A generalized optimization procedure for programming income properties

Abstract

The thesis describes the problems and objectives of modeling the architectural financial system for income properties. The purpose of the models is to aid programming decisions during the feasibility study by optimizing the amounts and types of space to be included in the project.

Of the three modeling approaches two linear programming approaches are used, one maximizes expected annual gross rents and the other maximizes the rate of return using discounted cash flow analysis. The third model optimizes a ranked priority of objectives by a goal programming procedure. Each model is subject to a series of zoning, marketing, structural, and budgetary constraints.

The models without design constraints identify site potential. The results from additional design constraints are compared with the site potential giving a cost for design decisions. The models are optimization procedures but. can simulate the affects of alternate parameters.

Of the linear programming models the maximum rate of return model is the only reliable one for one objective assuming a feasible solution exists. The goal programming model analyzes the goal structure and always gives a direction to achieve the higher priority goals.