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Transportation Problem-Solution
Solution of the Transportation Problem:
The fundamental steps of the transportation method are:
Step 1: Determine a preliminary basic feasible solution.
Step 2: Determine an entering variable from among the non-basic variables. If all such variables satisfy the optimality condition (of the simplex method), Stop; otherwise, go to Step 3.
Step 3: Determine a leaving variable (using the feasibility condition) from among the variables of the current basic solution; then find the new basic answer. Return to Step 2.
The vehicle of explanation is the table shown below. The unit transportation cost cij is in shillings. The supply and demand are given in number of units.
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Ordering Costs These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of: • Making the purchase demand.
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