Open AccessLinear Programming Model for Investment Problem in Maximizing the Total Return
Author(s) -
Syarifah Zyuriordin,
Farhana Johar,
Noratikah Abu
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1988/1/012064
Subject(s) - kuala lumpur , return on investment , solver , linear programming , investment (military) , mathematical optimization , investment performance , operations research , rate of return , computer science , scheduling (production processes) , term (time) , economics , econometrics , finance , business , mathematics , microeconomics , marketing , production (economics) , physics , quantum mechanics , politics , political science , law
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.