- Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
- Vol: 12
- PLANNING SECTORAL INVESTMENTS WITH ECONOMIES OF SCALE: A COMPUTATIONALLY EFFICIENT MIXED BIVALENT PR...
PLANNING SECTORAL INVESTMENTS WITH ECONOMIES OF SCALE: A COMPUTATIONALLY EFFICIENT MIXED BIVALENT PROGRAMMING APPROACH
Authors : Armağan Tarim, Bilge Hacihasanoğlu
Pages : 49-60
View : 13 | Download : 8
Publication Date : 1994-12-31
Article Type : Research
Abstract :In this paper, a sectoral investment planning model is examined from computaüonal point of view. It is a well known fact that conventional mixed bivalent programming models with complex combinatorial structures are generally intractable. The paper exploits such a model to determine what capacity, if any, should be maintained at the various geographical regions during the planning period in order to meet regional demand and minimise total cost of the entire system. A Lagrangean relaxation-based procedure is developed to decompose the model into submodels by each geographical region and planning year. Following that, computationally efficient algorithms to solve the submodels are presented and computational results are discussedKeywords : Planning, Integer Programming, Lagrangean Relaxation, Modelling