Transportation Model

The objective of this tutorial is to develop the mathematical formulation for

a generic transportation system and its corresponding implementation on
GAMS. The problem is based on the superstructure presented in Figure 1.

Figure 1. Superstructure for the transportation model.

This problem considers the optimal production and distribution of goods

across some cities in the United States. The objective is to meet the demand
in the final markets while minimising the total cost. There are two plants
(Seattle and San Diego) that can supply the demand of three markets (New
York, Chicago, and Topeka). The capacity of the plants is presented in Table
1. The distances between plants and markets are presented in Table 2. The
freight cost is shown in Table 3. Finally, the demand per market is
presented in Table 4.
Code the mathematical formulation in GAMS.
Try different solvers, which one presents better performance?
What is the total cost?

Mathematical formulation
Objective function
min

Constraints
Supply:

Demand:

Table 1
Production Capacity, a(i)
Seattle

350

San Diego

600

Table 2
Distances, Dij(i,j)
New York

Chicago

Topeka

2.5
2.5

1.7
1.8

1.8
1.4

Seattle
San Diego

Table 3
Freight cost, F
90

Table 4
Markets demand, Dem(j)
New York

325

Chicago

300

Topeka

275