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Abstract
In this paper, we propose an algorithm for solving a multi-index fixed charge bi-criterion transportation problem and present a method for finding the optimum trade-off pair among efficient cost-time trade-off pairs. The proposed algorithm minimizes variable and fixed costs simultaneously to yield an optimal basic feasible solution. The results of the computational experiments suggests that our algorithm is better than the one proposed by Ahuja and Arora (Indian Journal of Pure and Applied Mathematics, 32(5) 739-746, 2001). We also provide an algorithm to obtain an initial basic feasible solution of the multi-index transportation problem that may be used as a better initial solution for other existing procedures to enhance convergence to the optimal solution.