Stochastic Optimization Model and O ( N2 ) Solution Algorithm for Highway Investment Decision Making under Budget Uncertainty

Abstract

One of the key tasks in highway investment decision making is to conduct project selection. The existing optimization models for project selection concerning an entire highway system do not address the issue of budget uncertainty, limiting their ability to produce truly optimal results. This paper presents a stochastic optimization model that explicitly addresses budget uncertainty in highway investment decision making. The model is formulated as the stochastic multichoice multidimensional Knapsack problem with