Module C Rapid Review

Main Heading Review Material MyOMLab
Transportation Modeling (pp. 730731)

The transportation models described in this module prove useful when considering alternative facility locations within the framework of an existing distribution system. The choice of a new location depends on which will yield the minimum cost for the entire system.

  • Transportation modeling—An iterative procedure for solving problems that involves minimizing the cost of shipping products from a series of sources to a series of destinations.

Origin points (or sources) can be factories, warehouses, car rental agencies, or any other points from which goods are shipped.

Destinations are any points that receive goods.

To use the transportation model, ...

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