Proposed Project for the MSU Industrial Math Students

Revenue Analytics and Financial Forecasting

This project involves creating a new cash flow model for L&S Associates, Inc. Before the revenue is paid to L&S multiple steps occur. The cash flow model has to take all these steps into consideration. The company revenue model is such that the company will get paid only if successfully finishes the case assigned to it by the client. It is important to note that average payments from clients differ because of the variation in contract rates. Also there is a difference in the acuity of services provided by the clients as well. Success rates vary depending on a number of other factors.

At any point there is a large inventory of cases at identifiable stages of the cash generating process. L&S would like a cash flow model to use the extra insight of knowing what stage cases are at when forecasts are made. Using this information will make the work more challenging but should greatly improve the result.

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