Concave Minimization Heuristic For Optimal Pooling Of Customers With Correlated Demands

Authors

Rajesh Tyagi, University of Northern IowaFollow
Chandrasekhar Das, University of Northern IowaFollow

Document Type

Conference

Journal/Book/Conference Title

Proceedings - Annual Meeting of the Decision Sciences Institute

Volume

2

First Page

957

Last Page

959

Abstract

This paper shows that complete pooling of all resources in a single service center is not optimal when demands are correlated. A concave minimization model is developed to exploit demand correlations for grouping customers such that the sum of the standard deviations over all groups is minimized for a given service level. A heuristic solution method is developed to reduce the number of variables and nonlinearity of the model.

Department

Department of Management

Original Publication Date

12-1-1996

Recommended Citation

Tyagi, Rajesh and Das, Chandrasekhar, "Concave Minimization Heuristic For Optimal Pooling Of Customers With Correlated Demands" (1996). Faculty Publications. 4079.
https://scholarworks.uni.edu/facpub/4079