Modified distribution method

Definition

The modified distribution method is an optimization technique used to find the optimal solution for transportation problems by adjusting initial feasible solutions. This method improves upon the basic feasible solution by iteratively redistributing shipments to minimize transportation costs while satisfying supply and demand constraints. It ensures that the solution meets the feasibility criteria of the transportation problem while also working towards cost-effectiveness.

5 Must Know Facts For Your Next Test

1. The modified distribution method starts with a basic feasible solution obtained through methods like the Northwest Corner Method or Least Cost Method.
2. This method uses a systematic approach by computing a potential solution that minimizes costs while adjusting allocations iteratively.
3. The goal of the modified distribution method is to reach an optimal transportation plan that minimizes total shipping costs while adhering to supply and demand limits.
4. The algorithm involves examining the cost coefficients and adjusting allocations based on potential improvements until no further reductions can be made.
5. It employs techniques such as the stepping-stone method to identify possible adjustments in the shipment routes and costs more efficiently.

Review Questions

• How does the modified distribution method enhance initial feasible solutions in transportation problems?
  • The modified distribution method improves upon initial feasible solutions by redistributing shipments based on cost efficiency. It systematically adjusts allocations using a potential solution to minimize overall transportation costs while ensuring that supply and demand constraints are still met. This iterative process continues until no further improvements can be made, allowing for a more optimized allocation of resources.
• Discuss how the modified distribution method compares with other methods used to find initial feasible solutions in transportation problems.
  • The modified distribution method differs from other methods, like the Northwest Corner Method or Least Cost Method, which primarily focus on obtaining an initial feasible solution without guaranteeing optimality. While these methods provide a starting point, they may not yield the lowest costs. In contrast, the modified distribution method refines these initial solutions through iterations that focus on cost minimization, ultimately leading to an optimal solution by examining adjustments in allocations.
• Evaluate the impact of using the modified distribution method on real-world logistics and supply chain management.
  • Using the modified distribution method in logistics and supply chain management significantly enhances cost efficiency by ensuring optimal routing and allocation of resources. This results in reduced transportation expenses, better inventory management, and improved service levels. As companies strive for competitive advantage, applying this method allows them to optimize their operations, streamline processes, and respond effectively to market demands, ultimately leading to greater profitability and sustainability in their logistics strategies.

Related terms

Transportation Problem: A type of linear programming problem that seeks to determine the most efficient way to transport goods from multiple suppliers to multiple consumers while minimizing transportation costs.

Northwest Corner Method: A technique for finding an initial basic feasible solution for transportation problems by starting at the top-left corner of the cost matrix and allocating as much as possible before moving right or down.

Optimal Solution:

The best possible outcome in a linear programming problem, where all constraints are satisfied, and the objective function is either maximized or minimized.