Title: The two-stage delay distribution method based on compensation mechanism under random environment

Authors: Jianjun Wang; Lei Zhou; Fachao Li

Addresses: Modern Education Technology Centre, Hebei University of Economics and Business, Shijiazhuang, 050061, China ' School of Economy and Management, Hebei University of Science and Technology, Shijiazhuang, 050018, China ' School of Economy and Management, Hebei University of Science and Technology, Shijiazhuang, 050018, China

Abstract: The two-stage delay distribution problem is a class of special programming problem. In real life, the supply, demand and transportation environment are with uncertainty. If the random customer demand does not reach full load, we will choose the decision of the delay delivery or delivery on schedule based on minimise expectation cost. In this paper, based on the analysis of the random distribution characteristics and deficiencies, a class of two-stage delay distribution stochastic programming model with compensation mechanism is put forward. Through synthesising the expectation, variance and probability distribution of cost factors, stochastic programming model can be converted into a class of crisp programming models. Finally, combined with the case of the vehicle distribution, using the analytical method, the proposed model is applied to get the optimal solution which can reduce transportation costs and improve the profitability.

Keywords: compensation mechanism; minimise expectation cost; non-load distribution; synthesising effect.

DOI: 10.1504/IJIMS.2019.096642

International Journal of Internet Manufacturing and Services, 2019 Vol.6 No.1, pp.19 - 31

Received: 10 Mar 2017
Accepted: 01 Dec 2017

Published online: 27 Nov 2018 *

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