Stochastic programming usually represents uncertainty discretely by means of a scenario tree. This representation leads to an exponential growth of the size of stochastic mathematical problems when better accuracy is needed. Trying to solve the problem as a whole, considering all scenarios together, yields to huge memory requirements that surpass the capabilities of current computers. Thus, dec...

With stochastic integer programming as the motivating application, we investigate techniques to use integrality constraints to obtain improved cuts within a Benders decomposition algorithm. We compare the effect of using cuts in two ways: (i) cut-and-project, where integrality constraints are used to derive cuts in the extended variable space, and Benders cuts are then used to project the resul...

Stochastic adaptive robust optimization is capable of handling short-term uncertainties in demand and variable renewable-energy sources that affect investment generation transmission capacity. We build on this setting by considering a multi-year horizon for finding the optimal plan capacity expansion while reducing greenhouse gas emissions. In addition, we incorporate multiple hours power-syste...

is eventually found and the method terminates. As convergence may require a large amount of computing time for hard instances, the method unsatisfactory from a heuristic point of view. Proximity Search is a recently-proposed heuristic paradigm in which the problem at hand is modified and iteratively solved with the aim of producing a sequence of improving feasible solutions. As such, Proximity ...

We study an integrated inventory-location problem with service requirements faced by an aerospace company in designing its service parts logistics network. Customer demand is Poisson distributed and the service levels are time-based leading to highly non-linear, stochastic service constraints and a nonlinear, mixed-integer optimization problem. Unlike previous work in the literature, which prop...

An Asset-Liability Management model with a novel strategy for controlling risk of underfunding is presented in this paper. The basic model involves multiperiod decisions (portfolio rebalancing) and deals with the usual uncertainty of investment returns and future liabilities. Therefore it is well-suited to a stochastic programming approach. A stochastic dominance concept is applied to measure (...

Hub ports play an important role in reducing the number of container routes and saving operating costs liner companies. However, hub failures caused by uncertainties such as natural disasters may cause huge recovery costs. Considering accidental failure probability reallocation feeder ports, a global reliable shipping location problem (RLSHLP) is studied. We use k-means algorithm to divide netw...

We address the balancing problem of transfer lines in this paper to find the optimal line balancing that minimizes the nonproductive time. We focus on the tool change time and face orientation change time both of which influence the makespane. We consider machine capacity limitations and technological constraints associated with the manufacturing process of auto cylinder heads. The problem is r...

 In many practical distribution networks, managers face significant uncertainties in demand, local price of building facilities, transportation cost, and macro and microeconomic parameters. This paper addresses design of distribution networks in a supply chain system which optimizes the performance of distribution networks subject to required service level. This service level, which is consider...