Abstract

In business optimization, the piecewise linear programming problem arises [1]. When taking into account the investments, the cost is a discontinuous piecewise linear function of decision variables. In this paper, a transformation of a fractional piecewise linear programming problem into a linear mixed integer programming problem is described. This transformation can be used while maximizing the quotient of the revenue and the cost. A similar transformation can be applied when a constraint contains this quotient.

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