stochastic programming

Stochastic programming is a mathematical method for making decisions when there is uncertainty about future events or outcomes. It involves creating models that consider various possible scenarios, each with their own probabilities, to find the best strategy that balances risk and reward. This approach helps organizations plan effectively despite unpredictable variables like market changes, weather, or supply disruptions, by optimizing decisions across different potential futures. Essentially, it’s a systematic way to make informed choices in uncertain situations, aiming to achieve the best possible outcome overall.