Complementarity is central to all constrained optimization problems. Howeve
r, direct enforcement of complementarity conditions is difficult because of
the inherent nondifferentiability associated with them. Here, a class of s
moothing methods for solving the complementarity problem by using a continu
ation algorithm to solve nonlinear equations is studied. The applicability
of smoothing methods to approximate complicated nested derivative discontin
uities is investigated using simple functions with a single smoothing param
eter. In addition, an equation-based formulation for solving the phase equi
librium problem with complementarity conditions is formulated. This approac
h can model the appearance and disappearance of phases directly in phase eq
uilibrium problems. Moreover it is shown how smoothing methods can be used
to solve limiting distillation cases, such as dry and vaporless trays, mode
led within an equation-based formulation.