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Preemptive repayment policy for multiple loans

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Abstract

We study the multi-loan-repayment problem by formulating it as a single-machine scheduling problem with preemptive and time-dependent processing times to minimize the makespan. We transform the scheduling problem into a continuous non-linear optimization problem and obtain an approximate solution by solving a series of the corresponding linear programming problems. We also identify agreeable conditions for the problem and discuss the computational complexity of the problem.

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Authors and Affiliations

  1. Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong

    C. T. Ng & T. C. E. Cheng

  2. Lee Kong Chian School of Business, Singapore Management University, 50 Stamford Road, Singapore, 178899, Singapore

    Q. Ding

  3. Lee Shau Kee School of Business & Administration, The Open University of Hong Kong, Homantin, Kowloon, Hong Kong

    S. S. Lam

Authors
  1. C. T. Ng
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  2. Q. Ding
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  3. T. C. E. Cheng
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  4. S. S. Lam
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Corresponding author

Correspondence to C. T. Ng.

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Ng, C.T., Ding, Q., Cheng, T.C.E. et al. Preemptive repayment policy for multiple loans. Ann Oper Res 192, 141–150 (2012). https://doi.org/10.1007/s10479-011-0872-9

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  • DOI: https://doi.org/10.1007/s10479-011-0872-9

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