Capacity allocation problem with random demands for the rail container carrier

In this paper, we consider the formulation and heuristic algorithm for the capacity allocation problem with random demands in the rail container transportation. The problem is formulated as the stochastic integer programming model taking into account matches in supply and demand of rail container transportation. A heuristic algorithm for the stochastic integer programming model is proposed. The solution to the model is found by maximizing the expected total profit over the possible control decisions under the uncertainty of demands. Finally, we give numerical experiments to demonstrate the efficiency of the heuristic algorithm.

► We provide description of the capacity allocation problem with random demands.
► A stochastic integer programming model for the problem is provided.
► A heuristic algorithm is proposed to find an approximate optimal solution.
► The proposed algorithm can solve large-scale problems.