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TRANSPORTATION PROBLEM

                               Transportation is a major area where the money is spent in a greater manner in business. The cost cutting is majorly done in transportation sector especially when we are in a logistics business. If there is a strike of the transportation for even a single day, the normal activities of people would get disturbed in a great manner. Such is the importance of transportation problem. A feasible is study is made and analysed which method of transportation will reduce the cost and this is one of the major area covered by a subject known as Operations Management.

                              In the Production sector, the transportation plays a major role in maintaining the supply and demand. In the Transportation sector, The transports must be scheduled based on the forecast of travelers, unless and until all the seats are filled, it won't be feasible for him to travel. If we take railways sector, there would be a reservation quota, in which there should be a minimum amount of seats that would be allocated for a people from Location A as well as the similar locations. If a person travels whole journey, the chance of getting profit for that travel is less. If Person A gets down at a location and another person B, travels in the same seat in that location, then it would be profitable.

                          But, it occurs very rarely. Hence, they are content and satisfied with the persons travelling longer journey than the ones who come with shorter journey. Based on the demand, a lot of adjustments need to be done. These adjustments are very critical and each and every small decision creates greater impact on profit. After all, the minimum aim of business is to gain profit, after all what is the necessity to do a business that would never end up in profit or a beneficial manner. These problems needs to be analysed and effective decision has to be made.

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