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OPTIMAL SCHEDULING FOR INVESTMENT OF EXCESS CASH
Author(s) -
COZZOLINO JOHN M.
Publication year - 1971
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1971.tb01462.x
Subject(s) - scheduling (production processes) , computer science , cash , dynamic programming , mathematical optimization , operations research , economics , econometrics , finance , microeconomics , operations management , mathematics
A method is presented for the scheduling of a company's investments of its predictable, short‐term, excess cash. The problem is structured in a way that leads to a fairly simple dynamic programming algorithm. The method is very flexible with regard to the type of investments considered; no structural properties of rates of return or availability are made except that they are predictable. The method allows the choice of holding to maturity or not and the choice can differ for different types of investments. A bank constraint, which fixes the average bank balance over the planning period, is added and the method of solution obtained.