Introduction to Two-Stage Stochastic Optimization (Conceptual)

Enjoyed this content? Want to help support my channel? You can buy me a coffee: https://www.buymeacoffee.com/tallysyunes Or buy me an item from my wishlist: https://www.buymeacoffee.com/tallysyunes/wishlist When the uncertainty in your decision-making process can be captured well by thinking of two stages (today and "tomorrow" or the near future) where "tomorrow" can be split into a number of different scenarios, two-stage stochastic optimization can be a useful modeling tool. For example: a farmer wants to decide what seeds to plant today considering the upcoming weather could be dry, average, or rainy. In this video, we go over the key concepts necessary to understand this type of optimization problem in preparation for an actual business example in the following video: Concrete Excel example: https://youtu.be/UZCuyeLRvsw.