Sub-optimality in freight distribution

A modification to the transportation problem that takes account of sub-optimality has previously been rarely and incautiously applied. A method of implementing the modification by iteration is outlined that minimizes an appropriate goodness-of-fit statistic. The model is then applied, using this method, to freight flow data in Britain. A freight flow matrix is predicted that is superior to a transportation problem prediction and behavioural and economic implications are derived to demonstrate the insights that the technique can yield.