Transfer of optimization techniques from water reservoir to national grain reservoir systems: issues in economic modelling

Abstract Similarities and differences exist between various inventory systems. This paper discusses the issues involved in transferring optimization modelling techniques from water reservoir systems to grain reservoir systems. A two-objective linear programme is formulated that ensures minimum return to corn and wheat producers in the USA over a 10-year (1 968-1977) study period. The solutions of this model and the resulting trade-offs between the two objectives are presented. The limitations of the market price models generally used in conventional system analysis-are discussed. A conceptual model based on the topologic concepts of structural stability is presented. The role of descriptive economic models as a value measure for ranking alternative solutions to a multi-objective planning problem is also examined.