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Incorporating Safety-First Constraints In Linear Programming Production Models

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Listed:
  • Atwood, Joseph A.
  • Watts, Myles J.
  • Helmers, Glenn A.
  • Held, Larry J.

Abstract

A recent survey indicated that many procedures view risk in a safety-first context. Traditional methods used to impose safety-first constraints in optimization models have often been difficult to implement. This is particularly true when endogenous decisions affect the distribution of the chance-constrained random variable. This paper presents a method whereby probabilistic constraints can be easily imposed upon finitely discrete random variables. The procedure uses a linear version of the lower partial moment stochastic inequality. The resulting solutions are somewhat conservative but are less so than the results using the previously published mean income-absolute deviation stochastic inequality.

Suggested Citation

  • Atwood, Joseph A. & Watts, Myles J. & Helmers, Glenn A. & Held, Larry J., 1988. "Incorporating Safety-First Constraints In Linear Programming Production Models," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-8, July.
    • Handle: RePEc:ags:wjagec:32152
    DOI: 10.22004/ag.econ.32152
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    References listed on IDEAS

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    Cited by:

    1. Atwood, Joseph & Shaik, Saleem, 2020. "Theory and statistical properties of Quantile Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 286(2), pages 649-661.
    2. Watts, Myles J. & Atwood, Joseph A. & Helmers, Glenn A. & Held, Larry J., 1989. "Safety First Programming- A Zero-One Approach," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270679, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Matthews, Nicolette & Grove, Bennie, 2015. "Economic-Environmental Trade-offs and the Conservativeness of the Upper Partial Moment," 2015 Conference, August 9-14, 2015, Milan, Italy 212450, International Association of Agricultural Economists.
    4. Kalashami, Mohammad Kavoosi & Sabbagi, Mohammad Aghapour & Alipour, Hamid Reza, 2011. "Using Probabilistic-Risky Programming Models in Identifying Optimized Pattern of Cultivation under Risk Conditions (Case Study: Shoshtar Region)," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 1(1), pages 1-9, March.
    5. Swinton, Scott M. & Black, J. Roy, 2000. "Modeling Of Agricultural Systems," Staff Paper Series 11581, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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