A nonlinear coupled simulation and optimization model is formulated to find
the optimal operating policies with a minimal cost for the conjunctive man
agement of hydraulically interacting surface and ground water supplies. The
term representing the pumpage cost in the objective function of the manage
ment model causes nonlinearity that cannot be put in a quadratic form as in
the traditional approach, since drawdown in that term is a function of wel
l pumpage and other parameters. To eliminate the nonlinearity, F-form appro
ximating model is formulated with a particular emphasis on the concave func
tion of the transformed objective function. The original problem in a nonli
near form is solved by coupling the solver with a random number generator t
o provide the model with a different initial guess each time. However, the
delta-form approximating problem is formulated as a linear mixed integer pr
ogramming model. Optimal operating policies and the operation costs obtaine
d from both models are found to be in good agreement. (C) 1999 Elsevier Sci
ence Ltd. All rights reserved.