General Structure of the

Transportation Problem

The transportation problem consists of several key components, including the

problem statement, objective function, constraints, formulation of the
transportation model, solving techniques, interpretation of the optimal solution,
and a conclusion.
Problem Statement
The transportation problem arises when there is a need to allocate goods from
several sources to several destinations, considering the costs and capacities
involved.
Objective Function
1 Minimization or
Maximization?
The objective function can
either aim to minimize the
total transportation cost or
maximize the total
transportation profit.
2 Factors Considered
The objective function
takes into account the
quantity of goods to be
transported, transportation
costs, and other relevant
factors.
3 Optimal Solution
The objective function
helps in finding the best
allocation of goods that
meets the desired
objectives.
Constraints
Supply Constraints
• Each source has a
limited supply of goods.
• The supply cannot
exceed the capacity of
the source.
Demand Constraints Non-negativity
Constraints
• Each destination has a • The quantity of goods
specific demand for transported cannot be
• goods.
The demand must be met negative.
without exceeding the
capacity of the
destination.
Formulation of the Transportation Model

• The transportation problem can be mathematically represented as a linear programming model.

• Decision variables represent the quantities to be transported from each source to each destination.
• The objective function and constraints are expressed in terms of these decision variables.
Solving the Transportation Problem using
Optimization Techniques
1 Initial Feasible Solution

Use methods like the Northwest Corner Method or Vogel's Approximation Method to create an
initial feasible solution.

2 Improvement Techniques

Apply optimization techniques such as the Stepping-Stone Method or MODI method to improve
the initial solution and find the optimal solution.

3 Analyzing Sensitivity

Perform sensitivity analysis to understand the effects of changes in demand, supply, or

transportation costs on the optimal solution.
Interpreting the Optimal Solution
Optimal Allocation
The optimal solution provides
the most efficient allocation of
goods from sources to
destinations.
Total Cost or Profit
The optimal solution reveals
the total cost incurred in
transporting goods or the
profit gained from the
transportation process.
Unused Capacity
The optimal solution indicates
if any sources or destinations
have unused capacity, which
can be further explored for
better cost-efficiency.
Conclusion
The transportation problem is a fundamental concept in logistics and operations
research, providing insights into efficient resource allocation and cost
optimization. Understanding its general structure helps in solving real-world
transportation challenges.