Valuation of inventories has different purposes, in particular accounting and decision making, and it is not necessary for a firm to use the same valuation method for both purposes. In fact, it is not uncommon to use accounting books as well as management books. In this chapter, we will only consider inventory values from the perspective of decision making. More specifically, we will analyze the effect of inventory valuation on inventory control decisions (and not the corresponding financial results) for systems with product recovery.
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Paper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number
EI 2003-29 Revision_Date: 2009-07-29.
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Brito, M.P. de & Dekker, R., 2003.
"A Framework for Reverse Logistics,"
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ERS-2003-045-LIS Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
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