AbstractIn this journal in 1967. Szware presented an algorithm for the optimal routing of a common vehicle fleet betweenmsources andnsinks withpdifferent types of commodities. The main premise of the formulation is that a truck may carry only one commodity at a time and must deliver the entire load to one demand area. This eliminates the problem of routing vehicles between sources or between sinks and limits the problem to the routing of loaded trucks between sources and sinks and empty trucks making the return trip. Szwarc considered only the transportation aspect of the problem (i. e., no intermediate points) and presented a very efficient algorithm for solution of the case he described. If the total supply is greater than the total demand, Szwarc shows that the problem is equivalent to a (mp + n) by (np + m) Hitchcock transportation problem. Digital computer codes for this algorithm require rapid access storage for a matrix of size (mp + n) by (np + m); therefore, computer storage required grows proportionally top2. This paper offers an extension of his work to a more general form: a transshipment network with capacity constraints on all arcs and facilities. The problem is shown to be solvable directly by Fulkerson's out‐of‐kilter algorithm. Digital computer codes for this formulation require rapid access storage proportional topinstead ofp2. Computational results indicate that, in addition to handling the extensions, the out‐of‐kilter algorithm is more efficient in the solution of the original problem when there is a mad, rate number of commodities and a computer of limited storage c