Financial Pinch Analysis: Minimum opportunity cost targeting algorithm.

To achieve the market competitiveness as well as sustainable products and processes, a firm invests in different environmental and conservation projects. Capital budgeting essentially entails the decision of funding a set of acceptable projects from a larger pool of available projects, subject to di...

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Publicado en:Journal of Environmental Management Vol. 212; pp. 88 - 99
Autores principales: Roychaudhuri, Pritam Sankar, Bandyopadhyay, Santanu
Formato: Artículo
Publicado: Academic Press Inc. Apr2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        03014797
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      dt: Apr2018
      vid: 212
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      pub: Academic Press Inc.
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        128326872
        10.1016/j.jenvman.2018.02.005
      ppf: 88
      ppct: 11
      formats:
      tig:
        atl: Financial Pinch Analysis: Minimum opportunity cost targeting algorithm.
      aug:
        au:
          Roychaudhuri, Pritam Sankar
          Bandyopadhyay, Santanu
        affil: Department of Energy Science and Engineering, Indian Institute of Technology Bombay, Mumbai, Maharashtra, India
      su:
        Environmental protection
        Wildlife conservation
        Energy conservation
        Capital budget
        Environmental management
        Mixed integer linear programming
      sug:
        subj:
          Environmental protection
          Wildlife conservation
          Energy conservation
          Capital budget
          Environmental management
          Mixed integer linear programming
      keyword:
        Branch and bound technique
        Capital budgeting
        Minimum opportunity cost targeting algorithm
        Pinch Analysis
        Project selection problem
        Branch and bound technique
        Capital budgeting
        Minimum opportunity cost targeting algorithm
        Pinch Analysis
        Project selection problem
      ab: To achieve the market competitiveness as well as sustainable products and processes, a firm invests in different environmental and conservation projects. Capital budgeting essentially entails the decision of funding a set of acceptable projects from a larger pool of available projects, subject to different funding constraints. This paper proposes a new algorithm, the minimum opportunity cost targeting algorithm (MOCTA) , to address the capital budgeting problems for selecting environmental management projects. This algorithm is based on the principles of Pinch Analysis, a well-established resource conservation methodology and can be directly applied to partially acceptable projects which can be formulated as a linear programming problem. The proposed algorithm, in coordination with the branch and bound technique, can further be applied to solve mixed integer linear programming (MILP) formulation of the problem, where projects should either be completely accepted or completely rejected. A hypothetical example demonstrates the applicability of the methodology through a complex search tree. The proposed methodologies are demonstrated through a case study of selecting energy conservation projects in the Indian Paper and Pulp industry.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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