Introduction

In this modern age, logistic has been more essential into contributing to the society as it
made up the supply chain for food and goods that are essential for human. Logistic of a supply
management controls the shipment time and the storage of goods. When the quantity of goods
raises, the management for transporting goods becomes more complex and this is where logistic
comes into place. As the complexity raises, computer simulation is required to make accurate
calculations to find the right time and the arrangement for the transport with the use of linear
programming model. Hence, application of linear programming model in logistic industry is
focused.
Linear programming can help people the optimized outcome that is close to the best
solution for a situation where mathematical method that can implemented like maximizing a profit
or lowering a cost.
Industry like logistic can carry out and take part in different industry for example delivering
parts of an automotive vehicle or food and goods. Food and goods has an period in order to stay
fresh so it’s important for the logistic industry to deliver it on time and to keep things
systematically.

Case 1: Optimization of the Cost of Transportation in J & J Essential Products (Pvt.) Ltd
Literature review
J & J Essential Products (Pvt.) Ltd. is a company that manufactures mosquito coil. The company
has 3 main warehouses in Dhaka, Chittagong and Bogra respectively. The company has 7
distributor’s warehouses in Dhaka, Chittagong, Barisal, Rajhahi, Syhet, Rangpur and Khulna
respectively. The distribution costs of the company account for 19% of the total cost of the
company. Mosquito coils are delivered from the 3 main warehouses to the 7 distributor warehouses
with no consideration in the optimal quantity. The problem in this journal is the determination of
quantity of mosquito coil in optimal that should be delivered from each main warehouse of the
company to different distributor warehouse to obtain the minimum cost of transportation which
will lead to an increase in profit using linear programming. In this model there are a few decision
variables: the storage capacity of mosquito coils at each of the 3 main warehouses, the amount of
mosquito coils required by each of the 7 warehouses, the number of mosquito coil cartons shipped
from main to distributor warehouse and the shipping cost of 1 carton from main to distributor
warehouse. There are a few limitations in this model. In the model, we assume that the supply will
exceed the demand but in real life there may be short of supply. Besides, when the company sets
the trade price of their mosquito coil, the company allocates 150 Bangladesh Taka (BDT) per
carton of mosquito coil for transportation cost. In this case if a shipment made by the company
costs more than 150BDT, they will be loss of money.

Optimization model
In this problem, we use a mathematical model to represent the situation.
Decision variables:
Let the main warehouses be: Dhaka = 𝑀1 ; Chitagong = 𝑀2 ; Bogra = 𝑀3
Let the distributor warehouses: Dhaka = 𝐷1 ; Chitagong = 𝐷2 ; Rangpur = 𝐷3 ;
Barisal = 𝐷4 ; Rajshahi = 𝐷5 ; Sylhet = 𝐷6 ; Khulna 𝐷7
Let the storage of capacity of coil at each main warehouses be 𝑚𝑦 ; y = 1, 2, 3
Let the coil requirement at each distributor warehouses be 𝑑𝑧 ; z = 1,2,3,4,5,6,7
Let the shipping cost of 1 carton of coil from 𝑀𝑦 to 𝐷𝑧 be 𝑆𝑦𝑧
Let the number of cartons mosquito coils shipping from 𝑀𝑦 to 𝐷𝑧 be 𝑋𝑦𝑧

Distributor Main warehouse Requirement of

warehouse Dhaka = 𝑀1 Chitagong = 𝑀2 Bogra = 𝑀3 each warehouse
Dhaka = 𝐷1 𝑆11=15 𝑆21 =160 𝑆31 =100 𝑑1 =1168
Chitagong = 𝐷2 𝑆12=160 𝑆22 =12 𝑆32 =260 𝑑2 =1560
Rangpur = 𝐷3 𝑆13=154 𝑆23 =315 𝑆33 =56 𝑑3 =1439
Barisal = 𝐷4 𝑆14=245 𝑆24 =410 𝑆34 =190 𝑑4 =986
Rajhahi = 𝐷5 𝑆15=130 𝑆25 =290 𝑆35 =58 𝑑5 =1658
Sylhet = 𝐷6 𝑆16=125 𝑆26 =427 𝑆36 =204 𝑑6 =2035
Khulna 𝐷7 𝑆17=215 𝑆27 =375 𝑆37 =160 𝑑7 =1159
Storage capacity 𝑚1 =3980 𝑚=1785 𝑚3 =4856
Table1: The shipping cost from 𝐴𝑖 to 𝐵𝑗 warehouses with the assigned variables

Objective function: Minimize f = ∑3𝑖=1 ∑7𝑗=1 𝐶(𝑖, 𝑗)𝑋(𝑖, 𝑗)

Constraints:
𝑋11 + 𝑋12+ 𝑋13 + 𝑋14+ 𝑋15 +𝑋16+ 𝑋17 ≤ 3980 (Storage capacity of 𝑀1 )
𝑋21 + 𝑋22+ 𝑋23 + 𝑋24+ 𝑋25+𝑋26+ 𝑋27 ≤ 1785 (Storage capacity of 𝑀2 )
𝑋31 + 𝑋32+ 𝑋33 + 𝑋34+ 𝑋35+𝑋36+ 𝑋37 ≤ 4856 (Storage capacity of 𝑀3 )
𝑋11 + 𝑋21+ 𝑋31 ≥ 1168 (Requirement of 𝐷1 )
𝑋12 + 𝑋22+ 𝑋32 ≥ 1560 (Requirement of 𝐷2 )
𝑋13 + 𝑋23+ 𝑋33 ≥ 1439 (Requirement of 𝐷3 )
𝑋14 + 𝑋24+ 𝑋34 ≥ 986 (Requirement of 𝐷4 )
𝑋15 + 𝑋25+ 𝑋35 ≥ 1658 (Requirement of 𝐷5 )
𝑋16 + 𝑋26+ 𝑋36 ≥ 2035 (Requirement of 𝐷6 )
𝑋17 + 𝑋27+ 𝑋37 ≥ 1159 (Requirement of 𝐷7 )
𝑋𝑦,𝑧 ≥ 0 for all the values of y & z

Analysis, results and discussion

The optimal number of cartons of mosquito coils shipping from main to distributor warehouse is
shown in the table above. The horizontal row shows the main warehouse while the vertical column
shows the distributor warehouse. The cost of shipping to Dhaka, Chittagong and Rangpur
distributor warehouses is the cheapest from Dhaka, Chittagong and Bogra main warehouse
respectively. That is why Dhaka, Chitagong and Ranggpur distributor warehouse only receives
mosquito coils from Dhaka, Chittagong and Bogra main warehouse respectively. Barisal
distributor warehouse receives moisquito coils from both Dhaka and Bogra main warehouses. The
total mosquito coils received by the distributor warehouses are equal to the requirement of each
warehouse. Meanwhile the total mosquito coils sent out by the main houses are less than or equal
to the storage capacity. The minimum cost of transportation for an increase in profit is 861373BDT.
The minimum cost = 1168(15) + 1560(12) + 1439(56) + 386(245) + 600(190) + 1658(58) +
2035(125) + 1159(160) = 861373BDT

Case 2: Minimizing cost of transportation of Coca-Cola bottling company in Dutse

Literature review
There are 3 distributors of Coca Cola in Dutse and 3 sales outlets where the Coca Cola drinks will
be distributed to. The problem in this journal is the determination of transportation schedule in
optimal to minimize the distribution cost of Coca Cola drinks from the distributors to the sales
outlets using linear programming model. For transportation problems in general, the number of
products which is available in a source needs to be less than or equal to the number of products
supplied from the source. Besides, the number of products supplied to a particular sales outlet
needs to be greater or equal to the requirement or demand of that outlet. In that case the total supply
and total demand will be equal. However in real life, the total supply will not be equal to the total
demand. The problem is then unbalanced. A fictitious or an imaginary destination is then added to
the problem. This will provide excess supply and demand. The cost of transportation from this
fictitious destination is 0. Also, the cost of transportation from all the sources to a fictitious
destination is 0. Therefore, one of the constraints is said to be unnecessary due to this restriction.

