Modelling supply chain decision problem with fixed charge – a review

In the recent past, distribution activity in a supply chain is considered as a major function. The basic version of a transportation problem is linear, single objective, balanced and planar problem. Generally, the unit transportation cost is used to find optimal distribution schedule and this unit transportation cost is directly proportional to the transported load. In real life situations, there is another cost associated with the distribution which is known as fixed cost. In the presence of fixed cost, the model becomes a fixed charge transportation problem which is an extension of transportation problem. This paper presents the state-of-the-art review of the research on the fixed charge transportation problem. Directions for further research are also highlighted.