Publications
Authors:
  • Chris Dance , Alexei Gaivoronski
Citation:
To appear on Annals of Operations Research, volume 193, pages 221-253, 2012.
the paper is available for open access at:
<a href=http://download.springer.com/static/pdf/858/art%253A10.1007%252Fs10479-011-0842-2.pdf?auth66=1422891727_1e9f33cf961d5be8c85ac74a839c5c42&ext=.pdf> Springer Website </a>
Abstract:
The problem of repeated allocation of limited renewable service resources to distributed service centers is considered here. The objective is to assure a given Quality of Service expressed through percentage of demand which is satis?ed during a speci?ed time period. Resource requirements are not fully known at the time when a decision about the service resource distribution is taken.
The problem is approximated by a succession of stochastic optimization problems solved at the time of resource allocation. Solutions of these problems are derived by applying duality theory. We pay a special attention to the interplay between performance and risk by introducing the concept of a risk budget. Results of numerical experiments con?rm the e¢ ciency of the
approach.
Year:
2009
Report number:
2009/049