Zero-One Integer Programming

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Abend

    An unexpected end to a computer program that results in the system ...
  2. Common Business Oriented Language ...

    A type of language used in computer programming. Common Business ...
  3. Econometrics

    The application of statistical and mathematical theories to economics ...
  4. Modern Portfolio Theory - MPT

    A theory on how risk-averse investors can construct portfolios ...
  5. Optimization

    In the context of technical analysis, it is the process of adjusting ...
  6. Capital Rationing

    The act of placing restrictions on the amount of new investments ...
Related Articles
  1. How To Survive The Trading Game
    Active Trading

    How To Survive The Trading Game

  2. Using Normal Distribution Formula To ...
    Investing Basics

    Using Normal Distribution Formula To ...

  3. Can Investors Trust Official Statistics?
    Economics

    Can Investors Trust Official Statistics?

  4. The Government And Risk: A Love-Hate ...
    Insurance

    The Government And Risk: A Love-Hate ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center