Let s first define operations research or as solving optimization problems using a wide variety of disciplines. The areas covered are maximization of returns in a financial portfolio and the understanding of passive portfolio management with the help of data analysis and case study.
The application of operations research techniques to financial markets.
Application of operational research in finance and accounting. Application of operations research in banking finance free download as pdf file pdf text file txt or read online for free. Operations research now assumes an imperative part in the operation of financial markets and this significance is probably going to increment making the open door for or and operations researchers to assume a considerably more noteworthy part. Finance problems are an excellent application area for researchers research techniques are used to value financial instruments identify market imperfections design securities regulate.
The areas covered are maximization of returns in a financial portfolio and the understanding of passive portfolio management with the help of data analysis and case study. This application 5 demonstrates how operations research was used to enhance productivity and quality of service at keycorp a bank holding company headquartered in cleveland ohio. Mathematics statistics game theory computer science etc in other words what is the best solution course of actio.
Or techniques are used to value financial instruments identify market imperfections design securities regulate markets evaluate and control risks model strategic problems and understand the functioning of financial markets. Because of the wide area of application of operational research techniques in management accounting we had to make a choice and limited us to budgetting through input output analysis cost volume profit analysis and transfer prices in decentralized organisations. The paper indicates which operations research methods are being used on a selected set of 18 important problems in commercial banking a measure of the extent of use of the various operations research methods on the problems and an indication of the impact of bank size on the use of operations research by the banks.
Application of operations research in banking finance. Science london wc2a 2ae uk e. Faced with increasing competition from nontraditional sources and rapid consolidation within the banking industry keycorp s aim was to provide a suite of world.
Finance problems are an excellent application area for or researchers. This paper reviews the application of or techniques in the field of banking and finance. This paper reviews the application of or techniques in the field of banking and finance.
Department of accounting and finance the london school of economics and political. Operations research technique finance and financial market problem. We discuss some topics relating to management accounting and operational research.