Tractable Approximation to Robust Nonlinear Production Frontier Problem

Robust optimization is a rapidly developing methodology for handling optimization problems affected by the uncertain-but-bounded data perturbations. In this paper, we consider the nonlinear production frontier problem where the traditional expected linear cost minimization objective is replaced by o...

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Main Authors: Lei Wang, Xing Wang, Nan-jing Huang
Format: Article
Language:English
Published: Wiley 2012-01-01
Series:Abstract and Applied Analysis
Online Access:http://dx.doi.org/10.1155/2012/965835
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author Lei Wang
Xing Wang
Nan-jing Huang
author_facet Lei Wang
Xing Wang
Nan-jing Huang
author_sort Lei Wang
collection DOAJ
description Robust optimization is a rapidly developing methodology for handling optimization problems affected by the uncertain-but-bounded data perturbations. In this paper, we consider the nonlinear production frontier problem where the traditional expected linear cost minimization objective is replaced by one that explicitly addresses cost variability. We propose a robust counterpart for the nonlinear production frontier problem that preserves the computational tractability of the nominal problem. We also provide a guarantee on the probability that the robust solution is feasible when the uncertain coefficients obey independent and identically distributed normal distributions.
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institution Kabale University
issn 1085-3375
1687-0409
language English
publishDate 2012-01-01
publisher Wiley
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series Abstract and Applied Analysis
spelling doaj-art-d8ed03e8e4ea4b54ae2bc89bce14a0192025-08-20T03:24:16ZengWileyAbstract and Applied Analysis1085-33751687-04092012-01-01201210.1155/2012/965835965835Tractable Approximation to Robust Nonlinear Production Frontier ProblemLei Wang0Xing Wang1Nan-jing Huang2Department of Economic Mathematics, South Western University of Finance and Economics, Sichuan, Chengdu 610074, ChinaDepartment of Mathematics, Sichuan University, Chengdu 610064, ChinaDepartment of Mathematics, Sichuan University, Chengdu 610064, ChinaRobust optimization is a rapidly developing methodology for handling optimization problems affected by the uncertain-but-bounded data perturbations. In this paper, we consider the nonlinear production frontier problem where the traditional expected linear cost minimization objective is replaced by one that explicitly addresses cost variability. We propose a robust counterpart for the nonlinear production frontier problem that preserves the computational tractability of the nominal problem. We also provide a guarantee on the probability that the robust solution is feasible when the uncertain coefficients obey independent and identically distributed normal distributions.http://dx.doi.org/10.1155/2012/965835
spellingShingle Lei Wang
Xing Wang
Nan-jing Huang
Tractable Approximation to Robust Nonlinear Production Frontier Problem
Abstract and Applied Analysis
title Tractable Approximation to Robust Nonlinear Production Frontier Problem
title_full Tractable Approximation to Robust Nonlinear Production Frontier Problem
title_fullStr Tractable Approximation to Robust Nonlinear Production Frontier Problem
title_full_unstemmed Tractable Approximation to Robust Nonlinear Production Frontier Problem
title_short Tractable Approximation to Robust Nonlinear Production Frontier Problem
title_sort tractable approximation to robust nonlinear production frontier problem
url http://dx.doi.org/10.1155/2012/965835
work_keys_str_mv AT leiwang tractableapproximationtorobustnonlinearproductionfrontierproblem
AT xingwang tractableapproximationtorobustnonlinearproductionfrontierproblem
AT nanjinghuang tractableapproximationtorobustnonlinearproductionfrontierproblem