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SPEPS Preprint

Author(s): Maarten H. van der Vlerk, University of Groningen
Title: Convex approximations for complete integer recourse models
Date of Acceptance: 26.05.2002
Submission Date: 17.04.2002
Series Title: Stochastic Programming E-Print Series
(SPEPS)
Editors: Julie L. Higle; Werner Römisch; Surrajeet Sen
Keywords (eng): convex approximation, integer recourse
Appeared in: Mathematical programming 2 (Vol. 99, 2004)
Springer (Berlin [u.a.])
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Abstract (eng):
We consider convex approximations of the expected value function of a two-stage integer recourse problem. The convex approximations are obtained by perturbing the distribution of the random right-hand side vector. It is shown that the approximation is optimal for the class of problems with totally unimodular recourse matrices. For problems not in this class, the result is a convex lower bound that is strictly better than the one obtained from the LP relaxation.
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