A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure

This paper is concerned with solving single CVaR and mixed CVaR minimization problems. A CHKS-type smoothing sample average approximation (SAA) method is proposed for solving these two problems, which retains the convexity and smoothness of the original problem and is easy to implement. For any fixe...

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Main Authors: Meng, F., Sun, Jie, Goh, M.
Format: Journal Article
Published: Springer, Van Godewijckstraat 2011
Online Access:http://hdl.handle.net/20.500.11937/39234
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author Meng, F.
Sun, Jie
Goh, M.
author_facet Meng, F.
Sun, Jie
Goh, M.
author_sort Meng, F.
building Curtin Institutional Repository
collection Online Access
description This paper is concerned with solving single CVaR and mixed CVaR minimization problems. A CHKS-type smoothing sample average approximation (SAA) method is proposed for solving these two problems, which retains the convexity and smoothness of the original problem and is easy to implement. For any fixed smoothing constant, this method produces a sequence whose cluster points are weak stationary points of the CVaR optimization problems with probability one. This framework of combining smoothing technique and SAA scheme can be extended to other smoothing functions as well. Practical numerical examples arising from logistics management are presented to show the usefulness of this method.
first_indexed 2025-11-14T08:57:52Z
format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T08:57:52Z
publishDate 2011
publisher Springer, Van Godewijckstraat
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spelling curtin-20.500.11937-392342017-09-13T14:24:47Z A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure Meng, F. Sun, Jie Goh, M. This paper is concerned with solving single CVaR and mixed CVaR minimization problems. A CHKS-type smoothing sample average approximation (SAA) method is proposed for solving these two problems, which retains the convexity and smoothness of the original problem and is easy to implement. For any fixed smoothing constant, this method produces a sequence whose cluster points are weak stationary points of the CVaR optimization problems with probability one. This framework of combining smoothing technique and SAA scheme can be extended to other smoothing functions as well. Practical numerical examples arising from logistics management are presented to show the usefulness of this method. 2011 Journal Article http://hdl.handle.net/20.500.11937/39234 10.1007/s10589-010-9328-4 Springer, Van Godewijckstraat restricted
spellingShingle Meng, F.
Sun, Jie
Goh, M.
A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure
title A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure
title_full A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure
title_fullStr A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure
title_full_unstemmed A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure
title_short A smoothing sample average approximation method for stochastic optimization problems with CVaR risk measure
title_sort smoothing sample average approximation method for stochastic optimization problems with cvar risk measure
url http://hdl.handle.net/20.500.11937/39234