Adding in a transshipment point to transportation problem is a common approach. Then the transshipment point will allow equal capacity volumes 'in' and 'out' of the transshipment point from different sources to different demand (sink) points.
Base on profit margin (marginal contribution) approach, the demand at sink points can also be modified in the model.
Of course, safety stock will be reduced with reduced lead time and propagation of variability. The cost of pooling variability in a transshipment point like Singapore can be compared to cost of holding more stocks regionally.
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