Decision Optimisation (DO) Concepts

A collection of key decision optimisation concepts from the DO Radar. Each concept is explained through a core idea, concrete example, and real-world applications. Newest first.

Solution Methods 15 Apr 2026

Rolling Horizon Optimisation

Solve the near horizon, commit the first decisions, slide forward, re-optimise -- trading global optimality for tractability, at the cost of suboptimality near each window boundary.

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Algorithms 14 Apr 2026

Large Neighbourhood Search

A metaheuristic that escapes local optima by repeatedly destroying a large portion of the current solution and rebuilding it using an exact solver.

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Modelling Concepts 14 Apr 2026

Predict-then-Optimize

A two-phase workflow where an ML model forecasts uncertain parameters passed to an optimisation solver, creating a risk of decision infeasibility if forecast accuracy metrics don't align with decision error.

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Stochastic Methods 13 Apr 2026

Non-Anticipativity

A structural constraint in multi-stage stochastic models that forces decisions to be made using only information available at the time — preventing inadvertent peeking at the future.

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Integer Programming 12 Apr 2026

Big-M Formulation

Use a large constant to linearise disjunctive logic in mixed-integer models by scaling constraints with binary variables, at the cost of numerical fragility.

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Solution Methods 11 Apr 2026

Lexicographic Optimisation

Rank multiple objectives in strict sequential order: optimise the first criterion absolutely, then fix its optimal value and optimise the second criterion within that constraint.

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Complexity Theory 10 Apr 2026

Integrality Gap

The fractional gap between the optimal value of an LP relaxation and the optimal value of the integer problem — a measure of how weak the relaxation is.

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Algorithms 9 Apr 2026

Column Generation

An algorithmic technique for solving large LPs and MIPs by iterating between a restricted master problem and a pricing subproblem that identifies the most improving variable to add.

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Stochastic Methods 8 Apr 2026

Two-Stage Robust Optimisation

Optimise a here-and-now decision against the worst-case realisation of uncertain parameters in a given uncertainty set, where a recourse action is allowed after uncertainty is revealed.

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Problem Types 7 Apr 2026

Pareto Optimality

A solution is Pareto optimal when no objective can be improved without worsening at least one other objective. The Pareto front is the set of all such non-dominated solutions.

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Solution Methods 7 Apr 2026

Constraint Programming

Specify what constraints must hold over a set of decision variables; let a solver propagate those constraints and search for an assignment that satisfies all of them.

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Stochastic Methods 7 Apr 2026

Stochastic Programming

Minimises expected cost across a probability distribution of scenarios rather than a single forecast — producing decisions that are good on average rather than guaranteed for the worst case.

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Integer Programming 7 Apr 2026

Mixed Integer Programming

Optimisation where some decisions must be whole numbers — enabling yes/no choices, assignment decisions, and logical conditions that continuous LP cannot model.

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Algorithms 7 Apr 2026

Branch and Bound

Solves integer programmes exactly by recursively splitting on fractional variables while pruning branches where the LP relaxation proves no improving integer solution can exist.

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Solution Methods 7 Apr 2026

Benders Decomposition

Solves large MIPs by fixing complicating integer variables, solving the resulting LP exactly, and feeding back optimality and feasibility cuts until the two subproblems converge.

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Solution Methods 7 Apr 2026

Lagrangian Relaxation

Moves hard coupling constraints into the objective with a penalty multiplier, creating a decomposable problem that provides a lower bound and often near-optimal solutions.

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Stochastic Methods 7 Apr 2026

Scenario Recourse Inequalities

Valid cuts for two-stage stochastic MIPs that encode optimal recourse policy choices as integer constraints, enabling exact solution with provable optimality certificates.

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Problem Types 7 Apr 2026

Vehicle Routing Problem

Find the cheapest way to assign customers to a fleet of vehicles and sequence each vehicle's stops, subject to capacity and time constraints.

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