8S

The
Transportation
Model

McGraw-Hill/Irwin

Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objective
Describe the nature of a transportation
problem
Set up transportation problems in the general
linear programming format
Interpret computer solutions

8S-2

Requirements for Transportation

Model
List of origins and each ones capacity
List of destinations and each ones
demand

Unit cost of shipping

Note: The DVD that accompanies this book

contains a module that provides detailed
instruction on the transportation model
8S-3

Transportation Model
Assumptions
1. Items to be shipped are homogeneous
2. Shipping cost per unit is the same

3. Only one route between origin and

destination

8S-4

The Transportation Problem

Figure 8S.1
D
(demand)

D
(demand)

S
(supply)
S
(supply)

D
(demand)

S
(supply)

D
(demand)

8S-5

A Transportation Table
Table 8S.1
A
Factory

Warehouse
C

B
4

1
100

1
3

12

200

2
10

16

150

Demand

Factory 1
can
supply
100
units per
period

80

90

120

Warehouse B can use 90

units per period

160

Total
supply
450 capacity
per
450
period
Total demand
per period
8S-6

Special Problems
Unequal supply and demand
Dummy: Imaginary number added
equal to the difference between supply
and demand when these are unequal
Degeneracy: The condition of too few
completed cells to allow all necessary
paths to be constructed

8S-7

Summary of Procedure
Make certain that supply and demand
are equal
Develop an initial solution using
intuitive, low-cost approach
Check that completed cells = R+C-1
Evaluate each empty cell
Repeat until all cells are zero or
positive
8S-8

Excel Template
Figure 8S.2

8S-9