Optimisation of the Costs of Rebates Using the Monte Carlo Method

Abstract

In the paper, the use of Monte Carlo method to simulate the costs of rebates allowed by the analysed Polish open-pit rock mineral resources mine was proposed. Allowing rebates to recipients of products or services is one of accounts receivable management methods. In this paper, the Monte Carlo method is used to determine the expected value of allowed rebates in the following steps of analysis by using an appropriate algorithm. The application of the method was presented on the data of Polish open-pit mine and its selected customers. The selection was based on high numbers of monthly transactions.