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A two-stage stochastic transportation problem with fixed handling costs and a priori selection of the distribution channels

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  • Yolanda Hinojosa
  • Justo Puerto
  • Francisco Saldanha-da-Gama

Abstract

In this paper, a transportation problem comprising stochastic demands, fixed handling costs at the origins, and fixed costs associated with the links is addressed. It is assumed that uncertainty is adequately captured via a finite set of scenarios. The problem is formulated as a two-stage stochastic program. The goal is to minimize the total cost associated with the selected links plus the expected transportation and fixed handling costs. A prototype problem is initially presented which is then progressively extended to accommodate capacities at the origins and multiple commodities. The results of an extensive set of computational tests are reported and discussed. Copyright Sociedad de Estadística e Investigación Operativa 2014

Suggested Citation

  • Yolanda Hinojosa & Justo Puerto & Francisco Saldanha-da-Gama, 2014. "A two-stage stochastic transportation problem with fixed handling costs and a priori selection of the distribution channels," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(3), pages 1123-1147, October.
    • Handle: RePEc:spr:topjnl:v:22:y:2014:i:3:p:1123-1147
    DOI: 10.1007/s11750-014-0321-4
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    References listed on IDEAS

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    Cited by:

    1. Fernández, Elena & Hinojosa, Yolanda & Puerto, Justo & Saldanha-da-Gama, Francisco, 2019. "New algorithmic framework for conditional value at risk: Application to stochastic fixed-charge transportation," European Journal of Operational Research, Elsevier, vol. 277(1), pages 215-226.
    2. Najmesadat Nazemi & Sophie N. Parragh & Walter J. Gutjahr, 2022. "Bi-objective facility location under uncertainty with an application in last-mile disaster relief," Annals of Operations Research, Springer, vol. 319(2), pages 1689-1716, December.

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