Abstract
In this paper we set up a transportation model which consists of single item, a single plant and multiple warehouses, and we describe an optimal transportation system for satisfying demand with restricte shipping capacity. Numerical analysis were performed for the purpose of improving the service ratio, decreasing the transportation cost and reducing the holding cost. As the results of this study, we could obtain optimal shipping quantities and minimum transportation cost. The effects of applying this system to a plant were very clear and management performance was improved.