What is the Objective of Transportation Problem

What is the objective of transportation problem? Minimizing refers to transportation problems whose primary goal is to reduce the cost of shipping goods. Another goal is to maximize the profit of shipping goods, in which case the problems are referred to as maximizing. The location from which shipments are dispatched is the source of a transportation problem. Thus, the location to which shipments are transported is the destination of a transportation problem. The traditional simplex method is unsuitable for solving transportation problems due to its unique structure. Therefore, these issues necessitate a unique approach to resolution. Discuss the functions of transportation Growth of industries whose product requires quick marketing - Perishable items such as fish and vegetables are transported quickly to various consumers, even in distant markets. Increase in the demand of goods - Through transportation, new customers in new locations can be easily contacted and products introduced to them. Only because of transportation have markets become national or international. Transport creates time utility - It has been made possible by advancements in transportation speed. It enables the product to be distributed in the shortest amount of time possible. Transport helps in stabilization of the price - by moving commodities from surplus to deficit areas. This equalizes the supply and demand factors, resulting in stable and equal commodity prices. Transport ensures even flow of commodities into the hands of the consumers throughout the period of consumption. Transport enables the consumers to enjoy the benefits of goods not produced locally - This raises the standard of living, which is critical for the continued development of marketing and the economy. Transport identifies competitors to reduce the price - Prices are also reduced as a result of the transportation facilities available for large-scale production. The benefits of large-scale production are only possible because of transportation. Transport increases mobility of labor and capital - It causes people to migrate from one location to another in search of work. Even capital, machinery, and equipment are imported from other countries solely through transportation. Explain Transportation Simplex Algorithm In order to solve the problem, it’s a must to know the parameter or arguments such as; unit shipping costs, supply and demand. Here, will enter the transportation simplex algorithm; it is a linear program, which is a mathematical model that represents linear relationships, such as transportation between two points. Linear programming enables the user to find the best or optimal outcome. We want to transport our product for the least amount of money possible so that we can maximize our profit. Differentiate the assignment and transshipment problem An assignment problem is a type of transportation problem in which the goal is to allocate a certain number of resources to an equal number of activities in order to minimize total cost or maximize total profit of allocation. Because available resources such as men, machines, and so on have varying degrees of efficiency for performing different activities, the cost, profit, or loss of performing the various activities varies. Whereas, the transshipment problem is a subset of the transportation problem in which shipping routes can contain intermediate points. For an instance, shipping from Laguna to Rizal via Bulacan, may be less expensive than shipping directly (nonstop) to Batangas. Intermediate points are also created when different modes of transportation are available at different prices or when products must be stored for a period of time at intermediate points for special processing or packaging. Therefore, the assignment problem’s goal is to assign a number of jobs to an equal number of machines so as to minimize the total assignment cost or to minimize the total consumed time for execution of all the jobs while, transshipment problem’s goal is also to minimize total transportation costs and satisfy destination requirements but within source requirements.