A variability reduction method for the operating room scheduling problem under uncertainty using CVaR

The objective of the SMILP model is to minimize the CVaR of overtime and idle time costs. Numerical experiments are conducted on real-life benchmark instances, and showed that CVaR outperformed the widely used expected value (EV) approach in reducing variance of the total cost. As compared to the EV in terms of the total cost, the CVaR reduced the variance by 37%, produced a 25% lower interquartile range, and 24% lower median absolute deviation at a slight increase (4%) in the expected value.
Source: Operations Research for Health Care - Category: Hospital Management Source Type: research