scholarly journals Sunset Company: Risk Analysis For Capital Budgeting Using Simulation And Binary Linear Programming

2011 ◽  
Vol 4 (3) ◽  
pp. 43 ◽  
Author(s):  
Dennis F. Togo
Keyword(s):  
Linear Programming ◽  
Risk Analysis ◽  
Probability Distributions ◽  
New Products ◽  
Capital Budgeting ◽  
Expected Value ◽  
Model Risk ◽  
Binary Linear Programming ◽  
Capital Constraints

The Sunset Company case illustrates how the study of linear programming and risk analysis are facilitated with popular spreadsheets and their simulation add-ins. From new products having a singular expected value for NPV, binary linear programming (BLP) optimally selects the combination of products that maximizes total NPV given capital constraints. Yet, when probability distributions are used to model risk of the products, an optimized simulation finds a different set of products for a risk adverse strategy. Advances in spreadsheet technology facilitate accounting educators introducing meaningful modeling and risk analysis into the classroom.

scholarly journals Binary Linear Programming as a Tool of Cost Optimization for a Water Supply Operator

2021 ◽  
Vol 13 (6) ◽  
pp. 3470
Author(s):  
Przemysław Kowalik ◽  
Magdalena Rzemieniak
Keyword(s):  
Linear Programming ◽  
Water Supply ◽  
Electric Power ◽  
Energy Savings ◽  
Cost Optimization ◽  
Production Optimization ◽  
Production Costs ◽  
Pump System ◽  
Power Cost ◽  
Binary Linear Programming

The problem of scheduling pumps is widely discussed in the literature in the context of improving energy efficiency, production costs, emissions, and reliability. In some studies, the authors analyze the available case studies and compare the results; others present their own computational methods. In the paper, a problem of pump scheduling in regular everyday operations of a water supply operator is considered. The issues of water production optimization and energy savings are part of the topic of sustainable development. The objective of the article is the minimization of the cost of electric power used by the pumps supplying water. It is achieved thanks to the variability of both the demand for water and the price of electric power during the day combined with the possibility of storing water. The formulation of an existing electric power cost optimization problem as a binary linear programming problem was improved. An essential extension of the above mathematical model, which enables more flexible management of the pump system, was also proposed. An example containing real-world input data was successfully solved using Microsoft Excel with a free OpenSolver add-in.

scholarly journals Business Model Risk Analysis: Predicting the Probability of Business Network Profitability

2013 ◽  
pp. 118-130 ◽  
Author(s):  
Pontus Johnson ◽  
Maria Eugenia Iacob ◽  
Margus Välja ◽  
Marten van Sinderen ◽  
Christer Magnusson ◽  
...  
Keyword(s):  
Risk Analysis ◽  
Business Model ◽  
Business Network ◽  
Model Risk

The Discrete Optimal Assignment Problem

2016 ◽  
Author(s):  
Alfred Galichon
Keyword(s):  
Linear Programming ◽  
Assignment Problem ◽  
Linear Programming Problem ◽  
Matrix Algebra ◽  
Probability Distributions ◽  
Marginal Probability ◽  
Finite Support ◽  
Complementary Slackness ◽  
Finite Dimensional ◽  
Finite Dimensional Case

This chapter considers the finite-dimensional case, which is the case when the marginal probability distributions are discrete with finite support. In this case, the Monge–Kantorovich problem becomes a finite-dimensional linear programming problem; the primal and the dual solutions are related by complementary slackness, which is interpreted in terms of stability. The solutions can be conveniently computed by linear programming solvers, and the chapter shows how this is done using some matrix algebra and Gurobi.

Optimization of knowledge transferring costs in designing product portfolio: a fuzzy binary linear programming model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nahid Dorostkar-Ahmadi ◽  
Mohsen Shafiei Nikabadi ◽  
Saman babaie-kafaki
Keyword(s):  
Linear Programming ◽  
Programming Model ◽  
Fuzzy Model ◽  
Linear Programming Model ◽  
Product Portfolio ◽  
Ranking Functions ◽  
Content Type ◽  
Binary Linear Programming ◽  
Knowledge Based ◽  
Knowledge Based Economy

Purpose The success of any organization in a knowledge-based economy depends on effective knowledge transferring and then proper use of the transferred knowledge. As is known, optimizing the knowledge transferring costs in a product portfolio plays an important role in improving productivity, competitive advantage and profitability of any organization. Therefore, this paper aims to determine an optimal product portfolio by minimizing the konlwedge transferring costs. Design/methodology/approach Here, a fuzzy binary linear programming model is used to select an optimal product portfolio. The model is capable of considering the knowledge transferring costs while taking into account the human-hours constraints for each product by a fuzzy approach. Using fuzzy ranking functions, a reasonable solution of the model can be achieved by classical or metaheuristic algorithms. Findings Numerical experiments indicate that the proposed fuzzy model is practically effective. Originality/value The contributions of this work essentially consist of considering knowledge transferring costs in selecting an optimal product portfolio and using the fuzzy data which make the model more realistic.

scholarly journals Integrating Genomics and Proteomics Data to Predict Drug Effects Using Binary Linear Programming

PLoS ONE ◽  
2014 ◽  
Vol 9 (7) ◽  
pp. e102798 ◽  
Author(s):  
Zhiwei Ji ◽  
Jing Su ◽  
Chenglin Liu ◽  
Hongyan Wang ◽  
Deshuang Huang ◽  
...  
Keyword(s):  
Linear Programming ◽  
Drug Effects ◽  
Proteomics Data ◽  
Binary Linear Programming ◽  
Genomics And Proteomics
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