THE TRANSPORTATION PROBLEM WITH VARIABLE DEMANDS.

The solution for the standard transportation problem assumes a constant supply at each source and a constant demand at each destination. In many practical applications it is desirable to know how the solution is affected if the demands at the destinations are varied. There are relatively simple, intuitively plausible, algorithms which produce solution to the modified problem. Unfortunately there exist counter-examples which show that these simple algorithms do not necessarily produce an optimum solution to the modified problem. The algorithm developed in this report produces an optimum solution to the modified problem with an amount of computation which increased roughly logarithmically with problem size. Author