Developing stochastic linear programing model for production: Evidence from Bangladesh

Though, once, agriculture had a major contribution in our GDP, day by day its contribution is rapidly decreasing. In this paper, a decision making model has been proposed for maximizing agricultural production in forthcoming year under uncertainty. The total agricultural inputs (seeds, credit, fertilizer, pesticide, labor, land, and irrigation) fluctuate over the time period. The proposed method uses Stochastic Linear Model (SLP) under a situation of uncertainty, i.e., total inputs be uncertain (stochastic) with respect to time. The agricultural inputs are determined using time series analysis. Eviews 9 and StataMP 13 statistical tools are used to compute all types of calculation to prepare the result.