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Applying Robust Optimization to Solve Product Mix Problem in Automotive Industries

In this article, applying robust optimization in product mix problem in automotive industries is presented. The problem includes determining both the quantity and the identification of each product to produce to maximize profit. At first, the deterministic model will be presented. Then, robust model of product mix problem will be illustrated. Bertsimas and Sim approach is used to build robust counterpart of deterministic model. In Bertsimas and Sim approach, the robust counterpart of deterministic model is linear and decision maker can decide about protection level. Model can be used in many automotive industries under uncertainties