Guta, Berhanu (PhD)Adefris, Nahusenay2018-07-172023-11-042018-07-172023-11-042015-10-16http://etd.aau.edu.et/handle/123456789/8946The Ordinary Transportation Problem allows to model the situations where the amount of goods leaving the supply points is equal to the amount deliv- ered to the destinations. In this project, the model of Transportation Problem with lossy arcs, the situations where the amount of goods leaving the supply points is not equal to the amount delivered to the destinations (this is the case, when fragile or perishable goods are transported or the complaints may occur) is presented. Each problem of this type can be transformed to the form of a Generalized Minimum Cost Flow Problem with linear objective function. The presented solution method uses the ideas applied in the Method of Solv- ing a Generalized Minimum Cost Flow problem. Keywords: Transportation Problem with Lossy Arcs, Generalized Transportation Prob- lem, Generalized Minimum Cost Flow Problem and Generalized Network Simplex Algorithm.enTransportation Problem With Lossy ArcsGeneralized Transportation Prob- LemGeneralized Minimum Cost Flow Problem and Generalized Network Simplex AlgorithmThesis