A 2-STAGE QUANTILE LINEAR-PROGRAMMING PROBLEM

A new class of stochastic programming problems, namely, two-stage line ar problems with a quantile criterion function, has been investigated. The problem is studied in a priori as well as in a posteriori formula tion, and both of these formulations have been shown to be equivalent. Properties of the a posteriori formulation have been studied, and suf ficient conditions have been derived for the problem to have a unique solution. A method of determining a guaranteed solution is stated. An example is given to illustrate optimization of hospital budgeting cost s.