Pom for windows
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This document provides an overview of the POM for Windows software, including its objectives, features, and capabilities. It demonstrates the software's transportation and lot-sizing modules by presenting two sample real-life problems and walking through the process of modeling, populating data, and solving each problem to minimize costs. The transportation problem involves finding the lowest-cost way to ship products between suppliers and retailers, while the lot-sizing problem optimizes order quantities and timing to reduce inventory and setup costs. The document concludes that using the software's decision support capabilities can help companies maximize profits by minimizing transportation and production costs.
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Pom for windows
- 2. Objectives • Background on Software • Features of Software • Present (2) Real-Life Problems – – Transportation Lot-Sizing • Demonstrate Software’s Capabilities • Have FUN While Learning!!!
- 3. Introduction to POM • Background • Modules • Handy features
- 5. Definition: A transportation problem involves transporting items from sources with fixed supply to destinations with fixed demand at lowest cost.
- 6. Here’s the problem… • COMPANY wants to find the most cost effective way to transport their product from the suppliers to the retailers, based on a shipping rate of Enter the transportation costs, supplies $0.03/mi. and a TOOLS, SOLVER, SOLVE onand demands in the sha supply/demandmenu bar at the top based Then go to the on the chart. is not a menu option in the Tools menu then go to T If SOLVER INS. Data COSTS marinette oshkosh madison milwaukee Supply Green Bay 159 168 396 345 75 eau claire 717 552 534 738 60 stevens point 495 213 531 327 25 rhinelander 342 495 600 801 38 Demand 90 32 30 46 198 198
- 7. A few TERMS… • Source • Destination • Objective (min. or max.) • Vogel’s Approximation method
- 8. The PROCESS: • Step 1: Create Data Set • • • (#) Source (#) Destination Objective (min. or max.) • Step 2: Populate the Table • Rows = Sources • Columns = Destinations • Step 3: Solve • Click on the SOLVE button
- 9. What does this give us?? • Explain Results… – Transportation Shipments – Shipping Costs – Shipments List
- 10. Conclusions • By following the results of the DSS software, the COMPANY can MINIMIZE its total transportation expenses. • Profits will soar!!
- 12. Definition: Given a set of demands in future periods, the goal is to place orders which meet these demands and minimize the sum of the costs of holding goods from period to period plus the (setup) costs of placing the orders.
- 13. Here’s the problem… • COMPANY wants to optimize its lot-size
- 14. A few TERMS… • • • • • • • Period Demand Holding Cost Setup Cost Stock-Out Cost Initial Inventory Lead Time • Methods • • • • • Wagner-Whitin(WW) Lot-for-Lot EOQ POQ Part-PeriodBalancing • User-defined
- 15. The PROCESS: • Step 1: Create Data Set • (#) Period • Step 2: Populate the Table • 1st Row = Demand • 2nd Row = Values • Select Method • Step 3: Solve • Click on the SOLVE button
- 16. What does this give us?? • Explain Results… – Lot-Sizing Results
- 17. Conclusions • By optimizing our lot-size, we can eliminate backed-up inventory, therefore, saving the COMPANY money!