Linear programming model for investment problem in maximizing the total return

Syarifah Zyurina, Nordin and Farhana, Johar and Noratikah, Abu (2021) Linear programming model for investment problem in maximizing the total return. In: Journal of Physics: Conference Series; 28th Simposium Kebangsaan Sains Matematik, SKSM 2021 , 28-29 July 2021 , Kuantan, Pahang, Virtual. pp. 1-10., 1988 (012064). ISSN 1742-6588

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DOI/Official URL: https://doi.org/10.1088/1742-6596/1988/1/012064

Abstract

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 (Lecture)
Additional Information:	Indexed by Scopus
Uncontrolled Keywords:	Annual returns; Computational experiment; Linear programming models; Optimal investments; Real case; Short term
Subjects:	Q Science > Q Science (General) Q Science > QA Mathematics
Faculty/Division:	Institute of Postgraduate Studies Center for Mathematical Science
Depositing User:	Mr Muhamad Firdaus Janih@Jaini
Date Deposited:	16 Aug 2023 04:19
Last Modified:	16 Aug 2023 04:19
URI:	http://umpir.ump.edu.my/id/eprint/37385
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