Accession Number:
AD0730719
Title:
A Transshipment Model for Cash Management Decisions.
Descriptive Note:
Research rept.,
Corporate Author:
CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
Personal Author(s):
Report Date:
1971-01-01
Pagination or Media Count:
35.0
Abstract:
The cash management problem is concerned with optimally financing net cash outflows and investing net inflows of a firm while simultaneously determining payment schedules for incurred liabilities. The problem is formulated as a transshipment model to minimize the total cost of allocating sources of funds to different uses while retaining the possibility of transferring cash between sources. A numerical example is formulated using this model and its optimal solution is shown to be essentially the same as that of a linear programming formulation proposed by Orgler. Extensions of the methodology for examining the effects of different minimum cash balance requirements and for incorporating other institutional constraints are also discussed.
Descriptors:
Subject Categories:
- Administration and Management