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...

ver descrição completa

Detalhes bibliográficos
Autores: Fernández, Elena, Hinojosa Bergillos, Yolanda, Puerto Albandoz, Justo, Saldanha da Gama, Francisco
Tipo de documento: artigo
Estado:Versión aceptada para publicación
Data de publicação:2019
País:España
Recursos:Universidad de Sevilla (US)
Repositório:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/154620
Acesso em linha:https://hdl.handle.net/11441/154620
https://doi.org/10.1016/j.ejor.2019.02.010
Access Level:Acceso aberto
Palavra-chave:Transportation
Stochastic mixed-integer programming
CVaR
Descrição
Resumo: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.