Economic models

Many economic performance indicators have been proposed to assess the economic performance of a SC network design. The most traditional indicators are profit, net present value (NPV), and total cost. However, other more holistic measures have been proposed which take into account the dynamic change of net working capital (see Chap. 2). Similarly to the SC operations model, the reader is referred to Sect. 5.3.2 where the equations belonging to the economic model are found. Notice that for this case, the CO2 emissions trading must be taken into account in the economic model. 

The Net income (Ne/ ) due to emissions trading is calculated by Eq. (6.8). Here, Cosf°2 and Price °2 represent the emission right cost and price respectively. 

Accordingly, the profit calculation at period t represented in Equation (6.9) incorporates such an issue. To conclude, NPV is computed by means of Eq. (6.10). 

the SC network design-planning problem whose objeetive is to optimize a given set of objective functions can be mathematically formulated as shown below  

Here denotes the binary variables set, while corresponds to the continuous 

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Keywords economic model, shareholder s profit, project cashflow, gross revenue, discounted cashflow, opex, capex, technical cost, tax, royalty, oil price, marker crude, capital allowance, discount rate, profitability indicators, net present value, rate of return, screening, ranking, expected monetary value, exploration decision making. 

Categories 2 and 3 comprise the model of the process or equipment category I is sometimes called the economic model. 

No single method or algorithm of optimization exists that can be apphed efficiently to all problems. The method chosen for any particular case will depend primarily on (I) the character of the objective function, (2) the nature of the constraints, and (3) the number of independent and dependent variables. Table 8-6 summarizes the six general steps for the analysis and solution of optimization problems (Edgar and Himmelblau, Optimization of Chemical Processes, McGraw-HiU, New York, 1988). You do not have to follow the cited order exac tly, but vou should cover all of the steps eventually. Shortcuts in the procedure are allowable, and the easy steps can be performed first. Steps I, 2, and 3 deal with the mathematical definition of the problem ideutificatiou of variables and specification of the objective function and statement of the constraints. If the process to be optimized is very complex, it may be necessaiy to reformulate the problem so that it can be solved with reasonable effort. Later in this section, we discuss the development of mathematical models for the process and the objec tive function (the economic model). 

Determine the criterion for optimization and specify the objective function in terms of the above variables together with coefficients. This step provides the performance model (sometimes called the economic model when appropriate). 

A typical economic model involves the costs of raw materials, values... 

In a comparison of nine economic models, estimated costs to the United States as of the late 1990s ranged from a loss in gross domestic product from 40 billion to 180 billion, with assumptions of no emission trading from 20 billion to 90 billion with trading only among developed countries and from... 

The simplest economic model for the guidance of the catalyst chemist is the standard cost sheet. This lists the variable costs (raw materials), fixed costs (capital charges) and semi-variable costs (conversion expense). Typically, these three elements may represent similar proportions of the overall cost per ton of product, but the circumstances following successful catalyst research can vary widely. 

Line K-1000, 105mm, HE/RAP 33) Ibid, Vol 27, Feasibility Study for an- Economic Model 34) Ibid, Vol 28, Integrated Master Plan and Priority System Feasibility Study ... 

Hellinger FJ (2006) Economic models of antiretroviral therapy searching for the optimal strategy, Pharmacoeconomics 24 631-642... 

TurkishModel. Continued and upgraded promotion of the Turkish political and economic model of a secular, multi-party, market democracy. Turkish and US-based NGO s, policy and educational institutes, and multilateral organizations like GUUAM and OSCE can play an important role in adapting the Turkish experience to the particular socio-economic and political conditions in selected countries. The focus of such effort ought to be Azerbaijan, Uzbekistan, and Turkmenistan. 

The objective function in an economic model in RTQ involves the costs of raw materials, values of products, and costs of production as functions of operating conditions, projected sales or interdepartmental transfer prices, and so on. 

Both the operating and economic models typically include constraints on... 

In supervisory control, process and economic models of the plant are used to optimize the plant operation by maximizing daily profit, yields, or production rates. The computer program reviews operating conditions periodically, computes the new conditions that optimize a chosen objective function, and adjusts plant controller set points, thus implementing the new improved conditions. This scheme will obviously require a model of the plant, current information about operating conditions from the plant s control system, and finally, sophisticated optimization software. 

In 1878 Karl Marx developed the reproduction schema his model of how total capital is produced and reproduced. This is thought to be the first two-sector economic model ever constructed. Two key aspects of Marx s writings are widely agreed to be undeveloped the role of aggregate demand and the role of money. This book has as its aim the synthesis of various strands of economic thought in an attempt to understand and clarify the structure of the reproduction schema. This synthesis will challenge prevailing orthodoxies. 

The major conclusions from all economic modelling activities could be drawn as follows introduction of hydrogen leads, under the assumption of a similar competitiveness as today for non-hydrogen technologies, to significant positive effects for long term GDP, employment and investment. 

Zhang, Z. and Folmer, H. (1998). Economic modelling approaches to cost estimates for the control of carbon dioxide emissions. Energy Economics, 20 (1), 101-120. 

TNC.70. 1. Prigogine, From dynamical systems to socio-economic models, in International Symposium on Evolutionary Dynamics and Nonlinar Economics, University of Texas at Austin, 1989. 

The second reason for the breakdown of revenue equivalence is that vaccines are more likely to interfere with the spread of a disease than are drug treatments, thus reducing demand for the product. By embedding an economic model within a standard dynamic epidemiological model, they show that the steady-state flow of revenue is greater for drug treatments than for vaccines. 

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