In this paper, we study a novel network design problem for the fourth-party logistics network (4PLN) to cope with accidental demand surges. A chance-constrained stochastic programming model is established to minimize the overall cost for 4PLN under service-level targets, where the stochastic...

We consider a single-period distribution system with one supplier and two retailers. The supplier may have infinite or finite capacity. The demand at each retailer is random. When a stockout occurs at one retailer the customer may go to the other retailer. We study both the decentralized and...