chance-constrained programming

Chance-constrained programming is an optimization method that accounts for uncertainty by allowing certain constraints to be violated with a small, acceptable probability. Instead of requiring strict adherence to constraints at all times, it ensures that the probability of constraint violations remains below a specified level. This approach provides a flexible balance between optimality and risk, making it useful in real-world situations where some variability or unpredictability exists—like managing inventory with uncertain demand or planning in uncertain environments—by incorporating probabilistic measures directly into decision-making.