Transportation Model
Introduction
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What: Solving problems of
transportation
Where: Moving goods between
locations
Why: To optimize transportation costs
Developing an Initial Solution
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Northwest Corner Rule
Intuitive Lowest Cost
Evaluating the Solution
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Stepping Stone Method
Calculate an improvement index for any
empty squares
If all indices are greater than or equal
to zero, the solution is optimal
If not, change the solution and reevaluate
Supply and Demand
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Demand not equal to supply?
Use a dummy source or dummy
destination
Degeneracy – too few routes used
Test: occupied squares equal to rows +
columns - 1