Analyzing Multi-Commodity Distribution Networks Having Milling-in-Transit Features

This paper summarizes the development and implementation of a model which uses the transportation method of linear programming to analyze multi-commodity networks having milling-in-transit features. The milling-in-transit privilege, which is granted by common carriers on many bulk raw materials, functionally relates the inbound raw materials with the outbound finished goods produced at a given manufacturing facility. The proposed model is developed under general assumptions, and is used to determine raw material sources and associated purchasing quantities, and to apply transit billing to outbound end product shipments. Implementation and utilization of the model by a major American food processor is described, and results from the model's application are presented and discussed.