Transportation models are the most extensively used model in linear programming. For the execution of such models, huge resources are committed by oil companies. Shipment of homogeneous goods from a supply source distributed to thevarious demanding destination is a simple example of thetransportation problem. When the goods are stated as homogeneous, it means that the provided commodities by various supply sources have similar characteristics and quantity. Basically, it can be said in this example that the transported commoditiesin thevarious destinations are same in every aspect.
It can be clearly stated from the simple example that any source can allocate goods to any destination. It is also a fact that to fulfil the demand at the designated destination, a single or more than one source can supply commodities. There is a specific demand quantity that is required by a destination. That demand is represented by the required number of units. Similar to thedestination, supply point also has a particular capacity which is represented by a maximum number of units required to be supplied.
Few measurements are used to explain transportation where each source supplies goods to every destination.
The linear programming model is explained as follows.
Minimise
Z=4x11 + 6x12+ 2.5x13+ 3 x14+ 5x21+2x22+ 3.5x23 +4.5x24
It is subjected to:
x11+ x12 + x13 + x14 ≥1000
X21 + x22+ x23 + x24 ≥ 800
x11+x21= 300
x12+x22= 500
x13+x23= 400
x14+ x24= 350
x11, x12, x13, x14,x21, x22, x23, x24 ≥0
Links of Previous Main Topic:-
- Concept of cost of capital
- Capitalization meaning
- Concepts of working capital
- Concept of capital expenditure
- Learning objectives and chapter outline
- Limitations of operations research
Links of Next Finance Topics:-
- Capital budgeting models
- Blending models
- Tipson formulating linear programming models
- Graphical solutions
- Linear programming learning objectives and outline of chapter
- Introduction learning objectives
- Duality in linear programming
- Learning objectives
- Learning objectives and chapter outline in assignment model