Financial planning models

In a fully developed financial planning model, all the key estimates and assumptions are expressed as general mathematical relationships. Then software programs (e.g., Microsoft Excel) are used to determine the impact of different combinations of these unknown variables. What if questions can be answered about such unknown variables as inflation, interest rates, the value of the dollar, demand, competitors actions, union demands in forthcoming wage negotiations, and a host of other factors. 

In some optimization problems, the model cannot be fiiUy specified because it depends on quantities that are unknown at the time of formulation. This characteristic is shared by many economic and financial planning models, which may depend for example on fumre interest rates, future demands for a product, or future commodity prices, but uncertainty can arise naturally in almost any type of application. 

Another major response to specialization and proliferation is abstracting journals. The first attempt to do this was actually made in 1830, but the twentieth century versions of these journals are more familiar. The original financial plan for absnacting journals was that members dues would pay for the publications. ACS members, until 1933, received JACS, the news edition of Industrial Engineering Chemistry, and Chemical Abstracts for their subscription. That model worked for the first quarter-century. 

Forecast for new products is generated based on management target volume or basic models like market coverage or market share. This forecast is the input for raw material planning and financial planning. 

Additionally, as indicated by Varma et al. (2007) there is a need to model financial planning decisions, R D resource allocation, as well as capacity expansion decisions within an integrated model, so that capital and capacity allocation can be performed simultaneously with R D projects selection and prioritization in order to enhance value generation. Certainly, R D decisions necessarily impact the design and the regular activities of the entire SC. Thus, such operational impact should be considered and assessed at the time R D and SC decisions are taken. 

Considerable attention has been focused on the kind of motives which drive the decisions and choices of individuals in a work setting. An influential model of motivation was the "scientific management" movement of F. W. Taylor (1911) which viewed motivation largely in terms of rational individual decisions to maximize financial gain. This theory claimed that workers only wanted to make as much as possible for as little effort as possible, and that they were neither interested in, nor capable of planning and decision- making. 

Project-research was essential to the plans of the NRC not only to ensure scientific freedom but also for a financial reason. Having no substantial funds to support research itself, the NRC was dependent upon scientists volunteering their efforts. In both respects the model of organization used by the research program on chemical warfare during the war was found to be a very useful one by the leaders of the NRC as they attempted to organize American science in the 1920s. 

The project should be business driven. For example, Ray Miller explains the importance of bringing value to markets—a basic but critical concept. If a project is business driven, it has a much higher probability of resulting in commercial success and in a shorter time than if it is technically driven. In general, one can assess the business driver by the existence or absence of a business plan and a financial model for the project that identifies specific applications and customers for the product(s). The business plan and financial model must be validated by repeated, critical scrutiny by successful, informed businesspeople and investors. 

It takes coaching and training to get the innovators employed in an established industrial company to write high quality business plans. The business mentality is often foreign territory to them, yet they have to write the business plans themselves. The coaches can be external trainers or internal experts from the company s new business development and financial modeling departments. Professional jury and evaluation. 

A novel stochastic multi-period design/planning/scheduling MILP model of a multiechelon SC with financial considerations is used as a predictive model in this work. The model assumes that different technological equipment is available to be installed in potential sites and assists in their selection. Furthermore, the model allows the expansion of plant equipment capacities, not only in the first planning period. Regarding the financial area, the mathematical program endeavors to evaluate the shareholder value. 

Based upon how these healthcare delivery and financial management strategies are designed and implemented, MCOs are classified into different types or models - HMOs, PPOs, point-of-service (POS) plans and integrated service networks. In addition, pharmacy benefit management organizations provide specialized services to managed care. 

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