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Research Article

JCDR. 2017; 8(4): 186-193

Cost Optimization for Transportation Using Linear Programming



Transportation plays a vital role in every manufacturing industry as it is one of the major activities
that binds the whole supply chain and accounts for customer satisfaction with the right delivery time.
Hence, bringing in an optimized transport routing on the grounds of time taken and cost of
transportation is very important. In this paper, a cost optimization model for transportation of goods of
a flavors and fragrance company is presented. The problem was a linear programming problem and
was solved using an EXCEL solver. A savings of Rs. 765,000 per annum was estimated comparing
the cost of transportation in the new model to that of the previous model.

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