Inventory Cash Research Articles

The Financial Performance of Commercial Banks and Their Financial Management Practices: A Case Study

The research used IDBI Bank's Hazratganj Branch in Lucknow as a case study to look at how financial management methods affect the bottom line of commercial banks in the city. Its direction came from three main points: i) to investigate the impact of risk management on IDBI Bank, Riyadh's financial performance ii) research the effects of working capital management on the financial performance of IDBI Bank's Hazratganj Branch; and iii) evaluate the effects of assets management on the same branch's financial performance. Integrating qualitative and quantitative methods, the study followed a phenomenological trend. So far, sixty-two people have participated in the research. Analysis of the data showed that the following management functions had the highest Adjusted R Square values: risk (66.4%), working capital (51.9%), and assets (82.5%). Finally, the financial performance was much improved because to the crucial role that risk management played. Evidence from this study supports the idea that risk management is an essential management function for sound financial results. Furthermore, it was shown that the commercial bank's financial performance was significantly improved by better asset management. Management should handle creditors and cash inventories well, according to the report, so that institutions may fund their activities without financial constraints. They also said that as commercial banks deal with liquid currency, it makes sense for them to improve their liquidity by maintaining good relationships with their shareholder

Analisis Sitem Pengendalian Intern Kas pada PT Pelabuhan Indonesia I (Persero) Medan

Cash is referred to as the most liquid property and is a component of current assets which include banknotes / metals and other objects that can be used as a legal and retrievable medium of exchange every time. If the cash inventory is sufficient, the company will operate smoothly, especially in cash expenditure activities which include the purchase of goods and services, and therefore in order for the company to avoid misappropriation, the cash is used as well as possible. Cash is inseparable from receiving and payment activities. The purpose of this study is to describe how the Cash Internal Control System and analyze the Cash Internal Control System in the company of PT. Port of Indonesia I (Persero) Medan. The internal cash control system is a control system that is able to protect the company's cash, and keep away from losses due to intentional or unintentional mistakes. The internal control system is divided into two systems, namely cash receipts and expenditures. In this study, the problem arises because of the sequence number of the evidence that is not printed and does not have a stamp stamp "FULL" on the cash evidence that has been paid. The research approach that the author uses is a descriptive research approach. The type of data collected to support the variables studied is a qualitative data type. The data sources used are primary data and secondary data. The data collection techniques used are the interview method and documentation method. The data analysis technique in this study uses a descriptive analysis method. Based on the results of the analysis by comparing the cash internal control system at PT. Port of Indonesia I (Persero) Medan with elements of the COSO model internal control system, cash internal control system at PT. Port of Indonesia 1 (Persero) Medan has not yet reached the goal of the internal control system. This is because there are several elements of the internal cash control system in the company that still have weaknesses.
 Keywords: Cash, Internal Control System, Cash Internal Control System

Worst-Case Analysis of Cash Inventory in Single Machine Scheduling

This paper studies the inventory of cash as a renewable resource in single machine scheduling problem. The status of cash is incorporated in to the objective function. Average and minimum available cash and maximum and average cash deficiency are contemplated subject to a worst-case scenario that for each job the cost [price] is paid [received] entirely at the start [end] of processing the job. For each objective, either proof of NP-Hardness or optimal scheduling rule are provided. Some scenario-based numerical experiments are also carried out which reveal and emphasize the effect of financial assumptions of this research in single machine scheduling.

Tax Evasion Policies and the Demand for Cash

This paper analyzes the relationship between cash and tax evasion by studying the effects of two measures to fight evasion: accessing taxpayers’ banking data to check the consistency with reported income and discouraging the use of cash with thresholds on payments. We show that variation in cash holdings triggered by these policies can be substantial, about 1.5% of the GDP. Accessing taxpayers’ banking data generates a conversion to the highest denomination banknotes, the most efficient for storing (and hiding) value. Sanctions on payments above a certain threshold are effective in decreasing cash inventory. Exploiting dynamic spatial heterogeneity in tax evasion and cash demand, we find that access to banking data has a higher effect in regions more inclined to evade taxes. No substantial difference is found for the effect of cash thresholds. We rationalize such evidences using a simple model of tax evasion and payment choice, which casts doubts on the effectiveness of such policies.

