Zero-One Integer Programming

DEFINITION of 'Zero-One Integer Programming'

An analytical method consisting of what amounts to a series of "yes" (1) and "no" (0) answers to arrive at a solution. In the world of finance, such programming is often used to provide answers to capital rationing problems, as well as to optimize investment returns and assist in planning, production, transportation and other issues.

BREAKING DOWN 'Zero-One Integer Programming'

Although seemingly simple, using a 0-1 integer scale can be very powerful. A 0-1 scale also helps to identify inefficiencies by providing a linear problem-solving framework.

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