Optimization model
To determine the optimal schedule of transport, the model is solved using stepping stone method
and the result is verified using a software package called LINGO. It is found that the results
obtained from linear programming model and from the LINGO software package are the same.
Let the number of crate of Coca Cola shipping from distributor 𝐴𝑖 to sales outlet 𝐵𝑗 be 𝑁𝑖𝑗
Let the shipping cost of 1 crate of Coca Cola from distributor 𝐴𝑖 to sales outlet 𝐵𝑗 be 𝐶𝑖𝑗
Sales outlet 𝐵𝑗 Distributor 𝐴𝑖 Demand
SSD Hakimii SSD Mobile SSD Takur
= 𝐴1 Bases = 𝐴2 Aduah = 𝐴3
Zai Quarter = 𝐵1 𝐶11 =6 𝐶21 =7 𝐶31 =5 𝑏1 =200
Yawawa = 𝐵2 𝐶12 =8 𝐶22 =10 𝐶32 =6 𝑏2 =100
Sabon Takor = 𝐵3 𝐶13 =9 𝐶23 =10 𝐶33 =11 𝑏3 =300
Supply 𝑎1 =150 𝑎2 =175 𝑎3 = 275

Objective function: Minimize Z = 6𝑁11 + 8𝑁12 + 9𝑁13 + 7𝑁21 + 10𝑁22 + 10𝑁23 + 5𝑁31 + 6𝑁32 +
11𝑁33
Constraints:
𝑁11 + 𝑁12 + 𝑁13 ≤ 150 (Supply of 𝐴1 )
𝑁21 + 𝑁22 + 𝑁23 ≤ 175 (Supply of 𝐴2 )
𝑁31 + 𝑁32 + 𝑁33 ≤ 275 (Supply of 𝐴3 )
𝑁11 + 𝑁21 + 𝑁31 ≥ 200 (Demand of 𝐵1)
𝑁12 + 𝑁22 + 𝑁32 ≥ 100 (Demand of 𝐵2)
𝑁13 + 𝑁23 + 𝑁33 ≥ 300 (Demand of 𝐵3)
𝑁𝑖,𝑗 ≥ 0 for all the values of i(distributors) & j(sales outlet)

Analysis, results and discussion

The least cost method is used to find the initial least cost solution. The initial solution is:

From the initial solution, stepping stone method is used to find the optimize solution. In a
transportation problem, the principle is to find out whether a route that is not being used would
lead to a lower cost if the route were used. In this case, the route that is not being used (11, 21, 22,
33) will be evaluated. If the route is found to decrease the total cost, we will allocate to it. The
process is repeated until no route that is not being used will decrease the cost. The final results are:

Minimum cost Z = 6(25) + 8(0) + 9(125) + 7(0) + 10(0) + 10(175) + 5(175) + 6(100) + 11(0)
= 4500
From distributor𝐴1 , 25 and 125 crates of coca cola are sent to sales outlet 𝐵1 and 𝐵3 respectively
and there is no shipment to sales outlet 𝐵2. From distributor 𝐴2 , 175 crates of coca cola are sent to
sales outlet 𝐵3 and there is no shipment to sales outlet 𝐵1 and 𝐵2. From distributor 𝐴3 , 175 and
100 crates of coca cola are sent to sales outlet 𝐵1 and 𝐵2 respectively and there is no shipment to
sales outlet 𝐵3. The transportation model can help the company the plan the transport schedule
efficiently. It will minimize the transportation cost of products and time utility will be created to
ensure that the products reach at the right time and place.
Case 3: Optimization Problem in Supply Chain Management in Coca Cola Company in
Nigeria
Literature review
In Coca Cola Company, there are 4 major plants and 5 depots in Nigeria. The problem in this
journal is to determine the optimal number of trucks that should be used to transport the products
from the 4 major plants to each of the 5 depots to minimize the transportation cost and to satisfy
the prevailing demand of the product of the company using linear programming method. This
transportation problem is considered to have faced by the company for 6 years. The plants’
production capacities are enough to fulfill the customers’ satisfaction. However, the company has
limited number of trucks. When constructing the linear programming model, it can be challenging
to manage the data because the data used often contains a lot of uncertainties. Based on the research
finding, the total expenditure of the company in transportation shows a percentage of 39.2% on
maintenance. Meanwhile the percentages on fuel, drivers and on-off loading are 20.5%, 8.8% and
5.1% respectively. This research allows the company to improve their supply chain. In Supply
Chain Management, the 4 major decision areas are location, production, inventory and
transportation. This research paper analyses the 4 major decision areas and indicates the areas to
consider for future research that will ease the knowledge advancement. There are a few suggestions
for the future research which are to evaluate and develop the performance measures of supply
chain, to develop a model for the integration of the 4 major decision areas and to consider the
issues that will affect the supply chain model.

Optimization Model
This research paper uses the linear programming technique in transportation model and a software
called TORA to determine the optimal solution of this problem. Transportation model minimizes
the cost of transporting goods from a source to a destination. The following table shows the
transportation cost from each plant to each depot, the available truckloads and the truckloads
demanded.
Let plant be 𝐴𝑖 , depot be 𝐵𝑗
Let the number of truckloads used to transport product from plant 𝐴𝑖 to depot 𝐵𝑗 be 𝑁𝑖𝑗
Objective function: Minimize Z = 0.2808𝑁11 + 0.4176𝑁12 + 0.2304𝑁13 + 0.544𝑁14 + 0.6912𝑁15
+ 0.2304 𝑁21 + 0.216𝑁22 + 0.2808𝑁23 + 0.691 𝑁24 + 0.8352 𝑁25 + 0.5544 𝑁31 + 0.6912𝑁32 +
0.4176𝑁33 +0.835 𝑁34 +0.972 𝑁35 + 0.3744𝑁41 +0.4608𝑁42 +0.2808𝑁43 + 0.5544𝑁44 + 0.691𝑁45

Constraints:
𝑁11 + 𝑁12 + 𝑁13 +𝑁14 +𝑁15 ≤ 1152 (Available truckloads in 𝐴1 )
𝑁21 + 𝑁22 + 𝑁23 +𝑁24 +𝑁25 ≤ 1152 (Available truckloads in 𝐴2 )
𝑁31 + 𝑁32 + 𝑁33 +𝑁34 +𝑁35 ≤ 1152 (Available truckloads in 𝐴3 )
𝑁41 + 𝑁42 + 𝑁43 +𝑁44 +𝑁45 ≤ 1152 (Available truckloads in 𝐴4 )
𝑁11 + 𝑁21 + 𝑁31 + 𝑁41 ≥ 288 (Demand of 𝐵1)
𝑁12 + 𝑁22 + 𝑁32 + 𝑁42 ≥ 504 (Demand of 𝐵2)
𝑁13 + 𝑁23 + 𝑁33 + 𝑁43 ≥ 1152 (Demand of 𝐵3)
𝑁14 + 𝑁24 + 𝑁34 + 𝑁44 ≥ 1296 (Demand of 𝐵4)
𝑁15 + 𝑁25 + 𝑁35 + 𝑁45 ≥ 1296 (Demand of 𝐵3)
𝑁𝑖,𝑗 ≥ 0 for all the values of i(plant) & j(depot)

Analysis, results and discussion

The table above shows the results solved using the TORA, the minimum cost of transportation
Z = 0.2808(0) + 0.4176(0)+ 0.2304 (0) + 0.5544(1008) + 0.6912(144) + 0.2304(288) +
0.2160(504)+ 0.2808(72) + 0.6912 (288)+ 0.8352(0) + 0.5544(0) + 0.6912(0)+ 0.4176(1080)
+0.8352 (0) +0.9720 (0) + 0.3744(0)+0.4608 (0) +0.2808(0) + 0.5544(0) + 0.6912(1152) =
2300.1408. This amount gives the minimum cost of transportation in a monthly basis to transport
the products from each of the 4 plant to each of the 5 depot. From plant Aba, there is no truck
movement to Depot Mbase, Orlu and Umualhia while the truckloads to depot Calabaar and Uyo
are 1008 and 144 respectively. The number of truckloads sent from plant Aba is equal to the
available truckloads in its plant which is 1152.