IMPROVING CASH AVAILABILITY OF ATM USING LEAN REPLENISHMENT PULL FOR SHARIA BANK IN INDONESIA

To maintain the company's sustainability of quality and the increasingly rapid competition between banking institutions, a bank must continue to protect its customers from the ease and availability of services when needed anytime and anywhere. Automated Teller Machines (ATM) are the most common banking products and services used by the public. Previously, Activities carried out by the teller can already be done through an ATM. Availability of the ATM has been a special attention among the banking industry and CIT (Cash in transit) company. Factors that cause ATM unavailable are: hardware, receipt, network, and cash, one of the most critical factors is cash availability. Previous study shows some concern of cost and risk of inventory cash on ATM, that leads to study of cash prediction method to replenishment cash of the ATM. Current conditions, Bank ATMs have an average percentage of cash availability in the last 6 months of 92.86%, which means there is 7.1% of cash not available. The aim of this study is to adapt the lean replenishment pull system to manage cash replenishment of the bank ATMs and to achieve level 4 of sigma (99.38%) on ATM cash availability. By collecting, measuring and analyzing availability data and transactions data on both on-site and off-site ATMs samples for the certain period. The proposed model is to determine warning to do the cash replenishment and the Kmin of cash status. Thus, the cash supply at the ATM machine is sufficient, and no idle money occurs.

EVALUASI PROSEDUR PENGELUARAN KAS DENGAN MENGGUNAKAN UANG PERSEDIAAN PADA DINAS PENDAPATAN DAERAH KOTA MANADO

The implementation of a government system that is synergic and fair with the principle of decentralization requires the existence of a financial management that is accountable and transparent. Evaluation of cash disbursement procedures for money supply is a form of financial management that is accountable and transparent. Inventory money is the initial fund given to the regional government SKPD at the beginning of the fiscal year as an advance for the implementation of SKPD operational activities. The purpose of this study was to evaluate the implementation of the procedure for the issuance of cash in cash inventories in the regional income department of the city of Manado. The analytical method used in this research is descriptive analysis method. The results showed that the implementation of the procedure for issuing cash in the form of cash in the regional income department of the city of Manado was not yet effective and was not in accordance with SE.900 / 316 / BAKD because some supporting documents required by law were not attached and for the use of money the supplies still needed control and supervision in accordance with regulation number 60 of 2008 concerning the government's internal control system.

A study on working capital with reference to ultratech cements ltd in Anantapuramu District

Working capital Comes in to business operation when actual operation takes place generally the requirement of quantum of Working capital is determined by the level of production which depends upon the management attitude towards risk and the factors which influence the amount of cash inventories, receivables, and other current assets required to support given volume of production. Gross working capital is the amount of funds invested in various components of current assets. Current assets are those which are easily immediately converted into cash within a short period of time say, an accounting year. It is ratios which express the relationship between the total Current Assets and Current Liabilities. It measures the firm's ability to meet its current liabilities. It indicates the availability of current assets in rupees for every one rupee of current liabilities. The study of working capital management conducted in Ultra Tech Cement. To analyze the financial position of the company.

Optimal ATM replenishment policies under demand uncertainty

The use of Automated Teller Machines (ATMs) has become increasingly popular throughout the world due to the widespread adoption of electronic financial transactions and better access to financial services in many countries. As the network of ATMs is becoming denser while the users are accessing them at a greater rate, the current financial institutions are faced with addressing inventory and replenishment optimal policies when managing a large number of ATMs. An excessive ATM replenishment will result in a large holding cost whereas an inadequate cash inventory will increase the frequency of the replenishments and the probability of stock-outs along with customer dissatisfaction. To facilitate informed decisions in ATM cash management, in this paper, we introduce an approach for optimal replenishment amounts to minimize the total costs of money holding and customer dissatisfaction by taking the replenishment costs into account including stock-outs. An important aspect of the replenishment strategy is that the future cash demands are not available at the time of planning. To account for uncertainties in unobserved future cash demands, we use prediction intervals instead of point predictions and solve the cash replenishment-planning problem using robust optimization with linear programming. We illustrate the application of the optimal ATM replenishment policy under future demand uncertainties using data consisting of daily cash withdrawals of 98 ATMs of a bank in Istanbul. We find that the optimization approach introduced in this paper results in significant reductions in costs as compared to common practice strategies.

