On the weighting of the mean-absolute-deviation cost minimization model

S Wang, Q Meng and Z Liu
Additional contact information
S Wang: National University of Singapore, Singapore
Q Meng: National University of Singapore, Singapore
Z Liu: National University of Singapore, Singapore

Journal of the Operational Research Society, 2013, vol. 64, issue 4, 622-628

Abstract: The mean-absolute-deviation cost minimization model, which aims to minimize sum of the mean value and the absolute deviation (AD) of the total cost multiplied by a given non-negative weighting, is one of a number of typical robust optimization models. This paper first uses a straightforward example to show that the solution obtained by this model with some weightings is not actually an optimal decision. This example also illustrates that the mean-absolute-deviation cost minimization model cannot be regarded as the conventional weighted transformation of the relevant multiobjective minimization model aiming to simultaneously minimize the mean value and AD. This paper further proves that the optimal solution obtained by the mean-absolute-deviation cost minimization model with the weighting not exceeding 0.5 will not be absolutely dominated by any other solution. This tight upper bound provides a useful guideline for practical applications.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.palgrave-journals.com/jors/journal/v64/n4/pdf/jors201273a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jors/journal/v64/n4/full/jors201273a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:64:y:2013:i:4:p:622-628

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().