Shirazi, N., Seyyed Esfahani, M., Soleimani, H. (2015). Modeling and solving a three-stage fixed charge transportation problem considering stochastic demand and price. Journal of Industrial Engineering and Management Studies, 2(1), 27-40.

N. Shirazi; M. Seyyed Esfahani; Hamed Soleimani. "Modeling and solving a three-stage fixed charge transportation problem considering stochastic demand and price". Journal of Industrial Engineering and Management Studies, 2, 1, 2015, 27-40.

Shirazi, N., Seyyed Esfahani, M., Soleimani, H. (2015). 'Modeling and solving a three-stage fixed charge transportation problem considering stochastic demand and price', Journal of Industrial Engineering and Management Studies, 2(1), pp. 27-40.

Shirazi, N., Seyyed Esfahani, M., Soleimani, H. Modeling and solving a three-stage fixed charge transportation problem considering stochastic demand and price. Journal of Industrial Engineering and Management Studies, 2015; 2(1): 27-40.

Modeling and solving a three-stage fixed charge transportation problem considering stochastic demand and price

^{3}Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University (IAU), Qazvin, Iran

Abstract

This paper considers a three-stage fixed charge transportation problem regarding stochastic demand and price. The objective of the problem is to maximize the profit for supplying demands. Three kinds of costs are presented here: variable costs that are related to amount of transportation cost between a source and a destination. Fixed charge exists whenever there is a transfer from a source to a destination, and finally, shortage cost that incurs when the manufacturer does not have enough products for supplying customer’s demand. The model is formulated as a mixed integer programming problem and is solved using a multicriteria scenario based solution approach to find the optimal solution. Mean, standard deviation, and coefficient of variation are compared as the acceptable criteria to decide about the best solution.

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