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Minimum Cost Transshipment Solutions

1. Transshipment problems allow shipments between supply points, demand points, and transshipment points on the journey from suppliers to customers. 2. The problem provides supply and demand amounts and shipping costs between origins and destinations, including transshipment points. 3. The optimal solution can be found by solving the transshipment problem as a transportation problem.

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141 views3 pages

Minimum Cost Transshipment Solutions

1. Transshipment problems allow shipments between supply points, demand points, and transshipment points on the journey from suppliers to customers. 2. The problem provides supply and demand amounts and shipping costs between origins and destinations, including transshipment points. 3. The optimal solution can be found by solving the transshipment problem as a transportation problem.

Uploaded by

Khushi Agarwal
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Shanti Business School

PGDM 2022-24 – Semester II/ Introduction to Operations Research (IOR)

TRANSSHIPMENT PROBLEMS:
 A transportation problem allows only shipments that go directly from supply points (Source) to demand points
(Destination). In many situations, shipments are allowed between supply points or between demand points.
 Sometimes there may also be points (called transshipment points) through which goods can be transshipped on
their journey from a supply point to a demand point.
 The optimal solution to a transshipment problem can be found by solving a transportation problem.

1. Following is a Transshipment Problem involving 4 sources 2 destinations. The supply value is 100,200,150 and
350 units. The demand values are 350 and 450. The shipping cost is given below.

Origi Destination
n A B C D X Y
A 0 4 20 5 25 12
1
B 10 0 6 5 20
0
C 15 20 0 8 45 7
D 20 25 10 0 30 6
1
X 20 18 60 0 10
5
2
Y 10 25 30 4 0
3

2. A multi-plant Organization has three plants A,B and C and three market places X,Y and Z. The items from the
plants are transported to the market places through two intermediate finished goods warehouses W1 and W2. The
details on cost of Transportation per unit for different combinations are summarized below.

Destination
Origin W
X Y Z W1 Supply
2
A M M M 25 40 400
B M M M 38 20 500
C M M M 40 25 600
W1 20 45 25 0 25 -
W2 30 20 40 40 0 -
Deman 50
300 700 - -
d 0

3. Consider a firm having two factories. The firm is to ship its products from factories to three retail stores.
The number of units available at factories X and Y are 200 and 300, respectively, while those demanded
at retail stores, A, B and C are 100,150 and 250, respectively. Rather than shipping the products directly
from factories to retail stores, it is asked o investigate the possibility of transshipment. The
transportation cost in rupees per unit is given in the table:
Factory Retail Store
X Y A B C
Factory X 0 8 7 8 9
Y 6 0 5 4 3
Retail A 7 2 0 5 1
Store B 1 5 1 0 4
C 8 9 7 8 0
Find the optimal shipping schedule.

4. Solve the following Transshipment Problem for minimum cost:


Destination
Origin D E F Availability
A 6 4 1 50
B 3 8 7 40
C 4 4 2 60
Demand 20 95 35 150

Origi A B C Destination D E F
n
A 0 3 2 D 0 2 5
B 3 0 4 E 2 0 1
C 2 4 0 F 5 1 0
5. Using the information given here, determine the optimal solution under the assumption that the units
may be transshipped.
Manufacturing Plants P1 P2
Capacity 240 Units 160 Units
Warehouses W1 W2 W3
Requirements 80 120 200
Transportation Cost Exactly proportional to the distances
(given in miles in the following figure)

80
P1 P1
100 110

120 90 140 60

W1 60 W2 30 W3
1

80

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