The Transportation problem is simpler than the Transshipment problem because there are no intermediate warehouse nodes. There exists *m* supply stations *s*_{i}, each capable of producing *sup*(*s*_{i}) units of a commodity. There are *n* demand stations *t*_{j}, each demanding *dem*(*t*_{j}) units of the commodity. There is a fixed per-unit cost *d*(*i*, *j*)≥0 associated with transporting a unit over the edge (*i*, *j*). The goal is to determine the flow *f*(*i*, *j*) of units from supply stations *s*_{i} to demand stations *t*_{j} that minimizes the overall transportation cost, *TSC*, which can be concisely defined as:

Total Shipping Cost (TSC) = Σ _{i} Σ _{j} d(i, j)*f(i, j) |

The solution must also satisfy both the total demand for each demand station *t*_{j} and the supply capabilities for supply stations *s*_{i}.

**Solution**

We convert the Transportation problem instance into a Transshipment problem instance with no intermediate warehouse nodes.

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