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A nonlinear mixed integer multiperiod firm model
DOI:10.1016/S0925-5273(00)00019-0.png)
摘要
En 中文
We formulate and test an advanced multiperiod model for strategic firm planning. This has not been previously considered as a mixed integer nonlinear problem (MINLP). Our approach is to show the differences between a linear and a nonlinear mixed integer approach. The key property of our model is the simplicity and efficiency of generating optimal firm strategies, a cornerstone for managerial acceptance. Our purpose is to maximize the discounted value of net income and return on investment (ROI). Our model has been tested on some major Finnish firms and it seems to give reliable results. With the data of our sample firm for this paper, optimal ROI and optimal net income presuppose different strategies. When optimizing ROI the model balances between cash and fixed assets, while optimizing net income results in an intensive investment program. Even if our sample firm is but one case, the results are indicative of some fundamental principles governing managerial decision making. (C) 2000 Elsevier Science B.V. All rights reserved.
Keyword:
strategic planning
firm models
linear programming
optimization
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期刊
IF:
10
论文数:
8.0K
被引数:
3.6W
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