When I read your model file into AMPL, I see this error message:
../smmr.mod, line 28 (offset 1943):
syntax error
context: set rho {i in Ni} := {l in >>> L}: <<< i in delta[l];
The problem here is that to the right of the := operator, you have the } in the wrong place; the statement should be
set rho {i in Ni} := {l in L: i in delta[l]};
There is a similar error in defining set ipsilon. Also your definitions of lambda and lambda0 do not use the AMPL syntax for sets; for example you should have
set lambda {l in L, m in M, o in O} := {mm in M, oo in O: mm <> m and oo > o};
I did not reach the "is already defined" error that you describe, however.
Bob Fourer
am...@googlegroups.com
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