Case 4: Transportation Cost Optimization of Raipur power plant

Introduction:
Transportation problem is a problem which is always encountered by the industry. Transportation
problem is usually used to minimise the cost of the transportation for industries, with number of
sources and number of destination, however satisfying the supply limit and the requirement of
customers’ demand. Usually, the industries face with the problem of economic optimisations such
as cost minimization of non-economic items, the transportation models are always concerned in
order to find the best and economical way to deliver their products to the plant demands (also
called as demand destinations). In addition, the main objective in a transportation problem is to
minimize cost. Besides that, the transportation problem is to determine the transportation cost form,
from the source to the destination in plant, this is used to determine the total number of trips of
raw material that comes to a particular source point at a certain period while satisfying the demand
and supply limits.

Accurate values of transportation cost, delivery time, quantity of raw materials delivered, demands,
availability, the capacity of different types of transports between sources to destinations can be
estimated, this kind of problem is usually named as transportation problem. With the aid of the
optimizing the routs, staffs, and different parameters, the transportation problem can be solved,
and transportation cost can be decreased. Amount of money and cost of transportation can be saved
from the optimised value to be used in the increasing the plant efficiency.

With the aid of linear programming, the problem can be solved by allocating limited resources
among several activities, in the best possible way. This linear program utilizes its mathematical
model to explain the problem faced. Clear picture on the relationships of basic equations,
inequalities or constraints can be depicted, a better idea can be attained about the problem and its
solution.

Literature Review
The Vogel’s Approximation Method (VAM) was used to find the basic feasible solution and
enhanced to optimality by using Modified Distribution Method (MODI) using computer software,
Quantitative Manager for Windows (QMW). In this paper, fixed charge capacitated was discussed
in a non-linear transportation problem. Therefore, an algorithm for solving this transportation
problem was established. Linear Programming Problem (LPP) is one of the mathematical tools for
allocating operational resources. In real life, there are many things to be formulated as a LPP.
Besides that, the main objective of TP is to reduce the transportation cost of distributing products
from one place to another. In this paper, three variables are optimised to reduce transportation cost.
Four methods are used which include Northwest corner, least cost method, Vogel method and
modi method. Hence, cheapest route and best route will be determined.

Optimisation Model
Total transportation cost =
(2586.04*120)+(2086.04*140)+(1886.04*70)+(3187.18*11)+(2687.18*7)+(2487.18*3)+
(3230.2*9)+(2730.2*5)+(2530.2*2) = 843507.18

Solving manually for transportation cost minimization,

Objective Function,

Minimization Z=9003.42Y1+7503.42Y2+6903.42Y3……….. (a)

2586.04Y1+3187.18Y2+3230.20Y3≥138 --(1) Iron 2086.04Y1+2687.18Y2+2730.20Y3≥152 --
(2) Coal

1886.04Y1+2487.18Y2+2530.20Y3≥75 -- (3) Mn

Y1, Y2 & Y3 ≥ 0

Where, Y1= Number of coal in trips Y2= Number of Iron in trips Y3= Number of Mn in trips

Solving the above eq (1), eq (20, eq (3), values of Y1,Y2,Y3 were obtained:

Y1= 48.97999 Y2= 42.42099 Y3= 10.52055

Results and Discussion:

Transportation problem is solved by different methods which include manual calculation, software
calculation (TORA 1.0), Least Cost method, Vogel’s method. Different methods of calculations
result different minimum transportation cost.

For using TORA (1.0),

Minimum Transportation Cost : (2586.04*138) + (2086.04*152) + (1886.04*38) + (2487.180

*20)+(2530.2*15) = 833317.720

For using Least Cost method,

Minimum Transportation Cost : (2586.04*102)+(2086.04*151)+(1886.04*75)+ (3187.18

*20)+(3230.2*15) = 832417.72

For using Vogel’s method,

Minimum Transportation Cost= (2586.04*136)+(2086.04*152)+(1886.04*40)+ (2487.18

*20)+(2530.20*15) = 831917.72

Methods: Transportation Cost:

Vogel’s Approximation Method 831917.720
What’s Best Solver (Global Optimization) 831917.720
North West Corner Method (NWCM) 833317.720
Least Corner Method (LCM) 832417.720
Actual Transportation Cost 843507.18

From this table, VAM method and LINDO What’s Best provides the most efficient solution of
the optimization, which is 831917.720. VAM method is the solution that is needed with the least
iterations compared with the others. Hence, VAM method is the most suitable to be used. Using
the actual cost to compare with VAM method:

Save amount=Actual transportation cost - Optimization transportation cost = 843507.18 –

831917.72

Save amount = 11589.46

The saving transportation cost percentage % is 1.37%

Conclusion
In short, the transportation cost is a pivotal element of the total cost structure for any power plant.
The transportation model with the aid of VAM, TORA (1.0), NWCM, LCM, What’s best solver
to finding the minimum transportation cost. In this study, VAM is the most efficient method, which
gives the least transportation cost. Besides that, the total saving cost is 1.37%, it can be used to
increase the quality of coal from saving amount, increase the power generation, incense the steel
production, and growth of the plant.

Case 5: To schedule bus drivers in a transport company using linear programming

Literature review
Many companies provide jobs to be done during the shifts for the workers, it is important to arrange
their shifts in order to maximize the output of the companies. Linear programming is a method of
obtaining the optimal solution for given real life problem. Linear programming techniques are
applied in many careers. In production management, linear programming is applied to determine
the optimal allocation of resources, like labour force, material sources, and machines. In personnel
management, the personnel manager is enabled to overcome the problems such as recruitment,
selection, training, and deployment of manpower to different departments of the firm. For instance,
if a firm is faced with the problem of inventory management of raw materials and finished products,
linear programming (LP) enables the marketing manager in interpreting the audience coverage of
advertising based on the available media, given that the advertising budget as the constraint. With
the aid of LP, marketing manager enables to arrange the distribution product schedule in order to
minimize the transportation problem.

This paper discusses that the scheduling of workers in a Transport Corporation. This is because,
proper scheduling of workers will enhance the maximum profit of the company. Besides that, the
main objective this paper is to minimize the number of drivers allocated for each shift, this is
because the excess spends of the drivers can be minimized.

Optimization Model:

For one day, there are five shifts, the data has been collected and plotted under the table 1. There
is a minimum number of 209 drivers required for every single day.
Model 1:

The minimum number of drivers required per day and per shifts:
Let xi be the amount of drivers working the duty in 𝑖 𝑡ℎ shift (i=1 to 5)
x1+x2+x3+x4+x5≥209
x1+x5≥153
x1+x2+x5≥209
x2+x3+x5≥209
x3+x5 ≥153
x3+x4+x5 ≥160
x4+x5 ≥100
xi≥0 (i=1:5)
Model 2:
The timetable shift for the drivers (private travel agency). The data has been plotted in table 3. The
assumptions made are drivers work for 6 days non-stop, and each day has a total of 4 shifts.

