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Suppose, the Chittagong plant capacity is 1300 cars instead of 1500 cars. Since the total supply (1000+1300+1200=3500) happens not equal the total demand (2300+1400=3700). Thus the resulting transportation model is said to be unbalanced. This unbalanced situation means that it will not be possible to fill all the demand at the distribution centre. Because the demand exceeds the supply, a dummy source (plant) with a capacity of 200 cars (3700-3500) is added to balance the transportation model. The unit transportation costs from the dummy plant to the two destinations are zero because the plant does not exist. The following table shows that the balanced model under the new capacity restriction of the Chittagong plant. The dummy plant has a capacity of 200 cars.

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Q: What do you knwo about The balancing of Transportation Model. If unbalanced then remedy.?
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