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Two-stage likelihood robust linear program with application to water allocation under uncertainty
<span title="">2013</span>
<i title="IEEE">
<a target="_blank" rel="noopener" href="https://fatcat.wiki/container/7n2gtrr2tzevzonkaymviwxhsa" style="color: black;">2013 Winter Simulations Conference (WSC)</a>
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We adapt and extend the likelihood robust optimization method recently proposed by Wang, Glynn, and Ye for the newsvendor problem to a more general two-stage setting. We examine the value of collecting additional data and the cost of finding a solution robust to an ambiguous probability distribution. A decomposition-based solution algorithm to solve the resulting model is given. We apply the model to examine a long-term water allocation problem in the southeast area of Tucson, AZ under
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... distribution of future available supply and demand and present computational results.
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