quantitative methods of business decisions chapter 5 part 1

School of Business
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions

Chapter 5 | Part 1


Transportation Model & It’s Variants

Spring 2020 - 2021

BMIS355- CHAPTER 5

,Outline
1. Definition of the transportation problem.
2. Balancing the transportation Model:
A. Balanced Transportation Model.
B. Un-Balanced Transportation Model.

3. The Transportation Algorithm:
I. Determination of the starting basic feasible solution
◦ Northwest Corner Method
II. Iterative computations of the Transportation Algorithm
1. Determine the “Entering Variable”.
2. Determine the “Leaving Variable”




BMIS355- CHAPTER 5

, Transportation Model & Its Variants
Definition:
The transportation problem is a special type of linear programming, where the objective is to
minimize the cost of distributing a product from a source or origin to a destination.
Because of its special structure the usual simplex method is not suitable for
solving transportation problems.
The goal of the transportation model is to minimize the transportation cost.




BMIS355- CHAPTER 5