A transshipment problem is an extension of a transportation problem when inm- mediate pass-through stages (e.g., warehouses and stocking points) are allowed between the origins and the destinations. For example, the existing distributin system at MB as shown in Figure 6.1 presents a transshipment problem- "ls shown in Figure 6. 1, the wholesalers are termed transshipment nodes, which do not contain production capacity or incur direct demand consumption. In farr, MB's distribution system can be viewed as a mix of two transportation problerc plant*wholesaler as one and wholesaler-retailer as another.