Yan et al. (2020a, b) examined two financing strategies—loan and investment—for the financing of a capital-constrained supplier by a risk-averse retailer. In another study, Yan et al. (2020b) analyzed the pricing competition in a dual-channel supply chain consisting of one e-retailer that provides financing to a capital-constrained supplier. Huang et al. (2020) compared trade credit financing (TCF), credit guarantee financing, and buy-back guarantee financing as three types of SCF modes. They provided managerial insights for the application of these financing modes. Table 1 compares previous literature against the current paper, with the contributions of this study shown in bold and italic font. They considered both inventory and financial decisions in their coordination schemes.

Consumption and economic outcomes

It is an urbanized area council with a host of notable districts such as Garki, Jabi, Asokoro, Wuye, Utako, and Gwarinpa. The Federal Capital Development Authority (FCDA) operates under FCTA and was set up to manage the building and infrastructural development of the urban area. Being a planned city and strategically situated city, Abuja is home to multiple cultures and religions.

To navigate capital rationing challenges effectively, it is essential to evaluate the viability of each project. This involves conducting thorough financial analysis, assessing the project’s cash flow projections, and considering factors such as payback period, net present value (NPV), and internal rate of return (IRR). By rigorously evaluating project viability, companies can make informed decisions about resource allocation. As previously mentioned, combining supply chain coordination and financial decisions is a relatively new research area and needs more attention and extensions to real-world assumptions. In this stream of literature, some important financial issues, such as budget constraints and different financing options, have not been addressed in many of the existing works.

Leveraging technology can play a significant role in optimizing working capital and overcoming constraints. By harnessing the power of technology, businesses can streamline processes, enhance efficiency, and make informed decisions to maximize their working capital. Linear programming is a mathematical technique used to optimize resource allocation. It involves formulating a linear objective function and a set of linear constraints to determine the optimal allocation of resources among different projects.

Coaches were men or women from the village, generally selected for their capacity to advise on income-generating activities and to represent the group for service providers and market agents. Coaches facilitated the implementation of group-based programme activities, including promoting the attendance of beneficiaries at meetings and coordinating with service providers. They led group-level coaching sessions, during which challenges and opportunities for income-generating activities were discussed. The group-level coaching sessions occurred during weekly savings group meetings, as described below. After repeated humanitarian interventions in response to shocks and food insecurity, the Government of Niger set up a social protection system.

Weird Words for Autumn Time

In contrast to our research, in their study, the upstream member (supplier) is capital-constrained and needs financing from the downstream member (manufacturer). Capital rationing is a common phenomenon in many organizations, especially those that operate in competitive and dynamic markets. It refers to the situation where a firm has more profitable investment opportunities than it can finance with its available capital. In such cases, the firm has to select a subset of projects that maximizes its value, subject to the budget constraint.

• Effective working capital management ensures that a company can meet its short-term obligations, maintain liquidity, and invest in growth opportunities.
• Abuja is not only the administrative heart of Nigeria but also a city that reflects the country’s hope for a prosperous and harmonious future.
• It’s worth noting that the administration of Abuja differs from other Nigerian states due to its unique status as the seat of the federal government.
• In the realm of healthcare, the provision of hospice care stands as a testament to the human…

During the 1980s the new capital city was built and developed on the grass-covered Chukuku Hills. Maitama District is to the north of the city, with the Wuse and Central Districts lying to its southwest and southeast, respectively. This area is home to the top-bracket sections of society and business and has the reputation of being very exclusive and very expensive. Interesting buildings include the Transcorp Hilton Abuja,63 Nigerian Communications Commission Headquarters (NCC), National Universities Commission (NUC), Soil Conservation Complex, and Independent National Electoral Commission (INEC). IPA did not exist prior to the Nigerian Government’s engagement with an internationally reputable firm to design the master plan. IPA was formed by a consortium of three American firms which won the worldwide competitive bidding.

REPORT OF THE AUDITOR-GENERAL FOR FCT AREA COUNCILS ON THE GENERAL-PURPOSE FINANCIAL STATEMENTS

Browse traditional crafts, textiles, and artwork while interacting with local artisans and experiencing the rich heritage of the Nigeria capital. Traditional dishes from across Nigeria are readily available, alongside international cuisines. Local delicacies like suya (spiced grilled meat), jollof rice, and pounded yam with egusi soup are popular among residents and visitors alike.

• IPA did not exist prior to the Nigerian Government’s engagement with an internationally reputable firm to design the master plan.
• This position is equivalent to that of a state governor in other parts of Nigeria.
• It serves as the lifeblood of daily operations, allowing businesses to meet short-term obligations, fund production, and invest in growth opportunities.
• The capital constraint necessitates a phased approach—perhaps retrofitting existing plants first and gradually investing in renewable energy projects.
• As Abuja’s largest public park, this green oasis offers a refreshing escape from the city’s bustle.

Understanding the fundamentals of capital planning and allocation

Note that the word capital as used to describe an uppercase letter, like in the phrase capital “C”, utilizes capital. It lies in the central part of Nigeria, in the Federal Capital Territory (FCT; created 1976). The city is approximately 300 miles (480 km) northeast of Lagos, the former capital (until 1991).

Capital rationing implies that you have to forego some investment opportunities in order to pursue others. Therefore, you should always consider the opportunity cost and trade-offs of each option, and compare them with the expected benefits and returns. Opportunity cost is the value of the next best alternative that you give up when you make a choice. Trade-offs are the sacrifices or compromises that you have to make when you choose one option over another. Similarly, if you invest in a project that has a low NPV but a short payback period, you may have to sacrifice some profitability and growth potential in the long term, which could affect your ability to compete or survive in the market.

However, a growing body of evidence suggests that constraints can actually serve as a powerful catalyst for innovation. When resources are limited, individuals and organizations are forced to think outside the box and come up with novel solutions to complex problems. This phenomenon is particularly evident in the context of capital rationing constraints, where limited financial resources compel companies to prioritize their investments and explore unconventional strategies to achieve growth and success.

These results also show that government-led multi-faceted interventions can be effective. We will introduce some methods and tools that can help solve linear programming models, such as graphical method, simplex method, and Excel solver. We will also discuss some issues and limitations capital constraints of linear programming, such as sensitivity analysis, integer programming, and nonlinearity.

Largent noted that OSF employs a system contingency fund constituting about 10% of its total capital constraint (i.e., its cash flow available for capital) to manage capital requests outside of the annual capital cycle. OSF has also standardized out-of-cycle capital requests to align with the overall capital allocation process. A key to successful capital-allocation decision-making is the ability of management to stay within the defined process. Regardless of disruption to the environment, this discipline will ensure continued integration of strategic, financial and operating plans. As a result, the organization will be able to balance strategic opportunities with financial capabilities and ensure that capital is deployed to meet the organization’s adjusted needs without weakening its financial integrity.