McGraw-Hill/Irwin
8S-2
Transportation Problem
Involves finding the lowest-cost plan for
distributing stocks of goods or supplies from
multiple origins to multiple destinations that
demand the goods.
Demand
Supply
Demand
Supply
Demand
Supply
Demand
8S-3
8S-4
Transportation Problem
Shipping (supply) points
Any place from which good are sent
Factories
Warehouses
Departments
Destinations
Any point that receives goods
Factories
Warehouses
Departments
8S-5
8S-6
Model: Assumptions
Transportation model assumptions
1. The items to be shipped are homogeneous
2. Shipping cost per unit is the same regardless of the
number of units shipped
3. There is only one route or mode of transportation
being used between each origin and destination
8S-7
Transportation Table
8S-8
Transportation Table
8S-9
Minimize
where
i 1, 2, and 3 and j A, B, C, and D
4 x1 A 7 x1B 7 x1C 1x1D 12 x2 A 3x2 B 8 x2C
8 x2 D 8 x3 A 10 x3 B 16 x3C 5 x3 D
Subject to
Supply (rows)
Demand (columns)
x1 A x2 A x3 A 80
x1B x2 B x3 B 90
x1C x2C x3C 120
x1D x2 D x3 D 160
xij 0 for all i and j
8S-10
8S-11
8S-12