The Transportation Paradox.
CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
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A paradox arises when a transportation problem admits of a total cost solution which is lower than the optimum and is attainable by shipping larger quantities if goods over the same routes that were previously designated as optimal. That is, falling total costs are present in moving to the greater shipment quantities. Necessary conditions for this to occur are established and an algorithm for solving this expanded transportation problem is supplied. Author
- Operations Research