Nonlinear local optimisation

Chapter 15 showed that Open Design methodology can contribute to complex urban planning projects like the extension of Schiphol Airport, Amsterdam. Extensions on both a national and a European level were explored and it was shown that both options were feasible. The airport on a European level showed to have a better return on investment, ROI, which is the yearly exploitation revenues E, from a tax per passenger, over the investment I: ROI = j. The yearly exploitation revenues E are related to the number of flight movements by the tax per passenger and the average number of passengers per flight.

The results of both simulations are given in Table 16.1. [O c_mco-1.xls, c_mco-2.xls]

For both simulations an LP model was used aimed at minimising the investment. Economy-of-scale is not taken into consideration. To do so the ROI would have to be optimised. The ROI takes the investment and the revenues into account, so it would be better to optimise this variable. Because the ROI is a fraction of endogenous variables (ROI = j) it turns the linear model into a non-linear model. As a result the outcome of both simulations will be a local optimum, as opposed to a global optimum.

Best Investment Tips and Ideas

Best Investment Tips and Ideas

The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.

Get My Free Ebook


Post a comment