Financial Planning in the Public Sector and the News Vendor Problem

  • Abdalla Mansur Al Ain Univetsity of Science and technology
  • Jack Brimberg The Royal Military College of Canada
  • Ghaleb El-Refae Al Ain University of Science and Technology

Abstract

The purpose of this paper is to study the phenomenon of lapsed funding that occurs within the public sector using the framework of the News Vendor Problem. Under this framework we observe that lapsed funding is a natural outcome of the planning system when the financial manager is trying to maximize value added. Centralizing control of operating budgets of homogeneous units is shown to reduce lapsed funds and improve overall performance.

Published
May 8, 2018
How to Cite
MANSUR, Abdalla; BRIMBERG, Jack; EL-REFAE, Ghaleb. Financial Planning in the Public Sector and the News Vendor Problem. Yugoslav Journal of Operations Research, [S.l.], v. 28, n. 2, p. 265-274, may 2018. ISSN 2334-6043. Available at: <http://yujor.fon.bg.ac.rs/index.php/yujor/article/view/579>. Date accessed: 16 apr. 2024.
Citation Formats
Issue
Vol 28 No 2 (2018)
Section
Articles
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