Fuzzy C-means-based scenario bundling for stochastic service network design

Xiaoping Jiang, Ruibin Bai, Uwe Aickelin, Dario Landa-Silva

Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

Stochastic service network designs with uncertain demand represented by a set of scenarios can be modelled as a large-scale two-stage stochastic mixed-integer program (SMIP). The progressive hedging algorithm (PHA) is a decomposition method for solving the resulting SMIP. The computational performance of the PHA can be greatly enhanced by decomposing according to scenario bundles instead of individual scenarios. At the heart of bundle-based decomposition is the method for grouping the scenarios into bundles. In this paper, we present a fuzzy c-means-based scenario bundling method to address this problem. Rather than full membership of a bundle, which is typically the case in existing scenario bundling strategies such as k-means, a scenario has partial membership in each of the bundles and can be assigned to more than one bundle in our method. Since the multiple bundle membership of a scenario induces overlap between the bundles, we empirically investigate whether and how the amount of overlap controlled by a fuzzy exponent would affect the performance of the PHA. Experimental results for a less-than-truckload transportation network optimization problem show that the number of iterations required by the PHA to achieve convergence reduces dramatically with large fuzzy exponents, whereas the computation time increases significantly. Experimental studies were conducted to find out a good fuzzy exponent to strike a trade-off between the solution quality and the computational time.

Original languageEnglish
Title of host publication2017 IEEE Symposium Series on Computational Intelligence, SSCI 2017 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1-8
Number of pages8
ISBN (Electronic)9781538627259
DOIs
Publication statusPublished - 2 Feb 2018
Event2017 IEEE Symposium Series on Computational Intelligence, SSCI 2017 - Honolulu, United States
Duration: 27 Nov 20171 Dec 2017

Publication series

Name2017 IEEE Symposium Series on Computational Intelligence, SSCI 2017 - Proceedings
Volume2018-January

Conference

Conference2017 IEEE Symposium Series on Computational Intelligence, SSCI 2017
Country/TerritoryUnited States
CityHonolulu
Period27/11/171/12/17

Keywords

  • fuzzy c-means
  • progressive hedging
  • service network design
  • stochastic mixed-integer program

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Science Applications
  • Control and Optimization

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