For a multi-plant-multi-market company this is useful. To decide the transportation of finished goods from different manufacturing plants to the different distribution centres.In the case of multi-plant company this is highly useful. To decide the transportation of new materials from various centres to different manufacturing plants.Transportation model is used in the following: This is best solved through assignment algorithm. Similarly, how are we to assign different jobs to different persons/machines, given cost of job completion for each pair of job machine/person? The objective is minimizing total cost. Given the transportation costs per load of each of 20 routes between the manufacturing (supply) plants and the regional distribution (demand) centres, and supply and demand constraints, how many loads can be transported through different routes so as to minimize transportation costs? The answer to this question is obtained easily through the transportation algorithm. ![]() Assume a company has 4 manufacturing plants with different capacity levels, and 5 regional distribution centres. ![]() The transportation model is concerned with selecting the routes between supply and demand points in order to minimize costs of transportation subject to constraints of supply at any supply point and demand at any demand point. ![]() More effective solution models have been evolved and these are called assignment and transportation models. The simplex method of Linear Programming Problems(LPP) proves to be inefficient is certain situations like determining optimum assignment of jobs to persons, supply of materials from several supply points to several destinations and the like. Transportation and assignment models are special purpose algorithms of the linear programming.
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