PRAGMATIC APPROACHES TO OPTIMIZATION WITH RANDOM YIELD COEFFICIENTS

This paper discusses practical methods for handling normally distribut ed random technical (yield) coefficients in linear programs that optim ize natural resource allocation and scheduling, These methods are prac tical in the sense that they are applicable to large-scale real world models and do not require nonlinear solution methods. The paper begins with a description and demonstration of postoptimization approaches t hat are applicable to large, linear problems, and then explores method s for reducing overall risk through land allocation diversification, A central theme of the paper is the importance of providing some sort o f allowance for uncertainty when presenting optimization results, whic h promotes a more realistic view of the problem by analysts and decisi on makers alike.