executive summary for transportation model

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Executive Summary for Transportation Model

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Executive SummaryTransportation Modeling or more commonly known as Transportation Models is used by companies to find the least-cost means of shipping supplies from one place to another. This helps the company save more money which they can use for more important matters. When using Transportation Models the user should know the origin points of supply destination of demand and the cost of shipping one unit to another.There are many different methods to solve for the Transportation Model and they are North-West Corner Rule, Stepping-Stone Method, Modified Distribution Method and Vogles Appreciation Method.North-West Corner Rule is the method wherein you will put the number on left-hand cell of a table (the northwest corner). It is considered as one of the easiest ways to solve for the Transportation Model.Stepping-Stone Method which is one of the harder methods, you will choose any unused box and then using a closed path, you need to go back to your chosen box. All the corners should be boxes which contain numbers. Then put plus and minus on the numbers inside the boxes where you have passed through. You will repeat these steps until all the boxes are filled and that all the boxes are greater than or equal to zero then you have reached an optimal solution. Answers may differ when you choose a different box from that of another person but that does not mean any of your answers are wrong. There are just different possible answers when using the Stepping Stone Method.Modified Distribution Method is another method where you need to start with an initial solution obtained using the Northwest Corner Rule. The last method is Vogles Appreciation Method which is harder than the Northwest Corner Rule method but one of its benefits is that it provides a more optimal solution than the one you will get from the latter.There are some issues in Transportation Model and these are Degeneracy and When supply is not Equal to Demand. The former is when there is little to no filled boxes and this can be solved by artificially creating an occupied box. The latter can be solved by introducing dummy sources or dummy destinations.