Top 2 Cash Management Models (With Diagram)

The following points highlight the top two cash management models. They are: 1. Baumol's EOQ Model of Cash Management 2. Miller-Orr Cash Management Model. 1. Baumol's EOQ Model of Cash Management: William J. Baumol (1952) suggested that cash may be managed in the same way as any other inventory and that the inventory model could reasonably reflect the cost - [...]