An extension to the transport problem is the transshipment problem, in which locations can have a surplus or a demand of some good, and are typically connected by an incomplete network so that goods cannot be shipped directly but only via some other nodes. Consider the following example: There are eight locations (warehouses) W1 to W8 connected by a network in which most connections can be only used in one direction (think about storage tanks and pipelines as an example). Transportation costs are according to the following table: so e.g. W3 can only receive shipments, but not send off anything, while e.g. from W1, goods can be shipped away but not delivered to W1. Warehouse W1 has an excess supply of 10 and W4 of 2 . There is excess demand of 3 in warehouse W3, of 1 in W6 and of 8 in W8 that needs to be covered. Formulate and solve an optimization model to find the cost minimal transportation plan (for the model formulation, you might look for the keyword transshipment model in logistics or operations research textbooks). An extension to the transport problem is the transshipment problem, in which locations can have a surplus or a demand of some good, and are typically connected by an incomplete network so that goods cannot be shipped directly but only via some other nodes. Consider the following example: There are eight locations (warehouses) W1 to W8 connected by a network in which most connections can be only used in one direction (think about storage tanks and pipelines as an example). Transportation costs are according to the following table: so e.g. W3 can only receive shipments, but not send off anything, while e.g. from W1, goods can be shipped away but not delivered to W1. Warehouse W1 has an excess supply of 10 and W4 of 2 . There is excess demand of 3 in warehouse W3, of 1 in W6 and of 8 in W8 that needs to be covered. Formulate and solve an optimization model to find the cost minimal transportation plan (for the model formulation, you might look for the keyword transshipment model in logistics or operations research textbooks)