Development of a cash flow model for the eco-logistics system project

Authors

DOI:

https://doi.org/10.15587/2706-5448.2020.220964

Keywords:

eco-logistics system, project lifecycle, project time and money parameters, cash flow.

Abstract

The object of this study is the flow of funds received during the life cycle of the project of an eco-logistics system as a modern transformational model of the logistics system, which makes it possible to achieve the environmental goals within the concept of sustainable development. Changing the worldview of mankind requires the application of contemporary approaches for managing the projects of eco-logistics systems that meet the requirements for reducing the eco-destructive impact on the environment.

The need to take into consideration and eliminate the negative consequences of the functioning of the eco-logistics system has led to the need to prolong the life cycle of the project through the introduction of additional environmentally-oriented phases: regenerative and revitalization. Changing the composition of a life cycle affects the cash flows generated throughout the life cycle of the project that are dependent on the factors of the internal environment and the external environment. One of the most complicated issues in assessing the effectiveness of the project of the eco-logistics system is the modeling of cash flows at different stages of the project.

The project management methodology has been applied to determine the cash flow generated during the project lifecycle. The reported results reflect the interrelation between the time and monetary parameters of the project of the eco-logistics system. The existence of a given interdependence has made it possible to develop a mechanism for modeling the cash flows of the project, taking into consideration two variants for determining the duration of its life cycle (strictly and broadly defined). Depending on the possibility to influence the duration of the project life cycle, it is envisaged to apply situational or compensatory changes in the duration of time stages, which affects the value of the project’s cash flows. The application of the estimation formulae given in this work makes it possible to model cash flows for stages, time intervals, and the entire life cycle of the project of the eco-logistics system. The proposed mechanism of cash flow modeling could be applied in assessing the effectiveness of the project of the eco-logistics system.

Author Biographies

Tetiana Kovtun, Odessa National Maritime University, 34, Mechnikova str., Odessa, Ukraine, 65029

PhD, Associate Professor

Department of Logistic Systems and Projects Management

Victoriya Smrkovska, Odessa National Maritime University, 34, Mechnikova str., Odessa, Ukraine, 65029

PhD

Department of Logistic Systems and Projects Management

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Published

2020-12-30

How to Cite

Kovtun, T., & Smrkovska, V. (2020). Development of a cash flow model for the eco-logistics system project. Technology Audit and Production Reserves, 6(2(56), 26–33. https://doi.org/10.15587/2706-5448.2020.220964

Issue

Vol. 6 No. 2(56) (2020): Information and control systems

Section

Systems and Control Processes: Original Research

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Copyright (c) 2020 Tetiana Kovtun

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