OPTIMIZE TRANSPORTATION COSTS USING THE SIMPLEX ALGORITHM

Abstract

In this paper, the author studies the problems of the shipping cost of the project, and the benefits of minimizing transportation costs in project implementation. This study highlights the application of linear programming and spreadsheet that facility managers in a Viet Nam Trading Company in determining the optimum transportation plan that leads to the lowest transportation cost of polymer from two plants to two demand destinations. The optimization algorithm is the proposed simplex algorithm. The simplex algorithm is the classical method to solve the optimization problem of linear programming. Optimal results are verified by excel solver software. The article is a good reference for construction managers to optimize costs and increase profits.