The objective of this study is to develop the Transportation Model of Linear Programming in which optimal transportation pattern by regions (origins and destinations) to minimize the total transportation costs can be obtained for handling government-held grains. As a result of computing the Transportation Model, the total transportation costs of transporting 1,058,507 metric tons from origins to destinations are 7,234 million won. So, the transporation cost is 6,834 won per ton in this model. But actual transportation cost in 1983 is 11,498 won per ton. Therefore when we distribute and transport the government-held grains from production factories to consumption warehouses, using this Transportation Model of Linear Programming is benefitable. Especially excluding the cost of computer, we could save more than two billion won of Government budget per year.