The Minmax Relative Regret Median Problem on Networks

Authors:
Igor Averbakh
Affiliations:
Division of Management, University of Toronto at Scarborough, 1265 Military Trail, Scarborough, Ontario M1C 1A4, Canada
Venue:
INFORMS Journal on Computing
Year:
2005

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Abstract

We consider a version of the 1-median problem on a network with uncertain weights of nodes. For each node, only an interval estimate of its weight is known. It is required to find the minmax relative regret location, i.e., to minimize the worst-case ratio of the loss in the objective-function value (opportunity loss) that may occur because a decision is made without knowing which state of nature (scenario) will take place, to the best possible value of the objective function under the realized scenario. We present a polynomial O(mn3 log n) algorithm for this problem on a general network. We also present fast algorithms for networks with special structure (trees and paths).