tailieunhanh - Fractional programming approach to a cost minimization problem in electricity market

This paper was motivated by a practical optimization problem that appeared in electricity market of Mongolia. We consider the total average cost minimization problem of power companies of the Ulaanbaatar city. By solving an identification problem, we developed a fractional model that quite adequately represents the real data. The obtained problem turned out to be a fractional minimization problem over a box constraint, and to solve it, we propose a method that employs the global search theory for . minimization. | Yugoslav Journal of Operations Research xx (2018), Number nn, zzz–zzz DOI: FRACTIONAL PROGRAMMING APPROACH TO A COST MINIMIZATION PROBLEM IN ELECTRICITY MARKET Tatiana GRUZDEVA Matrosov Institute for System Dynamics and Control Theory, Siberian Branch of the Russian Academy of Sciences, Irkutsk, Russia gruzdeva@ Rentsen ENKHBAT Matrosov Institute for System Dynamics and Control Theory, Siberian Branch of the Russian Academy of Sciences, Irkutsk, Russia; National University of Mongolia, Ulaanbaatar, Mongolia renkhbat46@ Natsagdorj TUNGALAG National University of Mongolia, Ulaanbaatar, Mongolia tungalag88@ Received: November 2017 / Accepted: February 2018 Abstract: This paper was motivated by a practical optimization problem that appeared in electricity market of Mongolia. We consider the total average cost minimization problem of power companies of the Ulaanbaatar city. By solving an identification problem, we developed a fractional model that quite adequately represents the real data. The obtained problem turned out to be a fractional minimization problem over a box constraint, and to solve it, we propose a method that employs the global search theory for . minimization. Keywords: Fractional minimization, . programming, Local search, Linearization, Average cost, Electricity market. MSC: 90C26, 90C32, 90C90. 1. INTRODUCTION The average cost minimization problem plays an important role not only in 2 T. Gruzdeva, et al. / Fractional programming approach to a cost minimization . engineering and management sciences but also in optimization theory, and methods. As it has already been shown in [9], the average cost minimization problem for a company producing one product belongs to a class of global optimization. In particular, it was revealed that the average cost function is pseudoconvex [9]. Moreover, maximization of efficiency of the average productivity is formulated as the fractional .