Optimization of stochastic planning models.

Abstract: "In order to solve the production planning problem given in 'Part I', a successive disaggregation algorithm is developed based on extensive sensitivity analysis for guiding the decisions on how to repartition the aggregate probability space. The partitioning algorithm is guaranteed to converge to the exact solution in a finite number of iterations, and has a highly parallel decomposition and computer implementation. Example problems are presented to demonstrate the solution technique. Results are compared with the alternative solution methods, variants of Benders decomposition schemes tailored to the dynamic staircase LP structure."