Modeling and Solving Transportation Problems as a Decision Support Tool in Logistics Process Design and Optimization

Abstract

This paper provides a comprehensive overview of classical and extended transportation problem-solving methods. It introduces well-known algorithms such as the North-West Corner Method, Least Cost Method, Vogel’s Approximation Method, and the Simplex Method. The paper also presents real-world application areas, including Home delivery of e-commerce packages, transportation of medical equipment and pharmaceuticals, transportation of fresh food products. Practical examples illustrate how these models function in real industrial contexts. Beyond the classical transportation model, the study explores its extensions by incorporating capacity and time constraints. These extended models are analyzed to understand their impact on cost and solution structure. The findings highlight the trade-offs between model complexity and operational feasibility in real-world transportation planning.