A Modified Algorithm for Fixed Charge Bi-Criterion Transportation Problem With Restricted Flow

Abstract

The fixed- charge transportation problem (FCTP) is an extension of the classical transportation problem in which a fixed cost is incurred, independent of the amount transported, along with a variable cost that is proportional to the amount shipped. The introduction of fixed costs in addition to variable costs results in the objective function being a step function. The fixed charge bi-criterion transportation problem with restricted flow (FCTP with restricted flow) which is an extension of the fixed charge bi-criterion transportation problem has been studied in the present work. In the fixed charge bi-criterion transportation problem a fixed cost called set up cost is incurred for every origin. In the bi-criterion transportation problem the cost of transportation is directly proportional to the number of units transported, but on account of quantity discounts, price breaks etc. The present thesis contains three chapters. In Chapter one is introductory in nature.In chapter second, the algorithm given by Thirwani et. al. (1997) has been modified and more number of cost-time trade off pairs are (FCTP with restricted flow) obtained. In chapter three, (FCTP with restricted flow) has been modified and solved by using the algorithm developed in chapter second.