Let yi be the amount of drivers working the duty in 𝑖 𝑡ℎ shift (i=Monday to Sunday). The allocation
of drivers is plotted under the table 4.

The main objective of this problem is to reduce the total amount of drivers.
In order to minimize the total number of drivers.
7
𝑍= ∑ 𝑦𝑖
𝑖=1
Each day has only four shifts, by relating the model 1 with i=4, each driver has to work 2 shifts
continuously, then seven sub problems are resulted with the same objective function.
Minimize ∑4𝑖=1 𝑧𝑖
Problem (part 1) Monday:

Problem (part 2) Tuesday:

Problem (part3) Wednesday:

Problem (part4) Thursday:

Problem (part5) Friday:

Problem (part6) Saturday:

Problem (part7) Sunday:

The non-negative constraints, 𝑧𝑖 refers to the amount of drivers working at the 𝑖 𝑡ℎ shift.
Results and Discussions:

Model 1 was solved and plotted under the table 5 by using the Linear Programming method.

When the number of variables increases, it will be hard for us to solve the problem using LP
method. As solving for method 2, MATLAB method is introduced and the results obtained are
plotted under the table 6.

Based on the data given, there will be no drivers to start their shifts on Sunday. From Monday to
Tuesday, there will be the same amount of drivers allocated. However, Friday and Saturday,
massive variation is shown in the number of drivers starting the second shift and fourth shift.
Therefore, using LP method enables to save the amount given.

Conclusion:
In retrospect, the respective organizations save more money than before the organizations use the
optimality obtained from the LP method. This model could be applied in many fields such as nurses
for hospitals, policemen for police station, and firemen for fire station. More manpower, time of
the organisation, spend on wages can be saved. Applying LP method, many complex problems
could be optimised with some simple assumptions.
Case 6: Using linear programming method for minimizing transportation cost of a
Manufacturing firm

Literature review:

First and foremost, this paper talks about linear programming technique in solving the
transportation problem of a beverage producing company in Nigeria in order to minimize the total
transportation cost and obtain an optimal schedule. In this paper, a beverage company is used as a
case study.

Every business is set up to earn profits either from sales of its goods or payments for services.
Business involves the movement of the products from one location to one destination. Hence,
movement of the products involve the use of one or more means of transportation (land, water,
rail), which have different costs. Few problems such as the selection of the quantity, the
destinations to be supplied, the right, and most economical means of transportation result the
problem – transportation problem. Transportation Problem may be one of the most significant
special Linear Programming. Basically, the purpose of the Transportation Problem is to reduce the
cost of transportation from one location to another, so that the demands of each arrival area are
achieved while every shipping location operates within its capacity. Manufacturers or providers
work hard to minimize the transportation cost either to increase their profit or lower their price of
goods, hence they can win their competitors by using this strategy.

Based on this journal, the beverage company supplies more products than is demanded to all of its
depots. The objective of this paper is to show the manufacturers and others that using linear
programming (LP) in transportation problems has more advantages than the rule-of-thumb.
Optimization model:

The optimisation model used in this study is LP method, and the transportation schedule is
determined in order to minimize the total transportation cost and fulfil the requirement at the
depots.

Minimize (overall cost) 𝑍 = ∑𝑚 𝑛

𝑖=1 ∑𝑗=1 𝑐𝑖𝑗 𝑥𝑖𝑗 objective function

Subject to constraints

∑𝑛𝑗=1 𝑥𝑖𝑗 = 𝑎𝑖 , 𝑖 = 1,2, … . 𝑚 (supply constraints)

∑𝑚
𝑖=1 𝑥𝑖𝑗 = 𝑏𝑗 , 𝑖 = 1,2, … . 𝑛 (demand constraints)

And

𝑥𝑖𝑗 ≥ 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑖 𝑎𝑛𝑑 𝑗 𝑣𝑎𝑙𝑢𝑒𝑠

Where

𝑖 = 𝑓𝑎𝑐𝑡𝑜𝑟𝑦

𝑗 = depots

𝐶𝑖𝑗 = price charges of transporting one truck load from factory to depot
𝑋𝑖𝑗 = amount of cases transported from factory to depot

a = number of cases supplied by the factory through a route

b = amount of cases demanded by the depots on a route

m = overall number of rows

n = overall number of columns

Minimize 48𝑥11 + 45𝑥21 + 25 𝑥31 + 60𝑥12 + 62𝑥22 + 48𝑥32 + 126𝑥13 + 62𝑥23 +

56𝑥33 + 106𝑥24 + 60𝑥34
Subject to:

Overall transportation cost = (0 ×39) + (62×45) + (0×52) + (25×47) + (48×36) + (56×26) +

(60×29) = N8, 889,000

Cost saving = N 15,252,586 - N 8,889,000 = N 6,363,586

Results and discussion:

From the results, the optimal solution to Table 1 shows that a total of 199,023 cases of products to
be shipped only to Onitsha, Benin, Sapele, Warri and Ughelli depots resulting in an overall
transportation cost of N 8,889,000 for the week. In comparison to the present cost of N 15,252,586,
there will be a total cost savings of N 6,363,586 will be made for the week.

Conclusion

Linear programming is useful in helping a company to minimize the transportation cost in order
to get the maximum profit. From the interviews conducted, the company applies the rule-of-thumb
model. Applying the linear programming model, the results obtained indicate the cost saving. This
can be applied to the peak period given that the factory capacity, the number of depots and their
capacities, the routes and the transportation costs remain constant throughout the peak period.

From the results shown, not all the depots optimize cost, however since they already exist, it is
suggested that smaller chains of distributions could be formed from the utilized depots to serve the
un-utilized depots along similar routes.
Case 7: Transportation Cost Minimization of a Manufacturing firm

Literature review:

This paper discusses about a research conducted in Nigeria, with a view to reducing the
transportation cost and obtaining an optimal schedule. Besides that, transportation problem (TP)
is one the most important special linear programming. TP is in terms of the relative frequency, and
also it performs in the applications and also in the simplicity of the procedures. Linear
programming can be used to minimize the transportation cost in order to maximize the profit.

Optimization model:

In this study, the optimization models used are Linear Programming Model (with Vogel’s
Approximation Method (VAM)). Moreover, this is used because it is used to determine the starting
basic feasible solution as it results a closer value to the optimal solution and Generic Algorithm
(GA) to determine the transportation schedule that will reduce the overall transportation cost and
meet the requirement at the depots.

