Product demand at each destination facility.Here is a list of information needed to solve a transportation problem: a warehouse) to different destinations or markets in such a way as to minimize total transportation cost while satisfying all the supply and demand constraints. The transportation problem is one of the subclasses of a linear programming problem in which the objective is to transport products stored in a facility (e.g. By doing it right, you will be managing production and inventory effectively, speeding processes, and improving customer service. Allocating supply sources to facilities properly has a considerable impact on your supply chain’s financial and operating performance. The goal is to satisfy demand, which means being responsive, while also being efficient, which means having the lowest transportation cost. In this article, we will be exploring one of the fundamental cases of market and supply allocation it’s called the Transportation problem. Therefore, supply chain and logistics managers must take advantage of transportation’s potential in terms of opportunities for cost reduction. Transportation costs are a significant component of the overall supply chain costs.
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