Abstract
The given paper is devoted to the detailed description of transportation and assignment models as a part of quantitative management methods. The increased number of factors that should be considered by companies to succeed in the selected sphere preconditions the need for a useful tool to process all information and create the most effective strategy. For this reason, the project aims at the in-depth analysis of the described methods and their discussion.
The work includes the definition of transportation and assignment models, peculiarities of their application, and a description of elements that are managed by using this tool. The results of the study show that the given method of analyzing information and creating a capable paradigm for cooperation with partners remains a practical option that can be utilized by modern companies with the primary goal to attain success and generate competitive advantage by employing the most effective strategy.
Introduction
Management is one of the most important occupations in modern society as it affects all spheres of human activity and creates the basis for the achievement of positive outcomes. For this reason, much attention is devoted to the development and implementation of new forms of regulating the work of companies or other units. Regarding the tendency towards the emergence of new trends and diversification of requirements and settings in which various actors function, there is a critical need for the employment of innovative and more effective methods of management.
The increased amount of information that should be processed by all organizations today preconditions the broad use of enhanced data processing and accumulation tools. Qualitative methods and techniques belong to this cohort as they offer an improved opportunity to deal with numbers and improve the work of companies.
Background
Transportation and assignment models today are considered potent approaches to deal with the problems emerging in the field of logistics. Modern companies are often large multinational units that have to cooperate with multiple suppliers to acquire needed materials and items. Under these conditions, sufficient decision-making regarding transportation activities and the effective use of resources becomes the prior activities that should be accomplished by managers to ensure that positive outcomes will be achieved.
That is why the described models provide multiple opportunities for overcoming all challenges that might arise when calculating the most cost-saving method or approach. The effectiveness of this quantitative method is explained by the ability to process all data related to the costs of delivery, transportation, and allocation of resources. For this reason, it is broadly used today by various.
Definition
There are various definitions of transportation and assignment models that are employed by companies today. The generalized one states that it is a set of approaches that provide organizations with an opportunity to deal with assigning sources and jobs to destinations and machines (Coyle, Langley, Novack, & Gibson, 2016). In other words, the model is used to solve traditional issues peculiar to companies working with numerous employees, partners, and possessing multiple resources.
One of the main advantages of this approach is its ability to collect and analyze data coming from other sources to create a complete image of the current problem and offer a strategy that can be the most effective one regarding the existing question (Coyle et al., 2016). Additionally, transportation and assignment models provide managers with an opportunity to avoid extra spending or ineffective use of resources by prioritizing directions or spheres that should be given special attention. In such a way, the model becomes a critical element of modern management.
Transportation and Assignment Problems
Problems belonging to this group are also important for companies that try to spread their influence and decide where to locate their new department or facility. Under these conditions, appropriate financial decisions about a new place to run a business and logistics can minimize transportation and location costs and help to generate a competitive advantage. Thus, the application of the transportation and allocation model helps to deal with the distribution of goods from various suppliers to destinations, which is a critical element of the functioning of any modern unit (Swift & Piff, 2014).
Because of the existence of multiple partners, it can be a complex task influenced by different locations of partners and the high price of shipping. The discussed model is applied to calculate the most effective solutions and improve decision-making regarding beneficial options.
For assignment problems, the utilization of this model follows similar tasks. It is critical to ensure that individuals work on appropriate projects, salespeople operate on special territories, and machines perform needed jobs. It means that the central goal is to minimize costs and time required to perform existing tasks. Under these conditions, the transportation and assignment models become a useful tool that helps to cogitate about existing options and create a strategy that rests on improved decision making (“Transportation and assignment models”, n.d.).
For instance, the approach offers special-purpose algorithms that presuppose finding an initial and the best possible solution, its testing to determine if it remains optimal, and its further development to make the company work better (“Transportation and assignment models”, n.d.). The given activities are critical for successful management as they offer an opportunity to improve outcomes and solve current problems.
Problem Solution Process
Moreover, because of the existence of multiple suppliers and destination points, the sphere of logistics has become extremely complex in the modern business environment. First of all, to create a practical scheme, a manager should determine the ability of specific actors to provide the needed amount of goods. In other words, the production capacity of all existing suppliers should be estimated and compared to outline the preferable choice (Swift & Piff, 2014).
Additionally, the distance and location should also be taken into account to reduce the costs of delivery (Cristopher, 2016). In such a way, the transportation and assignment models include the creation of a transportation table to incorporate all available and relevant data and process it to establish a new paradigm that will help the company to evolve (“Transportation and assignment models”, n.d.). Additionally, the initial solution should be accepted resting on the data presented in this table as it visualizes all the advantages or disadvantages of the selected option and approves the final decision.
