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Optimal Working Capital Policies: A Chance-Constrained Programming Approach

Published online by Cambridge University Press:  19 October 2009

L. J. Merville  and
L. A. Tavis
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Extract

The current assets and current liabilities of a firm are the stock reflections of closely interrelated operational and financial cash flows. The net effect of these combined flows must be recognized in searching for the optimal credit, inventory, or short-term borrowing policies. Yet, the vast majority of models for short-term investment and borrowing decisions do not allow for the interrelationships of this system.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 8 , Issue 1 , January 1973 , pp. 47 - 59
Copyright
Copyright © School of Business Administration, University of Washington 1973

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