A capacitated stochastic linear transshipment problem with prohibited routes

Abstract

The present paper analyses a transshipment problem under uncertain demand with some prohibited routes and upper bounds or capacity restrictions on some routes. The objective is to maximize the net expected revenue, i.e., the total expected revenue minus the transportation and transshipment costs. The stochastic transshipment problem is reduced to an equivalent deterministic transportation problem for which an algorithm has been developed and numerically illustrated.