J. L. González-Velarde and M. Laguna
IIE Transactions, vol. 36, pp. 1125-1133 (2004)
A common assumption when solving optimization problems is that all parameters are certain; however, in the real world, key data are often uncertain. In this paper, we introduce a formulation of the Robust Capacitated International Sourcing Problem. The main contribution of this work is that that the formulation assumes finite capacity, as opposed to the infinite-capacity assumption made in related studies. The formulation also deals with the uncertainty of relevant parameters, such as demand and exchange rates, and uses an objective function that incorporates a measure of risk. A heuristic search method based on Benders decomposition and tabu search is proposed and tested. The computational experiments showed that this method yields acceptable results.
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