Capacity Expansion in Convex Cost Networks with Uncertain Demand.

摘要

The purpose of this investigation is to suggest a simple algorithm for solving a capacity expansion problem in networks with uncertain demand. Assume that the cost of expanding the capacity of each arc is a convex function and that there is a concave salvage value associated with excess capacity. Then, adopt the two-stage programming approach but with the essential difference that the independent variable is an assumed first-stage demand. This will show that the objective function of the equivalent convex program is a convex function of the assumed first-stage demand and use this fact to propose an algorithm. (Author)