Bounding Separable Recourse Functions with Limited Distribution Information
Abstract
The recourse function in a stochastic program with recourse can be approximated by separable functions of the original random variables or linear transformations of them. The resulting bound them involves summing simple integrals. These integrals may themselves be difficult to compute or may require more information about the random variable than is available. In this paper, we show that a special class of function has an easily computable bound that achieves the best upper bound when only first and second moment constraints are available. Keywords: Integration; Stochastic programming; Moment problem; Duality; Approximation.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1990
- Accession Number
- ADA219504
Entities
People
- John R. Birge
- Jose H. Dula
Organizations
- University of Michigan