From the course: Excel Supply Chain Analysis: Solving Transportation Problems

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Describe the transshipment problem

Describe the transshipment problem - Microsoft Excel Tutorial

From the course: Excel Supply Chain Analysis: Solving Transportation Problems

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Describe the transshipment problem

- [Instructor] In the previous chapter we saw how to solve transportation problems. In this chapter, we will look at transshipment problems. A transshipment problem is distinct from a transportation problem in that we move items through multiple stages to an end destination. So there will be a source, at least one intermediate level, and then the final destination. As before, at least for the problems that we're working with, demand is given and it doesn't change, so it's deterministic, and there's a known distance between each source and destination, so our cost will not change. As before, sources have limited capacity. And our goal is to find the lowest cost solution to meet demand, but it's more complex than what we were looking at before. Our problem, once again, deals with wind farms, spare parts. And we have eight wind farms which are spread around the U.S. Midwest. To get the spare parts to our wind farms we need to…

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