Business Jargons / Business / Transportation Method of Linear programming
Transportation Method of Linear programming
Simplex Method Linear Programming Formulation of Linear Programming-Maximization Case
Top Searches Communication Process
Definition: The Transportation Method of linear programming is applied to the
Oligopoly Market
problems related to the study of the efficient transportation routes i.e. how efficiently
Entrepreneurial Process
the product from different sources of production is transported to the different destinations, such as the total transportation cost is minimum.
Marketing Environment 7 C’s of Communication
Assumptions of Linear
Monopoly Market
Programming
Methods of Demand Forecasting
Least Cost Method
Span of Management
Modified Distribution Method
Strategic Intent
Vogel’s Approximation
Carrot and Stick Approach of Motivation
Method
New Business Terms
Linear Homogeneous Production Function North-West Corner Rule Duality in Linear Programming Group Decision Making
Here origin means the place where the product is originated or manufactured for the
Cost Accounting
ultimate sales while the places where the product is required to be sold is called
Financial Management
destination. For solving the transportation problem, the following steps are to be systematically followed:
Standard Costing Process Costing
1. Obtaining the initial feasible solution, which means identifying the solution that satisfies the requirements of demand and supply. There are several methods through which the initial feasible solution can be obtained; these are:
Budget Departmentalization
North-West Corner
Amalgamation
Least Cost Method
Bill of Exchange Golden Rules of Accounting
Vogel’s Approximation Method
Marketing Mix Note: It is to be ensured that the number of cells occupied should be equal to m+n-1, where “m” is the number of rows while “n” is the number of columns.
Categories
2. Testing the optimality of the initial feasible solution. Once the feasible solution is
Accounting
obtained, the next step is to check whether it is optimum or not. There are two
Banking
methods used for testing the optimality:
Business
Stepping-stone Method
Business Statistics
Modified Distribution Method (MODI)
Economics
3. The final step is to revise the solution until the optimum solution is obtained.
Education Finance
The two most common objectives of transportation problem could be: i) maximize the profit of transporting “n” units of product to the destination “y”, ii) Minimize the cost of shipping “n” units of product to the destination “y”.
