| Volume 2, Number 3, 2012, Pages 341-350 DOI：10.11948/2012025 |
| Affinely Adjustable Robust Optimization Model for Multi-period Production and inventory system under Risk Preference |
| Li Zhu,Chunfa Li,Wei Xu |
| Keywords:Multi-period production and inventory |
| Abstract: |
| A problem of optimizing multi-period centralized production and inventory system with waste disposal subjected to uncertain demands is investigated in this paper . Assuming limited information of distributions, that is, only the mean, support and some measures of deviations are available for the demand, a joint ellipsoid uncertainty set is construct ed to control the degree of conservatism of the production policies associated with the integrated manager’s risk preference. Using Affinely Adjustable Robust Counterpart method , we develop an uncertain optimization model in pursuit of maximizing the overall revenue t hrough adaptively control ling multi-period production policies, and equivalently convert it to one deterministic robust counterpart which is in fact a tractable second order cone problem . |
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