9.3 The Transshipment Problem

In a transportation problem, if the items being transported must go through an intermediate point (called a transshipment point) before reaching a final destination, 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. Figure 9.3 provides a network representation of a transshipment problem. In this example, there are two sources, two transshipment points, and three final destinations.

Figure 9.3 Network Representation ...

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