Duality in the Transportation Model - I.
CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
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An extensive study of the dual relations in the transportation problem and their economic interpretations is undertaken in this paper. Operators are set up which transform a problem into another with different warehouse capacities and market supplies. The costs associated with these operators are shown to be various combinations of the dual variables. It is proved that these cost interpretations are valid over a significant range in the case of non-degenerate solutions. These results are used for the local post optimal analysis of the transportation problem to predict the effects on total cost of increasing or decreasing a warehouse or a market or any combinations thereof applied over a restricted range. The results are illustrated with an example. Author
- Operations Research