A comparative study on Stochastic Programming Problems: modeling and applications in real life

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. In this project, we presented a case study of a farmer’s problem in Barishal region, Bangladesh based on two-stage stochastic programming with simple recourse. 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 type of optimization techniques with risk consideration for a better decision in every step of our life. Two-Stage Stochastic Programming is one of the most arising concerns in optimization techniques, where the decision has to anticipate using stochastic criteria’s and the second-stage decision has to take according to the anticipating decision result. The L-Shaped algorithm uses constraint types for solving Two-Stage Fixed Recourse Problems. We also developed a Stochastic Programming Model for solving uncertainty issues arises in container allotment at two major sea-ports of Bangladesh. Finally, we discussed some observations on Arc Routing with uncertain parameters that help to choose the best lane.