Research Reports from the Department of Operations

Document Type

Report

Publication Date

8-1-1965

Abstract

This paper seeks to prove the basic theorem of stochastic programming that an optimal solution of the certainty equivalent problem is also an optimal solution of the stochastic programming problem. This basic theorem applies to both non-linear space in X as well as to linear space in X. The remaining sections of this paper are concerned with developing general solution methods for stochastic linear programming problems when all of the variables are contained in the b vector.

Keywords

Stochastic processes, Operations research, Production control, Linear programming

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 39

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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