Cost Allocation

Centralized Cost Efficiency DEA Models

Cost efficiency measures the cost of resource by output production. While conventional cost efficiency models set targets separately for each DMU, There are cases where the Central decision making is seeking the above targets, and at the same tries to obtain the target of Min cost efficiency for the total consumption. in this paper we consider that there is a centralized decision maker (DM). In...

Simultaneous Allocation Of Reliability & Redundancy Using Minimum Total Cost Of Ownership Approach

This paper addresses the mixed integer reliability redundancy allocation problems to determine simultaneous allocation of optimal reliability and redundancy level of components based on three objective goals. System engineering principles suggest that the best design is the design that maximizes the system operational effectiveness and at the same time minimizes the total cost of ownership (TCO...

A New Approach for Accurate Pricing of Reactive Power and Its Application to Cost Allocation in Deregulated Electricity Markets

Reactive power management plays an essential role in the secure operation of the power system as an ancillary service. Although in electricity markets, the particular attention is paid to active power, the reactive power also plays an important on total generation costs of electricity. On the other hand, as it is mainly confined to local consumption, to avoid market power and maintain the se...

Transmission cost allocation based on cooperative game theory

Genetic Algorithm-Based Optimization Approach for an Uncapacitated Single Allocation P-hub Center Problem with more realistic cost structure

A p-hub center network design problem is definition of some nodes as hubs and allocation of non-hub nodes to them wherein the maximum travel times between any pair of nodes is minimized. The distinctive feature of this study is proposing a new mathematical formulation for modeling costs in a p-hub center problem. Here, instead of considering costs as a linear function of distance, for the first...

A Robust Scenario Based Approach in an Uncertain Condition Applied to Location-Allocation Distribution Centers Problem

The paper discusses the location-allocation model for logistic networks and distribution centers through considering uncertain parameters. In real-world cases, demands and transshipment costs change over the period of the time. This may lead to large cost deviation in total cost. Scenario based robust optimization approaches are proposed where occurrence probability of each scenario is not know...