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Summary: An Approximation Scheme for Stochastic Integer
Programs Arising in Capacity Expansion
Shabbir Ahmed
School of Industrial & Systems Engineering
Georgia Institute of Technology
765 Ferst Drive, Atlanta, GA 30332
Nikolaos V. Sahinidis
Department of Chemical Engineering
University of Illinois
600 South Mathews Avenue, Urbana, IL 61801
January 11, 2001. Revised: November 26, 2001
Subject Classifications: Analysis of algorithms: asymptotically optimal heuristics. Facilities/equipment
planning: capacity expansion. Programming: stochastic, integer.
Corresponding author (email: nikos@uiuc.edu)
Abstract
Planning for capacity expansion forms a crucial part of the strategic level decision
making in many applications. Consequently, quantitative models for economic capac-
ity expansion planning have been the subject of intense research. However, much of
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