New price coordination methods solving optimum allocation problem

Abstract

Technological processes with many inputs and outputs represent large-scale systems which are often difficult to optimize. It is mainly caused by high dimension of the optimization problem; standard centralized techniques here fail and cannot be employed. The other way how to solve the issue consists in the utilization of the hierarchical approaches. Method of the price coordination constitutes an interesting tool for the solution of the optimum allocation problem. It is based on the interaction balance between the interconnected subsystems. But the problematic of the interaction balance is defined only on the theoretical field and some practical implementations are not discussed in the literature. In this contribution, there are three newly designed algorithms based on the theoretical aspects of the interaction balance theorem. Next, they are applied on the optimum allocation problem and the results are compared to the ones obtained by standard centralized techniques.