The Nonlinear Generalized Transportation Problem with convex costs ∗

We investigate the Nonlinear Generalized Transportation Problem (NGTP), where the transportation costs and the costs that depend on the amount of good delivered to the destination points are strictly convex functions. The amounts of goods change during the transportation process. This model may correspond, for example, with a congested network where the time costs are involved. First, we present the NGTIP model, then provide a method of solving the problems of this type and then we prove convergence of the method. The numerical experiments prove the effectiveness of the presented algorithm.