Hidden Convexity in Multi-Retailer Cold-Chain Allocation: A Cholesky-Spectral Second-Order Cone Programming Approach
Abstract
Several dairy retailers share a refrigerated cold-chain network, each allocating products across heat-sensitivity subgroups to maximize quadratic-fractional efficiency (DEA style). This formulation measures spoilage risk per unit of logistics cost, separating technical from scale efficiency. The single-agent problem is a non-convex fractional QCQP, while the multi-retailer game forms a generalized Nash equilibrium problem (GNEP) with a shared risk-budget constraint, which is generally NP-hard. Governed by the Arrhenius spoilage law, the thermal-risk covariance inherits a rank-one-plus-diagonal structure that unlocks hidden convexity. The authors propose the HSDI (Hidden SOCP Dinkelbach Iteration) algorithm via a joint Cholesky-spectral transform. Key contributions include: 1. Establishing simultaneous diagonalization of without requiring matrix commutativity. 2. Deriving an explicit sufficient condition for exact second-order cone programming (SOCP) relaxation, alongside a closed-form suboptimality bound for inexact regimes. 3. Proving global convergence: the outer Dinkelbach loop converges Q-superlinearly (exact) or R-linearly (inexact), and the coupled variational-equilibrium (VE) iteration converges R-linearly under strong monotonicity, achieving an overall complexity while ensuring Lipschitz stability of the primal-dual pair. Calibrated on Vietnam and US dairy markets, HSDI matches the objective value of multi-start non-linear baselines without random restarts, yielding global optima under exactness. HSDI exhibits an empirical scaling exponent of 0.93 (versus 1.30 for SLSQP), offering a certified polynomial-time framework and a stable shadow price for prioritizing cold-chain investments.
Related
- Hidden Convexity via Symmetric Displacement Covers: Mixed-Integer Quadratic Programming and Integer Cubic Programming in Fixed Dimension
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- Spectral Deflation for Factorization-Free Matrix Filtering in Muon and Semidefinite Programming
- Singular Cholesky Fibers over Finite Fields
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BibTeX
@misc{pham2026hidden,
title = {{Hidden Convexity in Multi-Retailer Cold-Chain Allocation: A Cholesky-Spectral Second-Order Cone Programming Approach}},
author = {Thinh Nguyen Hoang Pham and Boris Mordukhovich and Son Hoang Truong and Ngoc Anh Tran and Quyen Phuong Le},
howpublished = {arXiv},
year = {2026},
month = oct,
doi = {10.48550/arxiv.2610.36350},
eprint = {2610.36350},
archivePrefix = {arXiv},
url = {https://arxiv.org/abs/2610.36350},
note = {CC BY 4.0},
}
RIS
TY - UNPB
TI - Hidden Convexity in Multi-Retailer Cold-Chain Allocation: A Cholesky-Spectral Second-Order Cone Programming Approach
AU - Thinh Nguyen Hoang Pham
AU - Boris Mordukhovich
AU - Son Hoang Truong
AU - Ngoc Anh Tran
AU - Quyen Phuong Le
PY - 2026
DA - 2026/10/26
PB - arXiv
DO - 10.48550/arxiv.2610.36350
UR - https://arxiv.org/abs/2610.36350
AB - Several dairy retailers share a refrigerated cold-chain network, each allocating products across heat-sensitivity subgroups to maximize quadratic-fractional efficiency (DEA style). This formulation measures spoilage risk per unit of logistics cost, separating technical from scale efficiency. The single-agent problem is a non-convex fractional QCQP, while the multi-retailer game forms a generalized Nash equilibrium problem (GNEP) with a shared risk-budget constraint, which is generally NP-hard. Governed by the Arrhenius spoilage law, the thermal-risk covariance inherits a rank-one-plus-diagonal structure that unlocks hidden convexity. The authors propose the HSDI (Hidden SOCP Dinkelbach Iteration) algorithm via a joint Cholesky-spectral transform. Key contributions include: 1. Establishing simultaneous diagonalization of without requiring matrix commutativity. 2. Deriving an explicit sufficient condition for exact second-order cone programming (SOCP) relaxation, alongside a closed-form suboptimality bound for inexact regimes. 3. Proving global convergence: the outer Dinkelbach loop converges Q-superlinearly (exact) or R-linearly (inexact), and the coupled variational-equilibrium (VE) iteration converges R-linearly under strong monotonicity, achieving an overall complexity while ensuring Lipschitz stability of the primal-dual pair. Calibrated on Vietnam and US dairy markets, HSDI matches the objective value of multi-start non-linear baselines without random restarts, yielding global optima under exactness. HSDI exhibits an empirical scaling exponent of 0.93 (versus 1.30 for SLSQP), offering a certified polynomial-time framework and a stable shadow price for prioritizing cold-chain investments.
ER -