Resource Allocation for Contingency Planning: An Inexact Bundle Method for Stochastic Optimization

Resource allocation models in contingency planning aim to mitigate unexpected failures in supply chains due to disruptions with rare occurrence but disastrous consequences. This paper formulates this problems as a two-stage stochastic optimization with a risk-averse recourse function, and proposes a novel computationally tractable solution approach. The method relies on an inexact bundle method and … Read more

Algorithms for the Cross-dock Door Assignment Problem

In a cross-dock facility, goods are moved by forklift from incoming truck platforms (strip doors) to temporary holding areas and then to outgoing truck platforms (stack doors) or directly from strip doors to stack doors. Costs within the cross-dock may be minimized by appropriate assignment of strip doors to incoming trucks and stack doors to … Read more

A Case Study of Joint Online Truck Scheduling and Inventory Management for Multiple Warehouses

For a real world problem — transporting pallets between warehouses in order to guarantee sufficient supply for known and additional stochastic demand — we propose a solution approach via convex relaxation of an integer programming formulation, suitable for online optimization. The essential new element linking routing and inventory management is a convex piecewise linear cost … Read more