Development of Financial Supply Chain Management and Supply Chain Finance Model

Expansive economic, production and commercial development today has made businesses and enterprises to have active presence and contribution in network-based and chain economy. Although focusing on this approach has brought some privileges and productivities for the firms which are members of networks and supply chains, it has been accompanied by various problems and complexities for financial crisis management, cash flow and flow capital amount of the foundations and their commercial partners. To overcome such problem, besides developing the concepts of supply chain management and logistics, Financial Supply Chain Management (FSCM) was also promoted to minimize inefficiencies of financial flow in supply chain using financial, engineering and management approaches, and to provide an effective management ground for cash inventory and flow capital all throughout the supply chain by making use of various tools and techniques of supply chain finance and/or SCF. Hence, by changing approach and role of financial services provider from just supplier of financial resources as the commercial partners of economic and commercial firms, it caused that a major part of managerial duties of financial flow of chain enterprises could be defined in collaboration with financial services provider, and they may be executed in a more desirable manner considering the capacities and capabilities of banks and financial institutes. Thus, regarding the significance of financial flow management in the chain and benefitting the principles and fundamentals of research by fact finding and case study, it was tried to present a framework to make use of financial flow management and its principles and fundamentals effectively by reviewing evidences as well as applicable experiences in this area. The present paper emphasized that as logistic services providers are responsible in supply chains to improve inventory level; financial services providers also have the same role concerning liquidity level in the chains. Therefore, by making coordination and integrity in the inventory flows, information and financial flows through supply chain, we can handle financial risks and provide more stable value flow in supply chain till distribution, and create a ground better for materializing objectives of the firms which are members of supply chain. Keywords: Financial Supply Chain Management, Supply Chain Finance, Supply Chain Management, Financial Services Providers. DOI : 10.7176/RJFA/10-1-03

Do Debit Cards Decrease Cash Demand?: Causal Inference and Sensitivity Analysis Using Principal Stratification

SummaryIt has been argued that the use of debit cards may modify cash holding behaviour, as debit card holders may either withdraw cash from automated teller machines or purchase items by using point-of-sale devices at retailers. Within the Rubin causal model, we investigate the causal effects of the use of debit cards on the cash inventories held by households by using data from the Italy Survey of Household Income and Wealth. We adopt the principal stratification approach to incorporate the share of debit card holders who do not use this payment instrument. We use a regression model with the propensity score as the single predictor to adjust for the imbalance in observed covariates. We further develop a sensitivity analysis approach to assess the sensitivity of the proposed model to violation of the key unconfoundedness assumption. Our empirical results suggest statistically significant negative effects of debit cards on the household cash level in Italy.

Peranan Manajemen Kas Terhadap Persediaan Kas

Cash is one of the main resources to run a company's operations. Cash management executed properly can support the survival of a company where it can be seen from the cash supply.This research is conducted to determine how large a role ofmanaging inventory in cash management company from 2006 until 2010. And to perform inventory planning cash for 4 years later. Result of research on cash management PT. Cemani Toka can be said is not good enough and cause cash tumover is very low at PT. Cemani Toka and tend dispropotionately between the amount of cash sales. And advised to control and tighten cash flow and operating activities, focus in foreign exchange, but it also must set the standard management of cash inventory using the theory Harry G. Gutmann with a minimum cash balance 5% and maximum 10% from the current assets or the theory by Eugene F. Brigmann the optimum cash balance 1,5%from total assets.
 Keyword : cash turnover, the development of cash, cash flow

An MIP model to optimize a Colombian cash supply chain

AbstractFinancial institutions operate a supply chain where only one product is moved across the network. Although the cash is kept in several nodes to service the demand of final customers, availability causes opportunity cost related with its investment options. When planning the inventory of cash that should be maintained across the network, transportation decisions are also expected to be made. Cash transportation has a high cost, associated with the high risk of theft. Increasing the inventory can reduce the need for transportation, but the opportunity cost can be very high. Moreover, the inventory is also related with the service level perceived for final customers; therefore because of low inventory some people are not able to make some transactions. The aim of this work is to find optimal decisions related with cash inventory and transportation across the network, trying to balance the cost of the service and the quality perceived for final users.

