AbstractThe transportation model with supplies (Si) and demands (Di) treated as bounded variables developed by Charnes and Klingman is extended to the case where theSiandDiare independently and uniformly distributed random variables. Chance constraints which require that demand at the jth destination will be satisfied with probability at least βiand that stockout at the ith origin will occur with probability less than αiare imposed. Conversion of the chance constraints to their linear equivalents results in a transportation problem with one more row and column than the original with some of the new arcs capacitated. The chance‐constrained formulation is extended to the transshipment prob