IIMB Management Review

Journal of Indian Institute of Management Bangalore

Solving Discrete Optimization Problems when Element Costs are Random

Prof. Diptesh Ghosh and Shubhabrata Das
2000
Working Paper No
157
Body

In a general class of discrete optimization problems with min-sum objective function, some of the elements may have random costs associated with them. In such a situation, the notion of optimality needs to be suitably modified. We define an optimal solution to be a feasible solution with the minimum risk. It is shown that the knowledge of the means of these random costs is enough to reduce such a problem into one with no random costs.

Key words
Discrete Optimization
wp.iimb_.157.pdf (752.41 KB)

Solving Discrete Optimization Problems when Element Costs are Random

Author(s) Name: Prof. Diptesh Ghosh and Shubhabrata Das, 2000
Working Paper No : 157
Abstract:

In a general class of discrete optimization problems with min-sum objective function, some of the elements may have random costs associated with them. In such a situation, the notion of optimality needs to be suitably modified. We define an optimal solution to be a feasible solution with the minimum risk. It is shown that the knowledge of the means of these random costs is enough to reduce such a problem into one with no random costs.

Keywords: Discrete Optimization
wp.iimb_.157.pdf (752.41 KB)