The central question investigated is that of the potential worth of a simultaneous model of the working capital system (and its solution). The published research on the subject of working capital management can be shown to be deficient in that it lacks a system-wide perspective. Arguments have been made in support of the need for a theory of, and a method for, analyzing the working capital accounts as a whole. This integrated approach has not yet been devised since most research has concerned itself with only a single current-asset account This research develops two models to aid in the process of integrating the analysis of the working capital accounts. The first is a Deterministic Analytical Model designed to express the costs and returns experienced from a single day's credit sales. The second is a Stochastic Model (a simulation) which replicates a working capital system and considers the probabilistic nature of a 'real-world' system A Solution Improvement Algorithm is devised and used with the Stochastic Model to find a solution (policy) to the working capital system which approximates the simultaneous solution. This author concludes that there is significant improvement which could be made by a simultaneous model, beyond that obtained by the methods used in current practice, to justify the continued development of such a model Also, tests are made with the Solution Improvement Algorithm/Stochastic Model to evaluate the sensitivity of this conclusion to various system parameter changes. This author concludes that the system is sensitive to changes in the system's cost structure and internal functional relationships, and that in each case the initial conclusion holds true (although the exact amount of improvement differs from one situation to another) / acase@tulane.edu
| Identifer | oai:union.ndltd.org:TULANE/oai:http://digitallibrary.tulane.edu/:tulane_27733 |
| Date | January 1981 |
| Contributors | Seereiter, Dennis Edwin (Author) |
| Publisher | Tulane University |
| Source Sets | Tulane University |
| Language | English |
| Detected Language | English |
| Rights | Access requires a license to the Dissertations and Theses (ProQuest) database., Copyright is in accordance with U.S. Copyright law |
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