Price of diesel = Vol in litres X Cost per litres

𝐷𝑖𝑠𝑡𝑎𝑛𝑐𝑒 𝑡𝑟𝑎𝑣𝑒𝑙𝑙𝑒𝑑 𝑡𝑜 𝑡ℎ𝑒 𝐷𝑒𝑝𝑜𝑡

Diesel Quantity = 2.38

Haulage cost is calculated by using the following relations. Haulage cost = Highest distance in a
zone X Rate. The data are plotted under the table 2.
Transportation fee per truck load = Haulage Cost + Price of Diesel

Total lump sum transportation fee = Transportation fee per truck load X Number of tracks used

𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑒𝑑
Number of trucks used = 𝑎𝑣𝑔 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑎𝑠𝑒𝑠 𝑝𝑒𝑟 𝑝𝑎𝑙𝑙𝑒𝑡 𝑋 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑙𝑙𝑒𝑡𝑠 𝑝𝑒𝑟 𝑡𝑟𝑢𝑐𝑘

Minimize Z = 37993𝑋11 + 43943 𝑋21 + 22758𝑋31 + 53801.5𝑋12 + 54992.5𝑋22 +

43943𝑋32 + 96977𝑋13 + 59442𝑋23 + 51603.5𝑋33 + 58657𝑋34
Subject to: Supply Constraints

𝑥11 + 𝑥12 + 𝑥13 ≤ 7560

𝑥21 + 𝑥22 + 𝑥23 ≤ 21,525

𝑥31 + 𝑥32 + 𝑥33 ≤ 31,500

Subject to: Demand Constraints

𝑥11 + 𝑥21 + 𝑥31 ≤ 11,550

𝑥21 + 𝑥22 + 𝑥23 ≤ 11,550

𝑥13 + 𝑥23 + 𝑥33 ≤ 32,235

𝑥34 ≥ 5,250 ; 𝑥11 𝑢𝑛𝑡𝑖𝑙 𝑥34 ≥ 0

Results and discussion:

The current daily transportation fee is N2, 651,314 incurred by the company to all 10 workshops.
Besides that, using General Algorithm (GA) four optimal transportation schedules were decided.
These four schedules respectively supply to six, seven, eight, nine workshops. All of them happen
at a minimized transportation cost when compared with the present fee charges by the company.
These four schedules, the mainly three major workshops are Benin, Warri and Onitsha.
6 workshops:

Saving cost = 2651314 – 2303762 = N34,7552

7 workshops:

Saving cost= 2651314-2339118=N 312,196

8 workshops:

Saving cost= 2651314-2341573=309741

9 workshops:

Saving Cost = 2651314 – 2457357 = 193957

Terminations for the GA happened when there is no any further improvement in reducing of the
transportation cost for the generated schedules. The GA result shows the most savings is the on
the six-workshop schedule. The company can choose any of the schedules to meet their
requirements and constraints.

Conclusion

From the result, the total cost achieved can be observed. For instance, N2,303,762 for six(6)
workshops, N2,339,118.5 for seven (7) workshops, N2,341,573.5 for eight (8) workshops and N
2,457,357 for nine(9) workshops. Besides that, from the optimal solutions achieved, not all the
workshops optimize cost accordingly, some workshops do not receive any distribution but since
they are already in presence. Therefore, these workshops are recommended to use smaller chains
of distribution.
Case 8: Optimization of Goods Distribution Cost

Literature Review

Proplast company is a manufacturer of doors and windows. The company have 3 factories located
at Ferizaj, Pristina and Prizren and these 3 factories need to supplies their products to 9 different
shops around Kosove, Albania, Macedonia, Montenegro and Serbia. In order to ensure a high
profit obtained by the company, the transportation cost spent has to be minimize to reduce the
overall cost. Software such as Evolver, Excel Solver and Microsoft Solver Foundation are used in
the event of obtaining the optimize transportation cost or in another word, to find the most
economical way to distribute the goods from factories to stores. In this model, the decision
variables are: shipping cost per unit product from different factories to different shops; production
capacity of each factory; demanded products at each shop; and the maximum loading of a truck in
a trip. The shipping cost per unit product is calculated as cost of operator per KM multiply with
the through and back Distance from factory to shop and divided the truck loading capacity. Besides,
the production capacity of factories and the demand of product in each stall are also constraints in
this optimization model. The total products received in a shop should not be more than it demands;
and the products delivered from a factory cannot be more than it production capacity. In the end
of the study, it shows that the maximized transport cost can be 70% higher than the optimized
transport model obtained by the software.

Optimization Model

The mathematical expression for this case are shown as below:

 Shop
Factory S1 S2 S3 S4 S5 S6 S7 S8 S9
F1 C11 C12 C13 C14 C15 C16 C17 C18 C19
2.08 2.20 0.48 1.18 0.31 0.65 0.53 0.80 0.82
F2 C21 C22 C23 C24 C25 C26 C27 C28 C29
2.26 2.38 0.79 1.49 0.47 0.37 0.45 0.75 0.75
F3 C31 C32 C33 C34 C35 C36 C37 C38 C39
1.58 1.70 0.89 1.58 0.88 0.92 0.73 0.33 0.88
Table 1 shows the cost of transportation from factories to shops per unit.

Objective Function: Minimize Z = ∑3𝑖=1 ∑9𝑗=1 𝐶(𝑖, 𝑗)𝑆(𝑖, 𝑗)

Constraint:

∑ 𝑆𝑖,𝑗 ≤ 𝐹𝑖
𝑗=1

𝑤ℎ𝑒𝑟𝑒, 𝐹1 = 1300, 𝐹2 = 1100, 𝐹3 = 1000

3

∑ 𝑆𝑖,𝑗 ≤ 𝐷𝑗
𝑖=1

𝑤ℎ𝑒𝑟𝑒, 𝐷1 = 500, 𝐷2 = 475, 𝐷3 = 300, 𝐷4 = 250, 𝐷5 = 275, 𝐷6 = 325, 𝐷7 = 375, 𝐷8 = 450, 𝐷9 = 125

0 ≤ 𝑆𝑖,𝑗 ≤ 𝑀𝑎𝑥 𝑇

Analysis, result and discussion

 The table above show the optimal distribution of doors and windows from factories to
shops with minimum transportation cost. Shop 1 and 2 will receive their all their demanded goods
from factory 3 as the transportation cost from factory 3 to shop 1 and 2 is the cheapest among 3
factories. The total shipment received from shop 1 and 2 is 975 units which mean that factory 3
still have 25 units available to supply to others shop. Meanwhile, Shop 3, 4 and 5 will be receiving
all their demanded goods from factory 1 as the transport cost from factory 1 is the cheapest among
all 3 factories and the total demanded goods from shop 3, 4 and 5 and it is still within the production
capacity of factory 1. Besides, the transportation cost from factory 2 to shop 6, 7 and 9 is also the
cheapest as compare with 2 other factories hence factory 2 will be supplying 825 units of goods to
these 3 shops. Lastly for shop 8, the cheapest transportation cost is from factory 3 follow up by
factory 2 and factory 1 and shop 8 demanded 450 units of goods. However, factory 3 which have
the lowest transportation cost only able to supply 25 units to shop 8 hence, shop 8 have to receive
the remaining of 425 units from factory 1 and 2. Therefore, shop 8 will be receiving 150 units from
factory 1, 275 units from factory 2 and 25 units from factory 3. The total minimum transportation
obtained from this case is 2842.38 Euro.

Case 9: Transportation Problem Method for XYZ Sawmill Company

Literature Review:

Company XYZ is a sawmill company which owned 3 sawmill. The management of the company
wanted to make sure that the supply of logs adequate for the sawmill operate in order to cater the
lumber market. In the following month, the harvesting group has decided to move to 3 new logging
sites which caused XYZ company has to identify an optimal solution to minimize the
transportation cost from the site to its sawmill. In this case, the transportation cost from different
sites and different sawmill is varies according to the distance and the objective is to minimize this
transportation cost. Yet, there are few constraints in this case, first each site has a maximum
truckload which caused the supply of each site to be limited and second, the all sawmill has to
fully receive it demanded logs. In fact, the general problem occur in transportation industry can be
solve using simplex method. However, transportation problem has a special structure which enable
the problem to be solved in a simpler way than simplex method. Hence, the transportation problem
method, which is a simplified form for simplex method is used in the event of obtaining an optimal
solution for this scenario.
Optimization Model
The transportation problem method is used in order to identify the optimal solution for this
problem. The table below show the transportation cost and for one trip from 3 different site to 3
different saw mill as well as the available supply from each sites and demand of each mills.

