A METHOD FOR USING OR-MODELS TO SOLVE ECO NOMIC-PROBLEMS WITH UNCERTAIN-INFORMATION USING THE EXAMPLE OF SHORT-TERM PRODUCTION PROGRAM-PLANNING IN DAIRIES
B. Muller, A METHOD FOR USING OR-MODELS TO SOLVE ECO NOMIC-PROBLEMS WITH UNCERTAIN-INFORMATION USING THE EXAMPLE OF SHORT-TERM PRODUCTION PROGRAM-PLANNING IN DAIRIES, Kieler Milchwirtschaftliche Forschungsberichte, 46(1), 1994, pp. 33-64
To overcome problems encountered in dairies it appears appropriate to
use mathematical methods for providing decision-making aids. The tradi
tional deterministic methods are, indeed, absolutely unrealistic, beca
use economic planning, being related to future, must necessarily be ba
sed on uncertain data. Consideration of data uncertainty in decision m
odels creates degrees of freedom in choosing an appropriate admissibil
ity and optimality notion. It is shown which alternatives are existing
and which models of stochastic- and Fuzzy-Sets-optimization as a func
tion of this choice are available. In this work emphasis is placed on
the representation of the scenario optimization method, which starts f
rom the deterministic approach; based on it, the future is described b
y different scenari excluding each other. Starting from the solutions
of these scenario problems it allows, in a second step by a coordinati
on model, an altogether optimal solution to be obtained, which can, de
pending on its configuration, cover the range from intelligent averagi
ng of the individual results up to data equivalent to the stochastic a
nd Fuzzy-Sets-models. The procedure is described using the example of
short-term production program planning in a dairy; in this case it is
possible to formulate also the coordination model within the linear st
ructure of the individual models, however, with additional mixed/integ
er variables. It appears that by explicit consideration of data uncert
ainty the economic success can be improved compared with the determini
stic approach. This work is completed by a comparison with alternative
procedures and indications relating to open questions.