The Probability Distribution Function of the Optimum of a 0-1 Linear Program with Randomly Distributed Coefficients of the Objective Function and the Right-Hand Side

H.-J. Zimmermann and M. A. Pollatschek
Additional contact information
H.-J. Zimmermann: Technische Hochschule Aachen, Aachen, West Germany
M. A. Pollatschek: Technion—Israel Institute of Technology, Haifa, Israel

Operations Research, 1975, vol. 23, issue 1, 137-149

Abstract: This paper proposes and discusses exact and approximate methods for solving the distribution problem of a linear 0-1 program with stochastic b and c . It shows that, in decision-making situations, severe errors can arise when mathematical expectations are substituted for the stochastic coefficients and the problem is treated as a deterministic one. Thus, a knowledge of the distribution function of the optimal value of the objective function as a function of the distributions of the coefficients—or close bounds on it—is a genuine help for the decision maker in situations of risk or uncertainty.

Date: 1975
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/opre.23.1.137 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:23:y:1975:i:1:p:137-149

Access Statistics for this article

More articles in Operations Research from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().