Anureet Saxena
Title:
MIPing probabilistic constraints with random right hand sides

Abstract:
In this paper, we study the probabilistically constrained mixed integer programming problem (PCMIP) with binary random right hand side. This problem has been previously considered by Beraldi and Ruszczy´nski where the authors develop a solution approach involving the a priori enumeration of p-efficient points. We propose a new technique for the enumeration of the p-efficient points allowing the reformulation of the probabilistically constrained problem as a mixed-integer problem (MIP) and the integration of the enumeration and solution phases. We introduce the concept of p-inefficiency that leads to a significant reduction in the size of our formulation. We also present a strengthening procedure by generating a family of cuts, called polarity cuts, for the MIP model. The strengthening procedure is extremely efficient and closes a substantial fraction (15-30%) of the duality gap at the root node in less than 0.5% of the total computation time. We conducted computational experiments on probabilistic versions of set covering and several variants of location problems. Our experiments conducted over a test-bed of more than 3000 probabilistic instances demonstrate that PCMIPs of simple and moderately difficult MIPs can themselves be formulated as MIPs that can be solved in very reasonable computational time. We discuss modifications of our model for the case of stationary distribution and present related computational results. (Joint work with V. Goyal and M. Lejeune)