Restructuring bank networks after mergers and acquisitions: A capacitated delocation model for closing and resizing branches

During restructuring processes, due to mergers and acquisitions, banks frequently face the problem of having redundant branches competing in the same market. In this work, we introduce a new Capacitated Branch Restructuring Model which extends the available literature in delocation models. It considers both closing down and long term operations׳ costs, and addresses the problem of resizing open branches in order to maintain a constant service level. We consider, as well, the presence of competitors and allow for ceding market share whenever the restructuring costs are prohibitively expensive.We test our model in a real life scenario, obtaining a reduction of about 40% of the network size, and annual savings over 45% in operation costs from the second year on. We finally perform a sensitivity analysis on critical parameters. This analysis shows that the final design of the network depends on certain strategic decisions concerning the redundancy of the branches, as well as their proximity to the demand nodes and to the competitor׳s branches. At the same time, this design is quite robust to changes in the parameters associated with the adjustments on service capacity and with the market reaction.     

Theoretical framework for formulating MIP scheduling models with multiple and non-uniform discrete-time grids

We present a framework for the formulation of MIP scheduling models based on multiple and nonuniform discrete time grids. In a previous work we showed that it is possible to use different (possibly non-uniform) time grids for each task, unit, and material. Here, we generalize these ideas to account for general resources, and a range of processing characteristics such as limited intermediate storage and changeovers. Each resource has its own grid based on resource consumption and availability allowing resource constraints to be modeled more accurately without increasing the number of binary variables. We develop algorithms to define the unit-, task-, material-, and resource-specific grids directly from problem data. Importantly, we prove that the multi-grid formulation is able to find a schedule with the same optimal objective as the discrete-time single-grid model with an arbitrarily fine grid. The proposed framework leads to the formulation of models with reduced number of binary variables and constraints, which are able to find good solutions faster than existing models.     

Logic hybrid simulation-optimization algorithm for distillation design

In this paper, we propose a novel algorithm for the rigorous design of distillation columns that integrates a process simulator in a generalized disjunctive programming formulation. The optimal distillation column, or column sequence, is obtained by selecting, for each column section, among a set of column sections with different number of theoretical trays. The selection of thermodynamic models, properties estimation, etc. is all in the simulation environment. All the numerical issues related to the convergence of distillation columns (or column sections) are also maintained in the simulation environment. The model is formulated as a Generalized Disjunctive Programming (GDP) problem and solved using the logic based outer approximation algorithm without MINLP reformulation. Some examples involving from a single column to thermally coupled sequence or extractive distillation shows the performance of the new algorithm.     

Weighted Superposition Attraction (WSA): A swarm intelligence algorithm for optimization problems – Part 2: Constrained optimization

This paper is the second one of the two papers entitled “Weighted Superposition Attraction (WSA) Algorithm”, which is about the performance evaluation of the WSA algorithm in solving the constrained global optimization problems. For this purpose, the well-known mechanical design optimization problems, design of a tension/compression coil spring, design of a pressure vessel, design of a welded beam and design of a speed reducer, are selected as test problems. Since all these problems were formulated as constrained global optimization problems, WSA algorithm requires a constraint handling method for tackling them. For this purpose we have selected 6 formerly developed constraint handling methods for adapting into WSA algorithm and analyze the effect of the used constraint handling method on the performance of the WSA algorithm. In other words, we have the aim of producing concluding remarks over the performance and robustness of the WSA algorithm through a set of computational study in solving the constrained global optimization problems. Computational study indicates the robustness and the effectiveness of the WSA in terms of obtained results, reached level of convergence and the capability of coping with the problems of premature convergence, trapping in a local optima and stagnation.     

An integrated approach for sustainable supply chain planning

This paper proposes an integrated approach for transposing sustainable development principles to supply chain planning models. Inspired by research on performance measurement, we designed a method that links sustainability performance to supply chain decisions, and allows setting coherent performance measures. By transposing this method to a multi-objective mathematical programming, the supply chain planning is optimized while the economic, environmental and social performances are all coherently integrated into the model. To illustrate our approach, we applied it to a Canadian lumber industry case. We solved the mathematical model by using the weighted goal programming technique, which results in a set of “compromise” solutions allowing the decision maker to choose the alternative that reflects the balance he/she wishes to make regarding the three dimensions of sustainability.     

