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A Negative-Cost Approach to the Formulation of a Transhipment Problem

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  • Stennis, Earl A.
  • Hurt, Verner G.

Abstract

The transhipment problem formulation has been and is still being used extensively by researchers to solve spatial equilibrium and plant location problems. Hurt and Tramel, King and Logan, Rhody, and Judge et al. have all treated the subject of alternative formulations of transhipment problems. This paper (1) proposes an alternative formulation of these problems using a negative-cost technique and, (2) suggests a matrix reduction scheme which will reduce computational time for some problems. King and Logan used a three region, two-stage formulation of the transhipment model which was reformulated by Hurt and Tramel. As a point of departure, the same sample problem will be used to present the negative-cost formulation. This should enable the reader to more readily determine differences between formulations and decide which formulation best serves his particular needs.

Suggested Citation

  • Stennis, Earl A. & Hurt, Verner G., 1975. "A Negative-Cost Approach to the Formulation of a Transhipment Problem," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 7(1), pages 165-170, July.
    • Handle: RePEc:cup:jagaec:v:7:y:1975:i:01:p:165-170_01
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    Cited by:

    1. Tyner, Fred H. & Campos, Roberto G., 1976. "Application Of The Transhipment Model To Development Of The Seed Industry In Northeast Brazil," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(2), pages 1-5, December.

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