Minimization of transport costs in an industrial company through linear programming

Abstract

Businesses and industries are very interested in optimizing processes and minimizing costs. One of the transportation models or problems to optimize relates to the case where the product output can be transported from the manufacturing plant to some warehouses or customers. The transport problem is a case of the linear programming problem. Linear programming algorithms have been used to solve the most difficult optimization problems. Linear programming has been used to manage the problems related to personnel assignment, engineering, distribution, banking, education, oil, transportation, etc. It has been widely used in various fields, like transport, telecommunications, health services, construction, public services, industry, etc.The main purpose of the paper is to look at the problem of linear programming in detail by considering an example and try to solve the problem. The purpose of the transport problem in our case is to minimize the overall cost of transport from origin to destination by meeting supply and demand limits, in order to increase sales profit. This paper aims to determine the problem of minimizing the total cost of transport by determining the optimal distribution of the product, from the 2 sites of production to the 9 major distributors that are geographically dispersed. Management Science and Operational Research will be used to find the best solution for the transportation problem.