Optimization analysis of financial resource allocation using linear programming algorithm

Abstract

Reasonable financial resource allocation is an important factor in enhancing the core competitiveness of small businesses. In this regard, this paper studies the comprehensive deployment of time cost, financial resources opportunity cost, penalty cost and deferred cost objective functions, and constructs a mixed integer linear programming model under relevant constraints. Validated by the PSPLIB standard problem library, the results show that the integrated optimization can achieve the smooth use of financial resources than the single-objective optimization. The study selects 45 Shanghai and Shenzhen A-share listed real estate companies as research objects, integrates the entropy weight method and TOPSIS method, constructs the company's financial performance evaluation index system, and analyzes and explores the specific performance of the sample companies in terms of profitability, solvency, operating ability, growth ability, cash flow ability, and comprehensive financial performance in the years of 2021~2023. Through empirical analysis, it is found that after applying the financial resource allocation optimization model designed in this paper, the financial performance of enterprises is steadily improved. The research in this paper can satisfy the optimal allocation of financial resources when the enterprise is running.