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A substantial part of United Parcel Service s freight traffic moves as a trailer - on - flatcars ( i . e . with truck
A substantial part of United Parcel Services freight traffic moves as a traileronflatcars ie
with truck trailers travelling most of the way on railroad flatcars The required number of
truckloads dij
to be shipped between points i j n in this way is known, but UPS
can use either its own trailer at unit cost cij
or rent trailers from railroad company at unit cost
rij
Rented trailers can be left anywhere, but UPS wishes to balance the number of its own
trailers available at every point. That is the number of company trailers inbound at any point
should be equal the number outbound. If necessary, trailers may be returned empty from i to j at
unit cost eij
to meet this requirement. Develop an optimization model to find a minimum total
cost shipping plan.
Check if your model is a single commodity network flow problem. If yes how identify the
arcs, flow, capacity etc.
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