Transportation Model

Chapter 5

transportation model

assignment model

are considered special-purpose algorithm linear programming models because of their structures

transportation model

is used when a business intends to distribute goods from various sources (i.e., supply) to different destinations (i.e., demand) with varying unit costs of transportation

stepping-stone method

modified distribution (MODI) method

There are two approaches to solving a transportation problem, namely,

northwest corner method

Vogel’s approximation method (VAM)

In finding the initial solution to a transportation problem, the two methods used are the

1. Set up the initial transportation table.

2. Compute the transportation cost.

3. Test if improvements should be made.

4. Improve the transportation table and repeat step 2.

5. Make a recommendation.

The following are the steps in solving transportation problems:

balanced transportation problem

the supply (source) is equal to the demand (destination). In this case, there is no need to add a dummy row or column