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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 trailer-on-flatcars (i.e.
with truck trailers travelling most of the way on railroad flatcars). The required number of
truckloads di,j
to be shipped between points i, j =1,2,,..., n in this way is known, but UPS
can use either its own trailer at unit cost ci,j
or rent trailers from railroad company at unit cost
ri,j
. 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 ei,j
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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