Scribd Logo
Upload

Welcome to Scribd!

  • 88 views

    Example of Transshipment Model

    Uploaded by

    Analyn C. Bejasa
    The transshipment model is an extension of the classical transportation model that allows items to be shipped from sources to destinations through intermediate points to reduce costs. A company example shows inventory being redistributed among stores, with some stores acting as sources and others as sinks, and inventory passing through intermediate transshipment points. The transshipment problem can be converted to a standard transportation problem by adding fictitious sources and destinations at each location and extending the transportation table to include costs between all points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Example of Transshipment Model

    Uploaded by

    Analyn C. Bejasa
    88 views3 pages
    The transshipment model is an extension of the classical transportation model that allows items to be shipped from sources to destinations through intermediate points to reduce costs. A company example shows inventory being redistributed among stores, with some stores acting as sources and others as sinks, and inventory passing through intermediate transshipment points. The transshipment problem can be converted to a standard transportation problem by adding fictitious sources and destinations at each location and extending the transportation table to include costs between all points.

    Original Description:

    Transshipment Model

    Original Title

    Transshipment Model

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The transshipment model is an extension of the classical transportation model that allows items to be shipped from sources to destinations through intermediate points to reduce costs. A company example shows inventory being redistributed among stores, with some stores acting as sources and others as sinks, and inventory passing through intermediate transshipment points. The transshipment problem can be converted to a standard transportation problem by adding fictitious sources and destinations at each location and extending the transportation table to include costs between all points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    88 views3 pages

    Example of Transshipment Model

    Uploaded by

    Analyn C. Bejasa
    The transshipment model is an extension of the classical transportation model that allows items to be shipped from sources to destinations through intermediate points to reduce costs. A company example shows inventory being redistributed among stores, with some stores acting as sources and others as sinks, and inventory passing through intermediate transshipment points. The transshipment problem can be converted to a standard transportation problem by adding fictitious sources and destinations at each location and extending the transportation table to include costs between all points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    7/5/2015

    TransshipmentModel

    TransshipmentModel
    Inatransportationproblem,consignmentsarealwaystransportedfromanorigintoa
    destination.But,therecouldbeseveralsituationswhereitmightbeeconomicaltotransport
    itemsviaoneormoreintermediatecentres(orstages).Inatransshipmentproblem,the
    availablecommodityisnotsentdirectlyfromsourcestodestinations,i.e.,itpassesthrough
    oneormoreintermediatepointsbeforereachingtheactualdestination.Forinstance,a
    companymayhaveregionalwarehousesthatdistributetheproductstosmallerdistrict
    warehouses,whichinturnshiptotheretailstores.Succinctly,thetransshipmentmodelisan
    extensionoftheclassicaltransportationmodelwhereanitemavailableatpointiisshipped
    todemandpointjthroughoneormoreintermediatepoints.

    Recommend

    622

    Search

    Thetransshipmentmodelhelpsthemanagementofacompanyin
    decidingtheoptimalnumberandlocationofitswarehouses.

    ExampleofTransshipmentModel
    Acompanyhasninelargestoreslocatedinseveralstates.Thesalesdepartmentisinterestedin
    reducingthepriceofacertainproductinordertodisposeallthestocknowinhand.But,before
    thatthemanagementwantstorepositionitsstockamongtheninestoresaccordingtoitssales
    expectationsateachlocation.

    Theabovefigureshowsthenumberednodes(9stores).Apositivevaluenexttoastore
    representstheamountofinventorytoberedistributedtotherestofthesystem.Anegative
    valuerepresentstheshortageofstock.Thus,stores1and4haveexcessstockof10&2items
    respectively.Stores3,6&8need3,1,and8moreitemsrespectively.Theinventorypositions
    ofstores2,5&7aretoremainunchanged.
    Anitemmaybeshippedthroughstores2,4,5,6,7&8.Theselocationsareknownas
    transshipmentpoints.Eachremainingstoreisasourceifithasexcessstock,andasinkifit
    needsstock.Intheabovefigure,store1isasourceandstore3isasink.
    Thevaluecijisthecostoftransportingitems.Totransportanitemfromstore1tostore3,the
    totalshippingcostis
    c12+c23
    Inthefollowingexample,youwilllearnhowtoconvertatransshipmentproblemtoastandard
    transportationproblem.

