Mitigating Choice Model Ambiguity: A General Framework and its Application to Assortment Optimization

In several application domains, discrete choice models have become a popular tool to accurately predict complex choice behavior within the classical predict-then-optimize paradigm. Due to a variety of possible error sources, however, estimated choice models may be subject to ambiguity, which may induce different optimal decisions of highly varying quality. While previous studies focused on … Read more

European Gas Infrastructure Expansion Planning: An Adaptive Robust Optimization Approach

The European natural gas market is undergoing fundamental changes, fostering uncertainty regarding both supply and demand. This uncertainty is concentrated in the value of strategic infrastructure investments, e.g., projects of common interest supported by European Union public funds, to safeguard security of supply. This paper addresses this matter by suggesting an adaptive robust optimization framework … Read more

Controllable Transmission Networks UnderDemand Uncertainty with Modular FACTS

The transmission system operators (TSOs) are responsible to provide secure and efficient access to the transmission system for all stakeholders. This task is gradually getting challenging due to the demand growth, demand uncertainty, rapid changes in generation mix, and market policies. Traditionally, the TSOs try to maximize the technical performance of the transmission network via … Read more

Robust Combinatorial Optimization under Convex and Discrete Cost Uncertainty

In this survey, we discuss the state-of-the-art of robust combinatorial optimization under uncertain cost functions. We summarize complexity results presented in the literature for various underlying problems, with the aim of pointing out the connections between the different results and approaches, and with a special emphasis on the role of the chosen uncertainty sets. Moreover, … Read more

Computing the channel capacity of a communication system affected by uncertain transition probabilities

We study the problem of computing the capacity of a discrete memoryless channel under uncertainty affecting the channel law matrix, and possibly with a constraint on the average cost of the input distribution. The problem has been formulated in the literature as a max-min problem. We use the robust optimization methodology to convert the max-min … Read more

Scalable Robust and Adaptive Inventory Routing

We consider the finite horizon inventory routing problem with uncertain demand, where a supplier must deliver a particular commodity to its customers periodically, such that even under uncertain demand the customers do not stock out, e.g. supplying residential heating oil to customers. Current techniques that solve this problem with stochastic demand, robust or adaptive optimization … Read more

Effects of Uncertain Requirements on the Architecture Selection Problem

The problem of identifying a specific design or architecture that allows to satisfy all the system requirements becomes more difficult when uncertainties are taken into account. When a requirement is subject to uncertainty there are a number approaches available to the system engineer, each one with its own benefits and disadvantages. Classical robust optimization is … Read more

Dominance in Pricing Problems with Stochasticity

Sequencing activities over time is a fundamental optimization problem. The problem can be modeled using a directed network in which activities are represented by nodes and pairs of activities that can be performed consecutively are represented by arcs. A sequence of activities then corresponds to a path in the directed network, and an optimal sequence … Read more

Real-Time Dispatchability of Bulk Power Systems with Volatile Renewable Generations

The limited predictability and high variability of renewable generations has brought significant challenges on the real-time operation of bulk power systems. This paper proposes the concept of real-time dispatchability (RTDA) of power systems with variable energy resources, which focuses on investigating the impact of operating constraints and the cost of corrective actions on the flexibility … Read more

The impact of wind uncertainty on the strategic valuation of distributed electricity storage

The intermittent nature of wind energy generation has introduced a new degree of uncertainty to the tactical planning of energy systems. Short-term energy balancing decisions are no longer (fully) known, and it is this lack of knowledge that causes the need for strategic thinking. But despite this observation, strategic models are rarely set in an … Read more