IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v21y1973i3p677-692.html
   My bibliography  Save this article

An Optimization Model for Corporate Financial Planning

Author

Listed:
  • William F. Hamilton

    (University of Pennsylvania, Philadelphia, Pennsylvania)

  • Michael A. Moses

    (University of Pennsylvania, Philadelphia, Pennsylvania)

Abstract

This paper describes the development and actual implementation of an optimization model for strategic planning in a large diversified organization. In contrast to previous discussions of the applicability of financial theory and mathematical programming methods in corporate planning, emphasis is placed on providing useful decision information within the practical limitations of theory, available computational capabilities, and established planning practices. The corporate model reflects the full range of financial decisions, including internal capital budgeting, acquisitions, divestments, debt creation/repayment, stock issue/repurchase, and dividend payout. Operating as an integral part of the corporate planning process, the mixed integer programming model selects optimal investment and financing programs over a multiperiod planning horizon. An on-line computational system permits extensive parametric analysis. The major features of the model, the supporting computational system, and implementation experience are presented.

Suggested Citation

  • William F. Hamilton & Michael A. Moses, 1973. "An Optimization Model for Corporate Financial Planning," Operations Research, INFORMS, vol. 21(3), pages 677-692, June.
    • Handle: RePEc:inm:oropre:v:21:y:1973:i:3:p:677-692
    DOI: 10.1287/opre.21.3.677
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.21.3.677
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.21.3.677?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J. M. Blin, 1977. "Development of a Corporate Information System," Discussion Papers 304, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Veterina Nosadila Riaventin & Sofyan Dwi Cahyo & Ivan Kristianto Singgih, 2021. "A Model for Developing Existing Ports Considering Economic Impact and Network Connectivity," Sustainability, MDPI, vol. 13(7), pages 1-17, March.
    3. Rayenda Khresna Brahmana & Ritzky Karina Brahmana, 2016. "The Financial Planning and Financial Literacy of ex-Malaysia Indonesian Migrant Workers," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(5), pages 47-59.
    4. Edward A. Stohr & Mohan Tanniru, 1978. "The Design of a Corporate Planning System Simulator," Discussion Papers 342, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    5. Joan S. Steinberg & Larry R. Arnold, 1981. "An Interactive Approach For Optimizing Debt Repayment Schedules," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 4(2), pages 137-146, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:21:y:1973:i:3:p:677-692. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.