Models’ Application
The application of the discussed model also rests on the correct consideration of the existing needs of a company and ways how they can be fulfilled. For instance, the decision to allocate facilities in a new region presupposes the demand for improved logistics to deliver needed equipment, cooperate with potential clients and suppliers, to assign jobs and tasks. All these aspects might be challenging and confusing for managers because of huge data portions that should be processed to make a final decision and select the most appropriate option (Kotler & Keller, 2015).
The model offers specific tools that help to evaluate the state of the unit and engage in activities that might help to attain outlined goals and remain effective in the selected sector. Moreover, the appropriate assessment of current needs contributes to improved data collection in spheres that are critical for the work of the company.
Optimal solutions regarding the discussed models can be formulated via the consideration of all possible outcomes and factors that impact the sphere of logistics. It means that the price for the delivery of specific goods, allocation of resources, and cooperation with partners should be appropriate for the company and its current status. A managerial solution can be considered feasible if the demand and supply constraints are satisfied (“Transportation and assignment models”, n.d.). For this reason, the use of transportation and assignment models becomes beneficial as it helps to consider a set of factors impacting logistics and formulate the final approach to the existing problem. It also provides an opportunity to avoid extra spending by cooperating with reliable suppliers that can help to acquire the needed amount of goods or desired services.
Finally, the discussed model is effective in planning new projects and decision-making regarding possible expansions. In the modern business environment, the functioning of any unit critically depends on stakeholders involved in the process and partners that are needed for the cooperation. For this reason, any business venture or entry is preceded by the comprehensive analysis of factors that might impact the development of the company in a new location and critical aspects of logistics (Kotler & Keller, 2015).
The application of transportation and assignment models, along with the practice of initial solutions, contributes to better organizations’ preparedness for functioning under the new conditions and helps to eliminate flaws that might arise in the course of the expansion (Cristopher, 2016). Additionally, adherence to the model means that there are new opportunities for collaboration with partners by using information about their capacities and the ability to stimulate the rise of a firm.
Advantages
Factors mentioned above show that the model has similar advantages that justify its popularity in the modern management sphere. First of all, the employment of this approach helps to solve multiple problems related to the field of logistics. Being one of the critical elements of the work of companies today, it might become a barrier for the further development and growth of firms (Kotler & Keller, 2015).
That is why the ability to select partners, suppliers and destination points plays a vital role for companies (Kotler & Keller, 2015). The transportation and assignment model incorporates data portions and visualizes them for a specialist to make a final decision about the most effective and feasible solution to emerging problems. Another advantage of the model is its ability to save costs for companies by offering the most effective and practical methods to manage shipment processes and function in the sphere of logistics. Finally, another benefit associated with the application of the model is its contribution to the improved cooperation with partners, both current and potential ones, as the enhanced understanding of their capacities cultivates better relations and opportunities for long and short-term cooperation.
Limits
However, there are also some issues that should be considered when using the model to achieve the desired results. First of all, the application of the transportation and assignment paradigm demands relevant data about the work of the firm, its planned activities, cooperation with partners, and potential expansion. It is required to create a complete image of the firm and generate a strategy that will help the brand to evolve.
Moreover, managers using this tool in their work should possess an improved knowledge of quantitative methods as they are fundamental for the employment of this paradigm (Cristopher, 2016). Finally, sufficient work of the model is possible only if there is an in-depth analysis of the current situation and all potential factors that might impact the sphere of logistics at the moment.
However, regardless of these possible limitations, transportation and assignment models remain effective quantitative management tools that are used today. The further increase in the amount of data that become available to specialists and impact the work of companies contributes to the sophistication of challenges that should be overcome to reach unique goals. Under these conditions, it is possible to predict the increase in the relevance of the discussed model and its broader use to solve problems in the sphere of logistics.
Conclusion
Altogether, the transportation and assignment model is one of the basic elements of modern management. It provides specialists with an opportunity to solve issues in the sphere of logistics and acquire data needed for the generation of competitive advantage and stimulation of the future rise of firms. Application of the model helps to get an improved understanding of how various elements of systems work and introduce feasible solutions that help to stabilize the situation and outline possible ways to enhance the delivery of products from suppliers to destination points, which is fundamental for the sustainable growth of firms and their ability to compete with closest rivals.
References
Coyle, J., Langley, J., Novack, R., & Gibson, B. (2016). Supply chain management: A logistics perspective (10th ed.). New York, NY: Cengage Learning.
Cristopher, M. (2016). Logistics & supply chain management (5th ed.). New York, NY: FT Press.
Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). New York, NY: Pearson.
Swift, L., & Piff, S. (2014). Quantitative methods: for business, management and finance (4th ed.). New York, NY: Red Globe Press.
Transportation and assignment models. (n.d.). Web.