Limited Risk Optimization

UT Arlington Faculty: Jay Rosenberger
Ph.D. Students: Hee-Su Hwang (2006), Siriwat Visoldilokpun (2008), Nadia Martinez (2013)

Funding: Texas Space Grant Consortium 2006-07
Topics: Integer programming, Vehicle routing, Risk

Description: The set-partitioning problem arises in many logistics problems in industry and the military. Traditional external factors such as vehicle breakdowns and inclement weather have created uncertainty in operations. More recently, risk has become even more pervasive as threats of terrorism, depleted oil reserves, and war have introduced economic instability. As a result, logistics models must consider risk in planning. COSMOS has developed a new mathematical programming model that adds a variance constraint to the traditional set-partitioning problem to control the volatility of cost. The variance constraint introduces nonlinearity in the optimization formulation, a factor that makes problems more difficult to solve.