Cash flow optimization in a multi-project environment
Hessamedin Vali. (2012). Cash Flow Optimization in a Multi-Project Environment. -- In Proceedings: 8th Annual Symposium: Graduate Research and Scholarly Projects. Wichita, KS: Wichita State University, p.140
In this paper, we address the problem of budget allocation in a multi-project environment under uncertainty. The uncertainty is in the completion time of milestones of individual projects. Companies have the opportunity to invest funds allocated for these projects and also to borrow a predetermined amount of funds to pay the subcontractors at each milestone. The corresponding mathematical model is a linear (dynamic) programming model with stochastic due dates. We propose a heuristic method to solve this problem and the performance of these methods is compared with the optimal solution using a simple numerical example.
Paper presented to the 8th Annual Symposium on Graduate Research and Scholarly Projects (GRASP) held at the Marcus Welcome Center, Wichita State University, April 18, 2012.
Research completed at the Department of Industrial and Manufacturing Department, College of Engineering