TRANSSHIPMENT MODEL IN THE FUNCTION OF COST MINIMIZATION IN A LOGISTICS SYSTEM

Transportation is the most important subsystem of logistics in terms of value. Transportation costs account for the largest portion of costs in a logistics system. The paper will examine the usage of a transshipment model with the purpose of minimizing the costs in a logistics system. Transshipment model is a multi-phase transport problem in which the flow of material – raw materials and services is interrupted in at least one point between the origin and the destination. The whole stock passes through intermediate points of reloading before the goods reach their final destination. By using methods of mathematical and computer modelling it was attempted to find out how many intermediate points should be introduced into the system, and whether their capacity should be limited. The purpose is to optimize the plan which should ensure that total transportation and warehousing costs are brought to a minimum, thus minimizing overall costs in the logistics system.