Application of the Probability Theory to Study of a Transportation Problem of an Essential Item from Various Origins to Different Destinations

Abstract

The transportation problem refers to find the optimal solution to the transportation matrix. The transportation matrix provides supplies from the given sources as well as demands of the given destinations with total supply equaling total demand. The provided supplies and demands are considered as relative frequencies or probabilities to the total supply or total demand. Using probabilities, we determine the initial basic feasible solution to the transportation problem. Further, the optimal solution is reached by the given optimality test or by MODI method, Stepping Stone method or WAM optimality test. This research paper provides the new approach of relative probability to the initial basic feasible solution of the transportation problem.