Fractional piecewise linear optimization of the business process including investments

摘要

The paper deals with the problem of choosing the most appropriate combination of investment projects which maximizes the rate of return. The considered investments concern the improvement or the expansion of the given business process. The maximization of the increase of the difference between income and costs per invested monetary unit by means of a fractional piecewise linear optimization model is explained along with an example from the metallurgic industry. The obtained model is transformed into a linear mixed integer programming problem.