Iterative functional modification method for solving a transportation problem

We propose a new method for solving transportation problems based on decomposing the original problem into a number of two‐dimensional optimization problems. Since the solution procedure is integer‐valued and monotonic in the objective function, the required computation is finite. As a result, we get not only a single optimal solution of the original transportation problem but a system of constraints that can yield all optimal solutions. We give numerical examples that illustrate the constructions of our algorithm.