Hostname: page-component-6bb9c88b65-zjgpb Total loading time: 0 Render date: 2025-07-18T07:06:41.687Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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.

Information

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

[1]Archer, Stephen H. “A Model for the Determination of Firm Cash Balances.” Journal of Financial and Quantitative Analysis, vol. 1 (March 1966), pp. 1–11.CrossRefGoogle Scholar
[2]Benishay, Haskel. “A Stochastic Model of Credit Sales Debt.” Journal of the American Statistical Association, vol. 61 (December 1966), pp. 1010–1027.CrossRefGoogle Scholar
[3]Byrne, R.F.; Charnes, A.; Cooper, W.W.; and Kortanek, K.O.. “A Discrete Probability Chance-Constrained Capital Budgeting Model II.” Opsearch, vol. 6 (December 1969), pp. 226–261.Google Scholar
[4]Charnes, A., and Cooper, W.W.. “Deterministic Equivalents for Optimizing and Satisficing Under Chance Constraints.” Operations Research, vol. 2 (January–February 1963), pp. 18–39.CrossRefGoogle Scholar
[5]Mehta, Dileep. “Optimal Credit Policy Selection: A Dynamic Approach.” Journal of Financial and Quantitative Analysis, vol. 5 (December 1970), pp. 421–444.CrossRefGoogle Scholar
[6]Miller, Merton H., and Orr, Daniel. “A Model of the Demand for Money by Firms.” Quarterly Journal of Economics, vol. 53 (August 1966), pp. 413–435.CrossRefGoogle Scholar
[7]Orgler, Yair E. “An Unequal-Period Model for Cash Management Decisions.” Management Science, vol. 16 (October 1969), pp. 77–92.CrossRefGoogle Scholar
[8]Robichek, A.A.; Teichroew, D.; and Jones, J.M.. “Optimal Short-Term Financing Decision.” Management Science, vol. 12 (September 1965), pp. 1–36.CrossRefGoogle Scholar
[9]Tavis, L.A. “Finding the Best Credit Policy.” Business Horizons, (October 1970), pp. 33–40.CrossRefGoogle Scholar
[10]Van Horne, James C. “A Risk-Return Analysis of a Firm's Working-Capital Position.” Engineering Economist, vol. 14 (Winter 1969), pp. 71–89.CrossRefGoogle Scholar
[11]Walker, Ernest W. “Towards a Theory of Working Capital.” Engineering Economist, vol. 9 (January–February 1964), pp. 21–35.CrossRefGoogle Scholar