Robust Resource Investment Problem with Time-Dependent Resource Cost and Tardiness Penalty

Abstract

In this paper, the classical Resource Investment Problem (RIP) is extended to consider time-depended resource cost instead of time-independent resource cost. The problem is named as the Resource Investment Problem with Time-Dependent Resource Cost and Tardiness Penalty (RIP-TDRC). The objective of the problem is to minimize the sum of the resources cost and the tardiness cost. Two versions of this problem are addressed in this paper, the deterministic version and the stochastic version. A simulation-optimization based algorithm which combines mathematical formulation solution with simulation is proposed to find an optimal solution. The performance of the proposed algorithm and the effect of some problem parameters on the solution are assessed through computational experiments. 2016 IEEE.