Optimization
Transshipment Model
Optimization
Transshipment Model
Definition:
The transhipment problem is an extension of the transportation problem in
which intermediate nodes, referred to as transhipment nodes, are added to
account for locations such as warehouses. In this more general type of
distribution problem, shipments may be made between any pair of the three
general type of nodes:
1. origin nodes
2. transhipment nodes
3. destination nodes
For example, transhipment problem permits shipments of goods from origins
to transhipment nodes and on to destination, from one origin to another
origin, from one transhipment location to another, from destination location to
another and directly from origins to destinations.
Optimization
Transshipment Model
Retail Outlets
Example is the network of Ryan Electronics (destination
in figure below. nodes)
Warehouse
Plants (transhipment 5
Detroit 200
(origin nodes) nodes)
2
1 2 3
600 Kansas 6
Denver
City 3 6
3 Miami 150
6
4
3 7
4 4 Dallas 350
2
400 Atlanta Louis 6
1 Ville
5
8
New 300
Orlean
Supplies Distribution Routes Distribution Routes Demands
(arcs) (arcs)
Optimization
Transshipment Model
Transportation cost per unit for Ryan Electronics
Warehouse
Plants Kansas Louisville
Denver 2 3
Atlanta 3 1
Retail Outlet
Warehouse Detroit Miami Dallas New Orlean
Kansas 2 6 3 6
Louisville 4 4 6 5
Optimization
Transshipment Model
Formulate the LP Models:
Origin Nodes Constraints :
Denver capacity: x13 + x14 ≤ 600
Atlanta capacity: x23 + x24 ≤ 400
Transhipment Nodes Constraints : (in = +, out = -)
Kansas (in = out): x13 + x23 – x35 – x36 – x37 – x38 = 0
Louisville (in = out): x14 + x24 – x45 – x46 – x47 – x48 = 0
Optimization
Transshipment Model
Destination Nodes Constraints:
Detroit: x35 + x45 = 200
Miami: x36 + x46 = 150
Dallas: x37 + x47 = 350
New Orleans: x38 + x48 = 300
Objective Function:
Minimize: 2x13 + 3x14 + 3x23 + x24 + 2x35 + 6x36 + 3x37
+ 6x38 + 4x45 + 4x46 + 6x47 + 5x48
Optimization
Transshipment Model
Objective Function:
Min. : 2x13 + 3x14 + 3x23 + x24 + 2x35 + 6x36 + 3x37 + 6x38 + 4x45 + 4x46 + 6x47 + 5x48
Origin Nodes Constraints :
Denver capacity: x13 + x14 ≤ 600
Atlanta capacity: x23 + x24 ≤ 400
Transhipment Nodes Constraints : (in = +, out = -)
Kansas (in = out): x13 + x23 – x35 – x36 – x37 – x38 = 0
Louisville (in = out): x14 + x24 – x45 – x46 – x47 – x48 = 0
Destination Nodes Constraints:
Detroit: x35 + x45 = 200
Miami: x36 + x46 = 150
Dallas: x37 + x47 = 350
New Orleans: x38 + x48 = 300
Optimization
Transshipment Model
Summary of Answers
Var Val Var Val
Opt 5200 Route Cost
600 350 Unit Cost per Total Cost
x13 x37 From To
Shipped Unit ($) ($)
x14 0 x38 50 Denver Kansas 600 2 1200
x23 0 x45 0 Denver Louisville 400 1 400
x24 400 x46 150 Atlanta Louisville 200 2 400
x35 200 x47 0 Kansas Detroit 350 3 1050
0 250 Kansas Dallas 50 6 300
x36 x48
Louisville Miami 150 4 600
Louisville New Orleans 250 5 1250
Total $5200
Optimization
Transshipment Model
Problem 1:
Solve the modified Ryan Electronics Model.
5
Detroit 200
2
1 2 3
600 Kansas 6
Denver
City 3 6
3 Miami 150
6
4
3 7
4 4 Dallas 350
2
400 Atlanta Louis 6
1 Ville
1
4 5
8
New 300
Orlean
Optimization
Problem 2: Transshipment Model
Two automobile plants, P1 and P2, are linked to three dealers, D1, D2 and D3,
by way of two transit centers, T1 and T2 according to the network shown in
figure below. The supply amounts at plants P1 and P2 are 1000 and 1200 cars,
and the demand amounts at dealers D1, D2, and D3 are 800, 900 and 300
cars. The shipping cost per car (in hundred dollars) between pairs of nodes are
shown on the connecting links (or arcs) of the network.
D1 800
8
3
600 P1 T1 6
4
7 D2 900
2
4
400 P2 T2
5
9 D3 500