Investment planning optimization methods based on network modeling and their applications

In the current business environment investment planning is an essential process in the development of any economic entity. It is necessary to communicate its importance to managers, analysts, and investors, so that they could make appropriate managerial decisions. The article discusses the current issues regarding management of the invest ment planning process for economic entities. In order to solve the problem of optimizing such management, it is suggested to use network economic-mathematical modeling. Methods of network planning and management have long been known and used for complex systems. The idea of their new application, in particular for deterministic economic-mathematical modeling of investment planning, provides the novelty and scientific hypothesis of this paper. The proposed method is based on the formation of a network economic-mathematical model that includes all the stages of works relating to investment planning. Such network model serves as the basis for creating a schedule graph of implementation of the set of works and calculation of parameters to optimize the network model of the investment planning process. The method is illustrated by a detailed practical example, which demonstrates the necessity of calculating not only time, but also cost indicators of an investment project. Food service industry is chosen for application of this model since large amount of small business investment is connected with this sphere. The practical example given in the article describes in detail the whole process of establishing a restaurant business, from its concept to its opening. Thus, the results obtained and conclusions made show that the proposed use of network modeling as a tool for solving problems of managing the investment planning process contributes to efficiency and increases competitive advantage of the economic entity.