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- W2106117965 abstract "In this paper we propose a methodology for constructing decision rules for integer and continuous decision variables in multiperiod robust linear optimization problems. This type of problem finds application in, for example, inventory management, lot sizing, and manpower management. We show that by iteratively splitting the uncertainty set into subsets, one can differentiate the later-period decisions based on the revealed uncertain parameters. At the same time, the problem’s computational complexity stays at the same level, as for the static robust problem. This also holds in the nonfixed recourse situation. In the fixed recourse situation our approach can be combined with linear decision rules for the continuous decision variables. We provide theoretical results on splitting the uncertainty set by identifying sets of uncertain parameter scenarios to be divided for an improvement in the worst-case objective value. Based on this theory, we propose several splitting heuristics. Numerical examples entailing a capital budgeting and a lot sizing problem illustrate the advantages of the proposed approach." @default.
- W2106117965 created "2016-06-24" @default.
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- W2106117965 date "2016-07-01" @default.
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- W2106117965 title "Multistage Adjustable Robust Mixed-Integer Optimization via Iterative Splitting of the Uncertainty Set" @default.
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- W2106117965 doi "https://doi.org/10.1287/ijoc.2016.0696" @default.
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