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.

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE