Generally, it can be seen in transportation costs, that monetary value is taken into consideration which is associated with the initial costs. However, if the profits are considered rather than losses, it can be said that the course of transportation costs undergo a change.
In this method, rather than the per unit cost of transportation, it is the per unit profit incurred that is considered. Once that is done, primary concern of transportation costs becomes associated with total profits that are subjective of restrictions placed on demand and supplies.
This mode of dealing with transportation problem is known as Max-Type Transportation Problem. Hence, in this case, Losses are equated with negativity in Profit.
Since there are multiple problems associated with this topic, it can be seen that a detailed understanding of this topic helps in solving sums that are associated with this concept. Also, the matrix format is used in dealing with these sums.
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