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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/3966 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/3966 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/3966 archive 351 disk0/00/00/41/88 2016-01-15 02:04:42 2021-08-27 17:14:56 2016-01-15 02:04:42 monograph show 3 Norkin V.I. AL1055 Ermoliev Y.M. 1445 Ruszczynski A. 1475 pub iis_ecn iis_met prog_opt The optimal use of indivisible resources is often the central issue in the economy and management. One of the main difficulties is the discontinuous nature of the resulting resource allocation problems which may lead to the failure of competitive market allocation mechanisms (unless we agree to "divide" the indivisibles in some indirect way). The problem becomes even more acute when uncertainty of the outcomes of decisions is present. In this paper we formalize the problem as a stochastic optimization problem involving discrete decision variables and uncertainties. By using some concrete examples, we illustrate how some problems of "dividing indivisibles" under uncertainty can be formalized in such terms. Next, we develop a general methodology to solve such problems based on the concept of the branch and bound method. The main idea of the approach is to process large collections of possible solutions and to devote more attention to the most promising groups. By gathering more information to reduce the uncertainty and by specializing the solution the optimal decision can be found. 1994-04 published WP-94-021 WP-94-021 10 2245 338 1544 public working_paper IIASA, Laxenburg, Austria 28 FALSE info:eu-repo/semantics/book