Optimizing the financial management of electronic companies using goal programming model

Abstract

The swift development and transformation of emerging technologies such as augmented reality, robotics, biometrics and 3D printing place varying degree of pressure to the electronic industry to play a trailblazing role in making the world a smarter place of living. The concept of smart city increases the demand for the upgrades and sophistication of electronic components. Shorter product life cycles of personal and commercial electronic products also keep the electronic companies in a never-ending loop for huge investments in materials, equipment and expertise. Electronic companies in Malaysia are still facing financial stress in their operations. Therefore, this paper aims to optimize the financial management of listed electronic companies, namely D&O, GTRONIC, UNISEM and VITROX with asset, liability, equity, earning, profit and optimum management item as the objectives using goal programming model. The benchmarks of all the goals are obtained by comparing the maximum and minimum values of the optimal values of these companies. The results of this study show that the goal programming model is able to generate the optimal solution for each company. Besides liability and earnings, all the goals have been attained by these companies upon analysis using goal programming. Possible refinement values particularly for liabilities for all the companies have been generated from this model to provide insights for these companies to benchmark for risk alleviation and strategic decision making.