Problem Statement:


The problem that is analyzed in this presentation is one of determining the optimal delivery route for a pizza delivery business in downtown Toronto. In the course of our problem solving, it was determined that the model to adopt that would best express the real world issues involved in the pizza delivery problem was a network transshipment model. Here the key problem is to minimize the costs of transportation (costs associated with the actual delivery of the pizzas within a reasonable specified timeframe as opposed to those of making the pizzas or customer service in other areas) as well as the amount of time involved in the process. In formulating and solving the network transshipment problem the end goal of gathering good indicators on the final costs involved in starting a pizza delivery business should be apparent.

 






This network is a graphical representation of Pedro's shop and potential customers. In order to correctly determine an optimal delivery schedule, it is neccessary that arc costs between Pedro's shop and customer loctions be determined. As well, values for the node demands of the transshipment network must be decided.


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