Service System Design in the Public and Private Sectors
abstract CitationIn Proceeding of the International Conference: Mathematical Methods in Economics, Virt 2004, pp. 101-108, ISBN 80-8078-012-9ArticleDownload View PDF
Supply Chain Management
Robust Inventory Management Using Tractable Replenishment Policies
We propose tractable replenishment policies for a multi-period, single product inventory control problem under ambiguous demands, that is, only limited information of the demand distributions such as mean, support and deviation measures are available. We obtain the parameters of the tractable replenishment policies by solving a deterministic optimization problem in the form of second order … Read more
Integer Programming Solution Approach for Inventory-Production-Distribution Problems with Direct Shipments
We construct an integrated multi-period inventory-production-distribution replenishment plan for three-stage supply chains. The supply chain maintains close-relationships with a small group of suppliers, and the nature of the products (bulk, chemical, etc.) makes it more economical to rely upon a direct shipment, full-truck load distribution policy between supply chain nodes. In this paper, we formulate … Read more
Step decision rules for multistage stochastic programming: a heuristic approach
Stochastic programming with step decision rules, SPSDR, is an attempt to overcome the curse of computational complexity of multistage stochastic programming problems. SPSDR combines several techniques. The first idea is to work with independent experts. Each expert is confronted with a sample of scenarios drawn at random from the original stochastic process. The second idea … Read more
A Robust Optimization Framework for Analyzing Distribution Systems with Transshipment
This paper studies a distribution system consisting of multiple retail locations with transshipment operations among the retailers. Due to the difficulty in computing the optimal solution imposed by the transshipment operations and in estimating shortage cost from a practical perspective, we propose a robust optimization framework for analyzing the impact of transshipment operations on such … Read more
Extensions of Lo’s semiparametric bound for European call options
Computing semiparametric bounds for option prices is a widely studied pricing technique. In contrast to parametric pricing techniques, such as Monte-Carlo simulations, semiparametric pricing techniques do not re- quire strong assumptions about the underlying asset price distribution. We extend classical results in this area in two main directions. First, we derive closed-form semiparametric bounds for … Read more
SYNERGY ANALYSIS OF COLLABORATIVE SUPPLY CHAIN MANAGEMENT IN ENERGY SYSTEMS USING MULTI-PERIOD MILP
Energy, a fundamental entity of modern life, is usually produced using fossil fuels as the primary raw material. A consequence of burning fossil fuels is the emission of environmentally harmful substances. Energy production systems generate steam and electricity that are served to different process customers to satisfy their energy requirement. The improvement of economical and … Read more
Reliability Models for Facility Location: The Expected Failure Cost Case
Classical facility location models like the P-median problem (PMP) and the uncapacitated fixed-charge location problem (UFLP) implicitly assume that once constructed, the facilities chosen will always operate as planned. In reality, however, facilities “fail” from time to time due to poor weather, labor actions, changes of ownership, or other factors. Such failures may lead to … Read more
Modeling Robust and Reliable Supply Chains
We present formulations for the strategic design of robust and reliable supply chains with long term contracting. The inability to deliver a supply part due to unexpected events in a complex supply chain can have a significant impact on the performance of a supply chain. Reliable and robust supply chains leverage cost and risk of … Read more
A stochastic programming approach for supply chain network design under uncertainty
This paper proposes a stochastic programming model and solution algorithm for solving supply chain network design problems of a realistic scale. Existing approaches for these problems are either restricted to deterministic environments or can only address a modest number of scenarios for the uncertain problem parameters. Our solution methodology integrates a recently proposed sampling strategy, … Read more