The two-stage delay distribution method based on compensation mechanism under random environment. (2019)

• Record Type: Journal Article
• Authors: Wang, Jianjun; Zhou, Lei; Li, Fachao
• Is Part Of: International journal of internet manufacturing and services. Volume 6:Number 1(2019)
• Page Start: 19
• Page End: 31
• Publication Date: 2019
• Subjects: compensation mechanism -- minimise expectation cost -- non-load distribution -- synthesising effect; Computer integrated manufacturing systems -- Periodicals; Internet -- Periodicals; 670.2854678
• Languages: English
• ISSNs: 1751-6048

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.