International Journal of Nonlinear Analysis and Applications

Increase the income based on partner selection to reduce bankruptcy risk by mathematical model and solve it by genetic algorithm

Document Type : Research Paper

Authors

1 Department of Industrial Engineering, South Tehran Branch. Islamic Azad University, Tehran, Iran

2 Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

One of the goals of financial institutions is to strengthen the economic infrastructure in developing the financial sphere. In this regard, financial institutions should take the necessary planning to increase their incomes, and if they do not pay attention, the consequences can be predicted for this group of economic activists Increasing income and reducing the risk of bankruptcy are among the most important goals for financial institutions and enterprises. Therefore, considering the increase of income and the integration approach based on the selection of partners in the field of banking, this paper presents a mathematical model based on reducing the risk of bankruptcy. The multi-objective genetic algorithm method has been used to solve and optimize the model. The proposed method was implemented on real data related to ten Iranian banks and the results led to the formation of a financial firm with a combination of banks to maximize the income and minimize the bankruptcy risk.

Keywords

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International Journal of Nonlinear Analysis and Applications
Volume 13, Issue 1
March 2022
Pages 2549-2560
  • Receive Date: 05 September 2021
  • Revise Date: 06 October 2021
  • Accept Date: 21 October 2021