Economic Models - Convex Optimization

154 Anna-Maria Mouza
Table 2.
final year.
Forecasted number of patients and various expenses for the
Patient expenses
Forecasted average
per patient, at the final
period t f ( )
Forecasted number of patients for the period (year) t 5 = 3625
Axial-tomography 9.1
X-ray 5.7
Medical supplies 59.4
Administrative and
32.1
miscellaneous
Other expected
Total ( ) Amount for the final year t 5
expenses
Installation of IVR
3000 600
system
Server and computers 2350 (salvage value: 350) 400
replacement
Personnel insurance
(19% of total
Endogenous (decision
variable X 39 )
salaries)
Laboratory expenses 60,000
Fixed expenses plus
180,000
depreciation
All other expenses 80,000
be computed from:
c 1 × X 1 = 35622.2 × 10 = 356222.
If I denote by X 10+i , the salary expenses of group i, then I may write
X 10+i = c i × X i (i = 1,...,10). (2)
so that the total salary expenses for the final year can be determined by
evaluating the summation:
20∑
i=11
X i . (3)