Publication detail

A Comparison of Exact and Heuristic Approaches to Capital Budgeting

ŠEDOVÁ, J. ŠEDA, M.

Original Title

A Comparison of Exact and Heuristic Approaches to Capital Budgeting

Type

journal article - other

Language

English

Original Abstract

This paper summarizes and compares approaches to solving the knapsack problem and its known application in capital budgeting. The first approach uses deterministic methods and can be applied to small-size tasks with a single constraint. We can also apply commercial software systems such as the GAMS modelling system. However, because of NP-completeness of the problem, more complex problem instances must be solved by means of heuristic techniques to achieve an approximation of the exact solution in a reasonable amount of time. We show the problem representation and parameter settings for a genetic algorithm framework.

Keywords

capital budgeting, knapsack problem, GAMS, heuristic method, genetic algorithm

Authors

ŠEDOVÁ, J.; ŠEDA, M.

RIV year

2009

Released

1. 7. 2009

ISBN

2073-0519

Periodical

International Journal of Business, Economics, Finance and Management Sciences

Year of study

1

Number

3

State

Republic of Turkey

Pages from

212

Pages to

216

Pages count

5

BibTex

@article{BUT47076,
  author="Jindřiška {Šedová} and Miloš {Šeda}",
  title="A Comparison of Exact and Heuristic Approaches to Capital Budgeting",
  journal="International Journal of Business, Economics, Finance and Management Sciences",
  year="2009",
  volume="1",
  number="3",
  pages="212--216",
  issn="2073-0519"
}