Bi-Parameterized Two-Stage Stochastic Min-Max and Min-Min Mixed Integer Programs

Fuente: arXiv
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Main Authors: Kang, Sumin, Bansal, Manish
Format: Preprint
Published: 2025
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author Kang, Sumin
Bansal, Manish
author_facet Kang, Sumin
Bansal, Manish
contents We introduce two-stage stochastic min-max and min-min integer programs with bi-parameterized recourse (BTSPs), where the first-stage decisions affect both the objective function and the feasible region of the second-stage problem. To solve these programs efficiently, we introduce Lagrangian-integrated $L$-shaped ($L^2$) methods, which guarantee exact solutions when the first-stage decisions are pure binary. For mixed-binary first-stage programs, we present a regularization-augmented variant of this method. Our computational results for a stochastic network interdiction problem show that the $L^2$ method outperforms a benchmark method, solving all instances in 23 seconds on average, while the benchmark method failed to solve any instance within 3600 seconds. The $L^2$ method also achieves optimal solutions, on average, 18.4 times faster for a stochastic facility location problem. Furthermore, we show that the $L^2$ method can effectively address distributionally robust optimization problems with decision-dependent ambiguity sets that may be empty for some first-stage decisions, achieving optimal solutions, on average, 5.3 times faster than existing methods.
format Preprint
id arxiv_https___arxiv_org_abs_2501_01081
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Bi-Parameterized Two-Stage Stochastic Min-Max and Min-Min Mixed Integer Programs
Kang, Sumin
Bansal, Manish
Optimization and Control
90C11, 90C15
We introduce two-stage stochastic min-max and min-min integer programs with bi-parameterized recourse (BTSPs), where the first-stage decisions affect both the objective function and the feasible region of the second-stage problem. To solve these programs efficiently, we introduce Lagrangian-integrated $L$-shaped ($L^2$) methods, which guarantee exact solutions when the first-stage decisions are pure binary. For mixed-binary first-stage programs, we present a regularization-augmented variant of this method. Our computational results for a stochastic network interdiction problem show that the $L^2$ method outperforms a benchmark method, solving all instances in 23 seconds on average, while the benchmark method failed to solve any instance within 3600 seconds. The $L^2$ method also achieves optimal solutions, on average, 18.4 times faster for a stochastic facility location problem. Furthermore, we show that the $L^2$ method can effectively address distributionally robust optimization problems with decision-dependent ambiguity sets that may be empty for some first-stage decisions, achieving optimal solutions, on average, 5.3 times faster than existing methods.
title Bi-Parameterized Two-Stage Stochastic Min-Max and Min-Min Mixed Integer Programs
topic Optimization and Control
90C11, 90C15
url https://arxiv.org/abs/2501.01081