TITLE:
On the Quadratic Transportation Problem
AUTHORS:
Veena Adlakha, Krzysztof Kowalski
KEYWORDS:
Quadratic Cost Function; Transportation Problem; Direct Method; Dynamic Shadow Prices
JOURNAL NAME:
Open Journal of Optimization,
Vol.2 No.3,
September
11,
2013
ABSTRACT: We present a direct analytical algorithm for solving transportation problems with quadratic function cost coefficients. The algorithm uses the concept of absolute points developed by the authors in earlier works. The versatility of the proposed algorithm is evidenced by the fact that quadratic functions are often used as approximations for other functions, as in, for example, regression analysis. As compared with the earlier international methods for quadratic transportation problem (QTP) which are based on the Lagrangian relaxation approach, the proposed algorithm helps to understand the structure of the QTP better and can guide in managerial decisions. We present a numerical example to illustrate the application of the proposed method.