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In general, a supply chain model uses a lot of variables. This happens because there are...

In general, a supply chain model uses a lot of variables. This happens because there are a lot of origins and destinations (supply and demand locations). If there are 20 origins and 20 destinations, how many variables may be included into a LP problem?

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Answer #1

This depends on the type of LP problem. For example, if we deal with fixed cost of operating a plant then we will need some additional variables. However, let’s assume that it is a simple transportation problem. In that scenario, we will need ROWxCOLUMN number of decision variables for a transportation problem. Here we usually consider the origins as rows and destinations as columns. This means if we have 20 origins and 20 destinations, we will need 20x20 = 400 decision variables.

Please note, this is for the simplest transportation problem. If there are more complicated scenarios such as transshipments, plant operation cost, etc. to consider, the number will increase.

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