Forecasting of working-capital requirements under capital constraints — A Monte Carlo simulation approach

In major contracts, the contractor provides a planned progress schedule and corresponding expenditure budgets, and agrees to a minimum elapsed time between successive claims. The total number of contracts in the environment and their arrival, given a planning horizon, is probabilistically known. The...

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Bibliographic Details
Published in:Engineering costs and production economics 1984-12, Vol.8 (3), p.223-234
Main Authors: Gupta, Yash P., Gupta, Rajendra K.
Format: Article
Language:English
Subjects:
Applied sciences
Exact sciences and technology
Operational research and scientific management
Operational research. Management science
Planning. Forecasting
Citations: Items that this one cites
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Summary:In major contracts, the contractor provides a planned progress schedule and corresponding expenditure budgets, and agrees to a minimum elapsed time between successive claims. The total number of contracts in the environment and their arrival, given a planning horizon, is probabilistically known. The probability of winning with a given bid value against competitors is also known. Using the Monte Carlo simulation approach, we provide a method for forecasting the working-capital requirements under capital constraints.
ISSN:0167-188X
1878-4011
DOI:10.1016/0167-188X(84)90040-5