Article
Operations Research & Management Science
Gui-Hua Lin, Zhen-Ping Yang, Hai-An Yin, Jin Zhang
Summary: In this paper, a dual-based stochastic inexact algorithm is proposed to solve stochastic nonsmooth convex problems with underlying structure. The algorithm integrates a deterministic augmented Lagrangian method with stochastic approximation techniques. Each subproblem is efficiently solved by a superlinearly convergent semismooth Newton method that utilizes the sparsity of the second order information. The paper presents convergence properties, convergence rate of objective values, and results related to the convergence rate of distance between iteration points and solution set under error bound conditions, and also demonstrates favorable numerical results compared to existing methods.
COMPUTATIONAL OPTIMIZATION AND APPLICATIONS
(2023)
Article
Management
Nicky D. Van Foreest, Onur A. Kilic
Summary: In this research note, it is shown that applying Breiman's work from 1964 on optimal stopping can lead to an elementary proof of the fact that (s, S) policies minimize the long-run average cost for periodic-review inventory control problems. The proof method is appealing as it only relies on basic concepts of renewal-reward processes, optimal stopping, dynamic programming, and root-finding. Furthermore, it provides an efficient algorithm for computing the optimal policy parameters. If Breiman's paper had received the attention it deserved, computational methods for (s, S)-policies could have been discovered about three decades earlier than the famous algorithm by Zheng and Federgruen (1991).
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2023)
Article
Computer Science, Interdisciplinary Applications
F. S. Oliveira, Nahim B. Zahur, Fulan Wu
Summary: We examined the issue of petroleum stockpiling in ASEAN and computed the optimal policies for building up and drawing down stocks. By analyzing various factors such as petroleum prices, oil imports and production, and GDP, we determined the effects of different conditions on the optimal policy. Using a stochastic program, we proposed an inter-generational equity rule to calculate the level of inventory in the final states and found that developing a strategic petroleum reserve would bring significant benefits to ASEAN countries, with net benefits ranging from US$25-125 billion. Our suggested target stockpile aligns with the International Energy Agency's recommendation.
COMPUTERS & INDUSTRIAL ENGINEERING
(2023)
Article
Operations Research & Management Science
Jingqun Li, Thia Kirubarajan, R. Tharmarasa, Daly Brown, Krishna R. Pattipati
Summary: In this paper, we extend the purely dual formulation for three-dimensional assignment problems to solve more general multidimensional assignment problems. The convex dual representation is derived and its relationship to the Lagrangian relaxation method for solving multidimensional assignment problems is investigated. The condition under which the duality gap is zero is discussed, and it is pointed out that the Lagrangian relaxation process is essentially equivalent to relaxing the binary constraint condition.
JOURNAL OF GLOBAL OPTIMIZATION
(2021)
Article
Management
Dimitris Bertsimas, Shimrit Shtern, Bradley Sturt
Summary: This paper proposes a new data-driven approach for addressing multistage stochastic linear optimization problems with unknown distributions. The approach involves solving a robust optimization problem to approximate the underlying stochastic problem and provides asymptotic optimality guarantees. The research shows that this approach can achieve asymptotic optimality in the presence of arbitrarily correlated uncertainty. Finally, numerical experiments demonstrate the practical value of the proposed method in stylized data-driven inventory management problems.
MANAGEMENT SCIENCE
(2023)
Article
Management
Walter J. Gutjahr, Raimund M. Kovacevic, David Wozabal
Summary: This paper addresses the problem of bargaining in economics and management. It proposes a solution that integrates optimal managerial decision making into bargaining situations with random outcomes and explicitly models the impact of risk aversion. The proposed solution is based on coherent acceptability functionals and a set of axioms that extend the Nash bargaining theory. It provides concrete bargaining solutions for a wide range of practical problems and characterizes special cases where the random payoffs of players are simple functions of overall project profit. The findings show that there is no conflict of interest between players about management decisions and that risk aversion facilitates cooperation.
