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An alternative solution to linear programming problems with stochastic inputâoutput coefficients
- Wicks, John A., Guise, John W.B.
- Australian journal of agricultural and resource economics 1978 v.22 no.1 pp. 22-40
- algorithms, farms, linear programming, New South Wales
- Deriving acceptable farm plans where inputâoutput coefficients are stochastic is a complex problem. Previous formulations have required many simplifying assumptions about the stochastic variables in the analysis. This paper presents an alternative approach based on the mean absolute deviation, which permits solution by a conventional linear programming algorithm whilst avoiding some of those assumptions previously required. The formulation also incorporates a stochastic objective function. Examples are provided using the situation of stochastic feed supply with reference to representative sheepâgrain farms on the Northern Tablelands of New South Wales. Results from these suggest that this alternative approach is a distinct improvement on earlier stochastic formulations which utilize linear programming algorithms.