New algorithmic framework for conditional value at risk: Application to stochastic fixed-charge transportation

This paper introduces a new algorithmic scheme for two-stage stochastic mixed-integer programming assuming a risk averse decision maker. The focus is the minimization of the conditional value at risk for a hard combinatorial optimization problem. Some properties of a mixed-integer non-linear program...

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Detalles Bibliográficos
Autores: Fernández, Elena, Hinojosa Bergillos, Yolanda, Puerto Albandoz, Justo, Saldanha da Gama, Francisco
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2019
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/154620
Acceso en línea:https://hdl.handle.net/11441/154620
https://doi.org/10.1016/j.ejor.2019.02.010
Access Level:acceso abierto
Palabra clave:Transportation
Stochastic mixed-integer programming
CVaR
Descripción
Sumario:This paper introduces a new algorithmic scheme for two-stage stochastic mixed-integer programming assuming a risk averse decision maker. The focus is the minimization of the conditional value at risk for a hard combinatorial optimization problem. Some properties of a mixed-integer non-linear programming formulation for conditional value at risk are studied as well as their algorithmic implications. This yields to a procedure for obtaining lower and upper bounds on the optimal value of the problem that may lead to an optimal solution. The new developments are applied to a fixed-charge transportation problem with stochastic demand, and they are computationally tested. The corresponding results are thoroughly presented and discussed.