Abstract
We consider the important problem of medium term forest planning with an integrated approach considering both harvesting and road construction decisions in the presence of uncertainty modeled as a multi-stage problem. We give strengthening methods that enable the solution of problems with many more scenarios than previously reported in the literature. Furthermore, we demonstrate that a scenario-based decomposition method (Progressive Hedging) is competitive with direct solution of the extensive form, even on a serial computer. Computational results based on a real-world example are presented.
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Acknowledgments
The comments of two anonymous referees greatly improved the exposition. This research was financed in part by the Complex Engineering Systems Institute (ICM:P-05-004-F, CONICYT: FBO16), and by Fondecyt under Grant 1120318.
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Veliz, F.B., Watson, JP., Weintraub, A. et al. Stochastic optimization models in forest planning: a progressive hedging solution approach. Ann Oper Res 232, 259–274 (2015). https://doi.org/10.1007/s10479-014-1608-4
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DOI: https://doi.org/10.1007/s10479-014-1608-4