Optimisation of short term commercial bank loans to corporates in terms of financing operating activities in Slovenia

This paper presents the mathematical model for determination of the optimal amount of short term commercial bank loans to corporate sector in Slovenia which is based on probabilistic inventory models. The goal of this paper is complete optimisation of cash inventories of corporate sector in the national economy. The results of optimisation are important for the corporate sector and for commercial banks. The optimal order quantity is an amount of short term commercial bank loan to corporates and defines a lending potential of commercial banks in a national economy. As such is important for the central bank when conducting monetary policy. Special emphasis has been given to determinants of optimal order quantity, which reflect market conditions in national economy.

Excess reserves during the 1930s: Empirical estimates of the costs of converting unintended cash inventory into income-producing assets

It is often argued that the persistent amounts of excess reserves in the 1934–1941 period were sought either for protective liquidity or as a signal of bank safety to depositors. More recent explanations argue that these excess reserves were unintended inventory due to the high internal adjustment costs of converting reserves to income-producing assets. Our findings support the latter explanation and reveal high internal asset adjustment costs after 1933. Thus, a monetary policy focused on increasing reserves would have been ineffective. A successful monetary policy would be one that increased outside money.(JEL G210, G280, O420)

Cash Management for Index Tracking

Although all standard equity indexes have a zero weight in cash, managers running index-tracking portfolios often find that maintaining a positive cash holding is cost-efficient. This practice saves significantly on transaction costs because temporary cash inflows and outflows can be absorbed into the cash inventory. In this paper, a mean–variance framework is used to analyze the cash management problem for an index-tracking portfolio. The theoretical model is based on passive index tracking, but it has implications for any portfolio manager with an equity benchmark and random cash inflows and outflows.

The Bid-Ask Spread in the Black Market for Dollars in Brazil: Note

Several studies have offered empirical support for the Demsetz-Bagehot theory of dealer services and bid-ask spreads. The tests have always concentrated on bid-ask spreads or price dispersion in cross-section studies of securities markets. Thus Stoll (1978), for example, tested a theory of the bid-ask spreads in the over-the-counter market for common stocks, and Garbade and Silber (1976) studied price dispersion in the market for U.S. government bonds. In each case the object was to determine the spreads associated with different securities depending on their characteristics such as trading volume or risk. The present study, by contrast, focuses on the time series of the bid-ask spread. We report on the bid-ask spreads in the black market for dollars and show support for the theory of spreads in a market far less institutionalized than the U. S . capital markets . Moreover, structural features of the market not present in security markets are shown to influence the spread. The theory of bid-ask spreads was developed by Demsetz (1968) and has since been extended in a number of papers among which Garbade and Silber (1976) and Ho and Stoll (1981) are of particular interest for our questions. The literature is comprehensively reviewed in Cohen, Maier, Schwartz, and Whitcomb (1979). The theory views dealers as providers of liquidity services. The exchange houses provide a liquidity service in standing ready to buy or sell securities in our case U.S. dollarsthus saving potential customers the need to search and the possibility of illiquidity. In exchange for this service the dealer can charge a fee that takes the form of a bid-ask spread. The spread covers the costs of running the establishment and specific costs of making the market. There are in particular two costs of market making. One is the opportunity cost of carrying a cash inventory and the other arises from the risk of dealing with customers who have potential inside information. The inventory costs arise because there is not perfect synchronization between inflows and outflows. The cost is given by the interest rate times the average inventory position. Customers with inside information pose a risk because they may have privileged access to news about exchange rate changes, trade restrictions, or political events that will influence the market. These customers cannot be dis-