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Optimal resource extraction with uncertain reserves
Author(s) -
Lipshutz Robert J.,
Stone Lawrence D.
Publication year - 1992
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(199203)39:2<153::aid-nav3220390203>3.0.co;2-8
Subject(s) - resource (disambiguation) , mathematical optimization , computer science , non renewable resource , extraction (chemistry) , time horizon , function (biology) , plan (archaeology) , operations research , mathematics , geology , computer network , paleontology , chemistry , chromatography , evolutionary biology , renewable energy , electrical engineering , biology , engineering
We consider the problem of finding a plan that maximizes the expected discounted return when extracting a nonrenewable resource having uncertain reserves. An extraction plan specifies the rate at which the resource is extracted as a function of time until the resource is exhausted or the time horizon is reached. The return per unit of resource extracted may depend on the rate of extraction, time, and the amount of resource previously extracted. We apply a new method called the generalized search optimization technique to find qualitative features of optimal plans and to devise algorithms for the numerical calculation of optimal plans.