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Allocation under Uncertainty when the Demand has Continuous D.F

Author

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  • Salah E. Elmaghraby

    (Western Electric Co. Engineering Research Center, Princeton, New Jersey)

Abstract

The problem of allocation under uncertain demand, when the latter has a continuous distribution function, is treated. A necessary and sufficient condition for optimality is given, and a numerical example is solved. This solution is compared with the L.P. solutions obtained under the assumptions of constant demand and demand with discrete d.f. It is seen that considerable savings can be realized by considering d.f.'s as continuous if they so occur in nature.

Suggested Citation

  • Salah E. Elmaghraby, 1960. "Allocation under Uncertainty when the Demand has Continuous D.F," Management Science, INFORMS, vol. 6(3), pages 270-294, April.
    • Handle: RePEc:inm:ormnsc:v:6:y:1960:i:3:p:270-294
    DOI: 10.1287/mnsc.6.3.270
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    Cited by:

    1. Maria Daneva & Torbjörn Larsson & Michael Patriksson & Clas Rydergren, 2010. "A comparison of feasible direction methods for the stochastic transportation problem," Computational Optimization and Applications, Springer, vol. 46(3), pages 451-466, July.
    2. Abhijit Baidya & Uttam Kumar Bera, 2019. "New model for addressing supply chain and transport safety for disaster relief operations," Annals of Operations Research, Springer, vol. 283(1), pages 33-69, December.

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