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2022)
Article
Management
Adriana Cristina Cherri, Luiz Henrique Cherri, Beatriz Brito Oliveira, Jose Fernando Oliveira, Maria Antonia Carravilla
Summary: In cutting processes, generating usable leftovers to minimize waste is a strategy to reduce raw material waste. However, determining the optimal length of the leftovers is challenging when future demand is unknown. This paper proposes a two-stage stochastic program with recourse to address the cutting stock problem with the possibility of generating leftovers. Computational experiments show the effectiveness of the proposed approach in handling uncertainty and sequential decision-making points.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2023)
Article
Operations Research & Management Science
Casper T. Roling, Stefanny Ramirez, Dario Bauso, Hamidou Tembine
Summary: This study examines primal-dual dynamics for a stochastic programming problem in capacity network design. It proves that consensus can be reached on the current variables that represent network capacity. The main contribution lies in a heuristic approach that formulates the problem as a mean-field game. Each agent in the mean-field game controls its own primal-dual dynamics and seeks consensus with neighboring agents based on a communication topology. The study provides theoretical results on the existence of a mean-field equilibrium and demonstrates the convergence of consensus dynamics in which agents agree on the network capacity. Additionally, it emphasizes the influence of penalties on control and state in the mean-field game dynamics.
OPTIMIZATION LETTERS
(2023)
Article
Mathematics
Mehdi Toloo
Summary: Linear fractional programming has been an important planning tool for the past four decades. The study shows the existence of two different dual problems for a linear programming problem under certain assumptions, making it easier to prove related duality theorems. The proposed approach is illustrated using a traditional data envelopment analysis (DEA) model to demonstrate its applicability.
Article
Management
Birger Raa, Tarik Aouam
Summary: This paper addresses the cyclic inventory routing problem with stochastic demand and limited vehicle capacity. It presents an approximate method for determining safety stock levels and integrates it into a state-of-the-art metaheuristic solution approach. The study highlights the impact of vehicle capacity on cost balance, the accuracy of the approximation, and the added value of considering demand variability and shortfall due to limited vehicle capacity in route design.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2023)
Article
Management
Tadeusz Sawik
Summary: This paper presents a stochastic mixed integer programming model for optimizing supply chain reshoring under the ripple effect from a foreign disruption source region. The proposed approach integrates strategic reshoring and operational scheduling, allowing for evaluation of the operational impact. Results from computational experiments in the smartphone industry indicate the reliance on government subsidies and the potential benefits of reshoring for meeting domestic market demand and mitigating the ripple effect. However, for risk-averse decision-making, reshoring is not selected if it cannot reduce worst-case costs and lost sales.
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
(2023)
Article
Management
Batuhan Celik, Serhat Gul, Melih Celik
Summary: This article studies the scheduling problem of multiple operating rooms (ORs) and induction rooms (IR) under uncertainty, considering the principle of parallel processing. A two-stage stochastic mixed-integer programming model is proposed, which optimizes the total cost of patient waiting time, OR idle time, and IR idle time. A novel progressive hedging algorithm is implemented to solve the model, and the solution approach is compared with scheduling heuristics from the literature. The benefits and costs of implementing parallel processing are assessed, and the value of considering uncertainty in durations is estimated.
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
(2023)
Article
Management
Ayse N. Arslan, Walid Klibi, Benoit Montreuil
Summary: This article investigates the distribution problem of brick-and-mortar retailers integrating the online channel into their operations using an integrated modeling approach. Two alternative deployment strategies are studied to evaluate performance and efficiency through numerical evaluation inspired by a European retailer case study.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Engineering, Multidisciplinary
Meimei Zheng, Ningxin Du, Hui Zhao, Edward Huang, Kan Wu
Summary: In response to the increasing competition in the pharmaceutical industry, this study focuses on improving the efficiency of clinical trial supply chains to reduce drug supplying costs. The research investigates inventory levels and allocation problems, proposing a stochastic mixed-integer model and algorithm for optimization. Several structural results and strategies are derived to enhance the effectiveness of the process.
APPLIED MATHEMATICAL MODELLING
(2021)
Article
Computer Science, Interdisciplinary Applications
Seyed Mohammad Gholami-Zanjani, Mohammad Saeed Jabalameli, Mir Saman Pishvaee
Summary: A novel bi-objective stochastic model is developed in this research for meat inventory planning, with two resiliency strategies embedded. The results indicate that resilient solutions can improve network performance and are sensitive to throughput capacity and lead-time. Trade-off interactions between the objectives provide managerial insights.
COMPUTERS & INDUSTRIAL ENGINEERING
(2021)
