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4.2 Multi-stage transportation problem
The standard is determining the delivery of homogenous materials (commodity) from
n
suppliers to
m
purchasers. Multi-stage transportation problem, which in addition to
suppliers and customers, there are still intermediate points such as distribution centers
(Fig.2). Where the set W = {W
1
, W
2
, .. W
n
} specifies the suppliers/manufacturers/, the set O
= {O
1
, O
2
, .. O
m
} purchasers (delivery points) and set P = {P
1
, .. P
k
} intermediaries such as
warehouses, distribution centers, logistic warehouses.
Fig. 6. The network for multi-stage transportation problem
Symbol
Description
Indices
j
delivery point (j=1..M)
i
facility/factory (i=1..N)
s
distribution center (s=1..E)
N
the number of factories
M
the number of delivery points
E
the number of distribution centers
Input Parameters
C
j
production cost for the factory i (i=1..N).
W
i
production capacity for factory i (i=1..N).
Z
j
demand for delivery point j (j=1..M)
A
is
the cost of delivery from factory i to distribution center s (i=1..N) (s=1..E)
the cost of delivery from distribution center s to delivery point j (s=1..E)
(j=1..M)
G
sj
Decision Variables
X
is
the part of the delivery from factory i to distribution center s
Y
sj
the part of delivery from distribution center s to delivery point j
Table 5. The indices, input parameters and the decision variables for optimization model.
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