Linear programming model for investment problem in maximizing the total return

Nordin, Syarifah Zyurina and Johar, Farhana and Abu, Noratikah (2021) Linear programming model for investment problem in maximizing the total return. In: 28th Simposium Kebangsaan Sains Matematik, SKSM 2021, 28 July 2021 - 29 July 2021, Kuantan, Pahang.

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In this paper, we concentrate on the investment problem of fixed deposit (FD). Our problem is to allocate the amount invested to a suitable tenure and obtain the optimal investment. There are two types of maturity that need to be considered which are short-term and long-term. Our objective is to maximize the total return of the total amount invested with a different percentage of annual return. A linear programming (LP) model is proposed to solve this investment problem using scheduling methodology. We conduct a computational experiment of a real case study for one company located in Kuala Lumpur with RM 20.6 million of investment to see the performance of the model by using the Excel Solver Parameter package. The results show that a significant improvement obtains by our model compared to the original investment practice by the company.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:annual returns, computational experiment, linear programming models
Subjects:T Technology > T Technology (General)
Divisions:Malaysia-Japan International Institute of Technology
ID Code:95881
Deposited By: Narimah Nawil
Deposited On:22 Jun 2022 14:30
Last Modified:22 Jun 2022 14:30

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