Letting Ci,j = Transportation cost from Site i to mill j

Letting Xi,j = The number of log transported from site i to mill j,

the mathematical express of the model can be shown as below:

However, to ensure the obtained model is the optimum or most economical one, we have to apply
duality theory for checking. The variables ui and vj are introduce in this method where for those
involved cell (Xi,j > 0), Ci,j = ui + vj; while for those non-involved cell(Xi,j = 0), Ci,j - ui -vj > = 0.
Analysis, Result and Discussion

The above table show the model obtained by using transportation problem method. Before we
conclude the model as the most economical model, we need to identify ui and vj by applying (Xi,j >
0), Ci,j = ui + vj and check whether did Ci,j - ui -vj > = 0.

Since the above calculation has been proven true, this model represents the optimal solution for
the problem. Site 1 should supply 20 logs to mill A; site 2 should supply 10 logs to mill A and
20logs to mill B; and Site 3 should supply 15 logs to mill B and 30 logs to mill C. The minimum
transportation cost for this problem can also be calculated using the objective function where:
32𝑋11 + 40𝑋21 + 68𝑋22 + 104𝑋32 + 60𝑋33 = $32(20) + $40(10) + $68(20) + $104(15) +
$60(30) = $5760
Case 10: Transport Problem Optimization of a Malaysian Trading Company

Literature Review

In any business, transferring of goods from supply points to any demanded places is crucial as the
transportation cost might reduce the overall profit of the company. In this study, the data is
abstracted from a Malaysian trading company where the company is involved in the trading of
poly vinyl chloride polymer. There are four petrochemical plants located in Malaysia that produce
this polymer and these plants have to supply their products to four destinations which is, China,
Europe, Middle East and South East Asia. In this case, excel formulation is used to obtained the
minimum shipping cost to maximize the profit company profit. The decision variable in the case
is the shipping price from different plants to different destinations, the production capacity of each
plant is limited and the demanded units need to be fully supply by the 3 plants.

Optimization Model
The below tables are the production capacity of plants, demanded quantity in each region, and
shipping cost per unit.

Letting Ci,j = Shipping cost from plant i to region j

Letting Xi,j = The quantity of products ship from plant i to region j,

the mathematical express of the model can be shown as below:

Objective Function: Minimize = ∑4𝑖=1 ∑4𝑗=1 𝐶(𝑖, 𝑗)𝑋(𝑖, 𝑗)

Constraint:

Supply Constraint Demand Constrain

4 4

∑ 𝑋1,𝑗 ≤ 110 ∑ 𝑋𝑖,1 = 200

𝑗=1 𝑖=1
4 4

∑ 𝑋2,𝑗 ≤ 90 ∑ 𝑋𝑖,2 = 90
𝑗=1 𝑖=1
4 4

∑ 𝑋3,𝑗 ≤ 95 ∑ 𝑋𝑖,3 = 40
𝑗=1 𝑖=1
4 4

∑ 𝑋4,𝑗 ≤ 125 ∑ 𝑋𝑖,4 = 45

𝑗=1 𝑖=1
Analysis, Result and Discussion
The spreadsheet above shows the optimum solution for this case. The top part of the spreadsheet
is the shipping cost per unit and the bottom part is the shows the result of the model. The cell H10
to H13 and B14 to E14 represent the supply and demand constraint respectively. From the result
it shows that the optimum solution to minimize the transportation cost is plant 1 supply 110
thousand tons to China; plant 2 supply 30 thousand tons to Middle East and 45 thousand tons to
Europe; plant 3 supply 90 thousand tons to China and 5 tons to Middle East: while plant 4 supply
55 thousand tons to Middle East and 40 thousand tons South East Asia. The total minimum
transportation cost can also be calculated using the objective function where 200𝑋11 + 350𝑋22 +
650𝑋24 + 300𝑋31 + 250𝑋32 + 400𝑋42 + 200𝑋43 = 𝑅𝑀200(110) + 𝑅𝑀350(30) +
𝑅𝑀650(45) + 𝑅𝑀300(90) + 𝑅𝑀250(5) + 𝑅𝑀40(550) + 𝑅𝑀200(40) = 𝑅𝑀120 000.

Case 11: Bus Scheduling using Linear Programming

Literature review:
The bus drivers’ schedules for a bus company are considered. The company requires different
number of buses in each hour as the number of customers is different in each hour. More buses are
required at peak hour as there are more customers. The table below shows the bus requirement in
24 hours. Time 0 indicates 12:00a.m. at midnight. From 12:00a.m. to 4:00a.m., the company
requires 7 buses to be operated in the 4 hours. While from 4:00a.m. to 8:00a.m., 11 buses are
required. Assumption is made where the requirement of buses is the same for each day which is
63 buses in total. In this research paper, the problem is to calculate the number of bus drivers that
should be scheduled in each of the 6 periods in order to fulfil the bus requirement using linear
programming. The rule set by the company is that each driver must work an 8-hour shift meaning
if a driver starts working at time 0, he or she must work from 0th time to 8th time. Meanwhile if a
driver starts working at time 20, he or she must work until time 4 for the next day. The objective
of the problem is to minimize the number of bus drivers. A practical solution to this bus scheduling
problem is that 11 bus drivers are assigned at time zero, 13 bus drivers are assigned at time eight,
15 bus drivers are assigned at time sixteen. This practical solution needs 39 drivers in total and
fulfils all the requirements. We will then find the least number of bus drivers. The constraint
satisfactory system is described as shift and piece of work. This research paper delivers an outline
of the bus scheduling and planning problem. Using linear programming method, the company can
find out the number of bus drivers that are needed to drive the bus in minimal. The scheduling
problem is solved using Ms Excel Solver to find the optimum solution, together with the
mathematical formulation and example of numerical. It is proved that the solution is effective as
the number of bus driver is minimized to fulfil the demand.

Optimization model:
Let 𝑥(𝑡) = number of bus drivers assigned at time t where t is 0; 4; 8; 12; 16; 20. Assumption is
made where the bus requirement is the same as the figure above for a long period.
Objective function: Minimize
Constraints:

We can express this model as matrix

Analysis, results and discussion
Using linear programming, the optimal solution is found.

From the initial practical solution where 39 drivers are need in total, linear programming has
successfully minimized the number of bus drivers needed to 28 drivers. From 12a.m. to 4a.m., 7
bus drivers are needed; from 4a.m. to 8a.m., 4 drivers are needed; from 8a.m. to 12p.m., 9 drivers
are needed; from 12p.m. to 4p.m., only 1 driver is needed; from 4p.m. to 8p.m., 7 drivers are
needed; lastly the last 4 hours of the day need no bus drivers. A minimum number of 28 drivers is
needed for a day.
Case 12: Linear Programming Application in Nigeria Soft Drink Industry

Literature Review
In this study, the data are abstracted from 7-Up Bottling Company located in Nigeria. This
company is a soft drink manufacturer where they have 5 depots in the wester zone of the country
and these 5 depots has to supply their products to 16 wholesale dealers according to their
demand. This study is conducted to obtain the minimum transportation cost needed in order for
the 5 depots to fully supply the demanded products to all the 16 dealers. The decision variables
appear in this model is the transportation cost from one depot to one dealer and it is constrained
by the maximum supply capacity of each depot as well as the need to fulfill the demand of each
dealer.

Optimization Model

The below tables are the transportation cost from depots to dealers, production capacity of each
depot and demand of each dealer.

