Solution Algorithm for Transportation Problem

Abstract

The proposed solution algorithm for transportation problem is considered in this paper.The objective in a transportation problem is to fully satisfy the destination requirements within the operating production capacity constraints at the minimum possible cost. Whenever there is a physical movement of goods from the point of manufacturer to the final consumers through a variety of channels of distribution (wholesalers, retailers, distributors etc.), there is a need to minimize the cost of transportation so as to increase profit on sales. The data obtained were modelled as a special Linear Programming problem. The MATLAP software is used to generate an optimal solution and the transportation problem was formulated  and initial feasible solution was obtain using VAM, the solution obtained was tested for optimality using MODI.The model is useful for making strategic decisions involved in selecting optimum transportation routes so as to allocate the production of various plants to several warehouses or distribution centers.