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Question 1. Consider the following two-stage stochastic integer programming problem. minimize 3.61 + 5x2 + Ps(214s1 + 284x2 + 299s3 + 18434), subject to 4

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Question 1. Consider the following two-stage stochastic integer programming problem. minimize 3.61 + 5x2 + Ps(214s1 + 284x2 + 299s3 + 18434), subject to 4 &s1 - 21 for s {1, 2, 3, 4, 5}, 34s1 + 6ys2 + Y33 + 4y54 > $s2 22 for s {1, 2, 3, 4, 5}, 21,22 integer, Ysi {0,1}, for s {1, 2, 3, 4, 5} and i {1,2,3,4}, and &s = (Es1, s2) takes values (4,5), (5,5), (5,6), (6,6) and (6, 7) with probabilities ps = 0.20 for all s {1,2,3,4,5). (a) Solve the above two-stage stochastic programming model optimally. (You can use a solver like Xpress, Excel Solver, Cplex) (b) Calculate Expected Value of Perfect Information (EVPI). (c) Calculate Value of Stochastic Solution (VSS). Question 1. Consider the following two-stage stochastic integer programming problem. minimize 3.61 + 5x2 + Ps(214s1 + 284x2 + 299s3 + 18434), subject to 4 &s1 - 21 for s {1, 2, 3, 4, 5}, 34s1 + 6ys2 + Y33 + 4y54 > $s2 22 for s {1, 2, 3, 4, 5}, 21,22 integer, Ysi {0,1}, for s {1, 2, 3, 4, 5} and i {1,2,3,4}, and &s = (Es1, s2) takes values (4,5), (5,5), (5,6), (6,6) and (6, 7) with probabilities ps = 0.20 for all s {1,2,3,4,5). (a) Solve the above two-stage stochastic programming model optimally. (You can use a solver like Xpress, Excel Solver, Cplex) (b) Calculate Expected Value of Perfect Information (EVPI). (c) Calculate Value of Stochastic Solution (VSS)

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