These unbalanced problems can be easily solved by introducing dummy sources and dummy destinations. Demand variations may be because of change in customer preference, change in prices and introduction of new products by competitors. Supply variations may be because of shortage of raw materials, labour problems, Transportation Model improper planning and scheduling. This is because of variation in production from the supplier end, and variations in forecast from the customer end. In real-life, supply and demand requirements will rarely be equal. When the total supply of all the sources is not equal to the total demand of all destinations, the problem is an unbalanced transportation problem. Unbalanced transportation problem in Operational Research
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