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E a c h new project becomes p a r t of t h e system a t t h e s t a r t of t h e year. S. S. Geological Survey, and (b) demands (consumptive a n d nonconsumptive) on t h e system are specified m o n t h b y m o n t h . T h e m o n t h l y time frame for reservoir operation has been widely used b y other investigators [Hufschmidt, 1962; Wallace, 1966; McLaughlin, 1967; Y o u n g etal, 1969; Hall a n d D r a c u p , 1970]. 2. As presently formulated, t h e model of t h e river basin does n o t t a k e into account flood damages.

Other benefits a n d costs can b e added t o t h e objective function b y analogy with t h e given terms. 3. 3. C o n s t r a i n t s Constraints exist t h a t limit t h e range of variation of each of t h e variables, prescribe their relationships to each other, and delineate t h e external in­ fluences on t h e planning. Constraints generally are of two basic t y p e s : equality or inequality constraints. Another t y p e of constraint, as we shall see, is t h e restriction of a variable t o being either 0 or 1.

T h e m e t h o d of analysis was similar t o Hufschmidt's a n d can b e sum­ marized as follows. 1. Preliminary sizes of elements of t h e system and operating rules for t h e reservoir were determined b y a formal optimization procedure. 2. An initial screening was carried out b y simulation of t h e given h y ­ drology, element sizes, and operating rules for a large n u m b e r of alternative development schedules selected b y r a n d o m sampling of t h e cost response surface. T h e range of variables was reduced b y r a n d o m sampling over t h e independent variables.

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