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PROBLEMS
Transshipment Problem
The transportation problem is actually a special case of
the transshipment problem. If items are being transported
from the source through an intermediate point (called a
transshipment point) before reaching a final destination,
then the problem is called a transshipment problem. For
example, a company might be manufacturing a product at
several factories to be shipped to a set of regional
distribution centers. From these centers the items are
shipped to retail outlets that are the final destinations. An
example follows.
Example 1
Toronto $4 $7 - - - 800
Detroit $5 $7 - - - 700
Chicago -- -- $6 $4 $5 -
Buffalo - - $2 $3 $4 -
Detroit Buffalo
Louis
1. the number of units shipped from Toronto is not more than 800
2. the number of units shipped from Detroit is not more than 700
3.the number of units shipped to New York is 450
4.the number of units shipped to Philadelphia is 350
5. the number of units shipped to St. Louis is 300
6.the number of units shipped out of Chicago is equal to the number
of units shipped into Chicago
7.the number of units shipped out of Buffalo is equal to the number
of units shipped into Buffalo
Subject To:
Table 1
When each plant is also considered a destination and each
depot is also considered an origin, there are altogether five
origins and five destinations. Some additional cost data are also
necessary. There are presented in the following Tables.
Unit transportation cost from plant to plant
To A B
Plant
From Plant
A 0 65 Table 2
B 1 0
Unit transportation cost from Depot to Depot
To X Y Z
Depot
From Depot
X 0 23 1
Y 1 0 3 Table 3
Z 65 3 0
Unit transportation cost from Depot to Plant
Plant A B
Depot
X 3 15
Y 25 3
Z 45 55
Table 4
From Table 1, Table 2, Table 3 and Table 4 we obtain the
transportation formulation of the transshipment problem
Table 5: Transshipment Table
A B X Y Z Cap.
A 0 65 1 3 15 150+450 = 600
B 1 0 3 5 25 300+450 =750
X 3 15 0 23 1 450
Y 25 3 1 0 3 450
Z 45 55 65 3 0 450
Req. 450 450 150+ 150+ 150+
450= 450= 450= 2700
600 600 600
A buffer stock of 450 which is the total capacity and total requirement in the
original transportation problem is added to each row and column of the
transshipment problem. The resulting transportation problem has m + n = 5
origins and m + n = 5 destinations. On solving the transportation problem
presented in Table 5
1)Transport x21 = 300 units from plant B to plant A. This increase the availability
at plant A to 450 units including the 150 units originally available from A.
2)From plant A transport xI3 = 300 to depot X and X14 = 150 to depot Y.
3) From 300 units available at depot X transport x35 = 150 units to depot Z.
The total transshipment cost is:
1 x 300 + 3 x 150 + 1 x 300 + 1 x 150 = 1200
Feb. 2009 30 50 16
March 2009 50 30 15
April 2009 40 50 17
Assuming the storage cost to be Rs. 1 per lot per month,
advise M/s safety products Ltd. as to the optimal production
schedule such that the cost is minimized & there are
no lost sales.
Try solving it yourself and then tally your answer with the
solution given below.
THANKS!