SIZING THE ENTITY’S TREASURY BY USING THE MATHEMATICAL MODELING

Abstract

Providing the economic balance represents a fundamental, sine qua non condition in order that economic entities to develop a both effective and stable activity. Beyond harmonizing the assets’ liquidity and the liabilities’ chargeability, a very important side of financial balance is that one regarding treasury’s size optimization, as a concrete form of the favorable financial results manifestation. The present research focuses on the trial of optimizing the economic entities’ treasury size by using several adequate mathematical models, such as: the Baumol model, the Miller-Orr model or the probabilistic model. As a research methodology there are used the review, the synthesis and the simulation.