Transportation Problem¶
Definition¶
The transportation problem chooses shipments from plants to distribution centres to minimize total transport cost. With unit costs , plant capacities , and required deliveries , a formulation is
The demand constraints can also be written as : when every unit cost is positive, an optimal plan never delivers more than required, so both versions have the same optimal solutions.
Interpretation¶
The transportation problem decides how much to send along each route from origins with limited supply to destinations with given demand, so that the total transport cost is as small as possible. Each decision variable is the amount on one route, and every unit on that route costs .
The plants and have supplies and , and the customers need , and . The thick edges are the routes in use, labelled amount @ unit cost: sends to and to , and sends to , for a total cost of . Each customer receives exactly its demand, and the thin routes carry nothing.
Every variable appears in exactly two constraints, the supply constraint of its origin and the demand constraint of its destination. Supplies use because a plant need not use all of its capacity. Adding the demand constraints shows that a feasible plan needs total supply at least total demand, and since every route may be used, this is also enough. When capacity exceeds demand, as in the week 2 data in the Examples, some capacity stays unused.
The model is an ordinary linear program, solvable with the simplex method or Excel Solver. The same bookkeeping returns later in the assignment problem, where every supply and every demand equals .
Key Results¶
- The decision variables are shipment quantities on routes.
- Plant capacities are upper bounds rather than mandatory production amounts.
- With positive unit costs, allowing deliveries above demand ( instead of ) cannot improve the optimum.
Examples¶
The diagram is a separate balanced illustration with total supply and demand both 50. Its unit costs are from to and from . Green-edge labels mean shipment quantity @ unit cost; their total is . The plan is optimal: moving one unit of a customer's delivery from to saves for , for and for , so 's 30 units go to (15) and then (15), and supplies . Because total supply equals total demand, every plant here also ships its full supply. For a feasible transportation LP with integer supplies and demands, an integral optimal shipment plan exists.
- Week 2 course data: three plants with capacities 5,000, 6,000 and 2,500 (13,500 in total) serve destinations whose demands total 12,000, so at least 1,500 units of capacity stay unused; with the course's unit costs the optimal cost is 35,000.
Prerequisites¶
Related Concepts¶
Sources¶
- OR Modelling · Week 2
Aliases: transportation model, Hitchcock problem Symbols: sum
Last updated: 20 October 2026 03:02
Transportation ProblemLinear Program FormulationNetworkProduction-Inventory Model