Solving transportation problem with stochastic demand and non-linear multi-choice cost

This article deals with the multi-choice and stochastic parameters of the transportation problem, in which the main aim is to minimize the transportation cost. The transportation problem consists of the multi-choice cost parameters and random demand parameters because of the uncertainty in the environment. The objective function of the problem is in the non-linear form, due to the multi-choice cost parameter and the extra cost and, the constraint corresponding to the demand is in a probabilistic manner. The multi-choice parameters are converted into single choice using Newton’s Divided Difference Interpolation and, the chance-constrained technique used for transforming the probabilistic constraints into deterministic constraints. The numerical example presented for the description of the methodology.