On Non-Optimality of Direct Exponential Approach Method for Solution of Transportation Problems

Abstract

We investigate global optimality of a recent method – the Direct Exponential Approach (DEA) – for minimizing transportation cost. The DEA method is implemented on a balanced and an unbalanced transportation model and results are compared with the MODI method –the widely accepted optimal solution method. The presented comparison outlines the cases where DEA method fails to be optimal. It is finally recommended to use the DEA method as only a basic feasible solution method, instead of an optimal solution method, for minimizing the transportation cost.