The primary concern when firm produce their products is how the products will reach their targeted market. Some firms do it directly or they outsource these services to other marketing firms. Transport is always a challenge and therefore it may require several intermediaries before it gets to the intended destination. The transshipments of these products may involve a number of stocking warehouse and storage facilities (Mattfeld, 2006).
At times there is a central location where the inventory stockpiles are regulated to enhance efficiency and reduce the overall cost of supplies or products. This type of model is referred to transshipment model. For a retail business, records of business merchandise at a certain time are kept in an inventory. This may be a shortcoming to firms since keeping each inventory may be a problem therefore the inventory model is used. The model consists of financial equations used to define the right quality of inventory to keep at hand (Kollintzas, 1989). Inventory models help firms to know when to order new inventories so that clients do not wait for long products when ordered.
Transshipment models can be used to inventory applications since the transshipment models deal with the transport of products to their destination. Products are taken to their intended market or destination just like the inventory applications (Kollintzas, 1989). The transport model can be considered as a decision making under certainty because the intended destination and source are known aspects this makes the decision making uncertain.
A distinct case of transport issue is the assignment problem experienced when one supplier is assigned to one destination. An assignment model can be used to solve the one on one old way of assigning a problem of assigning employees to machine, employees to jobs(Caulley, 2014).The assignment model is very beneficial in that it is an evaluation model that describes its roles of helping in decision-making. The model is applied to assignment problems where there is a variable to be optimized.