TRANSSHIPMENT

PROBLEM
Presented By: Shreeya Sharma
Roll No: 21154
Hospital Management
TRANSSHIPMENT PROBLEM
It is a transportation problem in which each origin and destination can act as an intermediate point
through which goods can be temporarily received and then transshipped to other points or to the final
destination.

It is a multi-phase transportation problem in which the flow of goods (such as raw materials) and
services between the source and the origin is interrupted in at least one point. The product is not sent
directly from the supplier (origin) to the point of demand; rather, it is first transported to a transshipment
point, and from there to the point of demand (destination).
TRANSSHIPMENT PROBLEM

1. Define a supply point 2. Similarly, a demand point 3. A transshipment point is

to be a point that can is a point that can receive a point that can both receive
send goods to another goods from other points but goods from other points
point but cannot cannot send goods to any and send goods to other
receive goods from other point. points.
any other point.
DIFFERENCE BETWEEN TRANSPORTATION PROBLEM AND
TRANSSHIPMENT PROBLEM

TRANSPORTATION PROBLEM TRANSSHIPMENT PROBLEM

 1. Check whether the problem is balanced or
STEPS TO SOLVE unbalanced.
TRANSSHIPMENT I.e. B= Supply= Demand.
PROBLEM
2. If our problem is not balanced, then we will add
either dummy column or dummy row with ‘0’ costs
according to situation to balance the problem.

3. Add the values of total supply to all the rows and

all the columns.

4. Apply VAM method and solve the transportation

problem.

5. Draw the shipping pattern.

Algorithm for Vogel’s Approximation Method (VAM)

1. Calculate penalties for each row and column by taking the difference between the smallest cost and next
highest cost available in that row/column. If there are two smallest costs, then the penalty is zero.

2. Select the row/column, which has the largest penalty and make allocation in the cell having the least cost in
the selected row/column. If two or more equal penalties exist, select one where a row/column contains
minimum unit cost. If there is again a tie, select one where maximum allocation can be made.

3. Delete the row/column, which has satisfied the supply and demand.

4. Repeat steps (i) and (ii) until the entire supply and demands are satisfied.

5. Obtain the initial basic feasible solution.

Example Problem:

Consider the following transshipment problem involving 4 sources and 2

destinations. The supply value of the sources S1, S2, S3 and S4 are 200 units,
250 units, 300 units and 400 units respectively.

The demand values of the destinations D1 and D2 are 600 units and 600 units
respectively. The transportation cost per unit between different sources and
destinations are summarized in the following table. Solve the transshipment
problem
 Destination

S1 S2 S3 S4 D1 D2

S1 0 6 24 7 24 10

S2 10 0 6 12 5 20

S3 15 20 0 8 45 7

Sources S4 18 25 10 0 30 6

D1 15 20 60 15 0 10

D2 10 25 25 23 4 0
 Destination

S1 S2 S3 S4 D1 D2 Supply Value
S1 0 6 24 7 24 10 200

Sources S2 10 0 6 12 5 20 250

S3 15 20 0 8 45 7 300

S4 18 25 10 0 30 6 450

D1 15 20 60 15 0 10

D2 10 25 25 23 4 0

600 600

1200
 Destination

S1 S2 S3 S4 D1 D2 Supply Value
S1 0 6 24 7 24 10 200 +1200=
1400

Sources S2 10 0 6 12 5 20 250 +1200=

1450

S3 15 20 0 8 45 7 300+ 1200=
1500

S4 18 25 10 0 30 6 450+ 1200=
1650

D1 15 20 60 15 0 10 1200

D2 10 25 25 23 4 0 1200

1200 1200 1200 1200 600 + 600

1200 = +1200
1800 = 1800 1200
 Destination
Column Difference
S1 S2 S3 S4 D1 D2 Supply value

S1 1200 6 24 7 24 10 1400/ 200 6 6 - 4

0
5 5 5 5
S2 10 0 6 12 5 20 1450

Sources S3 7 7 7 7
15 20 0 1200 45 7 1500
8
6 6 6 4
S4 18 25 10 0 30 6 1650
10 - - -
D1 15 20 60 15 1200 10 1200/0
0 4 4 4 4

D2 10 25 25 23 4 0 1200

1200 120 1200 1200 1800/ 1800 1200

/0 0 600

10 6 6 7 4 6
Row
Difference
10 6 6 7 1 6

- 6 6 8 1 6

- 6 6 - 1 6
 Destination
S1 S2 S3 S4 D1 D2 Supply value

S1 1200 200 24 7 24 10 1400/200/0

0 6

Sources S2 10 1000
0
6 12 450
5
20 1450

S3 15 20 1200 8 45 300 1500

0 7

S4 18 25 10 1200 30 450 1650

0 6

D1 15 20 60 15 1200 10 1200
0

D2 10 25 25 23 150 1050 1200

4 0

1200 1200/ 1200 1200 1800 1800 1200

200/0
 Destination
S1 S2 S3 S4 D1 D2 Supply value

S1 1200 200 1400

0 6

Sources S2 1000
0
450
5
1450

S3 1200 300 1500

0 7

S4 1200 450 1650

0 6

D1 1200 1200
0

D2 150 1050 1200

4 0

1200 1200 1200 1200 1800 1800 1200

TOTAL TRANSPORTATION COST

200*6+

450*5+

300*7+

450*6+

150*4= Rs. 8,850

SHIPPING PATTERN

S1
450
200
S2 D1

S3 300

D2
S4 450
THANK YOU
😄