A Smoothing Algorithm for a New Two-Stage Stochastic Model of Supply Chain Based on Sample Average Approximation
Joint Authors
Xiong, Yao
Tong, Xiao-jiao
Yang, Liu
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-7, 7 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-10-19
Country of Publication
Egypt
No. of Pages
7
Main Subjects
Abstract EN
We construct a new two-stage stochastic model of supply chain with multiple factories and distributors for perishable product.
By introducing a second-order stochastic dominance (SSD) constraint, we can describe the preference consistency of the risk taker while minimizing the expected cost of company.
To solve this problem, we convert it into a one-stage stochastic model equivalently; then we use sample average approximation (SAA) method to approximate the expected values of the underlying random functions.
A smoothing approach is proposed with which we can get the global solution and avoid introducing new variables and constraints.
Meanwhile, we investigate the convergence of an optimal value from solving the transformed model and show that, with probability approaching one at exponential rate, the optimal value converges to its counterpart as the sample size increases.
Numerical results show the effectiveness of the proposed algorithm and analysis.
American Psychological Association (APA)
Yang, Liu& Xiong, Yao& Tong, Xiao-jiao. 2017. A Smoothing Algorithm for a New Two-Stage Stochastic Model of Supply Chain Based on Sample Average Approximation. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-7.
https://search.emarefa.net/detail/BIM-1190771
Modern Language Association (MLA)
Yang, Liu…[et al.]. A Smoothing Algorithm for a New Two-Stage Stochastic Model of Supply Chain Based on Sample Average Approximation. Mathematical Problems in Engineering No. 2017 (2017), pp.1-7.
https://search.emarefa.net/detail/BIM-1190771
American Medical Association (AMA)
Yang, Liu& Xiong, Yao& Tong, Xiao-jiao. A Smoothing Algorithm for a New Two-Stage Stochastic Model of Supply Chain Based on Sample Average Approximation. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-7.
https://search.emarefa.net/detail/BIM-1190771
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1190771