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The logistics approach to management of enterprises' financial flows

Yulija Volynchuk 

Lutsk National Technical University (LNTU), Lvivska, 75, Lutsk 43018, Ukraine

Abstract

The financial resources of enterprises is the source of forming material, labor and informational resources, that's why management process of enterprises' financial resources should be considered in a complex with other types of resources, which is possible only if there is production logistication. Financial, material, information and service flows of the enterprise are in interaction and unity, and effective management of such correlated flow processes is possible only with the use of logistic approach.

Any transfer of financial resources inside and outside logistic system refers to the financial flows, that are needed to ensure the efficient movement of all other flows of enterprise' production-economic system. The task of financial flows’ management in logistic systems is full and timely provision of financial resources by volumes, terms and by sources of their funding, which must meet the requirements of minimum price.

Enterprise financial flows are classified according to different characteristics (direction of movement, method of calculation, purpose, frequency of emergence, level of adequacy, its scale, type of economic activity, currency of denomination, importance, method of evaluation in time, form of payments).

While managing the movement of financial flows it is necessary to aspire to saving money for the logistic processes' realization and maximization of the final result. The most appropriate management decisions are those that simultaneously are changing their various parameters of financial flows. The task of optimization of financial flows can be solved through the use of Newton's method, which is based on the principles of simple iteration and includes finding a solution by constructing successive approximations.

Thus, financial flows, associated with the movement of material and information flows of the enterprise, form so-called triad, logistic management of triad under present conditions need to taking into account necessity of service accompaniment and use of economic-mathematical methods and models.

 

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Presentation: Oral at Current Economic and Social Topics CEST2013, Symposium on Financial Market Analysis, by Yulija Volynchuk
See On-line Journal of Current Economic and Social Topics CEST2013

Submitted: 2013-04-24 17:42
Revised:   2013-04-24 17:43