Transportation Model:

The main purpose for modelling the transportation problem is to determine the least cost of shipping from several origins to destinations. Generally, the source point is factory, warehouse, etc. and the destinations are the points that receive the goods.

Basic Requirements of Transportation Model

The basic requirements for this system are :

• The source point and the supply of the product per period,
• The destination point and the demand per period, and
• The cost for the movement of unit distance.

The transportation model is a linear programming model .Solving this problem by using LP; it ought to be structured in a special manner that means with an objective subjected to certain constraints.

Whereas the transportation problem is formulated, two entities are utilized, i.e. demand and supply. Each of source x has a supply capacity S_x and each destination y has a specified demand D_y. The cost of supplying a unit cost from source to destination is given by c_xy. The problem is to determine how much of the demand at each destination is to be supplied by each source x to minimize the cost.