Robust optimization for fleet planning under uncertainty

George F. List, Bryan Wood, Linda K. Nozick, Mark A. Turnquist, Dean A. Jones, Edwin A. Kjeldgaard and Craig R. Lawton

Transportation Research Part E: Logistics and Transportation Review, 2003, vol. 39, issue 3, 209-227

Abstract: We create a formulation and a solution procedure for fleet sizing under uncertainty in future demands and operating conditions. The formulation focuses on robust optimization, using a partial moment measure of risk. This risk measure is incorporated into the expected recourse function of a two-stage stochastic programming formulation, and stochastic decomposition is used as a solution procedure. A numerical example illustrates the importance of including uncertainty in the fleet sizing problem formulation, and the nature of the fundamental tradeoff between acquiring more vehicles and accepting the risk of potentially high costs if insufficient resources are available.

Keywords: Stochastic; optimization; Fleet; sizing; Stochastic; decomposition; Robust; optimization (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (32)

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