The Transshipment Problem
We would like to find a flow x : E → R+ of quantities to ship along the arcs in order to satisfy the supply and demand at each vertex at a minimal cost.
Equilibrium
The equilibrium is satisfied if the difference between entering and exiting quantities at each vertex is equal to the supply or the demand at that vertex.
What is bi
pred xji − succ xij
It does not exist an exiting arc
The network has a circuit
with a negative cost and the problem has no nite optimum