A Linear Programming Model for Short Term Financial Planning Under Uncertainty - Softcover

Gerald Albert Pogue

 
9781334431432: A Linear Programming Model for Short Term Financial Planning Under Uncertainty

Synopsis

This book delves into the intricate world of short-term financial planning for corporations, a crucial aspect of ensuring a company's smooth operation and financial stability. The author takes a unique approach by presenting a linear programming model, a sophisticated mathematical technique that helps businesses optimize their financial strategies. Building on earlier work in the field, the author introduces new elements, such as the explicit consideration of uncertainty in cash flow forecasting. This groundbreaking approach acknowledges the inherent unpredictability of the business environment and emphasizes the need for building liquidity buffers to protect against potential financial shocks. The model also incorporates diverse financing options, including commercial paper, and allows for multi-period investments, reflecting the complexities of real-world financial decisions. Through a detailed examination of a sample problem, the book demonstrates the practical application of the model and highlights its ability to minimize financing costs while adhering to various internal and external constraints. The author further emphasizes the importance of managing terminal financial conditions to ensure long-term stability, providing a comprehensive framework for effective short-term financial planning. This insightful book provides valuable tools and strategies for optimizing corporate finances, offering a deeper understanding of the interplay between risk, uncertainty, and optimal financial decisions.

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