Current capital optimization by the mathematical modelling of interconnections between its components

Abstract

In market conditions, competition is the main mechanism for regulating economic relations. It poses the problem of ensuring the survival and the possibility of further development of enterprises, which requires the participants of the economic process to take adequate measures to improve the mechanism, forms and methods of management. In these circumstances, it is especially relevant to study the issues of formation, operation, reproduction and management of capital of enterprises, and especially its working part. Working capital is a compulsory element of production that provides all the current activities of business entities. The article deals with the etymology and concept of capital, as well as its component current capital. It is proved that in order to increase the efficiency of the process of managing the current capital of the enterprise, it is important to find the optimal ratio of its components. In such circumstances, the process of optimization becomes a feature of the current capital management strategy. It is established that the most relevant to the optimization process will be a moderate strategy of system-oriented current capital management. On this basis, optimization covers the study of patterns and relationships between all components of current capital. In order to study these relationships, it is necessary to determine the impact on each component of the rest of the current capital components. These relationships are cyclical, and we find that their descriptions are appropriate using mathematical models. Accordingly, models for optimizing the size of the basic elements of current capital using the Lotka-Volterra equation have been developed. It has been proved that such model allows to estimate the level of mutual influence between components of current capital and to carry out the analysis with the purpose of making effective management decisions. In addition, in order to obtain adequate data on the behaviour of current capital components, it is appropriate in the future to determine the factors influencing them and the magnitude of the weighting factors that will correspond to them. These coefficients were determined using the method of expert estimation using the technique of point estimation. It has been established that the determination of the maximum and minimum levels of values for the components of current capital has a significant impact on the process of system-oriented management, and the factors that influence these levels will be represented by the indicators that are characterized by the following parameters. In the simulation process it has been found that the most important element, on which the managers of the enterprise in the decision-making process regarding current capital should focus, is the value of stocks taking into account their maximum allowable level. The theoretical and methodological significance of the study is to substantiate and evaluate the strategy of optimizing the size of the basic elements of current capital, which will allow to set the size of the components of current capital at the optimum level, ensuring the continuity of economic activity, and will also allow to assess the future risks associated with