Quantitative Techniques for management
The transportation model is represented by a network diagram in Figure
Network Transportation Model
m be the number of sources,
n be the number of destinations,
sm be the supply at source m,
dn be the demand at destination n,
cij be the cost of transportation from source i to destination j, and
xij be the number of units to be shipped from source i to destination j.
The objective is to minimize the total transportation cost by determining the unknown xij, i.e., the number of units to be shipped from the sources and the destinations while satisfying all the supply and demand requirements.