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Lecture 19

Transshipment

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7 views23 pages

Lecture 19

Transshipment

Uploaded by

gajodharsinghhcooll
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Lecture 19

Operations Research
Transshipment Model
• This model is an extension of the classic transportation model
• In the regular model, we had a set of demand points and a set of
supply points, and we had to find the optimal routes to satisfy the
entire demand at each point using the supply constraints
• However, in real life, there may exist intermediate stations, or
transporting goods can be done easily from one demand source to
other, thereby reducing the total cost required in the entire model
• The classic solution to the transportation model may not give us the
optimal solution with the added options
Example
• We begin with the classic model of the transportation problem
• Now, suppose that the supply and demand nodes can also act as
transient nodes, and the goods can be rerouted from either of them
• The following is now possible
• Suppose that the supply value of the sources S1, S2, S3 and S4 are
200 units, 250 units, 300 units and 450 units respectively
• The demand value for destinations D1 and D2 are 600 units and 600
units respectively
• The transportation problem between all the nodes will have a
different matrix, which is shown in the next slide
Step 1
• First, check if the problem is balanced or unbalanced
• In this example, the total demand and total supply is 1200, so the
problem is balanced
• Since the total demand and total supply are both 1200, this is our
buffer stock (B value)
Step 2
• Add the B value to all rows and columns
Step 3
• Calculate the total transportation cost using the Vogel’s
Approximation Method
• Ignore any 0 costs that are obtained
• Total transportation cost is
(200 * 6) + (450 * 5) + (300 * 7) + (450 * 6) + (150 * 4) = 8850
Step 4
• Draw the shipping pattern
Step 5
• Assign the allocated values
Exercise
Additional Information

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