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Presented in this short document is a description of what we call the “Generalized” Capital Investment Planning (GCIP) problem where conventional capital investment planning (CIP), and specifically for the “retrofit” problem, is discussed in Sahinidis and Grossmann (1989) and Liu and Sahinidis (1996). CIP is the optimization problem where it is desired to expand the capacity and/or extend the capability (conversion) of either the “expansion” of an existing unit or the “installation” of a new unit (Jackson and Grossmann, 2002).
Figure 1 shows the three types of CIP problems as defined in Vazacopoulos et. al. (2014) and Menezes (2014) with its capital cost and time scales.