Double-Perspective Functions for Mixed-Integer Fractional Programs with Indicator Variables

Perspective functions have long been used to convert fractional programs into convex programs. More recently, they have been used to form tight relaxations of mixed-integer nonlinear programs with socalled indicator variables. Motivated by a practical application (maximising energy efficiency in an OFDMA system), we consider problems that have a fractional objective and indicator variables simultaneously. To obtain a tight relaxation of such problems, one must consider what we call a “double-perspective” (DP) function. An analysis of DP functions leads to the derivation of a new kind of cutting planes, which we call “DP-cuts”. Computational results indicate that DP-cuts typically close a substantial proportion of the integrality gap.