The stochastic transportation problem with single sourcing |
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Authors: | H Edwin Romeijn F Zeynep Sargut |
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Institution: | a Department of Industrial and Operations Engineering, The University of Michigan, 1205 Beal Avenue, Ann Arbor, Michigan 48109-2117, United States b Izmir University of Economics, Department of Business Administration, Sakarya caddesi No:156, 35330 Balcova, Izmir, Turkey |
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Abstract: | We propose a branch-and-price algorithm for solving a class of stochastic transportation problems with single-sourcing constraints. Our approach allows for general demand distributions, nonlinear cost structures, and capacity expansion opportunities. The pricing problem is a knapsack problem with variable item sizes and concave costs that is interesting in its own right. We perform an extensive set of computational experiments illustrating the efficacy of our approach. In addition, we study the cost of the single-sourcing constraints. |
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Keywords: | Transportation problem Random demands Nonlinear costs |
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