Title :
In Production Operation How to Avoid the Misuse of Shadow Price: A Perspective of the Direction Derivation
Author :
Zheng, Shanshui ; Liu, Lihua
Author_Institution :
Logistics Educ. Dept., Guangzhou Inst. of Railway Technol., Guangzhou, China
Abstract :
The shadow price is an important methodology of allocating resources. However, the definition approach of the shadow price limits its application, which is often overlooked. If taking the total revenue function (TRF) of resource as a piecewise linear function, shadow prices can be determined by TRF´s direction derivative. This method can not only get the shadow prices of uni-resource in different status, but also of multi-resources.
Keywords :
optimisation; piecewise linear techniques; pricing; resource allocation; direction derivation; piecewise linear function; production operation; resource allocation; shadow price; total revenue function; Linear programming; Logistics; Remuneration; Resource management; Virtual enterprises;
Conference_Titel :
E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on
Conference_Location :
Henan
Print_ISBN :
978-1-4244-7159-1
DOI :
10.1109/ICEEE.2010.5660695
