This paper deals with the so-called transportation problem of linear stochastic fractional programming, and emphasizes the wide applicability of LSFP. The transportation problem, received this name because many of its applications involve in determining how to optimally transport goods. However, some of its applications (e.g., production scheduling) actually have nothing to do with transportation. The said special class of transportation problem has two distinct costs matrix in which costs involved in the problem are random in nature, and the demand vector under study is also random. The proposed E-model attempts to maximize the profit gained per unit of shipping cost, subject to regular supply constraints along with stochastic demand constraints. Solution procedure has been provided to optimize the said problem.
QM-OR07032007, SDM Institute for Management Development, Mysore, Karnataka, India 570 011.