Optimizing Agricultural Stock Portfolios in Ughelli Town Using Linear Programming

Authors

  • Oghenekevwe Godspower Ovbije Department of Mathematics, Federal University of Petroleum Resources, Effurun, Delta State, Nigeria
  • Morrison Oyiborhoro Department of Mathematics, Federal University of Petroleum Resources, Effurun, Delta State, Nigeria
  • Avwerosuoghene Hope Akworigbe Department of Mathematics, Federal University of Petroleum Resources, Effurun, Delta State, Nigeria

Keywords:

Linear Programming, Portfolio Management, Agricultural Stocks, Optimal Portfolio, Returns on Investment

Abstract

The decision-making process for an investor crucially hinges on selecting a portfolio that offers maximum benefits, given the associated risk levels of investment stocks. This research aims to evaluate optimal management of agricultural portfolio to enhance profit margins while mitigating risks. Ten (10) agricultural stocks were analyzed as variables using a linear programming model, with the utilization of Tora package based on Big M and Two-Phase methods to derive an optimal solution. Findings indicated that out of the 10 stocks considered, only Rice and Cocoa should be selected for investment to yield maximum returns. Sensitivity analysis revealed that a decrease or increase in the available resources would subsequently lead to a decrease or increase in the optimal profit. This research provides insights into optimal management of portfolio, and offers a practical framework for investors in the agricultural sector.

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Published

2024-09-30

How to Cite

Ovbije, O. G., Oyiborhoro, M., & Akworigbe, A. H. (2024). Optimizing Agricultural Stock Portfolios in Ughelli Town Using Linear Programming. Faculty of Natural and Applied Sciences Journal of Mathematical Modeling and Numerical Simulation, 2(1), 108–114. Retrieved from https://fnasjournals.com/index.php/FNAS-JMNS/article/view/544

Issue

Vol. 2 No. 1 (2024): 2024-FNAS-JMMNS-2-1

Section

Articles