LINEAR PROGRAMMING AND OPTIMAL BANK ASSET MANAGEMENT DECISIONS.

The article focuses on the linear programming approach to bank asset management. Common problems faced by banks and other financial institutions are described and the application of analytical techniques to address them are discussed. The complexity and usefulness of the linear programming method utilized by the Bankers Trust Co. is discussed in depth. The results of the study are contrasted with certain criticisms cited, suggesting that operations research is primarily theoretical and has little if any practical management value.