Polynomial-time algorithms for single resource stochastic capacity expansion models with lost sales. Issue 4 (2nd October 2021)

• Record Type: Journal Article
• Authors: Taghavi, Majid; Huang, Kai; Golmohammadi, Amirmohsen
• Is Part Of: Infor. Volume 59:Issue 4(2021)
• Page Start: 572
• Page End: 591
• Publication Date: 2021-10-02
• Subjects: Capacity expansion -- multi-stage stochastic integer programming -- dynamic programming -- lost sales -- single resource -- polynomial-time algorithms; Operations research -- Periodicals; Electronic data processing -- Periodicals; Systems engineering -- Periodicals; Systems engineering; Electronic data processing; Periodicals; 003.05
• DOI: 10.1080/03155986.2021.1971594
• Languages: English
• ISSNs: 0315-5986

Abstract

Abstract: In this paper, we consider multi-period single resource stochastic capacity expansion problems with lost sales. We study two models. The first model does not consider fixed-charge for capacity purchases, while the second one incorporates fixed-charges. We use multi-stage stochastic integer programs to present both models and show how adding the fixed-charge cost changes the structure of the mathematical models. For both models, we study their structures and design polynomial-time algorithms to solve them. We present computational results to show the performance of the designed algorithms.