Question

Most transshipment network modeling problems assume the costs are constant. For example, the costs of shipping a product from one city to another are assumed fixed. This can change over time if fuel costs change. If you knew the distribution of fuel costs, how could the distribution of fuel costs be incorporated into the transshipment problem? Discuss the benefits of employing this approach.

Answer 1

Answer :

If we know the dissemination of fuel costs, the appropriation of fuel costs be fused into the transshipment issue according to the utilization premise or thing to thing premise.

As we as a whole realize that the fuel cost are changed everyday so on the off chance that we know the circulation of fuel costs.

At that point we can ascertain the today change in cost of fuel when contrasted with last rates and afterward the absolute costs is conveyed or added to the transportation cost.

Truly there are advantages of it .It is given as follows

i.e.,

The advantages are that we can accurately gauge the expense of delivery or we can accept shipping charge according to the adjustments in the fuel costs.

Presently at present we can take the fixed sum which is commonly gets negative to us because of the changing in fuel rates however on the off chance that we can include the progressions of the expense of the fuel to the delivery charges then we can charge the great costs of the transportation according to the right gauges.