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Transshipment

The document discusses transportation problems with transshipment points, where products can be shipped from suppliers to destinations through intermediate transshipment points. The objective is to minimize total shipping costs. The problem involves additional constraints to ensure the quantities shipped into and out of each transshipment point are balanced.

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Aggi Rayne Sali Bucoy
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32 views2 pages

Transshipment

The document discusses transportation problems with transshipment points, where products can be shipped from suppliers to destinations through intermediate transshipment points. The objective is to minimize total shipping costs. The problem involves additional constraints to ensure the quantities shipped into and out of each transshipment point are balanced.

Uploaded by

Aggi Rayne Sali Bucoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Transshipment

- Transportation but with Transshipment points /Intermediate points between supplier and
destination (demand location)
- Complication: No capacity limit from transshipment points
- Additional one group of constraints: Transshipment Flow (requires all products shipped in
transshipment point will be shipped out to destination) (every pairing of supplier to
transshipment and transshipment to destination point is a DV)
- Total Quantity of products shipped in TP = Total Quantity of products shipped to DP
- Every transportation of product will cost
- Objective is still to MIN Total Cost of shipping

Points to remember:

1.) Objective function will be expanded in terms of quantity of DV (decision variables)


2.) 3 groups of explicit constraints (supply + demand + transshipment flows)
3.) Total Quantity of products shipped in TP = Total Quantity of products shipped to DP

EXAMPLE:

i (source) j (transshipment) k (destination)


1 (Nebraska) A (Kansas City) x (Chicago)
2 (Colorado) B (Omaha) y (St. Louis)
C (Des Moines) z (Cincinnati)

Objective Functions:

Min Z = (16x1A + 10x1B + 12x1C + 15x2A + 14x2B + 17x2C) + (6xAx + 8xAy + 10xAz + 7xBx + 11xBy +
11xBz + 4xCx + 5xCy + 12xCz)

Constraints: (no inequalities because BALANCED except non-negativity)

Supply: x1A + x1B + x1C = 300

x2A + x2B + x2C = 300

x1A + x2A = xAx + xAy + xAz (transshipment: Kansas)

x1B + x2B = xBx + xBy + xBz (transshipment: Omaha)

x1C + x2C = xCx + xCy + xCz (transshipment: Des Moines)

Demand: xAx + xBx + xCx = 200 (destination: Chicago)

xAy + xBy + xCy = 100 (destination: St. Louis)

xAz + xBz +xCz = 300 (destination: Cincinnati)

Non-negativity: xij, xjk >= 0

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