Enterprise financial flows simulation on a car dealership example
Authors:   National Technical University of Ukraine «Igor Sikorsky Kyiv Polytechnic Institute», Mazhar Glib , Parkhomuk Amina ,   National Technical University of Ukraine «Igor Sikorsky Kyiv Polytechnic Institute»
Published: December 2024

In today's business environment, ensuring financial sustainability is a crucial factor for the success of enterprises. In this context, simulation modeling is becoming increasingly important as a tool for managing financial flows. The main objective of this study is to organize the knowledge in this area and determine the optimal approaches to the use of simulation models in financial management. The study is aimed at improving the efficiency of financial management and developing evidence-based strategies.

The purpose of the study is to determine effective financial management strategies through the use of simulation models and their impact on the financial stability and profitability of the enterprise. The object is the management of financial flows in organizations of various types and sizes. The results of the study can be useful for the management of car dealerships and other enterprises that optimize financial processes. The paper uses methods of mathematical and economic analysis, including agent-based modeling, Monte Carlo simulation, and simulation modeling.

In the course of studying the problem of financial flows management, simulation modeling as a tool for analyzing and forecasting finances is investigated. Its potential and capabilities in the context of financial management are described.

The main factors and variables that affect financial flows in organizations are identified, in particular, the impact of economic, social and technological factors on the financial sustainability of enterprises is considered.

In order to analyze the simulation modeling tool for managing the financial flows of an enterprise, the article takes as an example a company that purchases electric vehicles from China and sells them in Ukraine. The system took into account the probability distributions of random factors that arise during order processing, execution of a contract with a client, and the direct ordering and delivery of a car from China.

Practical experiments with the simulation model were carried out to evaluate various financial management strategies, which allowed us to identify effective strategies for managing financial resources.

This model can be used by car dealership managers to facilitate management decision-making. The head of a car dealership that purchases electric vehicles from China and sells them in Ukraine makes decisions about suppliers, purchase volumes, pricing policy, and financial flow management, taking into account risks and opportunities. The optimization experiment implemented in the model allows choosing the best strategy and exploring “shock” situations.

The sale of “Chinese cars” in Ukraine is an important step towards localizing production in the country. This creates real opportunities for the revival of the automotive industry, including the production of electric cars. We hope that this experience will give a powerful impetus to Ukrainian manufacturers, stimulating the development of technologies, creating new jobs and strengthening the country's economy. Further integration with global markets and an innovative approach to production can be the key to the success of the national automotive industry.

In this study, simulation modeling methods have been further developed, allowing for more accurate analysis and forecasting of financial flows in business. For the first time, the problem of delivering electric cars from China to Ukraine was formulated and solved, taking into account specific logistical and economic conditions. This study demonstrates new approaches to optimizing financial management in the face of uncertainty and risks associated with international supply. The results can be useful for the management of car dealerships and other businesses seeking to improve the efficiency of their financial operations and ensure sustainability in a competitive market.