THE IMPACT OF SUPPLY CHAIN MANAGEMENT ON CASH LIMIT PLANNING

Abstract

The article examines the relationship between supply chain management and corporate cash balance planning. It is shown that traditional liquidity optimization models, focused on internal cash flows, insufficiently account for the impact of material flows — procurement, production, and sales — on cash flow dynamics. The purpose of this paper is to demonstrate how decisions in the area of supply chain management affect cash balance planning and to propose approaches to integrating these two areas. The main attention is paid to the phenomenon of the "cash flow bullwhip effect," which arises due to shortage gaming and order rationing, as well as its impact on cash balance volatility. Factors linking supply chain management and liquidity are analyzed: the duration of operating and financial cycles, payment deferral terms, and inventory management policies. Channels of volatility transmission from material flows to financial flows through inventories, credit policy, and information exchange are examined. Practical tools for integrating supply chain management and cash balance planning are proposed, including flexible payment policies, collaborative forecasting, and financial solutions embedded in the supply chain. The conclusion is made about the need to transition from isolated cash balance management to integrated working capital management across the entire supply chain.