Universitas Muhammadiyah Sidoarjo
Login


Academia Open

 Submit manuscript
Section Business and Economics

Goal Programming Model in Financial Planning of the International Development Bank

Vol. 10 No. 2 (2025): December:
DOI : https://doi.org/10.21070/acopen.10.2025.12858
Published : Oct 24, 2025

M.M. Suhad Faisal Aboud (1)

(1) College of Administration and Economics, Department of Financial and Banking Sciences, Al-Turath University, Iraq
Fulltext View | Download

Abstract:

General Background: Financial institutions often face complex decision-making challenges due to the need to balance multiple, conflicting objectives such as profitability, cost control, and liquidity management. Specific Background: Traditional financial planning models struggle to accommodate these competing goals, especially in developing economies with resource constraints. Knowledge Gap: Existing studies have applied goal programming (GP) in limited industrial contexts, but its comprehensive use in the financial sector of emerging markets, such as Iraq, remains underexplored. Aims: This study aims to apply a goal programming model to optimize the financial planning of the International Development Bank for Investment and Finance (IDB) during 2016–2024, integrating multiple financial objectives under prioritized constraints. Results: The model, solved using WINQSB, achieved near-optimal solutions with minimal deviations between actual and target values across revenues, expenses, net profit, and fixed assets, confirming its effectiveness in managing competing goals. Novelty: This research introduces a weighted-preemptive hybrid goal programming framework that quantitatively aligns strategic financial objectives within constrained environments. Implications: The findings demonstrate the model’s potential as a practical decision-support tool for banks, enabling sustainable financial performance and efficient resource allocation in complex, multidimensional financial systems.
Highlight :











  • Shows how Goal Programming optimizes conflicting financial goals effectively.




  • Demonstrates balanced achievement of revenue, cost, and profit targets in banking.




  • Suggests the model’s practical use for sustainable financial decision-making.




Keywords : Goal Programming, Weighted Method, Preemptive Method, Negative Deviation, Positive Deviation








Downloads

Download data is not yet available.

References

T. Alam, “Modeling and Analyzing a Multi-Objective Financial Planning Model Using Goal Programming,” Applied System Innovation, vol. 5, no. 6, p. 128, 2022, doi: 10.3390/asi5060128.

A. AlArjani and T. Alam, “Lexicographic Goal Programming Model for Bank’s Performance Management,” Journal of Applied Mathematics, 2021, doi: 10.1155/2021/9986425.

M. Alluwaici, A. K. Junoh, M. H. Zakaria, and A. M. Desa, “Weighted Linear Goal Programming Approach for Solving Budgetary Manufacturing Process,” Journal of Mathematical Sciences, vol. 3, no. 2, pp. 45–52, 2017.

E. F. Brigham and M. C. Ehrhardt, Financial Management: Theory and Practice, 15th ed., Cengage Learning, Boston, MA, 2016.

H. Gaspars-Wieloch, “A New Application for the Goal Programming—The Target Decision Rule for Uncertain Problems,” Journal of Risk and Financial Management, vol. 13, no. 11, p. 220, 2020, doi: 10.3390/jrfm13110220.

A. S. Hameed, H. A. Chachan, and H. J. Ali, “Optimizing Multi-Objective Problem with Setup Times,” AIP Conference Proceedings, vol. 2414, no. 1, p. 040046, 2023, doi: 10.1063/5.0099589.

I. Hasbiyati, R. Desri, and M. D. H. Gamal, “Pre-Emptive Goal Programming Method for Optimizing Production Planning,” BAREKENG: Journal of Mathematics and Its Applications, vol. 17, no. 1, pp. 65–74, 2023, doi: 10.30598/barekengvol17iss1pp65-74.

J. P. Ignizio, Introduction to Linear Goal Programming, Sage Publications, Beverly Hills, CA, 1985.

D. F. Jones, S. K. Mirrazavi, and M. Tamiz, “Multi-Objective Meta-Heuristics: An Overview of the Current State-of-the-Art,” European Journal of Operational Research, vol. 137, no. 1, pp. 1–9, 2002, doi: 10.1016/S0377-2217(01)00123-0.

K. Lakshmi, G. A. Harish Babu, and K. N. Uday Kumar, “Application of Goal Programming Model for Optimization of Financial Planning: Case Study of a Distribution Company,” Palestine Journal of Mathematics, vol. 10, no. 1, pp. 144–150, 2021.

W. Lin and D. O’Leary, “Goal Programming Applications in Financial Management,” Accounting and Business Research, vol. 23, no. 91, pp. 259–269, 1993, doi: 10.1080/00014788.1993.9729870.

N. Mohseny-Tonekabony and M. Saidi-Mehrabad, “Robust, Extended Goal Programming with Uncertainty Sets,” Annals of Operations Research, pp. 1–31, 2024, doi: 10.1007/s10479-024-06183-3.

N. Nyor, B. D. Bamidele, A. I. Nyor, P. O. Evans, and U. Y. Abubakar, “Application of Goal Programming for Financial Management of a Listed Industrial Goods Firm in Nigeria,” Journal of Advances in Mathematics and Computer Science, vol. 37, no. 5, pp. 1–9, 2022, doi: 10.9734/jamcs/2022/v37i530457.

K. V. Lakshmi, G. A. Harish Babu, and K. N. Uday Kumar, “Application of Goal Programming Model for Optimization of Financial Planning: Case Study of a Distribution Company,” Palestine Journal of Mathematics, vol. 10, no. Special Issue I, pp. 144–150, 2021.

H. Wijayanti, S. Supian, D. Chaerani, and A. Shuib, “Optimization of Asset Liability Management on Textile and Garment Companies Using Goal Programming Model,” Proceedings of the 8th International Conference on the Applications of Science and Mathematics, pp. 15–24, 2023.