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Optimal allocation of limited and random network resources to discrete stochastic demands for standardized cargo transportation networks
Institution:1. Université Paris-Dauphine, PSL Research University, CNRS, LAMSADE, 75016, Paris, France;2. Orange Labs, France;1. University of Antwerp, Prinsstraat 13, 2000 Antwerp, Belgium;2. University of Leuven, Kasteelpark Arenberg 30 - box 2456, 3001 Heverlee, Belgium;1. Section of Transportation Engineering and Logistics, Department of Maritime and Transport Technology, Delft University of Technology, Mekelweg 2, 2628CD, The Netherlands;2. School of Logistics Engineering, Wuhan University of Technology, Heping Avenue 1178, 430063 Wuhan, China;1. Logistics and Transport Research Group, Department of Business Administration, School of Business, Economics and Law at the University of Gothenburg, Göteborg, Sweden;2. Kedge Business School, Marseille, France;1. Lehrstuhl II für Mathematik and UMIC Research Centre, RWTH Aachen University, 52056, Aachen, Germany.;2. Lehrstuhl II für Mathematik, RWTH Aachen University, 52056, Aachen, Germany.;3. UMIC Research Centre, RWTH Aachen University, 52056, Aachen, Germany.
Abstract:We consider the resource allocation problem with discrete random demands and discrete random resource capacities for standardized cargo transportation networks, in which a freight operator needs to determine the integral quantity of booking requests to be accepted for each product to maximize the expected profit. We formulate the problem as a stochastic integer programming model and provide theoretical results that completely characterize the optimal solution to the stochastic model under a special case. We present a progressive augmentation algorithm and a sampling based method for solving the stochastic model under a general case. We also offer numerical experiments to test the two methods and shed light on their performances.
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