Some Implications for Operational Research in the Area of Inflation as It Affects a Company's Profitability and Liquidity

Abstract

The impact of inflation on company liquidity and profitability during 1974 and 1975 is summarised, and implications for operational researchers in the areas of forecasting, cash flow management, budgetary planning and control systems, and terotechnology are examined. It is concluded that a high rate of inflation highlights the need for closer working relationships between management accountants and operational researchers.