MillerOrr cash model assumes that short-term cash
movements cannot be predicted
they change in a random fashion. This means that the following tactics should
manage the cash resources of an enterprise:
the daily variation in cash balances is large, then the control limits should
be set far
the cost of buying and selling securities is high, then the control limits
should be set
the rate of interest is high, the control limits should be set close together;
all these factors should be considered.
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