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What is the difference between transportation problem and transhipment problem?

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What is the difference between transportation problem and transhipment problem? Give one example of each.

asked Feb 3, 2013 in Operations Research by Jacob (3,150 points)

1 Answer

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In transportation problem goods are transported directly from supply (origin) point to demand (destination) point.

But in many situtaions, the shipments or transportation of goods are allowed between supply points or between demand points. Even sometimes there may be some points through which goods can be transported from a supply point to destination point. Such a problem is called transshipment problem.
answered Feb 13, 2013 by statmaster (18,080 points)
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