Chapter 5

Transportation Model
and Its Variants
Reporters: Group 4
Iris Langub
Rona Gaviola
Ramil Epino
Definition of the Transportation
Model
Transportation model is a special type of networks problems that for shipping a commodity
from source (e.g., factories) to destinations (e.g., warehouse).
Transportation model deal with get the minimum- cost plan to transport a commodity from a
number of sources (m) to number of destination (n).

The transportation model addresses the concept of moving a thing from one place

to another without change. It assumes that any damage and route has negative
consequences, and so it's used to analyze transportation systems and find the most
efficient route for resource allocation. 
 Real-life Application

Scheduling Appointments at Australian

Trade Events
This model has resulted in greater satisfaction for
both the buyers and sellers.
Australian Tourist
Commission
Organizes trade events around
the world to provide a forum for
Australian sellers to meet
international buyers of tourism
products.
Balancing the
tranportation model
When the transportation table assumes that model is
balance, meaning that the total demand equals to the
total supply. If the model is unbalanced, a dummy
source or a dummy destination must be added to restore
balance.
 Transportation Model
History
1941 American Laid a theoretical
foundation for solving
1781French Mathematicians
Mathematician transportation problem, no

Frank L. Hitchcok
algorithm was
developed
Gaspard Monge&Napoleon
Bonaparte
Publish solution of Monge’s
problem

The mathematical Method of

1910-1985 Production Planning and 1939 Russian Eeconomis
Organization
Dutch American Leonid
Tjalling C. Studying transportation V.Kantorovich
model independently
Koopmans
1947 American
Developed simplex method mathematician
George B. Danzig
 NONTRADITIONAL
TRANSPORTATION MODELS
The application of the transportation model is not limited
to transporting goods.
 Example 5.2-1  
(Production-Inventory Control)
Boralis manufactures backpacks for serious hikers. The demand for its product occurs during March to
June of each year. Boralis estimates the demand for the four months to be 100, 200, 180, and 300 units,
respectively. The company uses part-time labor to manufacture the backpacks and, accordingly, its
production capacity varies monthly. It is estimated that Boralis can produce 50, 180,280, and 270 units in
March through June. Because the production capacity and demand for the different months do not match, a
current month's demand may be satisfied in one of three ways.

a)     Current month's production at the cost of $40 per pack

b)    Surplus production in an earlier month at an additional holding cost of $.50 per pack month.

c)     Surplus production in a later month (backordering). At an additional penalty cost $2.00 per pack per
month.
 

 
 Transportation Model for Example 5.2-1
In the first case, the production cost per backpack is $40. The second case incurs an additional holding cost of
$.50 per backpack per month. In the third case, an additional penalty cost of $2.00 per backpack is incurred
for each month delay. Boralis wishes to determine the optimal production schedule for the four months.

The resulting transportation model is

given in table 5.6
 Thank you
for listening
Please wait for our next reporter