Minimizing the Expected Renewable Resource Costs in a Project with Stochastic Resource Availability

Hossein Moghaddaszadeh, Mohammad Ranjbar*, Negin Jamili

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

In this paper, we study the well-known resource availability cost problem with stochastic resource availability. The objective is to determine the initial levels of all renewable resources and establish a schedule corresponding to each scenario such that the expected resource availability cost is minimized. We assume that resource shortfalls can be compensated externally but at a noticeable higher cost. We formulate the problem as a two-stage stochastic programming model (TSSPM). We also develop an exact decomposition-based algorithm (DBA) for the particular case of the problem with at most two resources, which also functions as a heuristic for the original problem. Since the number of scenarios influences the performance of the developed solution approaches, we utilize a fast scenario reduction method to reduce the number of scenarios. Computational results indicate that the DBA outperforms the TSSPM formulation in solution quality and CPU runtime.

Original languageEnglish
Article number2350008
JournalAsia-Pacific Journal of Operational Research
Volume41
Issue number1
DOIs
Publication statusPublished - 1 Feb 2024

Bibliographical note

Publisher Copyright:
© World Scientific Publishing Co. & Operational Research Society of Singapore.

Research programs

  • RSM ORG

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