Patent Document ID: 6035277
Application ID: 09054925
Patent Flag: 1

Claim One:
1. A computer-implemented method for optimizing an allocation of resources in a product/services distribution system in order to reduce costs, comprising steps of: inputting a first data representing physical constraints of said product/services distribution system; forming a first matrix and a first vector in a memory of a computer based on said first data; inputting a quality vector associated with a decision vector; initializing a first minimum cost value, a decision vector representing a vector state of said physical system, an optimal decision vector representing a vector state of said product/services distribution system, a first dual variables vector, a second dual variables vector, a weighting factor and a step-size, each to a respective predetermined initial value; computing a second minimum cost value and an intermediate optimal decision vector, in accordance with the following: EQU z=min(c-.pi.A)x subject to EQU 0.ltoreq.x.ltoreq.u, where z=the computed second minimum cost value, c=said quality vector, .pi.=said second dual variables vector, A=said first matrix, x=equal to said decision vector, u=a predetermined range of permissible values for the decision vector, and x=the computed intermediate optimal decision vector, which is equal to the decision vector resulting in said second minimum cost value; updating the optimal decision vector, in accordance with the following: EQU x.rarw..alpha.x+(N-.alpha.x), where x=a previous value of said optimal decision vector, .alpha.=said weighting value, N=a predetermined value, and x=the computed value of said optimal decision vector; conditionally updating the first intermnediate cost and the second dual variables vector, in accordance with the following: if z&gt;z, then .pi..rarw..pi. and z.rarw.z, else do not update said first intermediate cost and said second dual variables vector, where .pi.=the updated updated dual variables vector, z=a previous value of the first intermediate cost, and z=the updated first intermediate cost; calculating a violation vector v, in accordance with v=b-Ax, where b=said first vector; updating the first dual variables vector, according to the following: EQU .pi.=.pi.+.lambda.v, where .lambda.=a step-size parameter; updating the step-size parameter based on at least one of the second minimum cost value and the violation vector v; decrementing the weighting factor by a predetermined decrementing factor; calculating a discrepancy value, representing a discrepancy of the optimal decision vector with respect to said physical system, based on a magnitude of said violation vector v; repeating said steps of computing a second minimum cost value and an intermediate optimal decision vector, updating the optimal decision vector, conditionally updating the first intermediate cost and the second dual variables vector, calculating a violation vector v, updating the first dual variables vector, updating the step-size parameter, decrementing the weighting factor, and calculating a discrepancy value until the discrepancy value is less than a predetermined acceptance level, and allocating resources in said product/services distribution system in accordance with the optimal decision vector that exists when said discrepancy value is calculated to be less than said predetermined acceptance level, said allocating step optimizing allocation of said resources in said product/services distribution system in a manner that reduces costs in said system.