Transportation Applications


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Transportation method Another type of linear programming problem that maybe solve using simplified version of the simplex technique.

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Objective : to minimize cost of shipping m to n destinations to maximize the profit of shipping m units to n destinations.

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Ex. Suppose one company has four factories supplying four warehouses and its management wants to determine the minimum-cost shipping schedule for its weekly output of chests

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Table 1. Data for Transportation Problem

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3 Steps in solving Transportation Problem: Transportation Matrix Initial Feasible Solution Develop Optimal Solution

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Transportation Matrix It is important at this step to make sure that the total supply availabilities and total demand requirements are equal.

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Initial Feasible Solution Initial allocation entails assigning numbers to cells to satisfy supply and demand constraints.

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Develop Optimal Solution To develop an optimal solution in a transportation problem involves evaluating each unused cell to determine whether a shift into it is advantageous from a total-cost stand point.

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If it is, the shift is made, and the process is repeated. When all cells have been evaluated and appropriate shifts made, the problem is solved.

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