A New Technique for Solving Transportation Problems by Using Decomposition-Based Pricing and its Implementation in Real Life

Abstract

In this paper, we develop a new technique for solving transportation problems (TP) and develop a computer code by using mathematical
programming language AMPL. There are many existing techniques for solving TP problems in use. By these techniques one has to determine
initial basic feasible solution at first then improve this solution to determine optimal solution by another method. But this process is very
lengthy and time consuming. By our technique we can determine optimal solution directly without determining initial basic feasible solution
and optimal solution separately and we hope that this technique will provide an easier way than that of the other methods. We use the idea of
decomposition based pricing (DBP) method to develop our technique. To our knowledge, there is no other paper which used DBP to solve TP.
We demonstrate our technique by solving real life models developed by collecting data from a business organization of Bangladesh.