The Solver and Transhipment Problem

A fIrm owns facilities at seven places. It has manufacturing plants at places A, B and C with daily output of 500, 300 and 200 units of an
item, respectively. It has warehouses at places P, Q, R and S with daily requirements of 180, 150, 350 and 320 units, respectively. Per
unit shiping charges on different routes are given below:

Like for transportation problems, we can use Solver to obtain solution to the transhipment problems. We now consider this. The
relevant cost matrices are shown in below figure.

To P Q R S Supply
From
A 12 10 12 13 500

B 7 11 8 14 300

C 6 16 11 7 200
Demand 180 150 350 320 1000

To begin with, let us label the plants A, B and C as 1, 2 and 3, respectively, and the warehouses at P, Q, R and S, respectively, as 4, 5, 6
and 7.

Node 4 5 6 7
P Q R S
1 A 12 10 12 13
2 B 7 11 8 14
3 C 6 16 11 7

Node 1 2 3 Node 4 5 6 7
A B C P Q R S
1 A 0 2 8 4 P 0 6 5 8
2 B 5 0 7 5 Q 8 0 3 2
3 C 10 9 0 6 R 5 4 0 10
7 S 9 4 8 0

Next, we record the given information in columnar from listing quantities to be shipped between various pairs of nodes. We also list
the cost involved in such shipping for each of the routes. The quantities to be shipped are shown in column A, while various routes and
Quantity Node From Node To Cost Node Inflow Outflow Netflow RHS
230 1 A 2 B 2 1 0 500 -500 -500
0 1 A 3 C 8 2 230 530 -300 -300
0 1 A 4 P 12 3 0 200 -200 -200
270 1 A 5 Q 10 4 180 0 180 180
0 1 A 6 R 12 5 270 120 150 150
0 1 A 7 S 13 6 350 0 350 350
0 2 B 1 A 5 7 320 0 320 320
0 2 B 3 C 7
180 2 B 4 P 7 Total cost 8860
0 2 B 5 Q 11
350 2 B 6 R 8 0
0 2 B 7 S 14
0 3 C 1 A 10
0 3 C 2 B 9
0 3 C 4 P 6
0 3 C 5 Q 16
0 3 C 6 R 11
200 3 C 7 S 7

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 0 4 P 1 A 12
0 4 P 2 B 7
0 4 P 3 C 6
0 4 P 5 Q 6
0 4 P 6 R 5
0 4 P 7 S 8
0 5 Q 1 A 10
0 5 Q 2 B 11
0 5 Q 3 C 16
0 5 Q 4 P 8
0 5 Q 6 R 3
120 5 Q 7 S 2
0 6 R 1 A 12
0 6 R 2 B 8
0 6 R 3 C 11
0 6 R 4 P 5
0 6 R 5 Q 4
0 6 R 7 S 10
0 7 S 1 A 10
0 7 S 2 B 14
0 7 S 3 C 7
0 7 S 4 P 9
0 7 S 5 Q 4
0 7 S 6 R 8

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