Solving Two-Stage Stochastic Programs in Gurobi | by Nakul Upadhya | Oct, 2022
Photo by Taylor Vick on UnsplashFormulating and solving a two-stage stochastic server farm problemStochastic programming (SP) is a framework for modeling optimization problems that involve uncertainty . In many cases, SP models take the form of a two-stage problem. The first stage involves finding the optimal deterministic decisions. These decisions are based on information we know to be certain (AKA the here-and-now decisions). The second stage involves making decisions that rely on randomness (also called the recourse…