A Proposed Penalty Based Allocation Strategy to Optimize Transportation Problems

Abstract

We proposed a penalty-based allocation strategy to solve Transportation Problems. This method is also implemented to address an unbalanced transportation problem. The effectiveness of the proposed method is assessed by comparing it with other existing methods such as Least Cost Method, North West Corner Method, Vogel’s Approximation Method and MODI’s Optimality Method. We presented the detailed manual calculations and computational approaches for the proposed algorithm to address the problem. We utilized MATLAB R2016a to evaluate the solutions of both the proposed and existing methods. The constructed code is generated to effectively solve problems of any size particularly tackling cost matrices and supply-demand vectors of dimensions m*n. Dhaka Univ. J. Sci. 74(2): 331–340, 2026 (July)