Minimizing Net Interest Cost in Municipal Bond Bidding

The problem of minimizing net interest cost (NIC) on new issues of tax-exempt debt securities is formulated as an integer linear programming problem. The formulation (for one variant) is a p-median problem with one additional constraint. Other variants are also closely related to the p-median problem. A dual ascent procedure for solving this problem class is presented and is incorporated in a branch and bound algorithm. Computational results are presented for a number of real world problems.

• 저널Management Science · 27(4) · 365–376
• 토픽Advanced Manufacturing and Logistics Optimization · Industrial and Manufacturing Engineering
• DOI10.1287/mnsc.27.4.365
• 저자Robert M. Nauss, Bradley R. Keeler