Planning Production and Workforce in a Discrete-Time Financial Model: Optimizing Cash-Flows Released

Planning Production and Workforce in a Discrete-Time Financial Model Using Scenarios Modeling

“…Recall that product's demand acts as an upper limit for the effective sales strategy. A similar version of the present study was discussed in [15], involving a single sequence of overlapping work-shifts with a single time duration and a single sequence of overlapping loans, with a single maturity's time length. In the mentioned paper, the author assumes that the unitary net profits of the sales and the interest rates associated with the loans follow a normal distribution, conducting the entire study on a single scenario based approach.…”

“…The integration of cash-flows and workforce along the production process has also been discussed in [10,13,[15][16][17]. The formulation proposed in [13] includes financial aspects to support labor costs and production.…”

“…Other investments, apart from production, are also incorporated in the model. Mathematical formulations integrating these three elements system was also proposed in [16] and in [15], considering short-term loans to support labor costs with flexible amortization plans. The associated production process is single-product and single-level, using the given demand amounts as upper bounds for the effective sales, allowing the model to find the appropriate production quantities, to the best convenience of the company, in order to get the best financial profits.…”

“…Our model combines the three mentioned processes, including short-term loans strategies, with the objective to maximize the final period cash-flows. In addition, we do not force the sales to entirely meet the demand, but using the demand level as an upper limit for the sales strategy, as in [16] and in [15]. Hiring strategies are modeled by a sequence of overlapping work-shifts.…”

Cash flow optimization in industrial enterprise

“…In particular, Martins, P. establishes the relationship between the mainresulting indicator -cash funds and factorsthat form it: workforce and production. Along with this, authors combine them into a single system based on monoproduction (production of one type of goods) without reference to the specifics of an industry, which reduces the usefulness of the presented model [2].…”