Journal of the Operations Research Society of China

Special Issue: Stochastic optimization

• Discrete Optimization • Previous Articles     Next Articles

Transportation Problem with Multi-choice Cost and Demand and Stochastic Supply

  

  • Online:2016-06-30 Published:2016-06-30

Abstract:

This paper analyzes the multi-choice stochastic transportation problem where the cost coefficients of the objective function and the demand parameters of the constraints follow multi-choice parameters. Assume that the supply parameters of the constraints in a transportation problem (TP) follow logistic distribution. The main objective of this paper is to select an appropriate choice from the multi-choices for the cost coefficients of the objective function and the demand of the constraints in the TP by introducing Lagrange’s interpolating polynomial in such a way that the total cost is minimized and satisfies the required demand. Using stochastic programming, the stochastic supply constraints of the TP are transformed into deterministic constraints. Finally, a non-linear deterministic model is formulated. Using Lingo software, the optimal solution of the proposed problem is derived. To illustrate the methodology, a real-life problem on the TP is considered.

Key words: Transportation problem , Multi-choice programming , Lagrange’s interpolating polynomial , Stochastic programming