Optimisation under Uncertainty

Optimisation models wherein there are uncertainties involved in either the parameters or the model itself, are referred to as optimisation under uncertainty (OUU). It encompasses stochastic programming where there are historical data on probability of parameters or scenarios, or fuzzy modelling where there are limited or no historical knowledge on them. Depending on the nature of decision or risk levels, the optimisation model may incorporate diverse risk measure or alter the objectives to their robust counterparts. OUU is widely used in the real world, including logistics, aviation, humanitarian operations, healthcare, finance and so on.