Optimal Solution of Two Stage Solid Transportation Problem with Varying Cost

In this paper, we develop a solution procedure for solving two stage solid transportation problem. In certain circumstances, due to some restrictions (e.g. storage constraint), destinations are not able to get the quantity in excess of their maximum storage. Thus a single shipment is not possible to supply the full demand. Therefore items are shipped in more than one stage. In the present paper, we have discussed two stage solid transportation problem in which the transportation cost in second stage is proportionally increased by the suppliers due to fuel, toll or octroi charges etc. Numerical example is illustrated in support of the theory.