Application of Linear Programming for Profit Maximization of the Bank and the Investor

Abstract

The main objective of this paper is to optimize (maximize) the net return of Central Bank of India in the area of interest from loans such as Personal loan, Car loan, Home loan, Agricultural loan, Commercial loan, Education loan and also maximize the net return of the investor by investing some amount in the investment policy of Central Bank of India such as Fixed Deposit, Saving Account, Public Provident fund and other investment Policies. The linear programming technique is applied to maximize profit of the Bank and the investor

Development of linear programming model for optimization of product mix and maximization of profit: case of leather industry

“…Lastly, it is wrapped up that this exceptional profit increment of the business can absolutely improve its worldwide competitiveness (Tesfaye et al, 2016). Jain et al, (2019) optimized (made best use of) the net return of Central bank of India in the area of rate of interest from loans: he concluded that the maximum net return of the Bank is Rs.16.155 Crore by allocating the amount of Rs.7.5 Crore to Home loan, Rs.7.5 Crore to Agricultural loan, Rs.7.5 Crore to Car loan, Rs.67.5 Crore to Personal Loan, Rs.60 Crore to Education loan and none of the amount is for Commercial loan (Secured and Unsecured) and the maximum profit of investor is Rs.13,420 by investing the amount of Rs.40,000 to Saving account, Rs.1,20,000 to fixed deposit, Rs.40,000 to SCSS and none of the amount is for PPF (Gameiro et al, 2016). Addy (2014) improved production scheduling of the company by using simplex method; Interpretations of results obtained from the evaluation developed basis for recommendations to improve supervisory decisions.…”

“…In operations research, different techniques are used for simplification of industrial issues i.e. management of the queuing system by use of queuing theory (Kalwar, Khaskheli, Khan, Siddiqui, & Gopang, 2018;Kalwar, Mari, Memon, Tanwari, & Siddiqui, 2020;Kalwar, Marri, Khan, & Khaskheli, 2021;Kalwar, Memon, Khan, & Tanwari, 2021;Khan, Khaskheli, et al, 2021a, 2021bKhaskheli, Marri, Nebhwani, Khan, & Ahmed, 2020), efficient allocation of resources by use of linear programming (Addy, 2014;Akpan & Iwok, 2016;Alvfors & Björelind, 2015;Aregawi, 2018;Gameiro, Rocco, & Caixeta Filho, 2016;Jain, Bhardwaj, Saxena, & Choubey, 2019;Jyothi, Rao, & Sivasundari, 2019;Maurya, Misra, Anderson, & Shukla, 2015;Tesfaye, Berhane, Zenebe, & Asmelash, 2016;Workie, Alemu A, & Asmelash, 2016;Woubante, 2017;Yoanita, 2016;Yu, 2015;Yue, 2013), and so on. Optimization and Operational research methods are thoroughly used to acquire better options and decisions to industrial issues (Jyothi et al, 2019;Nawrocki, 2013).The industrial development strategy is identified by the reliable use of resources at every production stage.…”

“…Ultimately, it is ended that this amazing earnings increment of the business can enhance its international competition (Tesfaye et al, 2016). Jain et al, (2019) optimized (maximized) the internet return of the Central Bank of India in the area of interest from loans such as Individual loans, Auto loans, Home mortgage, Agricultural loans, Industrial loans, Education and learning loans, and likewise optimize the net return of the investor by investing some amount in the investment policy of Central Bank of India such as Fixed Deposit, Saving Account, Public Provident fund, and various other financial investment Plans. The linear programming strategy is related to optimizing the revenue of the Bank and the investor (Jain et al, 2019).…”

“…Jain et al, (2019) optimized (maximized) the internet return of the Central Bank of India in the area of interest from loans such as Individual loans, Auto loans, Home mortgage, Agricultural loans, Industrial loans, Education and learning loans, and likewise optimize the net return of the investor by investing some amount in the investment policy of Central Bank of India such as Fixed Deposit, Saving Account, Public Provident fund, and various other financial investment Plans. The linear programming strategy is related to optimizing the revenue of the Bank and the investor (Jain et al, 2019). From the above discussion, it is wrapped up that the maximum web return of the Bank is Rs.16.155 Crore by allocating the quantity of Rs.7.5 Crore to Home mortgage, Rs.7.5 Crore to Agricultural loan, Rs.7.5 Crore to a Vehicle loan, Rs.67.5 Crore to Personal Loan, Rs.60 Crore to Education and learning loan and none of the quantity is for Industrial loan (Guaranteed and Unprotected) and the maximum revenue of investor is Rs.13,420 by investing the amount of Rs.40,000 to Conserving account, Rs.1,20,000 to the fixed deposit amount, Rs.40,000 to SCSS and none of the amount is for PPF (Jain et al, 2019).…”

“…The linear programming strategy is related to optimizing the revenue of the Bank and the investor (Jain et al, 2019). From the above discussion, it is wrapped up that the maximum web return of the Bank is Rs.16.155 Crore by allocating the quantity of Rs.7.5 Crore to Home mortgage, Rs.7.5 Crore to Agricultural loan, Rs.7.5 Crore to a Vehicle loan, Rs.67.5 Crore to Personal Loan, Rs.60 Crore to Education and learning loan and none of the quantity is for Industrial loan (Guaranteed and Unprotected) and the maximum revenue of investor is Rs.13,420 by investing the amount of Rs.40,000 to Conserving account, Rs.1,20,000 to the fixed deposit amount, Rs.40,000 to SCSS and none of the amount is for PPF (Jain et al, 2019). Addy (2014) maximized production scheduling by utilizing linear programming issues.…”