Semantics for consistent activation in context-oriented systems

ContextContext-oriented programming languages provide dedicated programming abstractions to define behavioral adaptations and means to combine those adaptations dynamically according to sensed context changes. Some of these languages feature programming abstractions to explicitly define interaction dependencies among contexts. However, the semantics of context activation and the meaning of dependency relations have been described only informally, which in some cases has led to incorrect specifications, faulty implementations and inconsistent system behavior.ObjectiveWith the aim of avoiding faulty implementations and inconsistencies during system execution, this paper proposes both a formal and run-time model of contexts, context activation and context interaction.MethodAs a formal and computational basis, we introduce context Petri nets, a model based on Petri nets, which we found to match closely the structure of contexts in context-oriented systems. The operational semantics of Petri nets permits the modeling of run-time context activations. Existing Petri net analyses allow us to reason about system properties. As validation, we carried out small and medium-sized case studies.ResultsIn the cases explored, context Petri nets served effectively as underlying run-time model to ensure that declared context interaction constraints remain consistent during context manipulation. Moreover, context Petri nets enabled us to analyze certain properties regarding the activation state of particular contexts.ConclusionContext Petri nets thus proved to be appropriate to encode and manage the semantics of context activation, both formally and computationally, so as to preserve the consistency of context-oriented systems.     

Selecting supplier combination based on fuzzy multicriteria analysis

Existing multicriteria analysis (MCA) methods are probably ineffective in selecting a supplier combination. Thus, an MCA-based fuzzy 0-1 programming method is introduced. The programming relates to a simple MCA matrix that is used to select a single supplier. By solving the programming, the most feasible combination of suppliers is selected. Importantly, this result differs from selecting suppliers one by one according to a single-selection order, which is used to rank sole suppliers in existing MCA methods. An example highlights such difference and illustrates the proposed method.     

Gradient-based recursive parameter estimation for a periodically nonuniformly sampled-data Hammerstein–Wiener system based on the key-term separation

The identification of the Hammerstein–Wiener (H-W) systems based on the nonuniform input–output dataset remains a challenging problem. This article studies the identification problem of a periodically nonuniformly sampled-data H-W system. In addition, the product terms of the parameters in the H-W system are inevitable. In order to solve the problem, the key-term separation is applied and two algorithms are proposed. One is the key-term-based forgetting factor stochastic gradient (KT-FFSG) algorithm based on the gradient search. The other is the key-term-based hierarchical forgetting factor stochastic gradient (KT-HFFSG) algorithm. Compared with the KT-FFSG algorithm, the KT-HFFSG algorithm gives more accurate estimates. The simulation results indicate that the proposed algorithms are effective.     

Control theory for stochastic distributed parameter systems,an engineering perspective

The main purpose of this paper is to survey some recent progresses on control theory for stochastic distributed parameter systems, i.e., systems governed by stochastic differential equations in infinite dimensions, typically by stochastic partial differential equations. We will explain the new phenomenon and difficulties in the study of controllability and optimal control problems for one dimensional stochastic parabolic equations and stochastic hyperbolic equations. In particular, we shall see that both the formulation of corresponding stochastic control problems and the tools to solve them may differ considerably from their deterministic/finite-dimensional counterparts. More importantly, one has to develop new tools, say, the stochastic transposition method introduced in our previous works, to solve some problems in this field.     

The constrained two-dimensional guillotine cutting problem with defects: an ILP formulation,a Benders decomposition and a CP-based algorithm

This paper addresses a variant of two-dimensional cutting problems in which rectangular small pieces are obtained by cutting a rectangular object through guillotine cuts. The characteristics of this variant are (i) the object contains some defects, and the items cut must be defective-free; (ii) there is an upper bound on the number of times an item type may appear in the cutting pattern; (iii) the number of guillotine stages is not restricted. This problem commonly arises in industrial settings that deal with defective materials, e.g. either by intrinsic characteristics of the object as in the cutting of wooden boards with knotholes in the wood industry, or by the manufacturing process as in the production of flat glass in the glass industry. We propose a compact integer linear programming (ILP) model for this problem based on the discretisation of the defective object. As solution methods for the problem, we develop a Benders decomposition algorithm and a constraint-programming (CP) based algorithm. We evaluate these approaches through computational experiments, using benchmark instances from the literature. The results show that the methods are effective on different types of instances and can find optimal solutions even for instances with dimensions close to real-size.