The Multiyear Capital Budgeting Problem: A Lagrangian Relaxation Approach,

Abstract

This paper presents a new approach to the classical multiyear capital budgeting problem. Three basic operational principles, arising out of an actual implementation of such a model, are specifically addressed in this approach. These principles are: (1) All budgets except that of the first year possess a degree of flexability; (2) the user favours a series of near optimal solutions to a single optimal solution; and (3) an effective low cost procedure for dealing with large problems is required. Using the particular example of capital budgeting in the area of highway maintenance, an algorithm is developed and computational results for a variety of problem sizes are presented. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1981
Accession Number
ADA100458

Entities

People

  • D. Kung
  • R. D. Armstrong
  • W. D. Cook

Organizations

  • University of Texas at Austin

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Abstracts
  • Algorithms
  • Coefficients
  • Iterations
  • Maintenance
  • Maintenance Costs
  • Mathematical Models
  • Military Research
  • Models
  • Optimization
  • Pavements
  • Ratings
  • Road Tests
  • Roads
  • Surface Properties
  • United States
  • United States Government

Readers

  • Operations Research
  • Polar and Arctic Studies
  • Systems Analysis and Design