A transportation and production model

A transportation and production model is given in which costs of transportation and production are considered. There are no restrictions on the number of transport paths, and losses in transportation as well as those at terminals are incorporated in the model. Also, products of one type may be converted into products of another type at known terminals. There are many applications of interest in the use of this model, where the demands for products are known and the desired solution allocates production in such a manner that the total cost of maintaining the system is minimized.