2018
DOI: 10.4236/jmf.2018.82026
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Optimization of Cash Management Fluctuation through Stochastic Processes

Abstract: In this paper, we study the optimal level of cash for the firm to hold. We model the cash level with inflows and outflows due to deposits and withdrawals; in between, the cash level is a stochastic process where it signals a time to sell. After modeling the continuous jump, we implemented first step analysis method to find the probability of the event with initial cash and we were able to calculate data driven by set of difference equations. These data are used to determine the length of the period of the inve… Show more

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Cited by 3 publications
(2 citation statements)
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“…Seller type 2: Seller can start with a positive reputation and from a certain period start receiving negative feedback [24]. Receiving a negative rating would make the seller more likely to receive another.…”
Section: The Effect Of Negative Feedbackmentioning
confidence: 99%
“…Seller type 2: Seller can start with a positive reputation and from a certain period start receiving negative feedback [24]. Receiving a negative rating would make the seller more likely to receive another.…”
Section: The Effect Of Negative Feedbackmentioning
confidence: 99%
“…We call this situation an asymmetric payment/delivery schedule. These questions are considered in a number of publications on logistics and in the theory of inventory management (Dib et al 2018;Hariga 1995;Brodetskiy 2017;Zhi et al 2019). However, a comprehensive solution to the issue was not proposed.…”
Section: Introductionmentioning
confidence: 99%