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Normally, the Transportation Model Is Used to Solve Problems Involving

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Essay

Normally, the transportation model is used to solve problems involving several physical sources of product and several physical uses of the product, as in factories and warehouses. How is it possible to use the transportation model where the "routes" are from one time period to another? Describe how this provides aggregate planners with a usable mathematical model.


Definitions:

Annuity

A series of identical cash flows.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Invest Today

A strategy or encouragement to allocate resources, such as time or money, currently, with the expectation of future benefits.

Present Value

The present value of a future amount of money or series of cash flows, when calculated with a certain return rate.

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