Optimization of the company's cash flow

(a) Economies of scale in the detention of liquidity.
By adopting an approach in terms of inventory management could think a priori, for any industrial area studied, the
variance of fluctuations in the level of cash should tend to increase less than proportionally to the volume of sales,
and thus to strengthen the presumption of economies of scale. In fact the results are quite heterogeneous and cannot
draw any conclusion.
b) The rate of interest and the detention of liquidity.
Most statistical studies find an elasticity of the demand for money from the interest rate. Despite this fact, which
could infer that the detention of balances is the result of rational choice, they cannot explain the formation of cash
totally or partly non - voluntary. According to how the INFLOWS and CASH is managed inside the treasury
department, the detention of cash is a much more complex phenomenon that the empirical and theoretical research
don’t assume
2 – THE COMPLEXITY OF CASH INFLOWS CONCEPT
The failure of the work to demonstrate the existence of a rational behavior in determining the level of cash is not
enough to make us reject the analysis in terms of stocks. Indeed, the models claim that define changes in the volume
of the freely chosen portion of the cash. However, certain balances do not result from the economic calculation;
these are:
The balances resulting from the inertia of the Treasurer;
The cash coming from the imperfect synchronization of receipts and expenditures;
The balances that exist because money can be spent, or that there are Free of engagements;
'Institutional' balances, such as the minimum deposit kept with banks.
Many factors determine therefore the formation of cash. And even as regards cash 'voluntary', although other
strategic elements that those retained in the models, will affect the detention of liquidity (banking costs, inflation,
exchange rate risk, etc.) It is therefore the normative value of the models that should be assessed in the light of habits
and cash management practices, but also possible improvements possible. In fact, the practice business shows that
the dis-synchronization of flows (transaction on the one hand pattern), and the risk of unforeseen expenses
(precautionary pattern) on the other hand, can be compensated by different measures of detention of cash.
1.2- DESYNCHRONIZATION OF CASH FLOW AND LIQUIDITY DETENTION.
The hypothesis of the company which retains a certain amount of money immediately available to deal with all
instant expenditure that it must or wish to achieve at any given time must be reconsidered. Although at first glance
it may be tempting to consider the cash flow of a business as a stock of goods, the logic of the cash management is
another. The confusion stems from improper comparison that some authors have made between the cash of a firm
management and the management of the stock of currency of a financial institution.
As it was mentioned at the beginning of this project; the company “IWACO” built another financial part of its
activities. This activity’s mission is to handle the Cash exchange inside the country in a legal frame called “CASH-
PLUS”.
For the treasury department, the management of this activity requires a certain separation between the cash-flows
available inside the company’s Treasury. So for example, a post office is required to pay to view, to the subscribers
whom are registered in this office, the amount of bank chrges that are presented. It is same for a bank deposit, or a
company’s savings. For the CASH-PLUS activity, at the beginning of each day, this represents a potential request for
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