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Optimal allocation of limited and random network resources to discrete stochastic demands for standardized cargo transportation networks

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  • Wang, Xinchang

Abstract

We consider the resource allocation problem with discrete random demands and discrete random resource capacities for standardized cargo transportation networks, in which a freight operator needs to determine the integral quantity of booking requests to be accepted for each product to maximize the expected profit. We formulate the problem as a stochastic integer programming model and provide theoretical results that completely characterize the optimal solution to the stochastic model under a special case. We present a progressive augmentation algorithm and a sampling based method for solving the stochastic model under a general case. We also offer numerical experiments to test the two methods and shed light on their performances.

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  • Wang, Xinchang, 2016. "Optimal allocation of limited and random network resources to discrete stochastic demands for standardized cargo transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 310-331.
    • Handle: RePEc:eee:transb:v:91:y:2016:i:c:p:310-331
    DOI: 10.1016/j.trb.2016.06.002
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    Cited by:

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