Transport model for a transportation problem | Free template
Transport model is a free template to calculate the optimal flow of goods between a senders and destinations in terms of costs by using linear programming.
A transport model is a technique used to minimize the cost to transport goods from multiple venders to multiple destinations. Sender can be factory or warehouse locations and destinations can be businesses or other stores receiving goods. A transport problem requires that we know the supply or production of each sender, the demand of each recipient and the cost or the distance for sending a unit from each sender to each destination. The supply and demand represent limitations on the transport solution.
A transport model is an optimization model using linear programming to find the best solution and to be able to take the best decision with respect to a goal function. The goal functions for a transportation problem is to minimize the total cost. For a transportation problem there are restrictions meaning that the problem not can be solved by any means, these restrictions are in demand on supply.
The mathematical method of linear programming implies that iterations are performed, which are several calculations that are compared against each other, and then the option that best meets the goal function is selected.
You can use this template with a transport model for a transportation problem to find the optimal volume of transport to be sent from different senders to different destinations with the goal to obtain the lowest cost.
01-01-2015 | Created by All-templates.biz
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Tags: resource planning optimization operations management