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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
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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