A differentiable exact penalty function for bound constrained quadratic programming problems

In this paper the authors define a continuously differentiable exact penalty function for the solution of bound constrained quadratic programming problems. They prove that there exists a computable value of the penalty parameter such that global and local minimizers of the penalty function yield global and local solutions to the original problem. This permits the construction of Newton-type algorithms based on consistent approximations of the Newton’s direction of the penalty function. Conditions that ensure finite termination are established.