The pricing/lot-sizing problem of determining the robust optimal order quantity and selling price is discussed. The uncertainty of parameters characterized by an ellipsoid is explicitly incorporated into the problem. An approximation scheme is proposed to transform the problem into a geometric program, which can be efficiently and reliably solved using interior-point methods.
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Industrial Informatics, 2008. INDIN 2008. 6th IEEE International Conference on
Date of Conference: 13-16 July 2008