The Variance-Constrained Shortest Path Problem

This paper discusses the variance-constrained shortest path problem. This problem can be used to model any application in which the travel costs on a link are not deterministic, but follow a distribution that has possible correlation with travel cost on other links. Exact solution methods are proposed, and results are reported from computational experiments on data sets derived from a real-life routine scenario involving the transportation of liquefied-gas hazardous materials.