Table show the transportation cost from different depots to different dealers

By Letting:
Ci,j = Shipping cost from depot i to dealer j
Xi,j = The number of crates ship from depot i to dealer j,
Si = Supply capacity of depot i
Dj = Demand of dealer j
The objective function can be written as: Minimize = ∑5𝑖=1 ∑16
𝑗=1 𝐶(𝑖, 𝑗)𝑋(𝑖, 𝑗)

while the constraint function can be summarize as:∑16 5

𝑗=1 𝑋𝑖,𝑗 ≤ 𝑆𝑖 and ∑𝑖=1 𝑋𝑖,𝑗 = 𝐷𝑗

Analysis, Result and Discussion

The table above shows the optimize solution for this case using Vogel’s approximation method
where the total minimum cost is N1,358,019.00. In this method, the different of 2 least
transportation cost in every row and column is calculated and the largest different will be given
priority in allocation of resources. After the row or column that been given priority has reached it
constrain or fulfill its demand, the row or column will be ignore in order to repeat the previous
step. These steps will repeat until the resources has been fully distributed or the demands has
been satisfied. With that we can conclude that in order to obtain minimum transportation cost,
Osogbo depot have to supply to Okuku, Ede and Ejigbo dealer; Oyo depot have to supply to
Oyo, Awe, Ilora and Ilofa dealer; Ilorin depot have to supply to Offa, Erin-Ile, Oro, and Ilofa
dealer; Mokwa depot have to supply to Ilofa, Jebba, and Patigi dealer; and Ogbomoso depot have
to supply to Ogbomoso, Oko, Odo-Oba, and Inisha dealer.
Article 13: A study of Transportation Problem for an Essential Items of Southern Part of
North Eastern Region of India as an OR Model and Use of Object Oriented Programming

Literature review

An optimization model is formulated in this research by using data collected related to the
transportation of essential item which is the rice, flour, salt and others. The goods are transported
from different suppliers in in Silchar to different destinations in Mizoram. Mizoram is a part of
southern region of North East India with is in a rural area. The transportation is the main problem
to deliver goods to Mizoram as it is not well connected to other parts of the nation. In this study,
five different methods are use to calculated the minimum transportation cost (Rs) which is

In this research, transportation of daily goods like rice, flour and salt are collected and it
is formulate by collecting data to form an optimization model. In this case, the company delivers
goods from different suppliers in Silchar to different places in Mizoram where it is part of North
East India which is a countryside. The convenience of transport becomes the main concern to sent
dairy goods to Mizoram as it is not well established in terms of road and traffic where mostly rock
and hills and not connected to the mainland of the country.

Hence, different method are practice to calculate the minimum cost for transportation in
rupia (Rp) currency which is Vogel Approximation Method, Least Cost Method, Northwest Corner
Method, Column Method and Row Minima Method.

Optimization model
 Where

names of suppliers: A*, B*, C*, D*, E*

name of destinations in Mizoram:

X* is Kolashib

Y* is Serchip

Z* is Aizwal

U* is Saiha

After few iterations, the results are as shown:

Northwest Corner Method: Vogel Approximation Method:

X11 = 5000 X12 = 2000 X13 = 1000 X11 = 5000 X13 = 3000 X22 = 2000

X23 = 9000 X24 = 200 X34 = 5800 X23 = 1200 X24 = 6000 X33 = 5800

X35 = 450 X45 = 4900 X55 = 6100 X35 = 450 X45 = 4900 X55 = 6100

Total transportation cost = Rs. 21,74,000 Total transportation cost = Rs. 12,73,000

Least Cost Method: Row Minima Method:

X11 = 5000 X13 = 750 X15 = 2250 X15 = 5000 X21 = 5000 X23 = 750

X25 = 9200 X33 = 6250 X42 = 1900 X25 = 3450 X33 = 6250 X42 = 1900

X43 = 3000 X52 = 100 X54 = 6000 X43 = 3000 X52 = 100 X54 = 6000

Total transportation cost = Rs. 24,04,500 Total transportation cost = Rs. 23,83,250

Column Minima Method: Final results after considering all methods:

X13 = 1550 X14 = 1100 X15 = 750 X11 = 5000 X13 = 2550 X15 = 450
X21 = 5000 X23 = 4200 X32 = 2000 X22 = 2000 X23 = 1200 X24 = 6000

X33 = 4250 X44 = 4900 X55 = 6000 X33 = 6250 X45 = 4900 X55 = 6100

Total transportation cost = Rs. 22,10,000

The minimum transportation cost

Z = Rs.12,46,000

Results and discussion

In short, using linear programming method, the results has shown that the Least Cost
Method has the highest transportation cost which is Rs. 24,04,500. Then, it is followed by Row
Minima Method with transportation cost of Rs. 23,83,250.Moreover, Northwest Corner Method
that calculated the result Rs. 21,74,000 is lower that the result of Column Minima Method which
is Rs. 22,10,000. The lowest transportation cost of Rs. 12,73,000 is obtained using Vogel
Approximation Method .In conclusion , it has shown that the minimum transportation cost, Z is
Rs. 12,46,000. Optimisation method such as Big M method and Simplex method are practical to
use to calculate and the accuracy varies even further, Hence, the optimal cost calculated gives a
vision to reduce delivery cost of the essential items from suppliers to destinations in Mizoram.

It does not only use minimum cost but also fulfil the demand of the needs in the same time.
Follow by increase of profits gain and higher efficiency while transporting goods.

Article 14: Cold Chain Logistics Distribution Optimization for Fresh Processing Factory
Based on Linear Programming Model
Literature review
Cold chain logistic is becoming more vastly occupied in the market as more fresh goods
has to be delivered to the supermarket. Hence it is become more important to process,transport,
distribute the goods.Freshness of food is always important when it comes to transporting food
from a place to another. In this case, it is the most important aim for a logistic company to ensure
their goods does not spoil. The cold chain distribution is kept optimized by using the linear
programming method.Location-set-covering problem (LSCP) is used to solve the problem of
modelling this case. Hence, LSCP is used to model location problem and transport shipment
problem to model distribution path problem
Optimization model
To achieve lowest cost in transportantation system, one must take the shortest way as
well. There are two approaches to be considered which is the consideration of the buyer where
the good must be all fresh and the duration for the goods to be delivered must be short and in this
case doesn’t exceed more than 2 hours for transport.
Hence, we formulate by using linear programming model to analyze,
the equation as shown below is used to solve the transportation shipment problem.

Result and Discussion

With the use of the software, it is shown that the location A to location B has a constrain of 2
hours time limit of 2 hours for transportation.
A representation of the linear programming model in the software is shown below.
Analysis

From the calculation by using the software, it is shown that the most optimized solution is
11926 for transporting shipment problem where the company has to deliver180 units of sea food
from location A to location B fulfilling the requirements of the buyer.The total cost is 14055
where seafood is delivered to 11 different destinations.This software has help to optimize the
distribution and save cost approximately 15 percent of the total cost.
Conclusion
In summary,cold chain logistic usually known to control temperature supply which face
the norm problems and can be solved using LSCP and transportation shipment problem. With the
use of linear programming model, 15 % of cost is save in terms of transportation which has
reduce the cost for the company by using linear programming model.
Article 15: The Application of Linear Programming by the General Elecric Company to
Efficiently Allocate Routes to Trucking Companies

Literature Review

GEAL or known as the General Electric Company consist many electrical appliances and
lighting. Its cost for transportation annually can reach up to 9 millions dollars where it is a huge
amount of cost incur on the company. GEAL also made comparison with a few logistic company
to compare their pricing for shipment. Hence ,it is important to save up cost by optimizing it in a
more effective way. For this case, an optimal allocation for transportation vehicles are essential
in minimizing the cost. Thus trucking of consumer product between the manufacturing
plants,warehouses and customer’s home is the main concern for logistics faced by the company.
In this case, many methods are used to find the optimal solution.

