Transportation with volume discount: a case study of a logistic operator in Ghana

摘要

Network models and integer programming are well known variety of decision making problems. A very useful and widespread area of application is the management and efficient use of scarce resources to increase productivity. These applications include operational problems such as the distributions of goods, production scheduling and machine sequencing, and planning problems such as capital budgeting facility allocation, portfolio selection, and design problems such as telecommunication and transportation network design. The transportation problem, which is one of network integer programming problems is a problem that deals with distributing any commodity from any group of 'sources' to any group of destinations or 'sinks' in the most cost effective way with a given 'supply' and 'demand' constraints. Depending on the nature of the cost function, the transportation problem can be categorized into linear and nonlinear transportation problem. We applied Karush-Kuhn-Tucker (KKT) optimality algorithm to solve our problem of transportation with volume discount for a logistic operator in Ghana.