Abstract—Most Independent System Operators (ISOs) adopt the Bid Cost Minimization (BCM) to select offers and their respective generation levels while minimizing the total bid cost. It was shown that the customer payment costs that result from selected offers can differ significantly from the customer payments resulting from the Payment Cost Minimization (PCM), under which payment costs are minimized directly. In order to solve the PCM in the dual space, the Lagrangian relaxation and surrogate optimization approach is frequently used. When standard optimization methods, such as branch-and-cut, become ineffective due to the large size of a problem, the Lagrangian relaxation and surrogate optimization approach provides a good feasible solution within a reasonable CPU time. The convergence of the standard Lagrangian relaxation and surrogate subgradient approach depends on the optimal dual value, which is usually unknown. Furthermore, when using the surrogate subgradient approach, the upper bound property is lost, so additional conditions are needed to ensure convergence. The main goal of this paper is to develop a convergent variation of the surrogate subgradient method without invoking the optimal dual value, and show the relevance and effectiveness of the new method for solving large constrained optimization problems, such as the PCM.
I. INTRODUCTION
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URRENTLY, most ISOs in the United States adopt the bid cost minimization (BCM) settlement mechanism for minimizing total offer costs. In this setup, customer payment costs, which are determined by a mechanism that assigns uniform market clearing prices (MCPs), are different from the minimized offer costs. An alternative method to determine customer payment costs is to ...
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...amic step size [8]. Perhaps the most recent and exhaustive survey on the subgradient methods for convex optimization is [2].
The Lagrangian relaxation and surrogate subgradient optimization approach was specifically treated in [6] and [5]. The former paper develops the surrogate subgradient method and proves its convergence. Compared to subgradient and gradient methods, the surrogate subgradient approach finds better and smoother directions within less CPU time. The latter paper extends the methodology to solving coupled problems. Since the optimal dual value or the optimal multipliers remain unknown, there is the need for development of the surrogate subgradient method, the convergence of which does not depend on the optimal dual value.
The convergence of the surrogate subgradient method with dynamic or constant stepsize still remains an open question.
...-based, charge-based, and contractual payment systems. (p. 7). CRC Press. Retrieved from http://books.google.com/books?id=sCzhN9HruM0C&dq=fee schedule based payment&source=gbs_navlinks_s
As the United States economy struggles through a sluggish time with the stock market dropping and unemployment rising, being competitive in the job market has become extremely important among professionals. Engineers are no exception. For most engineering firms, being competitive and successful requires obtaining design projects offered by companies in other fields. These projects can range from designing heating and ventilation systems for office buildings to water systems for cities to computer networks for businesses—the list of possibilities and disciplines is extensive. To get these jobs, engineers must make a bid proposal for the project. Bidding involves estimating the entire cost of the project, including the designing and building processes, as well as the materials and labor. Usually, the company with the lowest bid and the best plan gets the job. The ethical issue in this process is determining the cheapest building materials and construction procedures possible without compromising public safety.
For the purposes of this paper, it is important that we take the time to define a few terms.
In order to minimize the total shipping costs in the Darby distribution system, linear programming can be used.
This, in order to identify what are the true costs of each customer and each order, enables the company to fully understand its cost structure thereby providing the base for better business choices and higher profitability. These are very sensible goals indeed. Even though the company is profitable, implementing a new, activity-based cost accounting system will allow the company to improve its margins and become even more focused and competitive in the future. 2.2. What is the difference between a.... ...
Project managers must take cost estimates seriously if they want to complete software projects within budget constraints. After developing a good resource requirements list, project managers and their software development teams must develop several estimates of the costs for these resources. There are several different tools and techniques available for accomplishing good cost estimation.
In BASF Group, Business Units are responsible for profit and for return on investment (profit centers), each reporting to an Operating Division. Products within a company of BASF Group that are supplied from one profit center to another for further processing or for sale (i.e. they leave the boundaries of the particular Business Unit or Operating Division) should as a basic rule be charged within the arm’s length principle establishing the downstream unit as a privileged partner. These supplies are therefore charged at transfer prices. Long-term effects of transfer price agreements on business developments and the strategy of upstream and downstream profit centers are taken into account in transfer pricing. BASF’s ZZ clearing desk is responsible for resolving transfer price definition and calculation disputes. As per clearing desk step wise process for calculation of transfer price is defined, which will be used for calculation of transfer pricing. The process cannot be mentioned in this thesis because of confidentiality reasons, and only a general review of approach will be explained.
Organisations have to incur costs to carry out their business and cost management is a part of business which helps the management to steer the company on the smooth road.In the article, an attempt has been made to explore the philosophy of cost and the ways to control it to stay competitive. Both quantitative and qualitative aspect of costs are important ,too much adherence to quantitative aspects might erode the benefits of qualitative aspect of the cost. Effective managers have the wisdom to recognize the qualitative aspect of the cost and it is a sine qua non of their strategies.
The pros of using ABC is the capacity to estimate the cost of services and individual products. By transferring overhead costs to individual units of products or services, ABC helps identify inefficient or non-profitable products or activities that eat into the profitability of efficient processes or highly profitable products (Nayab, 2011). This will help the company to determine whether to implement processes for improvement or outsource those processes. ABC highlights non-remunerative distribution channels allowing the management to adopt alternative marketing strategies or close down the channel for a more pro...
To test these models in collusion, bidders interact in a three-stage game and can be of type risk neutral, strong or weak. In the first stage, the strong bidders vote for or against forming a cartel and a cartel is only formed if they all agree. When they form a cartel they incur a cost. In the second stage, if a cartel is formed the strong bidders interact in a pre-auction knock-out mechanism where all bidders submit a sealed bid and the highest bidd...
Cormen T. H, Leiserson C. E., Rivest R. L. and Stein C. [1990] (2001). “Introduction to Algorithms”, 2nd edition, MIT Press and McGraw-Hill, ISBN 0-262-03293-7, pp. 27–37. Section 2.3: Designing algorithms..
Others feel that ABC would be more widespread in industry if it were marketed better by the cost accounting profession itself [1]. As the dust has settled, ABC has turned out to be less a revolutionary technique than a useful refinement to proven systems. The costs of products and services must be accurate, or management can be misled. Decisions... ...
Barbara Mowat and Paul Warstine. New York: Washington Press, 1992. Slethaug, Gordon. A. See "Lecture Notes" for ENGL1007.
Linear programming is an supple and adaptive technique which can be analyses in a diversity of multi-dimensional problems effectively. This in turn will improve the mini factory’s production effectively.
We formulate a Performance Index J as there can be n number of optimal solutions to a problem. Once we formulate a performance Index J, we can call the solution which minimises this performance index as Optimal. This can be visualised as an energy function, as our ultimate objective is to reduce the energy consumption of the system.