Abstract:
In this paper, we propose a stochastic programming model, which considers a ratio of two
nonlinear functions and probabilistic constraints. In the former, only expected model has been
proposed without caring variability in the model. On the other hand, in the variance model,
the variability played a vital role without concerning its counterpart, namely, the expected
model. Further, the expected model optimizes the ratio of two linear cost functions where as
variance model optimize the ratio of two non-linear functions, that is, the stochastic nature in
the denominator and numerator and considering expectation and variability as well leads to a
non-linear fractional program. In this paper, a transportation model with stochastic fractional
programming SFP problem approach is proposed, which strikes the balance between previous
models available in the literature.
