The transshipment problem formulation may be used in place of transportation formulation when there are two products that are being shipped, each having its own per unit cost of shipping.

Question

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The transshipment problem formulation is used to model scenarios where goods or commodities are transferred through intermediate nodes before reaching their final destinations, not specifically for handling two products with different shipping costs. The transportation problem focuses on shipping goods from sources to destinations at minimum cost, without the necessity of intermediate nodes.

The Transshipment Problem Formulation May Be Used in Place of Transportation