Abstract
The exception of considering uncertainty could be very detrimental to the outcomes of any systems or phenomena in the long run. Stochastic Process describes the way of considering uncertainty in different sectors of our life. We use Linear Programming for planning at its best. It is also considered as the best optimization technique for taking decisions or planning. But this planning tool disappoints us in optimization for unexpected risk or stochasticity. Consideration of stochasticity for a farmer to devote land on different crops for harvesting could be some insurance for the farmer with the best possible outcomes. Stochastic Programming studies these types of optimization techniques with risk consideration for better decisions in every step of our life. In this paper, we described the early starting of uncertainty calculation or stochastic approach and the evolution of stochastic optimization fields. Stochastic optimization is rather important in the sense of uncertainty calculation than sensitivity analysis and works through data gained from experience. We also present a stochastic model with some uncertainty issues in harvesting to make better outcomes. Some application areas are also discussed.
Highlights
We want the best output in every step of our life with the limited resources we hold
Is the data available everywhere, in every case? What will happen if a farmer needs to know about the weather conditions about six months earlier? What will be the predictions for share-markets? What will be the most predictable one chance?
The first programming formulation of a problem and a solving process for it was given by Soviet economist Leonid Kantorovich in 1939, which is the foundation of Linear Programming (LP)
Summary
We want the best output in every step of our life with the limited resources we hold. A study that assists to choose our decision for the best possible outcomes is called optimization techniques. Stochastic programming is the study of decision making under risk management in Optimization techniques. It was first introduced by George B. They fail to make a better decision due to uncertain parameters like a weather forecast, productivity of lands, selling price fluctuations, etc. Stochastic Programming could be an asset by calculating the uncertain parameters for the most possible better output. Based on the problems arises for the consideration of a variety of risks in different periods of a system or phenomena, Stochastic Programming could be sectorized. The consideration of risks or uncertainty could help us to make better decisions in every step of our life
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