The Factored Transportation Problem
Management Science · 1984 · Volume 30 · Issue 8
Abstract
The factored transportation problem is one having cost coefficients of the form c ij = u i v j . The main result proven in this paper is that if rows are arranged according to nonincreasing u i and columns by nondecreasing v j , then the northwest corner rule provides an optimal solution. Applications to stock location in a warehouse and information storage and retrieval policies are presented. For the stock location problem, this verifies that a previously advocated heuristic is optimal.
Keywords
transportation problem, northwest corner rule, warehouse stock location
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