Abstract

The Generalized Transportation Problem (GTP) allows us to model situations where the amount of goods leaving the supply points is not equal to the amount delivered to the destina-tions (this is the case e.g. when fragile or perishable goods are transported or complaints may occur). In this article, a model of GTP with random, discretely distributed, demand is present-ed. Each problem of this type can be transformed either into the form of a convex program-ming problem with a piecewise linear objective function, or a mixed integer LP problem. The method of solution presented uses ideas applied in the Method of Stepwise Analysis of Varia-bles and in the Equalization Method.

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