2010
HMS 2010 Proceeding
A 256 Variable Non-Linear Transportation Problem
Authors: William Conley
Abstract
The classic mathematical transportation problem which is presented in most operations research or industrial engineering courses involves shipping from a number of warehouses to a number of customers, where the shipping costs are linear. The idea being if it costs one euro dollar to ship one unit, from location A to location B, it will cost 100 euro dollars to ship 100 units from warehouse A to customer B. These linear assumptions (for all the shipping costs) are usually made so that various linear programming techniques (simplex and other linear approaches) can be used to efficiently solve the overall optimization problem. However, in the practical business world of large scale shipping there are usually considerable returns to scale (nonlinear costs) associated with the deliveries to customers. Therefore, an example of this kind is presented here and solved using simulation techniques.
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