Robust Geometric Programming Approach to Profit Maximization with Interval Uncertainty
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ALIABADI, Hossein, SALAHI, Maziar. Robust Geometric Programming Approach to Profit Maximization with Interval Uncertainty. In: Computer Science Journal of Moldova, 2013, nr. 1(61), pp. 86-96. ISSN 1561-4042.
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Computer Science Journal of Moldova
Numărul 1(61) / 2013 / ISSN 1561-4042 /ISSNe 2587-4330

Robust Geometric Programming Approach to Profit Maximization with Interval Uncertainty
CZU: 519.72+519.86

Pag. 86-96

Aliabadi Hossein, Salahi Maziar
 
University of Guilan
 
 
Disponibil în IBN: 13 decembrie 2013


Rezumat

Profit maximization is an important issue to the firms that pursue the largest economic profit possible. In this paper, we consider the profit-maximization problem with the known Cobb- Douglas production function. Its equivalent geometric programming form is given. Then due to the presence of uncertainties in real world modeling, we have assumed interval uncertainties on the model parameters. The robust counterpart is not known to be considered as a geometric program and efficiently solvable using interior point algorithms. Thus using piecewise convex linear approximations, an approximate equivalent of the robust counterpart is given, which is in the form of a geometric programming problem. Finally an example is presented showing the impact of uncertainties.

Cuvinte-cheie
Economic Profit, Geometric Program, Robust Optimization.