Cost optimal segregated targeting for resource allocation networks

Abstract

In this paper, a generalised methodology is proposed to target cost optimal allocation of resources in segregated targeting problems. Cost optimal segregated targeting problems are characterised by the existence of multiple zones; each consisting of a set of demands and using a unique resource with given cost and a single quality index (e.g., emissions factor, contaminant concentrations, etc.). All these zones share a common set of internal sources. This paper presents a rigorous mathematical proof of the decomposition principle that decomposes the problem into a sequence of sub-problems. Decomposition of the original problem is performed based on the prioritised costs for each external resource, attached to a particular zone. Prioritised cost of a resource depends on the pinch quality, quality of the resource and its cost. Applicability of the proposed methodology is illustrated by examples from carbon-constrained energy planning and water allocation networks.