Multi-stage stochastic programs

Mathematical optimization models that explicitly consider such a multi-stage structure belong to the class of multi-stage stochastic programs. A deterministic optimization model with uncertain parameters is extended to a multi-stage model by three measures ... 

Hence, the aforementioned enterprise-wide model is extended to a stochastic program that takes exogenous uncertainty into account, namely, demand, price and interest rates variability. To tackle the resulting problem, scenario-based multi-stage stochastic mixed integer modeling techniques are applied. Then, the stochastic model is introduced into a model predictive controller to capture the dynamics of SC processes and their environment. The ensuing model can be used as a support tool... 

---