Joint seminar with the CIRRELT-Canada Research Chair in Distribution Management-Canada Research Chair in Logistics and Transportation
TITLE: Robust uncapacitated hub location
SPEAKER: Carlos Zetina, Concordia University, Canada
DATE and VENUE: December 3, 2015, 10h30, room 5441, André-Aisenstadt Building, Université de Montréal Campus
ORGANIZER: Jean-François Cordeau
ABSTRACT: A common shortfall in applying optimization methods in practice is the lack of or inaccuracy in data needed for the model. In response to this, the OR community has developed new approaches that incorporate this data uncertainty into the model and provide solutions that are optimal in a risk neutral (stochastic optimization) and worst case scenario (robust optimization). In this talk we present a robust optimization approach to the well-known uncapacitated hub location problem with multiple assignments in which the level of conservatism can be controlled by means of a budget of uncertainty. Three scenarios of parameter uncertainty are assumed. These are: uncertain demand quantities, transportation costs and both simultaneously. We study the characteristics of the solutions and compare them with those obtained from a commensurable stochastic model.