Article ID: | iaor20115732 |
Volume: | 59 |
Issue: | 2 |
Start Page Number: | 313 |
End Page Number: | 327 |
Publication Date: | Mar 2011 |
Journal: | Operations Research |
Authors: | Roundy Robin O, Truong Van-Anh |
Keywords: | capacity expansion, approximation algorithms |
We develop multidimensional balancing algorithms to compute provably near‐optimal capacity‐expansion policies. Our approach is computationally efficient and guaranteed to produce a policy with total expected cost of no more than twice that of an optimal policy. We overcome the curse of dimensionality by introducing novel