Preview

Transshipment Model  in Generalized Transshipment Model, Items Are Supplied from Different Sources to Different Destination. It Is Sometimes Economical If the Shipment Passes Through Some Transient Nodes in Between Sources and Destinations.

Good Essays
Open Document
Open Document
1146 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Transshipment Model  in Generalized Transshipment Model, Items Are Supplied from Different Sources to Different Destination. It Is Sometimes Economical If the Shipment Passes Through Some Transient Nodes in Between Sources and Destinations.
Lecture Notes

1

MSC IN OPERATIONAL RESEARCH
LECTURE 8

TRANSSHIPMENT MODEL
In generalized transshipment model, items are supplied from different sources to different destination. It is sometimes economical if the shipment passes through some transient nodes in between sources and destinations. Unlike in transportation problem, where shipments are sent directly to a particular source to a particular destination, in transshipment problem, the objective is to minimize the total cost of

shipments, and thus the shipment passes through one or more intermediate nodes before it reaches its desired destination. There are mainly two types of the transshipment problem discussed in the following section Transshipment Problem with Sources and Destinations Acting Transient Nodes A schematic diagram of a simple form of transshipment problem in which the sources and destinations act as transient nodes is shown in the Figure 1

Figure 1Schematic diagram of simple transshipment model.

Lecture Notes

2

In the figure, consider the shipment of items from source 1 to destination 2. The shipment from the source I can pass through the source 2 and the destination I before it reaches the specified destination 2. Since, in this case the shipment passes through some transient nodes, the arrangement is termed as transshipment model. The objective of the transshipment problem is to find the optimal shipping pattern such that the total cost of transportation is minimized. A different view of the Figure 1 is shown in Figure 2 in which the number of starting nodes as well as the number of ending nodes is the sum of the number of sources and the number of destinations of the original problem. Let B be the buffer which must be maintained at each of the transient sources and transient destinations. At the minimum the buffer, B can be equal to the sum of the supplies or the sum of the demands, assuming that it is a

You May Also Find These Documents Helpful

  • Good Essays

    The problem basically consists of finding the optimum set of routes that represent the lowest possible total cost and/or total travel time. The plant is dealing with the repositioning of trucks to serve its supply demand and determining a number of transportation units that optimally balance supply requirements against the cost of maintaining the transportation units. In order to increase truck utilization and achieve better performance, the plant has to adequately and efficiently ensure the scheduling of a steady supply of hogs.…

    • 1274 Words
    • 6 Pages
    Good Essays
  • Good Essays

    ECO 550 FINAL EXAM

    • 1177 Words
    • 4 Pages

    9. The integer programming model for a transportation problem has constraints for supply at each source and demand at each destination.…

    • 1177 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Case 36

    • 637 Words
    • 3 Pages

    There is a total capacity (rail carloads) of 14 that is available to serve a total demand (rail carloads sold) of 15. With this mentioned, there is an unbalanced capacity and demand. To solve for the proper shipping route, we will have to include a dummy variable equal to 1, which is the difference between capacity and demand. This means one customer will receive a shortage of 1 rail car of grain. In addition, we need to meet certain requirements (constrains) that limit the capacity from origin (outbound) as well as (inbound) constraints at destinations. Not to mention, we also have two processing centers (hubs) constraints.…

    • 637 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Decision Analysis Task 2

    • 1025 Words
    • 4 Pages

    The increase in supply shows that the best and optimal distribution pattern is Shanghai would ship 1500 units to warehouse 2. Shuzworld H would ship 300 units to Warehouse 1, and 1800 units to Warehouse 3. Finally, Shuzworld F would ship 2200 units to Warehouse 1. The additional units 1500 are shipped to a dummy warehouse, 1300 units are allocated to Shanghai and 200 units are allocated to Shuzworld H. Again, using the transportation model to implement this shipping plan would reduce the cost associated with shipping from Shuzworld F to Warehouse 3 which is the most expensive route. Additionally, increasing the supply units and storing them in a dummy warehouse decreases the transportation costs. By shipping the excess units to a dummy location does not increase the cost for the company. The transportation model finds the lowest cost by analyzing the different shipping methods.…

