Applications – OR and Management Sciences

Multi-Echelon Inventory Management for a Non-Stationary Capacitated Distribution Network

  • Alvaro Maggiar
  • Irene Song
  • Alp Muharremoglu
    • Categories Applications - OR and Management Sciences, Dynamic Programming, Supply Chain Management Tags , ,

    We present an inventory management solution for a non-stationary capacitated multi-echelon distribution network involving thousands of products. Assuming backlogged sales, we revisit and leverage the seminal multi-echelon inventory management results in the literature to establish the structural properties of the problem, and derive an efficient and practical solution method. In particular, we describe how the … Read more

    Minimizing earliness-tardiness costs in supplier networks – A Just-in-time Truck Routing Problem

  • Julian Baals
  • Simon Emde
  • Turkensteen Marcel
    • Categories Meta Heuristics, Production and Logistics Tags , , , ,

    We consider a routing problem where orders are transported just-in-time from several suppliers to an original equipment manufacturer (OEM). This implies that shipments cannot be picked up before their release date when they are ready at the supplier and should be delivered as close as possible to their due date to the OEM. Every shipment … Read more

    Robust planning of production routing problem in closed-loop supply chain of beverage glass bottles

  • Ali Borumand
  • Ahmadreza Marandi
  • Ali Nookabadi
  • Zümbül Atan
    • Categories Robust Optimization, Stochastic Programming, Supply Chain Management Tags , , , ,

    Closed-loop supply chains (CLSC) integrate forward and reverse flows of products and information. This integration helps companies to manage their supply chains better as they have more control and a broader view of the whole chain. Also, companies can have economic and environmental benefits from the returned products. Despite these advantages, managing CLSCs can be … Read more

    A Sparse Interior Point Method for Linear Programs arising in Discrete Optimal Transport

  • Filippo Zanetti
  • Jacek Gondzio
    • Categories Convex Optimization, Linear Programming, Transportation Tags , , , ,

    Discrete Optimal Transport problems give rise to very large linear programs (LP) with a particular structure of the constraint matrix. In this paper we present an interior point method (IPM) specialized for the LP originating from the Kantorovich Optimal Transport problem. Knowing that optimal solutions of such problems display a high degree of sparsity, we … Read more

    Planning of Container Crossdocking for an Express Shipment Service Network

  • Anton J. Kleywegt
  • Haotian Wu
    • Categories Applications - OR and Management Sciences, Stochastic Programming, Transportation Tags , , , ,

    In air transportation, container crossdocking refers to a loaded container that is transferred at an airport from an incoming flight to an outgoing flight without handling the freight on the container. It reduces handling time and handling cost relative to unloading the container and sorting the freight, and is an economical alternative if a sufficient … Read more

    Lexicographic Branch-and-Bound Column Search

  • Andreas Bärmann
  • Alexander Müller
  • Dieter Weninger
    • Categories (Mixed) Integer Linear Programming, Linear Programming, Scheduling Tags , , , , ,

    We present an exact generic method for solving the pricing problem in a column generation approach, which we call branch-and-bound column search. It searches the space of all feasible columns via a branch-and-bound tree search and returns all columns with a reduced-cost value below a certainthreshold. The approach is based on an idea from Krumke … Read more

    Dual solutions in convex stochastic optimization

  • Teemu Pennanen
  • Ari-Pekka Perkkiö
    • Categories Control Applications, Finance and Economics, Stochastic Programming Tags , , ,

    This paper studies duality and optimality conditions for general convex stochastic optimization problems. The main result gives sufficient conditions for the absence of a duality gap and the existence of dual solutions in a locally convex space of random variables. It implies, in particular, the necessity of scenario-wise optimality conditions that are behind many fundamental … Read more

    Robust Optimization with Continuous Decision-Dependent Uncertainty with Applications in Demand Response Portfolio Management

  • Hongfan(Kevin) Chen
  • Xu Andy Sun
  • Haoxiang Yang
    • Categories Applications - OR and Management Sciences, Robust Optimization Tags , ,

    We consider a robust optimization problem with continuous decision-dependent uncertainty (RO-CDDU), which has two new features: an uncertainty set linearly dependent on continuous decision variables and a convex piecewise-linear objective function. We prove that RO-CDDU is strongly NP-hard in general and reformulate it into an equivalent mixed-integer nonlinear program (MINLP) with a decomposable structure to … Read more

    Adjusted Distributionally Robust Bounds on Expected Loss Functions

  • Yasemin Merzifonluoğlu
  • Joseph Geunes
    • Categories Production and Logistics, Robust Optimization, Stochastic Programming Tags , , , ,

    Optimization problems in operations and finance often include a cost that is proportional to the expected amount by which a random variable exceeds some fixed quantity, known as the expected loss function. Representation of this function often leads to computational challenges, depending on the distribution of the random variable of interest. Moreover, in practice, a … Read more

    A Ramsey-Type Equilibrium Model with Spatially Dispersed Agents

  • Leonhard Frerick
  • Georg Müller-Fürstenberger
  • Martin Schmidt
  • Max Späth
    • Categories Complementarity and Variational Inequalities, Finance and Economics Tags , , ,

    We present a spatial and time-continuous Ramsey-type equilibrium model for households and firms that interact on a spatial domain to model labor mobility in the presence of commuting costs. After discretization in space and time, we obtain a mixed complementarity problem that represents the spatial equilibrium model. We prove existence of equilibria using the theory … Read more