From the course: Excel Supply Chain Analysis: Solving Transportation Problems
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Describe the transportation problem - Microsoft Excel Tutorial
From the course: Excel Supply Chain Analysis: Solving Transportation Problems
Describe the transportation problem
- [Instructor] In this chapter, we will go through the process of solving a transportation problem. When I talk about a transportation problem, I can mean two things. One would be transporting goods in a variety of scenarios, but within the supply chain literature, transportation problem has a specific meaning. So the idea is that you move items from one type of location to another type. That could be distribution center to customer. There are no intermediate levels. Also in this case, and this isn't true of all transportation problems, but our demand is given and does not change. So in other words, it is deterministic. We also have a known distance between each source and destination. So we know how far each of our units is traveling. And also, our sources have limited capacity. So we can't just make an arbitrary number of items at a factory, for example. There are some limits. And finally, the goal is to find…
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