Abstract
The factored transportation problem is one having cost coefficients of the form cij = uivj. The main result proven in this paper is that if rows are arranged according to nonincreasing ui and columns by nondecreasing vj, then the northwest corner rule provides an optimal solution. Applications to stock location in a warehouse and information storage and retrieval policies are presented. For the stock location problem, this verifies that a previously advocated heuristic is optimal.

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