An Operational Approach to Integrated Working Capital. Planning.
Abstract
Working capital management involves the integration of three separate activities -- marketing, production, and financial -- into a single planning system. Although this integration can best be achieved by an optimization process, most successful industrial applications and some academic working capital models are based on non-optimizing financial statement simulators or budget compilers. This lack of real-world application of optimization models is primarily a function of the excessive solution time traditionally required for large problems, the necessity to solve the models iteratively, and the lack of understanding on the part of decision-makers of the algebraic equation systems used in the models. An interactive working capital planning system is described that experience shows can overcome these three problems. The system surmounts these limitations by coupling recent advances in graphical modeling with network solution procedures.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1977
- Accession Number
- ADA044117
Entities
People
- Darwin D. Klingman
- Lee A. Tavis
- Roy L. Crum
Organizations
- University of Texas at Austin