An Interval-Parameter Two-stage Stochastic Programming Problem involving Exponential Random Variables.

Interval-parameter two-stage stochastic programming is an optimization problem by incorporating some of the input model parameters as random variables with known probability distributions and discrete intervals simultaneously within the two-stage stochastic optimization framework. In this paper, we proposed an interval-parameter two-stage stochastic programming problem considering only the right hand side parameters of the constraints as exponential random variables with known mean and variance and all other parameters are discrete intervals. Both the random variables and discrete intervals are simultaneously conceived under one roof for the model parameters. In order to solve the problem, first we remove the randomness from the problem and formulate an equivalent deterministic interval non-linear programming model. Then the deterministic interval non-linear programming model is solved and find the interval optimal solutions which provides several alternatives that reflect different decisions. A numerical example is presented to exemplify the usefulness of the proposed methodology. [ABSTRACT FROM AUTHOR]