Mathematical Programming Models for Capital Budgeting--A Survey, Generalization, and Critique

Bernhard, Richard H.

doi:10.2307/2329837

Cited by 75 publications

(37 citation statements)

References 17 publications

(28 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In their surveys, Weingartner (1966), Bernhard (1969), andWeingartner (1977) discuss linear and nonlinear models and the use of discount rates. Papers in the civilian literature rarely concern actual applications, with some exceptions.…”

Section: Military Capital Planning and Civilian Capital Budgetingmentioning

confidence: 99%

Optimizing Military Capital Planning

2004

View full text Add to dashboard Cite

Planning United States military procurement commits a significant portion of our nation's wealth and determines our ability to defend ourselves, our allies, and our principles over the long term. Our military pioneered and has long used mathematical optimization to unravel the distinguishing complexities of military capital planning. The succession of mathematical optimization models we present exhibits increasingly detailed features; such embellishments are always needed for real-world, long-term procurement decision models. Two case studies illustrate practical modeling tricks that are useful in helping decision makers decide how to spend about a trillion dollars.

show abstract

Section: Military Capital Planning and Civilian Capital Budgetingmentioning

confidence: 99%

Optimizing Military Capital Planning

2004

View full text Add to dashboard Cite

show abstract

“…There is widespread agreement in the literature on finance (cf. Albach (1962), Baumol-Quandt (1965), Bernard (1969), Hax (1964), Manne (1968), Weingartner (1963Weingartner ( , 1966) that the anticipated dividend payments to the owner(s) of the firm are the arguments of the appropriate objective in the planning of a firm's productive investment and financing policy. As for each t = 1, ... ,T higher dividend payments are preferred to lower dividend payments the general objective will be to maximize y 1 maximize which will be denoted by…”

Section: The Basic Modelmentioning

confidence: 99%

Interactive Decision Analysis

Grauer¹,

Wierzbicki²

1984

Lecture Notes in Economics and Mathematical Systems

View full text Add to dashboard Cite

“…However, incorporating a capital cost budget into process pathway design and optimization models poses mathematical challenges owing to how capital costs typically scale nonconvexly with capacity. While capital budgeting modeling has been studied 6 and some approaches considered, 7 much of the work has come from a financial research perspective and does not take into account scaling capital costs with capacity or other process attributes. It is necessary to consider scaling capital costs under a capital budgeting constraint when optimizing novel processing pathways to ensure their viability and practical feasibility.…”

Section: ■ Introductionmentioning

confidence: 99%

Network-Based Life Cycle Optimization of the Net Atmospheric CO₂-eq Ratio (NACR) of Fuels and Chemicals Production from Biomass

Garcia

You

2015

ACS Sustainable Chem. Eng.

View full text Add to dashboard Cite

A biofuels and bioproducts conversion network is optimized over unit cost and unit greenhouse gas emissions objectives. We use a multiobjective, functional unit approach based on the life cycle analysis methodology with simultaneous consideration of capital budget constraints. A novel functional unit of mass of input biogenic CO 2 -eq is proposed to capture common benefits of bioproducts and biofuels. A novel dimensionless net atmospheric carbon ratio (NACR) for bioconversion processes is defined that captures the life cycle carbon footprint of the process from feedstock cultivation to product end use. The model is formulated as a nonconvex multiobjective mixed integer nonlinear fractional programming problem. We address computational complexity by developing a novel global optimization algorithm that incorporates the parametric algorithm and successive piecewise linear approximations to estimate nonconvex terms, and we introduce nonlinear programming subproblems to ensure global convergence under capital cost budget constraints. We consider large-scale case studies of a bioconversion network of 200 technologies and 142 materials/ compounds where fuels and chemicals can be made from biomass. Unit costs range from −$0.27 to −$0.43/kg input CO 2 -eq, and the NACRs range from 0.17 to 0.25. An optimal NACR that includes biofuel combustion emissions over a network where only biofuels are produced was found to be 1.90.

show abstract

Mathematical Programming Models for Capital Budgeting--A Survey, Generalization, and Critique

Cited by 75 publications

References 17 publications

Optimizing Military Capital Planning

Optimizing Military Capital Planning

Interactive Decision Analysis

Network-Based Life Cycle Optimization of the Net Atmospheric CO₂-eq Ratio (NACR) of Fuels and Chemicals Production from Biomass

Contact Info

Product

Resources

About

Mathematical Programming Models for Capital Budgeting--A Survey, Generalization, and Critique

Cited by 75 publications

References 17 publications

Optimizing Military Capital Planning

Optimizing Military Capital Planning

Interactive Decision Analysis

Network-Based Life Cycle Optimization of the Net Atmospheric CO2-eq Ratio (NACR) of Fuels and Chemicals Production from Biomass

Contact Info

Product

Resources

About

Network-Based Life Cycle Optimization of the Net Atmospheric CO₂-eq Ratio (NACR) of Fuels and Chemicals Production from Biomass