TY - JOUR
A2 - Fraga, Eric S.
AU - Nkeki, Charles I.
PY - 2013
DA - 2013/12/15
TI - Dynamic Optimization Technique for Distribution of Goods with Stochastic Shortages
SP - 960879
VL - 2013
AB - This work considers the distribution of goods with stochastic shortages from factories to stores. It is assumed that in the process of shipping the goods to various stores, some proportion of the goods will be damaged (which will lead to shortage of goods in transit). The cost of the damaged goods is added to the cost of the shipment. A proportion of the total expected cost of the shortage goods is assumed to be recovered and should be deducted from the total cost of the shipment. In order to determine the minimum transportation costs for the operation, we adopt dynamic optimization principles. The optimal transportation cost and optimal control policies of shipping the goods from factories to stores were obtained. We find that the optimal costs of the goods recovered could be determined. It was further found that the optimum costs of distributing the goods with minimum and maximum error bounds coincide only at infinity.
SN - 2356-752X
UR - https://doi.org/10.1155/2013/960879
DO - 10.1155/2013/960879
JF - Journal of Optimization
PB - Hindawi Publishing Corporation
KW -
ER -