Application of Goal Programing for Financial Management of a Listed Industrial Goods Firm in Nigeria

Abstract

In today’s competitive business environment, companies are faced with a lot of problems such as setting goals, planning how these goals can be achieved, organization and control of how the available scarce resources can be used to satisfy the aim and objectives of the company. Every decision made determine if the company will maintain, increase or lose its market share in today’s competitive market. Thus, there is need for mathematical modeling tools to help in making the right decision. Although we have different mathematical techniques that can be used, Goal Programing technique is chosen in this study since it enables the decision to strive toward multiple objectives, thereby enable optimum use of resources. This paper is aimed at demonstrating the use of goal programing for financial management of a listed Industrial Goods Firm in Nigeria. The result shows that two out of the five formulated goals were met. The least expected total of revenue, expenses, asset and employer benefit should be 10.61 billion naira annually if the company wants to meet the asset and expenses goal.

How do liquidity and leverage affect reporting delays?

“…Leverage is used to avoid using too much capital in working capital. Excessive financial leverage increases the risk of default by making debts more difficult to service (Nyor & Mustapha, 2020). Leverage is often considered a criterion commonly used to talk about financial health.…”

A Multi-Objective Optimization of Probability and Capacity Utilization in a Feed Manufacturing Firm Using Goal Programming Techniques

“…Finding an optimized compromise solution that minimizes raw material costs while boosting profitability and maximizing facility utilization is a challenging task for manufacturing companies. Previous studies have employed goal programming techniques in various domains such as production planning in factories and manufacturing plants [8,9,10], financial management and budgetary planning [11,12], process optimization on farms [13], preferences setting in multi-product manufacturing systems [14], aggregating individual preferencesinto global preferences [15], production optimization in the bakery sector [7], and textile manufacturing industry [16] amongst others. Additionally, research conducted in the Nigerian feed manufacturing sector has focused on feed ration optimization in order to reduce cost and improve quality simultaneously [17,18,19], challenges faced by feed manufacturing firms [20,21], optimizing production units and profit [22], and optimizing raw material procurement given limited liquid capital [23].…”