    • 1025 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    In Excel, or other suitable program, Develop a transshipment model in which each of the plants and disposal sites can be used as intermediate points.…

    • 578 Words
    • 3 Pages
    Good Essays
  • Good Essays

    One of the main ‘flows’ on transport, are goods (food, objects) that will be traded with other countries. The main improvement that has taken place in recent times is the creation of the freight transport, containerization. These containers can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container ships, rail and semi-trailer trucks—without being opened. The system, developed after World War II, led to greatly reduced transport costs, and supported a vast increase in international trade. Because of this increase in trade, containerization has help build a more interconnected world. Better relations are built and more trade is available to ship via this improvement in transport.…

    • 610 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Brs Mdm3 Tif Ch05

    • 1872 Words
    • 12 Pages

    2) Which of the following models determines the path through the network that connects all the points?…

    • 1872 Words
    • 12 Pages
    Good Essays
  • Good Essays

    2. The transportation problem described above can be solved mathematically using a computer package. The solution to the problem using excel solver are given in the following table.…

    • 1284 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Coyle, J.J., Novack, R. A., Gibson, B.J., & Bardi, E. J. (2011). Transportation: A Supply Chain Perspective. 7th edition. South Western College Publishing.…

    • 1998 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Ishikawa

    • 1080 Words
    • 5 Pages

    Lai, Kee-hung; Cheng, T.C.E. Just-in-Time Logistics. Abingdon, Oxon, GBR: Ashgate Publishing Group, 2009. p 4h.…

    • 1080 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Target Corporation

    • 910 Words
    • 4 Pages

    A well planned transport logistics is key to the success of any organization. Companies need to create a clear plan on how they would transport procured raw material and products to its premises. An elaborate transport plan is also necessary for the ferrying of manufactured products to the suppliers or clients. This paper is going to explore the transport logistics of Target Corporation, also known as Target, and propose a Transport Improvement Plan (TIP) that would help to improve the supply chain of the company.…

    • 910 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Forum 3

    • 374 Words
    • 1 Page

    David, Pierre, & Stewart, Richard (2010). International Logistics. 3rd Edition. Mason, OH: Thomson ISBN 13: 978-1-111-21955-0…

    • 374 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    Chapter 13: Physical Distribution of Introduction to Materials Management Sixth Edition by J. R. Tony Arnold,…

    • 616 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    CTC case study

    • 2492 Words
    • 7 Pages

    CTC’s problem is within its traditional pricing system, with both its inefficiency and lack of flexibility. The worksheets were formatted to show both the “ideal”( unconstrained and realistic ( constrained) circumstances, to analyze them and come for the best possible solution within the boundaries. One big concept that was present in determining which quantities were “optimal” was demand elasticity. Trends were found, and the conclusion that a elasticity with an absolute value of 1, represented an overall revenue maximizing point was discovered. Unfortunately those specific combinations were out of reach due to the fact that they went past the weight capacity of the ships( 24000 tons). Going back to the problem with the pricing strategy, its biggest problem was that in calculating the optimal prices, it took into consideration the weight of cargo and the volume of the port. This meant that for each route, each price or quantity was subject to an individual constraint, and all the other ten routes were not tied to each other in any way. the new pricing model proposed, takes into consideration that there is no individual constraints but rather an overall constraint which is the weight and volume of the ship travelling those routes, so within those constraints what dictates price is the demand. It was clearly stated that 40’ containers were not only preferred but more efficient to be used than 20’ containers, so this new pricing model brings in a higher ratio of the TEU in 40” to 20”, which could not only mean more efficiency , but lower costs in the long run. Finally, while doing the study , it was discovered that the optimal quantities that led to the maximum attainable revenue were not possible to attain due to the overload capacity of the boat, so one of the major recommendations was to loosen the weight constraint during the high season, but also implement a different policy for the…

    • 2492 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Copacino, W. C., & Rosenfield, D. B. (1987). Methods of logistics systems analysis. International Journal of Physical Distribution & Materials Management, 17(6), 38-38. Retrieved from http://search.proquest.com/docview/232591012?accountid=32521…

    • 387 Words
    • 2 Pages
    Satisfactory Essays

Related Topics