Flow Optimization on a Transportation Network

A demonstration is presented of the Out-of-Kilter Algorithm's usefulness for network flow optimization and transportation planning. Guidelines in the form of input parameters are given for applying the algorithm to solve several well-known transportation and network problems. An example application of the algorithm to a limestone-distribution network is then presented. The method is applied to investigate impacts of alternative improvements to the present limestone transport-distribution system in the Tiete River Valley, Sao Paulo, Brazil. Two alternative transportation systems are investigated, a truck system and an intermodal truck-barge system. Assigned flows and optimal transportation costs are obtained for each case. A sensitivity analysis is applied, iteratively, to locate and size transshipment terminals.