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

Published online by Cambridge University Press:  28 April 2015

Earl A. Stennis  and
Verner G. Hurt
Earl A. Stennis
Affiliation:
Mississippi Agricultural and Forestry Experiment Station
Verner G. Hurt
Affiliation:
Mississippi Agricultural and Forestry Experiment Station
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Extract

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.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 7 , Issue 1 , July 1975 , pp. 165 - 170
Copyright
Copyright © Southern Agricultural Economics Association 1975

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Footnotes

*

Mississippi Agricultural and Forestry Experiment Station Journal Series No. 2864.

References

[1] Gass, Saul I. Linear Programming Methods and Applications, McGraw-Hill Book Company, New York, New York, 1969.Google Scholar
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[3] Judge, G. G., Havlicek, J. and Rizek, R. L.. “An Interregional Model: Its Formulation and Application to the Livestock Industry,” Agricultural Economic Review, Vol. 17, 1965, pp. 1–9.Google Scholar
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[7] Rhody, D. H. “Interregional Competitive Position of the Hog-Pork Industry in the Southeast United States,” unpublished Ph.D. Thesis, Iowa State University, 1963.Google Scholar
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[9] Stennis, Earl A. “Production, Processing and Consumption of Fluid Milk in the South, 1965 and 1975.” Unpublished Ph.D. Thesis, Mississippi State University, 1970.Google Scholar
[10] Stennis, Earl A., Hurt, Verner G., and Smith, Blair J.. Levels and Locations of Fluid Milk Production, Processing, and Consumption in the South, 1965 and 1975, Southern Cooperative Series, Bulletin No. 163, January 1970.Google Scholar