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## VII - [Relationship Between the Transportation Problem, Risk Analysis, and Algorithms]():
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# VII - [Transportation Problem (Linear Programming)]()
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### 1. **The Transportation Problem as a Mathematical Decision Model**
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The transportation model is a classical case in **Linear Programming (LP)**. It aims to optimize the allocation of limited resources (e.g., goods, time, energy) from multiple origins to multiple destinations, minimizing cost while satisfying constraints.
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### [Definition]():
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The transportation problem is a type of **linear programming** model where the objective is to determine the most **cost-efficient** way to transport goods from multiple sources (e.g., warehouses) to multiple
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<br>
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### [Key Concepts]():
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- **Origins (Sources)**: Where goods are located.
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- **Destinations (Sinks)**: Where goods are needed.
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- **Supply**: Available quantity at each origin.
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- **Demand**: Required quantity at each destination.
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- **Cost Matrix**: Unit cost of transporting goods from each origin to each destination.
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- **Decision Variable**: Quantity to transport from each origin to each destination.
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## [The Case of Unbalanced Systems]():
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The standard transportation model assumes total supply equals total demand. However, in real-world scenarios, systems can be **unbalanced**.
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- If total **supply ≠ demand**, the model can be adjusted by **adding a dummy origin or destination** to absorb the difference.
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- The unit transportation **cost for dummy cells is zero**.
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- Any quantity sent from or to dummy cells reflects **unfulfilled demand or leftover supply**, allowing simulation of **shortages or surpluses**.
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constraints.
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<br>
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