A Primal Decomposition Approach for the Supply Chain Investment Planning Problem under Demand Uncertainty
نویسندگان
چکیده
This paper presents the application of a primal decomposition algorithm for the problem of supply chain investment planning under uncertainty applied to the petroleum products supply chain. The uncertainty considered is related with the unknown demand levels for oil products. For this purpose, a model was developed based on two-stage stochastic programming. It is proposed two different solution methodologies, one based on the classical cutting plane approach presented by Van Slyke and Wets (1969), and other, based on a multi cut extension of it, firstly introduced by Birge and Louveaux (1988). The methods were evaluated on a real sized case study. Preliminary numerical results obtained from computational experiments are encouraging.
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