Fitting random cash management models to data

[EN] Organizations use cash management models to control balances to both avoid overdrafts and obtain a profit from short-term investments. Most management models are based on control bounds which are derived from the assumption of a particular cash flow probability distribution. In this paper, we r...

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Bibliographic Details
Author: Salas-Molina, Francisco|||0000-0002-1168-7931
Format: article
Publication Date:2019
Country:España
Institution:Universitat Politècnica de València (UPV)
Repository:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
Language:English
OAI Identifier:oai:riunet.upv.es:10251/201125
Online Access:https://riunet.upv.es/handle/10251/201125
Access Level:Open access
Keyword:Machine learning
Stochastic programming
Data-driven models
Ensembles
Control bounds
ECONOMIA FINANCIERA Y CONTABILIDAD
Description
Summary:[EN] Organizations use cash management models to control balances to both avoid overdrafts and obtain a profit from short-term investments. Most management models are based on control bounds which are derived from the assumption of a particular cash flow probability distribution. In this paper, we relax this strong assumption to fit cash management models to data by means of stochastic and linear programming. We also introduce ensembles of random cash management models which are built by randomly selecting a subsequence of the original cash flow data set. We illustrate our approach by means of a real case study showing that a small random sample of data is enough to fit sufficiently good bound-based models.