Tamil Nadu Board of Secondary EducationHSC Commerce Class 12th

What is transportation problem? - Business Mathematics and Statistics

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What is transportation problem?

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Solution

The transportation problem deals with transporting goods from a source to a destination by a minimum cost.

Description: A Manufacturer has a number of factories which produces goods at a fixed rate.

He also has a number of warehouses, each of which has a fixed storage capacity.

There is a cost to transport goods from a factory to a warehouse.

Find the transportation of goods from factory to the warehouse that has the lowest possible cost.

Example:

Factories: A1 makes 5 units

A2 makes 4 units

A3 makes 6 units

Warehouses: b1 can store 5 units

b2 can store 3 units

b3 can store 5 units

b4 can store 2 units

Transportation costs:

  b1 b2 b3 b4
A1 5 4 7 6
A2 2 5 3 2
A3 6 3 4 4
Concept: Transportation Problem
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