Modified Least Cost Method for Solving Transportation Problem

Optimal route selection for delivering product is the key concern for companies related to supply chain management. Route selection plays an important part, as it greatly affects the financial section of such companies. This paper presents Two-step exact algorithm for transportation problem. It uses the basic ideas of Least Cost Cell and Modified Distribution method. The algorithm is equally effective for balanced and unbalanced transportation problems. The effectiveness of the algorithm is discussed by considering different problem types with experimental setup followed by result analysis.