clinic B                            Clinic E
                                  depot
                                                                         30
                                                          20


                                            70
                                                     Clinic C




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