Optimization model

Model 1: Model 2:

Min Z1 = ∑𝑹𝒊=𝟏 ∑𝒋∈𝑺𝒊 𝑪𝒊𝒋 𝑿𝒊𝒋 Min Z2 = ∑𝑹𝒊=𝟏 ∑𝒋∈𝑺𝒊 𝑪𝒊𝒋 𝑿𝒊𝒋

Subject to Subject to

∑𝒋∈𝑺𝒊 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R ∑𝒋∈𝑺𝒊 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R

1 ≤ 𝑿𝒊𝒋 ≤ 𝑵𝒊 – (CARD (Ti)+1, i=1,2…R, 𝒋 ∈ 𝑺𝒊 𝑿𝒊𝒋 ≥ 0 , i=1,2…R, 𝒋 ∈ 𝑺𝒊

𝑿𝒊𝒋 ≥ 0 , i=1,2…R, 𝒋 ∈ 𝑺𝒊

Model 3: Model 3a:

Min Z3 = ∑𝑹𝒊=𝟏 ∑𝑴
𝒋=𝟏 𝑪𝒋 𝒅𝒊 𝑿𝒊𝒋 Min Z3a = ∑𝑹𝒊=𝟏 ∑𝑴
𝒋=𝟏 𝑪𝒋 𝒅𝒊 𝑿𝒊𝒋

∑𝑴
𝒋=𝟏 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R ∑𝑴
𝒋=𝟏 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R

∑𝑹𝒊=𝟏 𝑿𝒊𝒋 ≤ 𝑲𝒋 , j=1,2…M ∑𝑹𝒊=𝟏 𝑿𝒊𝒋 ≤ 𝑲𝒋 , j=1,2…M

𝑿𝒊𝒋 ≥ 0, i=1,2…R, j=1,2…M 𝑿𝒊𝒋 ≥ 0 , i=1,2…R, 𝒋 ∈ 𝑺𝒊

𝑿𝒊𝒋 = 0 , i=1,2…R, 𝒋 ∉ 𝑺𝒊

𝑿𝒊𝒋 ≥ 0, i=1,2…R, j=1,2…M

Model 4: Model 4a:

Min Z4 = ∑𝑹𝒊=𝟏 ∑𝑴
𝒋=𝟏 𝑪𝒋 𝒅𝒊 𝑿𝒊𝒋 Min Z4a = ∑𝑹𝒊=𝟏 ∑𝑴
𝒋=𝟏 𝑪𝒋 𝒅𝒊 𝑿𝒊𝒋

∑𝑴
𝒋=𝟏 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R ∑𝑴
𝒋=𝟏 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R

𝑿𝒊𝒋 ≥ 0, i=1,2…R, j=1,2…M 𝑿𝒊𝒋 ≥ 0 , i=1,2…R, 𝒋 ∈ 𝑺𝒊

𝑿𝒊𝒋 = 0 , i=1,2…R, 𝒋 ∉ 𝑺𝒊

𝑿𝒊𝒋 ≥ 0, i=1,2…R, j=1,2…M

Model 5: Model 5a:

Min Z5 = ∑𝑹𝒊=𝟏 ∑𝑴
𝒋=𝟏 𝑪𝒊𝒋 𝑿𝒊𝒋 Min Z5a = ∑𝑹𝒊=𝟏 ∑𝑴
𝒋=𝟏 𝑪𝒊𝒋 𝑿𝒊𝒋

∑𝑴
𝒋=𝟏 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R ∑𝑴
𝒋=𝟏 𝑿𝒊𝒋 = 𝑵𝒊 , i=1,2…R

𝑿𝒊𝒋 ≥ 0 , i=1,2…R, 𝒋 ∈ 𝑺𝒊 ∑𝑹𝒊=𝟏 𝑿𝒊𝒋 ≤ 𝑲𝒋 , j=1,2…M

𝑿𝒊𝒋 = 0 , i=1,2…R, 𝒋 ∉ 𝑺𝒊 𝑿𝒊𝒋 ≥ 0 , i=1,2…R, 𝒋 ∈ 𝑺𝒊

𝑿𝒊𝒋 ≥ 0, i=1,2…R, j=1,2…M 𝑿𝒊𝒋 = 0 , i=1,2…R, 𝒋 ∉ 𝑺𝒊

𝑿𝒊𝒋 ≥ 0, i=1,2…R, j=1,2…M

Results and analysis

By calculations, it was found that the total current cost is $9,167,791.It has shown that all
linear programming model used had succeed in minimizing the cost for transportation. From the
result, it has shown that the Model 4 reduces around 40.79% of the cost which is $3,739,095.

Conclusion

The most effective model is Model 4 which reduces 40.79% of the transportation cost
which is around $3,739,095 followed by Model 3, and then followed by Model 3a and Model 4a.
Model 5a had saved 15.59% of the transportation cost followed by Model 5, Model 2 and Model
1. Model 1 with the least changes 4.3% had succesfully saved $ 394,437. Hence, it has shown that
with different sugguestion of model is able to produce different effiency of goods

Article 16: Budget Airline Operations Optimization Using Linear Programming

Literature review

Budget Airline is a low budget airline company that provides cheaper flight fares but it has a very
limited service. Since the expenses mainly comes from the maintenance of the airlines, hence
comfort are lesser without affecting the safety of the passengers while keeping the flight tickets
cheap.

The main cost for airlines would be the fuel consumed by airlines when planes travel from
one destination to another. In order to reduce this cost, smaller planes are used because they
consume less oil compared to the bigger ones unless required. Hence, it is proper that a company
keep in watch of the fuel being used by the airplanes and proper scheduling and utilizing the
schedule and travel destination based on its fuel consumption.
 In this case,fuel is a major problem for budget airlines, so airlines have to use Fuel Hedging
method which is one of the linear programming method where the company needs to make
prediction of the future fuel price by purchasing the current fuel rate through contracts and making
a secure of the oil trade contract.

Optimization Model
 Table 4: Profit earned by the company based on the cities

Analysis

Since the optimization model is complex, Big M and Simplex Method are not used.
Instead,analysis is done using Lindo Programming is as shown below:

Table 5: Solution after Optimization for the Slot Utilization

Conclusion
 From the result, based on the availability of the slots that are fully utilized in various
airports where the optimized result is based on ,the company can earn $60,000 every day which
would has stacked up a $21 Miliion revenue every year.The company can use this method for staff
scheduling in terms of logistics of the company so that cost are kept in bare minimum and having the
right amount of workers needed.

Reference

Article 13: Nabendu Sen, Tanmoy Som,Banashri Sinha ,Department of Applied

Mathematics,Assam University,Silchar,Department of Applied
Mathematics,NHU,Varanasi,India. IJCSNS International Journal of Computer Science and
Network Security, VOL.10 No.4, April 2010 ,’A Study of Transportation Problem for an
Essential Item of Southern Part of North Eastern Region of India as an OR Model and the
Use of Object Oriented Programming’.

Article 14:Sun, X., Wu, C., & Chen, L. (2018). Cold Chain Logistics Distribution Optimization
for Fresh Processing Factory Based on Linear Programming Model. 2018 IEEE 3rd Advanced
Information Technology, Electronic and Automation Control Conference (IAEAC).
doi:10.1109/iaeac.2018.8577759

Article 15:Yang.X, Heragu S.S, Evans, G.W.,Shirkness and Coats,A. (2013) ‘The application of
linear programming by the General Electric Company to efficiently allocate routes to trucking
companies’,European J.Industrial Engineering ,Vol.7 , No. 1 ,pp38-54.

Article 16:Pankil Patel and Dr. Ahad AliA. Leon Linton Department of Mechanical
EngineeringLawrence Technological UniversitySouthfield, MI 48075, USA (2018 ) ‘Budget
Airline Operations Optimization using Linear Programming’ . website:
http://ieomsociety.org/ieom2018/papers/719.pdf