Abstract
This research work seeks to model the distribution of 50 cl Pepsi soft drink as a transhipment problem. The transshipment problem is an extension of the traditional transportation problem which takes into account a multi-phase transport system in which the flows of goods and services are taken through an intermediate point (transhipment points) between the origin and the destination with varying objective functions. The main focus in this research was to obtain the minimum cost of transporting 10,000 crates of the product from the Benin plant (source) through deports (transshipment points) to the Sapele-Warri region (sinks) where the product is demanded. Data collected were analyzed using TORA Windows Version 2.00 software. The analysis shows that the minimum cost of transporting the product can be achieved if the product is shipped directly from the source to the sink. This forms that basis for the conclusions and recommendations of the research.
Highlights
Transportation is a very important subsystem of logistics in terms of value and its cost takes a large portion of costs in such logistics system [Briš [1]]
This research work seeks to model the distribution of 50 cl Pepsi soft drink as a transhipment problem
The transshipment problem is an extension of the traditional transportation problem which takes into account a multi-phase transport system in which the flows of goods and services are taken through an intermediate point between the origin and the destination with varying objective functions
Summary
Transportation is a very important subsystem of logistics in terms of value and its cost takes a large portion of costs in such logistics system [Briš [1]]. The typical transportation problem deals with the distribution of goods from several points of supply to a number of points of demand This problem usually arises when a cost-effective pattern is needed to ship/transport items from origins that have limited supply to destinations that have demand for the goods. Other reasons could be to combine small shipments into a large shipment (consolidation), dividing the large shipment at the other end (deconsolidation) Whatever the reason, this model takes into consideration a multi-phase transport system where the flow of material-raw and/or finished goods and services are taken through the intermediate point which is between the origin and the destination. In classical approach, transporting costs from M sources or wholesalers to N destinations or consumers are to be minimized It is an Optimization Problem which has been applied to solve various NP-Hard Problems [Chaudhuri and De [6]]. The aim of the study is to model the transportation/distribution of the product as a transshipment problem in other to obtain the minimum cost
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