Transportation Problem
The Transportation Problem is a type of optimization problem in operations research that focuses on finding the most efficient way to transport goods from multiple suppliers to multiple consumers. The goal is to minimize transportation costs while satisfying supply and demand constraints. This problem is often represented using a cost matrix that outlines the shipping costs between each supplier and consumer.
To solve the Transportation Problem, various methods can be employed, such as the Northwest Corner Method, Least Cost Method, or MODI Method. These techniques help determine the optimal shipping quantities that minimize costs while ensuring that all supply and demand requirements are met. This problem is widely applicable in logistics, supply chain management, and production planning.