Can we apply transshipment models to inventory applications? Why or why not? Transshipment models can be applied to inventory applications because like transshipment models inventory applications deal transporting goods to different destinations. Items are transported from one destination to another just like inventory applications. Transshipments of goods to service customers can involve several stocking locations and storage facilities. For example, one central location may hold small quantities of multiple products in inventory for immediate need. Correspondingly, the same products may be held in large quantities at individual storage facilities. Suppose a company has seven major products in constant demand. One central location then stocks all seven products in limited quantities. Seven affiliated storage locations or warehouses are used to stock large quantities of each product. Transfer of the separate products to the central facility or
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