Network Models is another method to describe many optimization models with a graphical representation. This modelling is suitable for extremely large problems since it provides more intuition for users compared to Linear Programming modelling.
Networks Model consists of two main entities: Node and Arc often representing a location and routes respectively with decision variables are called flows. Network Models are suitable for problems such as transportation problem, assignment problem, shortest path problem, etc.
To fully understand the concept, we use network modelling for transportation problem as an example. Transportation models describe a problem of moving products from origins to destinations with specific supplies (in origins) and demands (in destinations) as well as a distinct cost for each delivery route.
For example, a company wants to delivers its finished goods from their factories to their warehouses with lowest shipping cost possible. The table shows details for this problem.
The warehouse demands are listed at the bottom row, the capacity of each factory is listed at most-right column and shipping costs for each unit lies in the middle. Hence, shipping 50 goods from Factory A to Warehouse 1 would cost €600.
To model the problem, defining the nodes and arcs is the first step. For this problem, nodes represent the factories and warehouses and arcs symbolize the connections from factories to warehouses. Since this is a one-way delivery, hence all arcs go from factory nodes to warehouse nodes.
This model provides clear visualization of the model hence it is easier to interpret the model. By understanding the problem better, users could model the problem faster and with less resources, which lead to more efficient optimizing process for the problem.
Comments