Optimizing Resource Acquisition Decisions by Stochastic Programming

Daniel Bienstock and Jeremy F. Shapiro
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Daniel Bienstock: Operations Research Center, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139
Jeremy F. Shapiro: Operations Research Center, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139

Management Science, 1988, vol. 34, issue 2, 215-229

Abstract: This paper reports on the application of stochastic programming with recourse to strategic planning decisions regarding resource acquisition. A resource directed decomposition method, which simultaneously exploits stochastic programming and mixed integer programming model structures, is proposed. Computational experience with the method applied to fuel contract and plant construction decisions faced by an electric utility is presented.

Keywords: stochastic programming; mixed integer programming; benders decomposition (search for similar items in EconPapers)
Date: 1988
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:34:y:1988:i:2:p:215-229

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