A practical assessment of risk-averse approaches in production lot-sizing problems

ABSTRACT

This paper presents an empirical assessment of four state-of-the-art risk-averse approaches to deal with the capacitated lot-sizing problem under stochastic demand. We analyse two mean-risk models based on the semideviation and on the conditional value-at-risk risk measures, and alternate first and second-order stochastic dominance approaches. The extensive computational experiments based on different instances characteristics and on a case-study suggest that CVaR exhibits a good trade-off between risk and performance, followed by the semideviation and first-order stochastic dominance approach. For all approaches, enforcing risk-aversion helps to reduce the cost-standard deviation substantially, which is usually accomplished via increasing production rates. Overall, we can say that very risk-averse decision-makers would be willing to pay an increased price to have a much less risky solution given by CVaR. In less risk-averse settings, though, semideviation and first-order stochastic dominance can be appealing alternatives to provide significantly more stable production planning costs with a marginal increase of the expected costs.     

Temperature and frequency characteristics of composites with semiconductor fillers

The paper describes the results of a study on the temperature and frequency dependences of the dielectric permeability and dielectric loss tangent of composite materials composed of low density polyethylene filled with cadmium sulfide (LDPE/CdS) and indium(III) selenide (LDPE/In₂Se₃) in the temperature range of 300–450 K and a frequency range of 0–10¹⁴ Hz. It is revealed that a variation in the filler content and the effect of external factors can yield novel composite materials with desired dielectric characteristics.