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Computing Partitions with Applications to Capital Budgeting Problems

  • Heinrich Heine University Dusseldorf
  • Fac Elect Engn & Comp Sci

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We consider the following capital budgeting problem. A firm is given a set of investment opportunities X = {x(1), ..., x(n)} and a number m of portfolios. Every investment x(i), 1 <= i <= n, has a return of r(i) and a price of p(i). Further for every portfolio j there is capacity c(j). The task is to choosem disjoint portfolios X-1', ..., X-m' from X such that for every 1 <= j <= m the prices in X-j' do not exceed the capacity c(j) and the total return of this selection is maximized. From a computational point of view this problem is intractable, even for m = 1 [8]. Since the problem is defined on inputs of various informations, in this paper we consider the fixed-parameter tractability for several parameterized versions of the problem. For a lot of small parameter values we obtain efficient solutions for the partitioning capital budgeting problem. We also consider the connection to pseudo-polynomial algorithms.
Original languageEnglish
Title of host publicationOperations Research Proceedings 2015
EditorsKF Doerner, I Ljubic, G Pflug, G Tragler
PublisherSpringer Nature
Pages79-85
Number of pages7
ISBN (Electronic)978-3-319-42902-1
ISBN (Print)978-3-319-42901-4
DOIs
Publication statusPublished - 2017
EventOperations Research Conference (OR) - Vienna, Austria
Duration: 1 Sept 20154 Sept 2015

Publication series

NameOperations Research Proceedings

Conference

ConferenceOperations Research Conference (OR)
Country/TerritoryAustria
CityVienna
Period1/09/154/09/15

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