Is the transportation model decision-making under certainty or uncertainty? How can the transportation method address production costs in addition to transportation costs? What is meant by an unbalanced transportation problem, and how would you balance it?
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The Transportation Model
The transportation problem is a type of linear programming issue that deals with day-to-day logistics. The focus is on issues related to the distribution of resources from one location to another. It deals with products manufactured in one location but warehoused in a variety of other locations. The objective is to meet demands at minimal transportation costs. To address this, we need to know the available supplies and the quantity of demands (Nwadighoha, Alamba and Onwuka 2010). We can also use this model to help determine the location of facilities and plants when multiple locations are being considered.
Requirements
The transportation model requires (Cochica, 2018):
The origin of the supply
o The origin is the location where shipments are dispatched
The destination
o The destination is the location where shipments are
transported.
And the unit cost to ship
o The unit transportation cost is the cost of transporting one unit from the origin to the destination.
Assumptions
According to Handy (1993) assumptions are:
Items are homogenous
Shipping cost per unit is the same no matter how many units are shipped
Only one route is used from the place of shipment to the destination location
