Uncertainty: Production Planning - Robust Optimization
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Problem type: LP (small)
Keywords: Uncertain data, robust optimization
Description: A company produces two kinds of drugs, DrugI and DrugII, containing a specific active agent A, which is extracted from raw materials purchased on the market. There are two kinds of raw materials, RawI and RawII, which can be used as sources of the active agent. The related production, cost, and resource data are given. The goal is to find the production plan that maximizes the profit of the company.
This is Example 1.1.1 from the book Robust Optimization by Aharon Ben-Tal, Laurent El Ghaoui and Arkadi Nemirovski (2009).
Note: The objective function used in this model is ‘total profit’ instead of ‘minus total profit’ as used in the book. The total profit is maximized in this model.
References: Ben-Tal, A., L. El Ghaoui, and A. Nemirovski, Robust Optimization, Princeton University Press, 2009