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- Transshipment Lpp
- Transportation Problem
- Transshipment
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- TP6 Transshipment
- Ambipur-Caselet
- Transshipment Problem
- Solving Transportation Problem in Operations Research
- Transshipment
- Tranportation and Transshipment Problem Ppt
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PROBLEMS

Transshipment Problem

The transportation problem is actually a special case of

the transshipment problem. If items are being transported

from the source through an intermediate point (called a

transshipment point) before reaching a final destination,

then the problem is called a transshipment problem. For

example, a company might be manufacturing a product at

several factories to be shipped to a set of regional

distribution centers. From these centers the items are

shipped to retail outlets that are the final destinations. An

example follows.

Example 1

Toronto and Detroit. These are shipped to regional distribution

centers in Chicago and Buffalo, where they are delivered to the

supply houses in New York, Phila, and Louis. Figure 1 illustrates

the basic network representation of this situation. The shipping

costs vary, as shown in the following table. Forecasted demands for

New York, Phila, and Louis are also seen in this table, as are the

available supplies of snow-blowers at the two factories. Notice that

snow-blowers may not be shipped directly from Toronto or Detroit

to any of the final destinations. This is why Chicago and Buffalo are

listed not only as destinations but also as sources.

To Chicago Buffalo N.York Phila Louis Supply

From

Toronto $4 $7 - - - 800

Detroit $5 $7 - - - 700

Chicago -- -- $6 $4 $5 -

Buffalo - - $2 $3 $4 -

Destinations

Transshipment

Source Point N. York

Chicag

Toronto o

Phila

Detroit Buffalo

Louis

from these transshipment points must have

arrived from either Toronto or Detroit.

Therefore, Chicago and Buffalo will each

have a constraint indicating this. The verbal

state-ment of this problem would be as

follows:

Minimize cost, subject to:

1. the number of units shipped from Toronto is not more than 800

2. the number of units shipped from Detroit is not more than 700

3.the number of units shipped to New York is 450

4.the number of units shipped to Philadelphia is 350

5. the number of units shipped to St. Louis is 300

6.the number of units shipped out of Chicago is equal to the number

of units shipped into Chicago

7.the number of units shipped out of Buffalo is equal to the number

of units shipped into Buffalo

from each source to .each transshipment point and the number of

units shipped from each transshipment point to each final

destination, as these are the decisions management must make. The

decision variables are

T1 = the number of units shipped from Toronto to Chicago

The Linear Program is:

Minimize cost =

4T1+7T2+5D1+7D2 +6C1+4C2 + 5C3+2B1+3B2+4B3

Subject To:

D1+D2<= 700 Supply from Detroit

C1 +B1 = 450 Demand at New-york

C2+B2 = 350 Demand at Phila

C3+B3 = 300 Demand at Louis

T1+D1 = C1+C2+C3 Shipping through Chicago

T2+D2 = B1+B2+B3 Shipping through Buffalo

Solving this with QM for Windows yields the output

in Program 8.7. From this we see that we should ship

650 units from Toronto to Chicago, 150 units from

Toronto to Buffalo, and 300 units from Detroit to

Buffalo. A total of 350 units will be shipped from

Chicago to Philadelphia, 300 from Chicago to St.

Louis, and 450 from Buffalo to New York. The total

cost will be $9,550.

Consider a transportation problem where the origins

are plants and destinations are depots. The unit

transportation costs, capacity at the plants and the

requirements at the depots are indicated below :

X Y Z Cap.

Depot

Plant

A 1 3 15 150

B 3 5 25 300

Req. 150 150 150 450

Table 1

When each plant is also considered a destination and each

depot is also considered an origin, there are altogether five

origins and five destinations. Some additional cost data are also

necessary. There are presented in the following Tables.

Unit transportation cost from plant to plant

To A B

Plant

From Plant

A 0 65 Table 2

B 1 0

Unit transportation cost from Depot to Depot

To X Y Z

Depot

From Depot

X 0 23 1

Y 1 0 3 Table 3

Z 65 3 0

Unit transportation cost from Depot to Plant

Plant A B

Depot

X 3 15

Y 25 3

Z 45 55

Table 4

From Table 1, Table 2, Table 3 and Table 4 we obtain the

transportation formulation of the transshipment problem

Table 5: Transshipment Table

A B X Y Z Cap.

A 0 65 1 3 15 150+450 = 600

B 1 0 3 5 25 300+450 =750

X 3 15 0 23 1 450

Y 25 3 1 0 3 450

Z 45 55 65 3 0 450

Req. 450 450 150+ 150+ 150+

450= 450= 450= 2700

600 600 600

A buffer stock of 450 which is the total capacity and total requirement in the

original transportation problem is added to each row and column of the

transshipment problem. The resulting transportation problem has m + n = 5

origins and m + n = 5 destinations. On solving the transportation problem

presented in Table 5

x22 = 450; x33 = 300; x35 = 150; X44 = 450 x55 = 450.

1)Transport x21 = 300 units from plant B to plant A. This increase the availability

at plant A to 450 units including the 150 units originally available from A.

2)From plant A transport xI3 = 300 to depot X and X14 = 150 to depot Y.

3) From 300 units available at depot X transport x35 = 150 units to depot Z.

The total transshipment cost is:

1 x 300 + 3 x 150 + 1 x 300 + 1 x 150 = 1200

depots X, Y, Z only according to the transportation Table 1, the

minimum transportation cost schedule is x13 = 150; x21 = 150; x22

= 150 with a minimum cost of 3450. Thus transshipment reduces

the cost of cargo movement in this case.

Example 3

Example

India. Recently it has received an order to supply the specified

quantities of safety pin in Chennai for four consecutive months

starting at the end of the current month. The following details

are available:

Month Order Maximum Cost of

received (for production Production

no. of lots) Capacity per lot.

Jan 2009 20 40 14

Feb. 2009 30 50 16

March 2009 50 30 15

April 2009 40 50 17

Assuming the storage cost to be Rs. 1 per lot per month,

advise M/s safety products Ltd. as to the optimal production

schedule such that the cost is minimized & there are

no lost sales.

Try solving it yourself and then tally your answer with the

solution given below.

THANKS!

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