The transportation model is used primarily for what purpose?

The transportation model is primarily used to minimize shipping costs. This optimization technique focuses on efficiently transporting goods from multiple suppliers to multiple consumers while reducing the overall transportation expenses. By modeling the supply and demand, the transportation model helps businesses determine the most cost-effective way to distribute their products.

This approach takes into account various factors such as supply amounts, demand requirements, and shipping costs between the different locations. The goal is to allocate shipments in a manner that minimizes total costs, ensuring that resources are used effectively to meet demand without exceeding supply or incurring unnecessary expenses.

In contrast, increasing production efficiency, forecasting sales, and designing production processes, while important operational considerations, do not directly align with the primary objective of the transportation model, which specifically focuses on optimizing transportation logistics and costs.