Stochastic Programming Model in Agricultural Production Decision Support System.

Agricultural production depends on various factors which are frequently impossible to control to a sufficient degree. Consequently, it is not possible to determine precisely parameter values, which is a major problem for decision-makers when putting up a plan for the type and quantity of agricultural output that should be produced and offered on the market. Since applying deterministic models cannot yield satisfactory results in such circumstances, it is necessary to improve the decision support system by implementing stochastic programming. Its basic feature is defining parameters of the model as random variables. In order to establish solutions to the problem set in this way, the stochastic programming model has to be transformed into a deterministic form, which then results in one or more constraints of non-linear character. Given that this form of mathematical optimization is very complex to solve, it requires managers to use computers and adequate software in order to carry it out. In this paper, the proposed model of decisionmaking in agricultural production, based on computer optimization, is first considered from a theoretical viewpoint. After that, the procedure of its construction and solution is illustrated on a hypothetical example. [ABSTRACT FROM AUTHOR]