    Example
    Consideratransportationproblemwheretheoriginsareplantsanddestinationsaredepots.The
    unittransportationcosts,capacityattheplants,andtherequirementsatthedepotsare
    indicatedbelow:
    Table1
    Plant
    X
    A
    B

    1
    3
    150

    Depot
    Y

    3
    5
    150

    15
    25
    150

    150
    300
    450

    Wheneachplantisalsoconsideredadestinationandeachdepotisalsoconsideredanorigin,
    therearealtogetherfiveoriginsandfivedestinations.Someadditionalcostdataarealso
    necessary.ThesearepresentedinthefollowingTables.
    Table2

    http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/tranship.htm

    1/3

    7/5/2015

    TransshipmentModel

    UnitTransportationCostfromPlanttoPlant
    FromPlant
    To
    PlantA
    PlantB
    A
    0
    65
    B
    1
    0

    Table3
    UnitTransportationCostfromDepottoDepot
    FromDepot
    To
    DepotX DepotY DepotZ
    X
    0
    23
    1
    Y
    1
    0
    3

    65

    Table4
    UnitTransportationCostfromDepottoPlant
    Depot
    Plant
    A
    B
    X
    3
    15
    Y
    25
    3
    Z
    45
    55

    Solution.
    FromTable1,Table2,Table3andTable4weobtainthetransportationformulationofthe
    transshipmentproblem.
    Table5

    A
    B
    X
    Y
    Z
    Requirement

    0
    1
    3
    25
    45
    450

    65
    0
    15
    3
    55
    450

    TransshipmentTable
    Y

    1
    3
    0
    1
    65
    150+450=600

    3
    5
    23
    0
    3
    150+450=600

    Capacity

    15
    25
    1
    3
    0
    150+450=600

    150+450=600
    300+450=750
    450
    450
    450
    2700

    Thetransportationmodelisextendedandnowitincludesfivesupplypoints&demandpoints.
    Tohaveasupplyanddemandfromallthepoints,afictitioussupplyanddemandquantity
    (bufferstock)of450isaddedtobothsupplyanddemandofallthepoints.Aninitialbasic
    feasiblesolutionisobtainedbytheVogel'sApproximationmethodandisshowninthefinal
    table.
    FinalTable

    TransshipmentTable
    B
    X
    Y

    65

    15

    25

    45

    55

    65

    450

    600

    600

    Requirement 450

    Capacity

    15

    600

    25

    750

    23

    450
    3

    450
    450

    600

    2700

    Thetotaltranshipmentcostis:
    0X150+1X300+3X150+1X300+0X450+0X300+1X150+0X450+0X450=
    1200
    Thetransportationproblemisaspecialtypeoflinearprogrammingprobleminwhichtheobjectiveisto
    transportahomogeneousproductmanufacturedatseveralplants(origins)toanumberofdifferent
    destinationsataminimumtotalcost.Inthischapter,youlearnedseveraldifferenttechniquesfor
    computinganinitialbasicfeasiblesolutiontoatransportationproblemsuchasnorthwestcornerrule,
    matrixminimummethodandvogelapproximationmethod.Further,youlearnedhowtocomputean
    optimalsolutionwiththehelpofMODI&steppingstonemethod.Intheendofthechapter,wediscussed
    thetransshipmentmodel,whichisanextensionoftheclassicaltransportationmodelwhereanitem
    availableatpointiisshippedtodemandpointjthroughoneormoreintermediatepoints.

    AbouttheAuthor
    VinayisaManagementEnthusiast.Contacthim
    onGoogle+,Facebook,LinkedIn

    ShareandRecommend
    Like

    http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/tranship.htm

    Tweet

    2/3

    7/5/2015

    TransshipmentModel
    Recommend

    AdsbyGoogle

    Example

    622

    InventoryControl

    CarShipping

    ModelCar

    OperationsResearchContents

    FacebookAccountSignUp
    ConnectWithYourFriendsOnline.JointheFacebookCommunityFree!
    universalteacherpublications.com

    http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/tranship.htm

    3/3

    You might also like