Linear Programming: Transshipment with Excel Solver (Network Flows Part 3)

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The transshipment problem extends the transportation problem by adding nodes to the network that have both incoming and outgoing arcs. These are known as transshipment nodes. These nodes can be simple pass-through points (i.e. they neither supply nor consume goods), or they can have either a supply or demand of their own. In this video I cover all of these variations of the problem, and also explain what happens when supply and demand do not match.

[evolvingtech]

This is an excellent overview of this problem. Thank you for making and posting superb videos on your channel. You really should seriously consider publishing a textbook; it would become very popular.

[nneisler]

Good video. Thanks! Can be hard to get from the linear programming to the Excel set-up; you've been clear and concise.

[rodrigosollberger]

Thank you so much! I've gone through optimization in my MSc but the class lecture was way simpler than the course assignment demanded and your explanation just saved the day. Absolutely brilliant. Thanks!!!

[manivannanav]

Thank you Tallys. Was struggling with these types of problems. You explained it in an understandable way.

[AlejandroRios]

Thanks a lot, Professor Tallys, maybe you save my life hahaha I took your example and adapted to the airline network optimization problem by including a variable that represents the number of aircraft. Then I adapted the capacity constraint to be: The cost calculated as I hope that I'm getting the right results. Thank you again, this was very useful!

[figueroacesar]

Professor Yunes, thank you very much for this video, I'm undertaking right now an MIT online course where we see these kind of problems, but as you first showed, they showed the matrix method, and I find the one you teach here simpler and easier to understand, therefore I'm thankful.

Regard from Mexico

César Figueroa

[sayadyosefi]

your videos are super helpful, thanks for sharing

[stevemansfield]

Great. THis can actually be a generic model for solving both transportation and trans-shipment contexts. WIth the latter, there will obvously be only inflow-only and outlow-only points, there won't be any pass-through points. But that given, it will work fine in both settings. I've set up both structures - the one illustrated in the transportation exercise and the one illustrated here - and it's fine.

[jayeshrathod]

Hi, thank you so much. Enjoyed the video. what if the flow of goods has to happen through warehouse? I mean no direct shipments to customer from factory. All the shipments will flow from factory>>warehouse>>customer

[vishalbhosale]

Thank you sir, Very well explained. Can you please make a video on the multicommodity transshipment problem using excel?

[ciai]

Yunes would you have any problem solution related to quantity production, maximizing profit, with constrains of machine hours and man hours, but simultaneously with information about the manufacture operation a specific hours per week. I got confuse, when for instance, I'm given: man hours, numbers of machine, machine hours, number of hours available for all machines, but at the same time the problem a number of operation hours per week of the plant. Help please.

[jayeshrathod]

Thank Tallys for the clarification, appreciated. I have one more dounbt- What if i have more than 2 intermediates in the supply chain? I mean, Movement will happen from Factory>>Warehouse>>CNF agent>>Customer?

[vinayakdixit]

Hello Prof. Yunes...Thanks for this great video. This is very helpful. I am trying to use this model to match the demand and supply from various suppliers. I am wondering if the model can be used to calculate month over month. How to adjust it if capacity in the network is lower than demand for some period and more in other. In other words how to accommodate inventory build plan in this type of model so that we can create buffer stock in the months where capacity of the supplier network is more than the demand and use it when demand is more that supply. Can Excel solver handle such issue? Do you have any pointers for me if it can?
Your help is greatly appreciated.

Vin

[luci]

Thank you so much professor! How do I determine the cost bc this only determine the amount right? I should be able to determine it after I use solver. Is that correct?

[aaromalajikumar]

if a problem include production cost in plant how to include those in to the cost equation

[ye]

Can the capacity be different for all cases? (for example: in the case of air+land freight)

[stephenschmidt]

How would this change if the warehouses in the situation have a maximum capacity?

[wmobvst]

Hello, i am trying to solve a pickup and drop off problem in which i pickup from a node and must drop off only in a specific node. Im a student and that's not in the course material. Any information would be appreciated, thanks

[ruthcourtney]

what happens when the capacity is unlimited?