Logistic Circulation with Risks in Transportation of Agricultural Products

This paper is devoted to the problem of optimal transportation of agricultural products through a network of loading, intermediate and unloading points through the circulation of vehicles and taking into account the capacity and the risk of adverse events in different parts of the network. The risk is considered as a product of two measures -the volume of agricultural transport production on a given section of the network and the probability of adverse events on that section. To describe the transport process, the use of circulation in a generalized two-product network flow with bandwidth and risk function is proposed. A method is described by which the minimal number of necessary means of transport for transportation of all production at total minimal transportation costs and for risk reduction insurance can be determined. It is proposed that the whole process for optimization of the transport activity be controlled by a computer system and periodically updated by recalculating the schedule according to the proposed method.