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A problem of optimizing multi-period centralized production and inventory system with waste disposal subjected to uncertain demands is investigated in this paper . Assuming limited information of distributions, that is, only the mean, support and some measures of deviations are available for the demand, a joint ellipsoid uncertainty set is construct ed to control the degree of conservatism of the production policies associated with the integrated manager’s risk preference. Using Affinely Adjustable Robust Counterpart method , we develop an uncertain optimization model in pursuit of maximizing the overall revenue t hrough adaptively control ling multi-period production policies, and equivalently convert it to one deterministic robust counterpart which is in fact a tractable second order cone problem .

AFFINELY ADJUSTABLE ROBUST OPTIMIZATION MODEL FOR MULTI-PERIOD PRODUCTION AND INVENTORY SYSTEM UNDER RISK PREFERENCE