Transportation problem is considered as the major problem in business due to cost and other issues happens during transportation of products. The stepping stone method is considered as the iterative techniquethat makes initial feasible solution to obtain the optimal solution in transportation problem. It is used as the optimization technique forgetting the optimum result in transportation from source city to destination city in petroleum refineries, textile mill industry and food product industry. The optimization technique helps in making use of differences in transport between two best choices for demand and supply. Strategies must be known in International Economic market for better understanding of opponents. Nash equilibrium method of game theory is used as the method optimal mixed strategy applied in the situation where the player wants to continue with the chosen strategies without any deviations from the incentive by considering the strategy of opponent. It can be applied in international economy market for obtaining the optimum solution by understanding the strategy. The main scope of the study analytical approach of stepping stone and Nash equilibrium in transportation and game theory optimization.

Optimization, The Stepping Stone method, Nash Equilibrium, Transportation, Game Theory