Each factory can transport to each warehouse but the transportation costs vary for different combinations. From these factories, the product is transported to three warehouses W 1, W 2, and W 3.Įach factory has a limited supply and each warehouse has specific demand. Assume that a manufacturer has three factories F 1, F 2 and F 3 producing the same product. The easiest way to recognise a transportation problem is to consider a typical situation as shown in the following figure. Solution of the transportation problems requires the determination of how many units should be transported from each supply origin to each demand destination in order to satisfy all the destination demands while minimizing the total associated cost of transportation.
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