Faculty Publications
Concave Minimization Heuristic For Optimal Pooling Of Customers With Correlated Demands
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
