Want FREE Templates on Organization, Change, & Culture? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.

  Please register (it's free!) or login to view the remaining preview.
If you are logged in, your referral link [?] is automatically included below.
EMBED CODE (Copy and Paste)


BENEFITS OF DOCUMENT

  1. Provides of EOQ Model and Derive the EOQ model from the total cost equation
  2. Provides of How to Setting the target cash balance
  3. Provides of Baumol Model (Cost of Cash - Holding Cost and TrnasactionsCost)

DOCUMENT DESCRIPTION

Financial Management in Cash Management & Inventory Control

Lecture Outline
1. Setting the target cash balance
2. EOQ model
3. Why is inventory management vital to the financial health of most firms?
4. Total Inventory Costs (TIC)
5. Derive the EOQ model from the total cost equation
6. Can the EOQ be used if there are seasonal variations?
7. The factors affect an EOQ analysis
8. Baumol Model
9. Costs of cash - Holding costs
10. Costs of cash - transactions costs
11. Optimal cash transfer size

Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company's financial stability.

Theoretical models such as the Baumol model have been developed for use in setting target cash balances. The Baumol model is similar to the EOQ model, which will be discussed later. Today, companies strive for zero cash balances and use borrowings or marketable securities as a reserve. Monte Carlo simulation can be helpful in setting the target cash balance.

Why is inventory management vital to the financial health of most firms?
Insufficient inventories can lead to lost sales.
Excess inventories means higher costs than necessary.
Large inventories, but wrong items leads to both high costs and lost sales.
Inventory management is more closely related to operations than to finance.

Got a question about the product? Email us at [email protected] or ask the author directly by using the form to the right. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Financial Management in Cash Management & Inventory Control PowerPoint document

 

Financial Management in Cash Management & Inventory Control

Sold by Uj150975 (this author has 72 documents)

$35.00

ALL FEES INCLUDED
Add to Cart
  

This business document is categorized under the function(s):

It applies to All Industries

File Type: PowerPoint (ppt)

File Size: 1.2 MB

Number of Slides: 33 (includes cover, transition, & marketing slides)

Related Topic(s): Inventory Management Financial Management

Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.

Initial upload date (first version): May 14, 2022
Most recent version published: May 16, 2022

Ask the Author a Question

Must be logged in Click here to log in






CUSTOMER TESTIMONIALS




SELECT CUSTOMERS

Since 2012, we have provided best practices to over 5,000 businesses and organizations of all sizes across the world—in over 130 countries. Below is just a very small sample of our customer base.



Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.



RECOMMENDATIONS WE HAVE FOR YOU

15-slide PowerPoint deck
$20.00
Excel workbook
$49.99
69-slide PowerPoint deck
$39.00
19-slide PowerPoint deck
$20.00
Excel workbook
$59.00
4-page PDF document
$29.99
55-slide PowerPoint deck
$29.99
Author: Nishil Josh
13-page Word document
$25.00
54-slide PowerPoint deck
$20.00
Author: vskumar
Excel workbook and supporting ZIP
$249.00
Excel workbook and supporting ZIP
$249.00
17-slide PowerPoint deck
$20.00

 
RELATED TOPICS

TOP 10 TOPICS

Become your organization's resident expert on...

Digital Transformation
 
Strategy Development
 
Post-merger Integration (PMI)
 
Organizational Design (OD)
 
Performance Management
 
Business Transformation
 
Organizational Culture (OC)
 
Customer-centric Design (CCD)
Interested in something else? Browse our 500+ Business Toolkits of best practices, each focused on a specific management topic.