what is transportation problem : The transportation problem is a special type of linear programming problem where the objective consists in minimizing transportation cost of a given item from a number of sources or origins to a number of destinations . Balanced Transportation Problems : where the total supply is equal to the total demand. Unbalanced Transportation Problems : where the total supply is not equal to the total demand. When the supply is higher than the demand, a dummy destination is introduced in the equation to make it equal to the supply (with unit(shipping) costs of 0). When the demand is higher than the supply, a dummy source is introduced in the equation to make it equal to the demand. IBFS (initial basic feasible solution) : This involves Initial solution to the given balanced Transportation Problems. This is known as Initial Basic Feasible Solution (IBFS) . It is required to derive an initial feasible solution; the only