Topic – 9 Transportation Problem. Transportation Problem. Major Characteristics: Several sources (plant) with given supply capacity. Several destinations (warehouse) with given demand. Cost Matrix: unit transportation cost from each source to each destination. Assumptions:
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Decisions: How much should be shipped from each source to each destination so that total transportation cost is minimized?
Why Develop a New Method? (LP can certainly be applied)
Transportation Problem Model: Tabular Presentation
1. Balancing Table: Make ∑di = ∑Si
2. Finding an initial solution: (several methods)
3. Testing Optimality: (Can current solution be improved?)
4. Improving current solution toward a better solution.
Special cases in Transportation Problem:
(All special cases can be easily formulated and solved by LP.)
Klein Chemicals, Inc. manufactures a product at two plants (Clifton Springs and Danville) and ships it to four different customers (denoted D1, D2, D3 and D4)
Profit per unit for shipping from each plant to each customer.
Profit Per Unit:
Available Solution Techniques to Assignment Problem:
Special Cases in Assignment Problem:
Hungrain Method: (Tabular Form)