Stochastic Transportation-Inventory Network Design Problem

@article{Shu2005StochasticTN,
  title={Stochastic Transportation-Inventory Network Design Problem},
  author={Jia Shu and Chung-Piaw Teo and Zuo-Jun Max Shen},
  journal={Operations Research},
  year={2005},
  volume={53},
  pages={48-60}
}
In this paper, we study the stochastic transportation-inventory network design problem involving one supplier and multiple retailers. Each retailer faces some uncertain demand. Due to this uncertainty, some amount of safety stock must be maintained to achieve suitable service levels. However, risk-pooling benefits may be achieved by allowing some retailers to serve as distribution centers (and therefore inventory storage locations) for other retailers. The problem is to determine which… CONTINUE READING

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