This paper discusses a two level hierarchical time minimization transportation problem, in which the whole set of source–destination links consists of two disjoint partitions namely Level-I and Level-II links. Some quantity of a homogeneous product is first shipped from sources to destinations by Level-I decision makers using only Level-I links, and on its completion the Level-II decision maker transports the remaining quantity of the product in an optimal fashion using only Level-II links. The objective is to find that feasible solution for Level-I decision corresponding to which the optimal feasible solution for Level-II decision maker is such that the sum of shipment times in Level-I and Level-II is minimum. A polynomial time iterative algorithm is proposed to solve the two level hierarchical time minimization transportation problem. At each iteration a lexicographic optimal solution of a restricted version of a related standard time minimization transportation problem is examined to generate a pair of Level-I and Level-II shipment times and finally the global optimal solution is obtained by selecting the best out of these generated pairs. Numerical illustration is included in support of theory. 
An iterative algorithm for two level hierarchical time minimization transportation problem