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DMO Session B12

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DMO Session B12
CLASS PROCEEDINGS OF DMO - SESSION 12 HELD ON 13-2-2015
Group 12 Section B
Group members:
Hafiz Mohamed (14061)
Ramya Gangolli (14115)
Vyshnavi V (14181)

Transshipment problem
Transshipment problem is a special type of transportation problem involving intermediate nodes. These problems in which a shipment may move through intermediate nodes before reaching a particular destination node. It can be converted to larger transportation problems and solved by a special transportation program. It can also be solved by general purpose linear programming codes.
Transshipment models include nodes that can have shipments arrive as well as leave. In the basic transportation model, shipments either flow out of supply nodes or flow into the demand nodes. That is, it is possible to explicitly distinguish between supply nodes and demand nodes for flows in the more general form of the transportation model, called the transshipment model, flows can occur both out of and into the same node in three ways:
1. If the total flow into a node is less than total flow out of the node, the node then represents a net creator of goods –that is a supply node. The flow balance equation for this type of node will therefore have a negative RHS value.
2. If the total flow into a node exceeds the total flow out of the node, the node then represents a net consumer of goods that is, a demand node. The flow balance equation of this type of node will therefore have a positive RHS value.
3. If the total flow into a node is equal to the total flow out of the node, the node then represents a pure transshipment node. The flow balance equation for this type of node will therefore have a zero RHS value.

Session Exercise: Group B12.
Lion Golf Supplies operates three production plants in Sarasota, Florida; Louisville, Kentucky; and Carson, California. The plant in Sarasota can produce the high-end "professional" line of golf clubs and the more moderate "deluxe" line. The plant in Louisville can produce the



References: Managerial Decision Modeling with Spreadsheets, Third edition by Nagraj Balakrishnan ,Barry Render, Ralph M. Stair

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