The present paper analyses a transshipment problem whose objective function is fractional under stochastic environment where the demand considered is uncertain. The objective here is to maximize the net expected revenue per unit transportation cost, i.e., the total expected revenue minus the transportation and transshipments cost. The stochastic transshipment problem is converted to an equivalent deterministic transportation problem for which an algorithm is developed and numerically illustrated.
Transshipment problem, uncertain demand, net expected revenue, basic feasible solution
