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Annals of Operations Research

, Volume 267, Issue 1–2, pp 515–529 | Cite as

A multi-objective approach to the cash management problem

  • Francisco Salas-Molina
  • David Pla-Santamaria
  • Juan A. Rodriguez-Aguilar
Multiple Objective Optimization

Abstract

Cash management is concerned with optimizing costs of short-term cash policies of a company. Different optimization models have been proposed in the literature whose focus has been only placed on a single objective, namely, on minimizing costs. However, cash managers may also be interested in risk associated to cash policies. In this paper, we propose a multi-objective cash management model based on compromise programming that allows cash managers to select the best policies, in terms of cost and risk, according to their risk preferences. The model is illustrated through several examples using real data from an industrial company, alternative cost scenarios and two different measures of risk. As a result, we provide cash managers with a new tool to allow them deciding on the level of risk to take in daily decision-making.

Keywords

Cash management Multi-objective decision-making Risk preferences 

Notes

Acknowledgments

Work partially funded by projects Collectiveware TIN2015-66863-C2-1-R (MINECO/FEDER) and 2014 SGR 118.

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Hilaturas Ferre, S.A.Banyeres de Mariola, AlicanteSpain
  2. 2.Escuela Politécnica Superior de AlcoyAlcoy, AlicanteSpain
  3. 3.IIIA-CSICCerdanyola, CataloniaSpain

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