AbstractAn algorithm is presented for solving the transportation problem when the shipping cost over each route is a convex function of the number of units shipped by this route.The algorithm can also be used when the shipping costs are linear, whether or not there are capacity restrictions on the number of units that may be shipped over each route. But it does not skem to be any better than other standard methods for these problems, such as those given by Ford and Fulkerson [6], [7].